BHARAT FORGE LTD

-Akash Chowkwale
Sagar Ahirrao
Harshal Badgujar
Sachin Dhakrao
 1

AGENDA
Company Overview

Internationalization Strategy

Implementation Strategy

Inorganic Growth Journey

Statistics

Aftermath & Challenges

CC, DBR, Pros & Future

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 Company Overview 1
BFL – Flagship company of US $2.5 billion Kalyani Group
2nd largest forging company in the world with presence in 6 countries across 12 locations
OEM & Manufacturer of forged and machine components
Component supplier to Automotive & Non automotive sectors

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 Internationalization Strategy 1

 Before Structural Stabilization Reform – 1991

 Expansion of capacity in India
 Exports across the world

Post 1991
Exports – 1972 to 2003 (30 Years)

Acquisitions – 2003 -2008 (2003 - CDP, Germany)

 Key elements:
 Broaden customer base with wider product portfolio
 Global facilities to work with OEM

Diversification using Joint Ventures

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 Implementation Strategy 1
De-risking business model

 Dual shore manufacturing model (3 Pronged Strategy)

 Dual Shore Design capability
 Dual Shore Forging manufacturing capability
 Dual Shore machining capability

Full Service capability

Customer Relationship

Scales and low cost

Integration Strategy
 Phase 1: Alignment with BFL
 Phase 2: Process realignment

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 Inorganic Growth Journey 1

2003 CDP, Germany: Passenger car component manufacturer supplier

2004 CDP Aluminiumtechnik: Manufacturer of forged aluminum components

2005 Federal Forge: Bharat Forge America

2005 Imatra Kilsta AB Sweden

2005 Join venture with FAW China

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 Statistics 1

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 Aftermath & Challenges 1

Post Acquisitions:
 Turning around
 Sustainable advantage during Global Slow Down
 Reasonable Sales from three triads regions
 North America
 Europe
 Asia
 Emerged
 As Second largest Manufacturing Component Mfg
 As Leader in Chassis component Mfg

 2010 Scenario:
 Sales down by 30%
 Closure of Scotland Operations : suboptimal utilization
 Re-structuring of overseas operations

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• THANK YOU