Channel: Companies

Tuesday, May 17 2011
Bharat Forge inks £4-million JV with David Brown Group of UK

BF Infrastructure Ventures Ltd (BFIVL), a subsidiary of Pune-based Bharat Forge hasentered into a joint venture with David Brown System India (Holdings) Ltd, part of David Brown Group. The joint venture is expected to serve the heavy engineering industry by supplying new build gearboxes and aftermarket services to high growth sectors of power, mining, defence, wind, rail and steel in India.


The new venture will make supply orders to both the government as well as private sector through participation in the bidding process. In the JV the partner companies will have a 50:50 equity stake. While the JV will be able to leverage Bharat Forge’s manufacturing and operational capability, strong sales network, strong brand reputation in the Indian and Global market and proven track record in developing and growing joint ventures, David Brown’s long standing reputation for highly engineered gear manufacturing will facilitate the growth of both partner companies.


The shareholders agreement was signed by Jim McColl, chairman of David Brown and SubodhTandale, authorized signatory and director, Bharat Forge. The JV is planned to become operational from the Bharat Forge’s current facilities by the middle of 2012. It is intended to have a dedicated site for gear box assembly and testing.


As per the plan of JV company two service centerswill be started in Bangalore and Kolkata by the end of 2011. The same will be extended for Delhi and Hyderabad by the end of 2013. The company has not committed any timeframe by which the gear boxes will roll out from the JV facility, but it is very unlikely to take a long time.


The move looks strategically significant as India has become a high growth territory for gearing products and services and so the joint venture can help in enabling the companies to cater to the high demand and growing industries by providing customer proximity through a local network. The demand has gone up as gear boxes which were earlier imported by the defence industry are now also sourced for installation in the naval ships, submarine fleet, and tanks.


Bharat Forge is the world's second-largest forging company. The company is based in Pune, India and has nine manufacturing plants in India, Germany, Sweden, United States, Scotland, United Kingdom and mainland China. The company's international operations are carried out by its subsidiary Carl Dan Peddinghaus GmbH. It has been rated as one of the best companies in Asia by the Forbes magazine because of its high growth rate. The company was founded by NilkanthraoKalyani in 1961. The current chairman of the company is his son, Baba Kalyani.


Bharat Forge Limited (BFL), the flagship company of the USD 2.4 bnKalyani Group. Since commencement of operations in 1966, BFL has achieved several milestones and is today among the largest and technologically most advanced manufacturer of Forged & Machined components. As one of India’s emerging multinationals, the company has manufacturing operations across nine locations and six countries – two in India, three in Germany and one each in Sweden, Scotland UK, USA & China.The customers include the top five passenger car & top five commercial vehicle manufacturers in the world. The list includes virtually every automotive OEM and Tier I companies.Backed by a full service supply capability and dual-shore manufacturing model, Bharat Forge provides end-to-end solutions from product conceptualization to designing and finally manufacturing, testing and validation.


David Brown Engineering Limited is a British engineering company, principally engaged in the manufacture of gears and gearboxes. Their major gear manufacturing plant is in Swan Lane,Lockwood, Huddersfieldadjacent to Lockwood railway station. It is named after the company's founder, David Brown, though it is more closely associated to his grandson, Sir David Brown. David Brown has six key manufacturing facilities in the UK, South Africa, China, Australia, France and the USA.


With growing domestic demand and availability of a robust supply chain in India, the growth is only likely to be fuelled further. As India gears up for making it a small car hub in the world, the momentum will continue with the market. In this context, the joint venture is an historical step. To unleash the full potential of harnessing a much deeper Indo-British business ties, we would expect more such collaborations happening in the future.


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