Bharat Forge to set up Rs 350 cr plant

Auto components major Bharat Forge (BFL) plans to invest Rs 350 crore in the next two years for setting up a plant to make forgings for the power, mining and aerospace sectors.

After the company's annual general meeting on Saturday, Chairman Baba Kalyani said the new plant would make forged components for the power, mining and aerospace sectors, which were poised for tremendous development in India.

"The company expects to earn Rs 1,000 crore in revenues from the non-auto sectors," Kalyani said.

"Power generation has been given priority by the government and we expect to get business opportunities from power generation equipment manufacturers. Power turbines use forged components where we have developed capabilities," Kalyani said.

He added that the company would benefit from the 'off-set' clause in the aircraft purchase agreement which the government had signed. The clause makes it obligatory for aerospace companies to source at least 30 per cent of the components from Indian vendors.

Similar opportunities would also come in from the mining sector which was expanding fast, he noted.

The company earns 17 per cent of its revenues from non-auto sectors. It plans to start the new facility near the Pune plant, subject to land availability. Kalyani said the company would continue to acquire overseas firms to become a leading player in forgings domain.

"We are progressing steadily towards that objective and time is not far when we reach it," he said.