Bharat Forge Ltd (BFL), one of the largest forging companies in the world, is gaining traction in its non-automotive business, which it expects to grow with the infrastructure sector gaining momentum in India.

The company has readied plans for raising its non-auto business share from 20% currently to 40% by 2012 and 60% by 2015, Amit Kalyani, executive director, BFL, said.

Auto segment as of now comprises 80% of its total business.
“When the auto segment was down we started to utilise the capacities of the auto business to manufacture products for our non-auto business and we have also put in a lot of effort in creating capacity for that business. Over three years we have invested Rs 600

crore for capacity expansion in this segment. We have received significant orders in thermal power (two months back), nuclear power (in December) and rail sector (in January),” Kalyani said.

However, he did not disclose the value of the orders and the name of the companies placing it.

Despite the auto industry now coming back on track, BFL wants to maintain focus on sectors such as energy, rail, marine and oil & gas.

BN Kalyani, chairman and managing director, said, “We are starting to see significant improvement in our performance and new order flows in our thrust areas on the non-auto front.”

BFL sold components of 65,000 tonnes to the commercial vehicle market in the quarter ended December 31, up 124% from 29,000 tonnes sold in the corresponding quarter of the last year. Kalyani said this quarter will see the number going up to 70,000 tonnes.

The forging firm has an annual production capacity of 3,65,000 tonnes, of which 1,25,000 tonnes is for non-automotive business.
The company is operating at 55% capacity utilisation and hopes to increase it to 75% by the second half of the next fiscal.

Last fiscal the company took some restructuring measures for its loss-making overseas subsidiaries, which were concluded in the third quarter, and spent around Rs75 crore during the full year.

The company was badly hit on the exports front but, Kalyani said, the export market has picked up, and for the nine months to December it has clocked Rs500 crore worth of exports with Rs 200 crore coming in the third quarter.