Industry profile: India has overtaken the United States to emerge as the second-largest casting producer, behind China last year. The production in the country stood at 11 Million tonnes, valued at 19 Billion U.S. Dollars in 2017, behind China, which produces 40 million tonnes. Registering a growth of four to five percent, exports recorded 2.7 billion dollars. The industry employs about 2.5 million people. The continuously growing automobile industry is one of the big customers of the industry, and it also receives orders from offshore companies.
Aluminum castings contributed 15 percent of the total casting production. They added that the segment was likely to grow further as automobile manufacturers focused on reducing the weight of the vehicles, including engines and doors. South India, particularly Tamil Nadu and Karnataka, contributes 50 percent of India’s total production of castings.
Company profile: Bharat Forge Limited (BFL), the Pune-based Indian multinational, is a technology-driven global leader in metal forming, having a transcontinental presence across a dozen manufacturing locations, serving several sectors, including automobile, power, oil and gas, rail & marine, aerospace, construction & mining, etc. Part of Kalyani Group – a $ 2.5 billion conglomerate with a 10,000 global workforce; BFL today has the largest repository of metallurgical knowledge in the region and offers complete service supply capability to its geographically dispersed marquee customers from concept to product design, engineering, manufacturing, testing, and validation.
Manufacturing facilities of the company are spread across India, Europe, the U.S. & China. Bharat Forge manufactures a wide range of safety and critical components for the automotive & non–automotive sectors. It is the country’s largest manufacturer and exporter of automotive parts and a leading chassis component manufacturer. BFLs customer base includes virtually every global automotive OEM and Tier 1 supplier. It is the first Indian automotive component manufacturing company that made a breakthrough in China in 2003 by securing large business from First and Second Automotive Works, the two leading automobile manufacturers in that country.
Shareholding pattern: BSE Data
Financials and ratios : [table id=126 /]
Future prospectus: the company’s business model is unique, and the company is placed for growth. In between, there was an issue with some trucks in the U.S., and that was some problem with the topline, but as the business cycle is on the uptrend, now the company is expected to do better.
