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Global Footprint of the Company
BFL began its global journey in the early eighties as an exporter to the former Soviet Union. Since then, the company has also been exporting to the European, Japanese and American markets.
Through the inorganic route, the company has been expanding its operations in countries such as the USA, China and Europe, and it expects to become the largest forging company in the world.
Company Background
Bharat Forge Limited (BFL), a division of the US$ 1.5 billion Kalyani Group, was established in 1961 in collaboration with US-based company, Steel Improvement and Forge (SIFCO). BFL began operations in 1966 by setting up a plant in Mundhwa, India.Today, BFL is among the largest manufacturers of forged and machined components in the world.
BFL is one of the world's leading manufacturers of chassis components and the largest Indian exporter of auto components. It manufacturers a wide range of safety and critical components for passenger cars, commercial vehicles and diesel engines. It also specialises in manufacturing components for the railway, construction and oil and gas industries.The company provides end- to-end solutions from product conceptualisation to designing, and finally manufacturing, testing, and validation. For FY 2006, the company registered revenues of US$ 678 million and employs a workforce of over 7,000 personnel.
BHARAT FORGE LIMITED
North America Europe Asia-Pacific
US: Bharat Forge America Germany: CDP Bharat Forge and Bharat Forge Aluminiumtechnik
Sweden: Bharat Forge Kilsta China: FAW Bharat Forge Scotland: Bharat Forge Scottish Stampings
Subsidiaries of Bharat Forge in Different Continents
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In 2005, BFL acquired US-based company, Federal Forge.This acquisition enabled the company to become a full-service provider and establish a strong presence in the USA.
The company currently has an employee strength of 185. BFA specialises in manufacturing closed-die hot forgings ranging from 1 lb to 100 lbs,
connecting rods, control arms, crankshafts, hooks, king pins, knuckles, light-truck axle beams, links, spindles, steering arms, military track shoes, and yokes. BFA has an annual forging capacity of approximately 60,000 MT, and is also capable of handling micro-alloy material for high-end ferrous forging.
BFA caters to clients' forging requirements, including machined crankshafts, front axle beams, and steering knuckles for some of the top US automotive players.The company generated US$ 52 million in revenues from its operations in North America and expects to achieve US$ 100 million in sales by 2008.
Over the years, BFL has acquired US-based Federal Forge, Sweden-based Imatra Kilsta AB, and its subsidiary Scottish Stampings Limited, along with a 52 per cent stake in China's First Automotive Works. Currently, it has its manufacturing
operations across six countries and nine locations - two in India, three in Germany, and one each in Sweden, Scotland, the USA, and China.The consolidated capacity of BFL is around 600,000 MT per annum, which is the largest in the world.
Bharat Forge
in the United States of America
Mode of Operation
BFL operates in the USA through its subsidiary Bharat Forge America Inc. (BFA), which is located in Michigan.
Overview
BFL's US journey began in 1990, when it initiated exports to Rockwell (now known as ArvinMeritor), the largest front axle manufacturer in the world.
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Acquisition Strategy
Over the past few years, BFL has been employing the acquisition strategy to expand its geographical reach and product portfolio. By adding clients to its customer base through the US acquisition, BFL has been able to de-risk its heavy truck chassis component business. In addition, acquisitions have also facilitated the company in establishing relationships with global customers through long- term contracts. It has also established its presence in the US in new business areas such as heavy-duty engine part components, passenger car engine components, and value-added parts to non-auto sectors such as oil and gas.
Future Plans
BFL plans to collaborate with global OEMs to increase its market share in the global auto component industry. It also plans to expand its product portfolio and de-risk its business.
BFL is planning to leverage the benefits of its US-based manufacturing facility to expand its footprint throughout the NAFTA zone.
Success Factors
Strong Manufacturing Base
BFA's innovation in material selection and manufacturing process enables it to deliver quality and value in the US market, unmatched by any other forging company.The company's manufacturing base in the USA is in close proximity to the US automotive industry.This has helped the company in becoming the preferred supplier of performance-critical components for engines and safety-critical components for chassis.
Unmatched Quality
and Comprehensive Offerings
Over the years, BFL has focused on delivering best-in-class quality products to its customers.
With its expertise in automotive components, the company offers its clients process-engineering advantages such as in-house customised equipment and tool manufacturing, process designing, and product innovation capabilities.This enables the company to cater to its US customers through comprehensive offerings and focus on continuous improvement.
Strong Brand Name
Bharat Forge is one of the largest manufacturers of forged and machined components. It is
renowned globally for its quality products.
Over the years, Bharat Forge has established its brand globally.
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