The Hindu Business Line : Bharat Forge board okays fund raising plan

Mr Amit Kalyani, Chief Technology Officer, told Business Line that the funds raised would be a judicious mix of debt and equity and was likely to be completed within the next four months. It would be utilised for heavy forging manufacturing, heavy-duty crankshaft manufacturing and passenger car components forgings at its plant in Mundhwa.

Close to this new venture, a testing and validation centre is also being set up and is expected to be ready by June. The equipment would be put in place within the next 24 months and is likely to be sourced from Germany, Japan and the US.

The new venture would increase the company's production capacity by more than 50 per cent. At present, the production capacity is 1,20,000 tonnes per annum for forgings and 4,00,000 crankshafts per annum, Mr Amit Kalyani said.

Mr Baba N. Kalyani, Chairman and Managing Director, said supply to the automotive giants, Ford and Daimler Chrysler, is expected to begin by the middle or end of this year. This would mark the company's entry into the passenger car segment as it had only been focusing on the commercial vehicles. He, however, refused to comment on the volumes that would be exported.

Earlier, the company was planning to set up two additional press lines to cater to the passenger car business with a capacity of two million pieces per year and a third press line with a capacity of three million pieces per year.

Mr Kalyani said the board has also approved the acquisition of fixed assets, inventory and business of CDP (Carl Dan Peddinghaus GmbH & Co.) KG of Germany, a manufacturer of steel forgings and components for automotive applications. This would be effective January 1, through a special purpose vehicle (SPV) to be incorporated in Germany.

He said to part finance the acquisition, the company has proposed to subscribe and/or invest up to euro 11 million (approx Rs 62 crore at the prevailing exchange rate) in the capital of SPV in Germany. Investment for this SPV would come in from internal accruals of Bharat Forge.

The synergy between the two companies, include geography, as CDP is strong in Europe and Bharat Forge in Asia and North American markets. CDP is well known in the car components segment and Bharat Forge in engines, Mr Kalyani said adding that it gave larger product offerings to its customers globally and deeper penetration into the passenger car segment.

More Stories on : Announcements | Bearings | tings & Forgings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bharat Forge board okays fund raising plan

IP Rings to make synchrocones, gears from June

Honda cuts prices of City, Accord

GAIL announces 40 pc interim

NEPC bags order from Vishal

SEBI halts Ondeo Nalco open offer plan

Manipal co unveils healthcare BPO

Cost accountants irked by exemption to milk food cos

VRS option in FACT extended till Jan 31

Guj Ambuja Exports merger

BIFR nod for winding up IDPL

Pritish Nandy sets sights on `BPO' from foreign films

Praxair India has new MD

4 TN cos jointly buy aircraft for exec travel