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Bharat Forge says total shift to e-mobility will hit revenue by 10-12%

CMD Baba Kalyani says the automobile industry is beginning to see tectonic shifts that may cause stress to part of Bharat Forge's business

July 20, 2021 / 11:51 AM IST
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The shifting of demand for vehicles powered by petrol or diesel to electric motors will hit the business of Bharat Forge by 10-12 percent in the long term if internal combustion engines are totally phased out.

However, its continued focus on electric mobility (e-mobility) will help make up for the loss of revenues, a top company official said.

“I had mentioned that technology will cause tectonic shifts in the automotive industry. This is already visible to some extent especially in the personal mobility space. A part of our business is exposed to this shift and may come under stress in the medium term,” Baba Kalyani, Chairman and Managing Director, Bharat Forge said.

Bharat Forge is one of India’s largest forging companies and one of the country’s largest exporters of auto components. The company has interests in other sectors like power, construction and mining, oil and gas, defence and aerospace. Kalyani was addressing shareholders in the FY2020-21 annual report.

“In the worst-case scenario of complete shift away from internal combustion engine (ICE), we predict a hit of 10-12 percent on our business in the medium- to long-term. The E-mobility business and other verticals we are focusing on will more than make up for this loss of revenues,” Kalyani added.


Bharat Forge aims to achieve 5-6 percent market share by 2025 in the e-mobility space (two and three wheelers, trucks and buses) with the help of Kalyani Powertrain (KPTL), a separate subsidiary which houses the e-mobility business, set up in FY21.

KPTL is talking to vehicle manufacturers and fleet operators about offering its e-mobility platform. “KPTL has made tangible progress during the year having initiated discussion with OEM/ fleet operators to provide solutions for the e-mobility platform,” Kalyani added.

Bharat Forge ventured into the e-mobility business in 2016 by forming a separate vertical and establishing a formal e-mobility strategy. The Pune-based company is targeting opportunities across two-wheeler, three-wheeler, four-wheeler, bus and truck electrification, ranging from providing sub-systems to complete electric powertrains as well as light-weight structural components.

The company offers a range of modular and customized solutions for electric powertrains with the ability to integrate mechanical and electrical components, as well as complex hardware of various configurations and embedded software; becoming a one-stop solution for e-mobility.

According to an independent study by CEEW Centre for Energy Finance (CEEW-CEF), the Indian electric vehicle (EV) market is predicted to be a USD 206 billion opportunity by 2030.

This includes sales of battery electric vehicles, plug-in hybrid electric vehicles, retrofitting of old ICE vehicles as well as the charging infrastructure. India Energy Storage Alliance (IESA) expects EV sales to grow at CAGR of 44 percent during the period of 2020 and 2027 to hit 6.34-million-unit, primarily led by two and three wheelers.

Bharat Forge is looking to acquire 175 acres in an industrial park near Pune for Rs 240 crore which will house new factories for its defence and electric mobility business divisions. These new assets which will come up at Khed City, will manufacture speciality vehicles, certain systems and aggregates that go into artillery guns and an assembly plant which will also house a testing facility.
Swaraj Baggonkar
first published: Jul 20, 2021 11:51 am

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