Bharat Forge enters aerospace sector, signs four contracts

Mumbai: Auto components maker Bharat Forge Ltd (BFL) on Wednesday said that it has entered the aerospace sector by signing four contracts. The company did not clarify further on either its customers or the opportunities it aims to pursue in the sector.

To be sure, the company has been supplying components and so called sub-systems for the Indian defence establishments. BFL, the flagship company of the $2.4 billion Kalyani Group, has been focusing on components, artillery gun programmes and other services businesses under the defence vertical.

In a filing to BSE, BFL said that all capital expenditure plans are in place to capture the growth opportunities in the defence sector.

Prime Minister Narendra Modi’s emphasis on defence and aerospace equipment as part of the ‘Make in India’ campaign to encourage manufacturing and attract foreign investment has led many companies to seek licences to make defence equipment.

BFL said it has zeroed in on four sectors such as mining, power, railways, marine and defence under the Make-in-India initiative and created a dedicated cross-functional team to identify opportunities in these areas.

In an investor presentation, which has been filed with stock exchanges, BFL said by 2018 the company will be net debt free and double the revenue to Rs.7,000 crore. It has a total debt of Rs.2,546.42 crore as on 31 March 2015.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.