Bharat Forge scaling up its non-auto business

11831 Investors following Bharat Forge. Share this News with them.

0

Like this story, share it with millions of investors on M3

Bharat Forge scaling up its non-auto business

Bharat forge, the world's second-largest auto component manufacturer is looking at scaling up its non-auto business. The Kalyani group is looking at acquisitions in n America and Europe in areas like infrastructure, mining, power and oil & gas reports CNBC-TV18.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See latest News about Bharat Forge See previous management interviews See what other Experts & Brokerages are saying about Bharat Forge Bharat Forge BSE | NSE 25/05/12 Are Mutual Funds betting on Bharat Forge?

Bharat Forge, the world's second-largest auto component manufacturer is looking at scaling up its non-auto business. The Kalyani Group is looking at acquisitions in n America and Europe in areas like infrastructure, mining, power and oil & gas reports CNBC-TV18.

India's largest auto component manufacturer wants to de-risk. Given the current slowdown in the auto sector, Bharat Forge says it is keen to expand its non-automotive business. The automotive business contributes almost 82% of the company's current revenues while a minute 18% comes the non-automotive business. The company hopes to scale revenues from the non-auto side to 40% in the next 5 years.

The next wave of growth for Bharat Forge seems to be from the non-automotive business. The company is going to focus on areas like infrastructure, power, oil and gas, railways, aerospace, railways. The company is looking at acquisitions in North America, and Europe.

Infact, the company has recently acquired Germany's wind turbine maker RSB consult GmbH. Initially, the group will focus on Europe and India and by 2010 expand to other key markets of the world such as the US and China. One concern though, is the rising rupee, which has hit Bharat Forge's margins in the first quarter as 75% of the company's revenues come from its international business. The company hopes to bring margins back on track by the end of the year.