Bharat Forge to fuel growth by 'forging' acquisitions
Bharat Forge (Kalyani group) has outlined plans to acquire companies in the local/overseas market.
Bharat Forge Ltd (BFL), is India's largest and most advanced forging unit. The company caters mainly to the requirements of the heavy and light commercial vehicle segments and the original equipment manufacturers (OEMs). It is now taking steps to focus on small forgings to cater to the needs of the car and two-wheeler manufacturers.
BFL does not have a presence in the northern and southern parts of the country and is looking for acquisitions in these regions. Rather than go in for a greenfield project, which could prove expensive and time consuming, it has decided to acquire an existing unit. An acquisition in these markets will help the company serve its local clients more efficiently cutting down time and cost overruns.
Not satisfied with the growth in the domestic market, the company has ambitious plans to tap the overseas market for acquisitions. However, the company's operations in international markets are at a miniscule scale, and it remains to be seen how much value an acquisition can add to it. Competition in overseas markets is much stiffer and the company will have to do more than just acquire companies.
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