With the US slowdown expected to continue for some more time, Bharat Forge is now looking at greener pastures and has started tapping at markets in Europe and south America.
The company has already commenced bulk supplies of critical axle components to DaimlerChrysler in Germany. Export orders from other original equipment manufacturers in Europe and other non-US markets are under negotiations.
Besides, Bharat Forge has set on a diversification course in its product portfolio by entering into the oil and gas segment.
It has already made a breakthrough in the selling of high pressure forged products to clients in this sector totalling at around $2 million last fiscal which comprises 10 per cent of the exports of the company.
The company's exports in fiscal 200-2001 dropped by 23.21 per cent to Rs 85.09 crore (Rs 110.82 crore). Domestic sales dipped marginally by 2.99 per cent to Rs 455.43 crore (Rs 469.51 crore).
On the financial performance in fiscal 2000-2001, Kalyani admitted, "the company's financial performance has not been in line with expectations. During the past 12 months, the company has learnt hard lessons of how adverse market conditions in the domestic and global economies can impact its working. It has responded through strategies that have included massive cost reduction and implemented several measures to improve organisational efficiencies. What is therefore a matter of some satisfaction for the company is that, as a result of these initiatives, it has been able to post a net profit in a year when most forging companies are struggling to survive."
Kalyani expects the company to emerge stronger from the current phase as it has survived and overcome several economic downturns in the past.
