Bharat Forge strikes big in US

Inks supply pacts with Toyota and Honda.

Bharat Forge, world's second largest forgings company, will supply products to the US operations of Japanese auto giants Toyota and Honda.

Currently, Bharat Forge supplies auto components only to the Indian operations of Toyota and Honda.

"We are close to sign an agreement to supply forged auto components to the US-based operations of Toyota and Honda. The supply should start within few months," said a senior official in Bharat Forge. The official did not divulge further details.

This will be the first time that the company will be supplying components to Japanese auto companies outside India, said senior officials in Bharat Forge.

The company supplies components to the US operations of DaimlerChrysler, General Motors and Ford. The company also supplies components to tier II manufacturers such as Arvin Meritor, ZF Lemforder, and Good Year.

Bharat Forge started its US operations after the acquisition of Michigan-based Federal Forge Inc.

The company rechristened as Bharat Forge America manufactures a variety of forged automotive components such as control arms, links, steering knuckles, and connecting rods. For the year ended December 2005, Bharat Forge America reported a turnover of $85 million.

"Bharat Forge's US operations has manufacturing capacity of 60,000 tonne. However, the capacity utilisation is less than 50 per cent. With the inclusion of Honda and Toyota as our new customers, the capacity utilisation will be significantly enhanced," said the official.

Bharat Forge, during the year ended March 2006, registered exports to the tune of Rs 655 crore, 49 per cent of which came from the US exports.

The company has registered revenues of Rs 1,631 crore, a growth of 33 per cent over the previous year and net profit of Rs 207 crore, 28 per cent growth over the previous year.