bharat forge - india

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    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

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    Philosophy

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    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

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    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.

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    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.

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    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

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    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

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    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

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    Customers ofBharat Forge

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    Products ofBharat Forge (Non automotive)

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    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

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    Strategies

    Global Presence

    Full Service Supply Capability

    Dual Shore Manufacturing

    Diversification

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    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.

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    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.

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    Global Presence (Contd)

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    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

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    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.

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    Full Service Supply Capability (Contd)

    (Contd)

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    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

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    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

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    Diversification

    Driven by necessity.

    Breaking dependence on Auto Sector.

    De-Risking.

    Unrestricted creativity.

    Filling the Gaps.

    Balancing Act.

    Ensure smooth earning.

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    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

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    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*

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    Diversification (Contd)

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    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.

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    Thank You