Bharat Forge's leadership outlined a clear vision for the company's trajectory, emphasizing a careful approach to expansion and diversification. During an exclusive interview with CNBC-TV18, when talking about future opportunities for growth, the company emphasized their commitment to making sure any new businesses they get into are of high quality and can last for the long term.
Baba Kalyani, Chairman and Managing Director of Bharat Forge Limited, a part of the Kalyani Group based in Pune, shared ambitious plans for the company's future growth. Kalyani expressed confidence in reaching an overall revenue target of Rs 20,000 crore within the next two years.
Anticipating significant expansion in the defence sector, Baba Kalyani mentioned that in the upcoming years, the defence business could potentially surpass the company's core business in terms of size.
"Should get to Rs 20,000 core in overall revenue in the next 2 years. In the next few years, defence business may become bigger than our core business. Defence business will grow faster than other verticals, said Baba Kalyani.
Adding to the strategic outlook, Amit Kalyani, Bharat Forge's joint managing director, provided insights into the company's approach to acquisitions. He stressed that any future acquisitions would be carefully chosen, with a focus on businesses in India. Amit Kalyani specifically highlighted a preference for high-quality and well-managed companies, underscoring the company's commitment to steering clear of distressed businesses.
"Going forward acquisitions will be very selective. We will make acquisitions in India. Will acquire businesses that are high quality and well run. Will not buy businesses that are in distress," said Amit Kalyani.
Bharat Forge Limited for the September quarter witnessed a robust 52 percent increase in its consolidated net profit, driven by contributions from all businesses. Consolidated net profit for the quarter stood at Rs 2148.65 crore against Rs 1415.56 crore a year ago. Revenue soared 22.7 percent to Rs 3,774.19 crore, with a 21 percent increase in both export and domestic revenue.
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