Bharat Forge to renew focus on non-auto business, exports
25 May 2011
Pune-based Bharat Forge, known mainly as a major manufacturer of auto parts like chasses and diesel engines, plans to increase focus on its non-automotive business, which grew by 90 per cent in the last fiscal.
The company also sees the currently strong export demand as a key driver of growth, despite concerns over rising fuel prices and interest rates.
''FY 2011 saw the company come back on the growth path with strong momentum for operations within India and … significant improvement in performance of overseas subsidiaries,'' chairman and managing director Baba N Kalyani said in a statement.
''Despite some signs of softness in the domestic automotive market, we are confident of continuing the growth trajectory in the coming year on the back of strong global demand,'' Kalyani added.
The non-automotive segment's contribution to standalone sales of Bharat Forge rose 37 per cent in fiscal 2011 against 30 per cent in the previous fiscal. On a consolidated basis, the non-automotive contribution rose to 25 per cent in the year as compared 20 per cent in the previous fiscal.
In fiscal 2011 non-auto became the single-largest business segment for company's Indian operations.
The company plans to spend Rs200-250 crore as capital expenditure in the next two years, of which 50 per cent would be spent on the non-automotive business. The company has set up two plants for its non-automotive business in Baramati and Pune.
