Auto Components Industry

-Lehar Ajwani(02) -Deep Shikha (08) -Siddharth Iyer(10) -Jharna Tinani(26) -Puneet Vyas(27)

Overview…
• • • • India as an “Emerging Global Auto Giant” Ideal location for ‘sourcing’ auto components Total Turnover for FY06: $9 Bn 5000 ‘unorganized’ and 400 ‘organized’ Players in India

Product Segments division

Industry Growth
• Production
– growing at a robust rate of 20% since 2000 – could grow to $22 Bn by 2010($10 Bn in 2005)

• Exports
– growing at 24% since 2000 – could grow to $4.5 Bn by 2010($1.8 Bn in 2005)

Factors driving the Growth
• Rising Income Levels and rapidly growing ‘Middle Class’ • Entry of global OEMs • Cluster-based Development Model • Rising exports of Indian Automobiles • Government Initiatives

Industry SWOT Analysis

BHARAT FORGE LTD.
• Flagship company of Kalyani group • Second largest forging company in the world after Thyssen Group • Came into existence in 1961 • Focused on technological supremacy, resilience and total customer-orientation. • Recently, BFL’s export strategy has been coupled with a series of overseas acquisitions.

Dual-shore Supply Model
Acquired Company • CarlDanPeddinghaus • CDP Aluminiumtechnik • Federal Forge • Imatra Kilsta AB • Scottish Stampings Ltd Country • Germany • Germany • USA • Sweden • Scotland

A focus on Bharat Forge
• BFL's de-risking strategy is well established with a mix of customers across India, Europe, USA and Asia

Non-automotive business
BFL supplies forged components to: • • • • oil and gas transportation construction heavy engineering sectors

Revenue Diversification

Risks & Concerns Risks & Concerns

Market Risk Market Risk

Currency Risk

Interest Risk

Projected PAT for Bharat Forge Limited
350 300 250 PAT in Crores 200 150 100 50 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Year PAT rs Cr (Y) Estimated PAT Rs Cr

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