Bangalore-based Bharat Fritz Werner Limited (BFW), a manufacturer of machine tools, has drawn up an ambitious plan to expand its business through both organic and inorganic routes for a capital expenditure of Rs 350 crore over the next five years.
“We are actively looking at acquisition of small and medium sized machine tool companies in Europe. We have shortlisted some companies in Germany, Italy and Spain, and are in advanced talks with them,” S N Mishra, vice chairman, BFW, said.
Though the company is yet to decide on the exact amount of investment for acquiring companies, it has set apart Rs 150-160 crore for the purpose, he said.
He told reporters here today, BFW plans to carve out its aerospace and spindles business divisions into two separate subsidiaries to grow the business. The company is also looking at setting up two separate manufacturing units for aerospace components and spindles. Spindles are used in manufacturing metallic components.
He said, the company has earmarked Rs 33 crore towards setting up a new plant for manufacturing machine tool spindles in Hosur and plans to acquire around 30 acres for the purpose. The plant, which will come up in the next one year, will cater to the needs of machine tool builders and users worldwide. The spindles will be in the range of 2,500 rpm to 24,000 rpm to match typical requirements.
It is also setting aside Rs 45 crore for setting up a new unit to manufacture aerospace components at its existing plant in Bangalore. It had ventured into aerospace business two years ago and has acquired AS9100B certification and the Defence Offset Facilitation Agency (DOFA) licence.
The company has also earmarked Rs 115 crore to acquire new machinery and add shop floors to accommodate new lines of products from its existing factory in Bangalore, he said.
“The machine tool industry is poised for an exponential growth and BFW wants to be one of the key drivers of this growth. Over the past four decades we have been constantly innovating and delivering new products. We are looking at an exciting and aggressive growth for us and the industry in the years to come,” Mishra said.
Shailesh Sheth, director, BFW, said the company expects to secure significant orders from aircraft makers and defence sector as a result of offset clause. It has already secured an order from Hindustan Aeronautics Limited (HAL) for the supply of small precision-machined components like turbine blades for jet propulsion engine made out of special aluminium alloy metal.
“We are also in talks with some 15 companies abroad for manufacturing aerospace components and hope to bag sizeable orders in the near future,” Sheth said.
BFW is likely to close the present fiscal with a turnover of Rs 330 crore, a growth of 65 per cent over last year.
