Bharat Forge plans second unit in China

Forgings and auto components manufacturer Bharat Forge (BFL) is expanding the manufacturing capacity in China from 100,000 tonne per year to 135,000 tonne.

Baba Kalyani, chairman and managing director, BFL said the joint venture in China - FAW Bharat Forge - will invest about $20 million to add capacity by setting up a second plant. "The Chinese JV is progressing as projected, and is expected to turn in a reasonable profit this year," he said.

The JV, set up two years ago, supplies forged components to players in light, medium and heavy commercial vehicles.

The company will have internal capacities and scales to be an important forgings player in the Chinese market, especially in high-end products by the end of 2008-09, Kalyani added.

Kalyani earlier told shareholders that the Rs 350 crore expansion plan is progressing as planned, and the capacities at Baramati as well as Mundhwa will be commissioned in mid-2008.