Non-auto is now top segment for Bharat Forge in India

Bharat Forge, the Pune-based forgings company, plans to increase focus on its non-automotive business that grew by 90% in the last fiscal.

Non-automotive segment’s contribution to standalone sales of Bharat Forge rose 37% in the fiscal 2011 as against 30% in the previous fiscal.

On a consolidated basis, non-automotive contribution rose to 25% in fiscal 2011 as compared 20% in the previous fiscal.

In fiscal 2011 non-auto became the single-largest business segment for company’s Indian operations.

Chassis and diesel engine manufacturing are among the other segments Bharat Forge operates in.

The company plans to spend Rs200-250 crore as part of its capex for the next two years, out of which 50% would be spent on non-automotive business. The company has set up two plants for its non-automotive business in Baramati and Pune.

“In 2005-06, our strategy was to develop this (non-automotive) segment and take it to a level where it can contribute around 40% to the overall company’s business by 2012. With the given growth of about 37%, we are very much in line with meeting our target,” said Baba Kalyani, chairman and managing director.     

Bharat Forge will also restart its operations in aerospace business this year. “We had started this business two years ago, but the focus slowed down due to recession. We have all the certifications in place and there will be lot more traction happening in the next 12-16 months,” said a company official, adding that Bharat Forge is also looking at strategic alliances for its aerospace business.

Bharat Forge’s domestic revenues grew 50.3% in the last fiscal to Rs1,728 crore while exports grew by 72.6% to Rs1,219 crore.