bharat forge - india

8/9/2019 Bharat Forge - India

1/27


2/27

World's Second largest forging company Incorporated in1961,headquartered at Pune.

Founded by Dr. N. A Kalyani, father of current Chairman Mr.Baba Kalyani.

The flagship company of the USD 2.4 billion.

International operations carried out by its subsidiary Carl DanPeddinghaus GmbH.

12 manufacturing plants in India , Germany, Sweden,United States, Scotland, United Kingdom & mainland China.

Rated as one of the Best companies in Asia by the ForbesMagazine because of its high growth rate.

Company Profile


3/27

Philosophy


4/27

Vision & Strategy

To be the no. 1 Forging company in the world.

Technology based innovation .

Reaching global scale capacities in the line of their

businesses.

Building partnerships with major global OEMs and Tier Icompanies around the world.

Offering full service supply capability.

To move fast in the direction set by highly focusedstrategies


5/27

Objectives

To be committed to listening & responding to the needs ofour customers.

To honour the individual value of customer associates &business.

To be committed to an entrepreneurial spirit.

To maximise the growth of our companies & increaseshareholder value.

To deliver products & services to customers consistentwith the Kalyani brand & image.


6/27

What is Forging ?

Shaping of metal using localized compressiveforces.

Classified by temperature at which it is performed;Cold , Warm & Hot.

Forged parts can range in weight from less than akilogram to 170 metric tons.

One of the oldest known metalworking processes.


7/27

Types of Forgings

Open-die drop forging.

Impression-die drop forging.

Press forging.

Upset forging.

Automatic hot forging.

Roll forging.

Net shape & near-net-shape forging


8/27

Automotive

Largest exporter ofauto components from India & Largest chasis

component manufacturer in the world.

Non Automotive

Expanding its horizon into high value, high growth sectors such as

energy, oil & gas, aerospace, rail & marine and infrastructure.

Capital GoodsPlans to create business of significant scale in capital goods.

Definite plans for comprehensive foray into five strategically chosen

verticals.

Business ofBharat Forge


9/27

Products ofBharat Forge

Automotive

Engine Components Chassis Components

Crankshafts

Connecting

Rods Camshafts Front Axles

STR

Knuckles

Pass

Car 10-30 kg < 1 kg < 5 kg NA 2-10 kg

LCV/

MCV 25-80 kg 1-3 kg 4-8 kg 30-60 kg 10-30 kg

HCV 60-250 kg 2-5 kg 7-12 kg 60-150 kg 25-40 kg


10/27

Customers ofBharat Forge


11/27

Products ofBharat Forge (Non automotive)


12/27

46%

10%

27%

17%

33%

26%

24%

17%

35%

25%

22%

18%

27%

30%

22%

21%

0%

20%

40%

60%

80%

100%

FY06 FY07 FY08 FY09

Product iversification in FL's Revenue

Non Auto

Pass Vehicles

Diesel Engines

CV Chasis


13/27

Strategies

Global Presence

Full Service Supply Capability

Dual Shore Manufacturing

Diversification


14/27

Global Presence

2004Acquired Carl Dan Pedinghaus the 2nd largest forging company at Germany.

Acquired CDP Aluminitek in Germany.

Acquired CDP Duan, Germany.

2005

Acquired Federal Forge now known as Bharat Forge America Inc.,

Acquisition of Imatra Kilsta, AB, Sweden.

Acquired subsidiary of Imatra Kilsta, Scottish Stampings, Scotland.

Entered into Joint Venture with FAW Group, the largest in China.


15/27

Need to go Global

Improves Quality, Delivery, Supply Chain, R&D, & Productivity.

Economies of scale.

Lets you learn best practices & business processes.

Proper utilization of existing capacity.

To avail separate business cycles.

Less dependence on single market.

Advantage of differential growth opportunities across varyinggeographies.


16/27

Global Presence (Contd)


17/27

44%

30%

21%

5%

48%

26%

21%

5%

49%

26%

17%

8%

52%

22%

16%

10%

0%

20%

40%

60%

80%

100%

FY06 FY07 FY08 FY09

Geographical Diversification in BFL's Revenue

Asia Pacific

North America

India

Europe


18/27

Full Service Supply Capability

State-of-the-art facilities.

World-class capacities and capabilities.

Fully automated forging and machining lines.

Strong capability in design and engineering.

Full fledged product testing and validation facility.

Technology & engineering driven development partner.

Providing more value to its customers.

End to End Solutions.


19/27

Full Service Supply Capability (Contd)

(Contd)


20/27

Dual Shore Manufacturing

Inherent need of the customer.

Smooth supply of components.

Long-term cost advantage.

Strong capability in design and engineering.

More than one manufacturing location for core components.

Embarked upon a three-pronged strategy:-

Dual Shore Design capability

Dual Shore Forging manufacturing capability

Dual Shore machining capability


21/27

GLOBAL DUAL SHORE MANUFACTURING CAPABILITYGLOBAL DUAL SHORE MANUFACTURING CAPABILITY

Key Products India Germany USA Sweden UK China JV withFAW

PassengerVehicles

Y Y Y Y Y- Engine Component

- Chassis Component

M & HCV

Y Y Y Y- Engine Component

- Chassis Component

Light Truck Parts

Y Y Y Y Y Y- Engine Component

- Chassis Component

Key Services

Y Y I Y I

- Design & Engineering


22/27

Diversification

Driven by necessity.

Breaking dependence on Auto Sector.

De-Risking.

Unrestricted creativity.

Filling the Gaps.

Balancing Act.

Ensure smooth earning.


23/27

BFL's YOY Net Profit (in Rs. Cr)

2

06

.9

299

.4

41

.17

6.6

240

.4

357

.5

302

.4

0

50

100

150

200

250

300

350

400

FY06

FY07

FY08

FY09

FY10E*

FY11E*

FY12E*

Net Profit


24/27

Tata Motors CV Volumes(Pieces)

0

50000

100000

150000

200000

250000

300000350000

400000

450000

500000

FY06

FY07

FY08

FY09

FY10E*

FY11E*

FY12E*

Ashok Leyland CV Volumes(Pieces)

0

10000

20000

30000

40000

5000060000

70000

80000

90000

100000

FY06

FY07

FY08

FY09

FY10E*

FY11E*

FY12E*


25/27

Diversification (Contd)


26/27

How they have diversified???

Joint venture with Frances Alstom a leader in power generation.

Joined hands with National Thermal Power Corp India's top powergeneration company

Joint venture pact with France nuclear power AREVA to exploreopportunities in nuclear power sector.

Supplying Railway locomotive components worth Rs 200 300 million toIndian Railways.

Commissioned its new fully integrated Ring Rolling Facility at its Centrefor Advanced Manufacturing, Baramati & Pune.

Rings in sectors such as Wind Energy, Defense, Oil & Gas, Mining,Material Handling Equipment and Bearing Industry.


27/27

Thank You

bharat forge - india

Documents