Bharat Forge sets sight on Chinese firms

Bharat Forge, the flagship company of the Rs 1.25 billion Kalyani group, is looking at China for acquisitions following its successful takeovers in US and Europe.

"We are working on it (plans for acquiring a company in China)," said Baba N Kalyani, chairman and managing director of Bharat Forge.

With China's auto industry growing rapidly, the market offers ample opportunity for the components sector, and specially for a company like BFL, the world's second largest forgings company.

Asked about the investments that the company was planning for China acquisitions, Kalyani declined to specify numbers.

"It would depend on the size of the acquisition," he said.

He said the company having been actively involved in inorganic growth, it was now focussing on consolidation.

"We are now focussing on consolidation of the various companies that we have acquired and it is a stated policy that we would like to grow organically," he said.

On the possibilities of further acquisition in US, specially, facilities of the bankrupt US components major Delphi, which are up for sale, Kalyani said Bharat Forge was not interested in buying.

"No, we are not planning any acquisition of Delphi's facilities," he said.

BFL had earlier this year acquired Federal Forge Inc in US, through its wholly owned subsidiary Bhatrat Forge America Inc for $ 9.1 million.

Recently, the company also took over the manufacturing capacities of Imatra Kalista AB Sweden.