Bharat Forge Limited, one of India’s leading forging companies, has announced a substantial investment of $64.5 million (approximately ₹549 crore) in its wholly-owned US-based subsidiaries. The decision was approved by the company’s Investment Committee on December 23, 2024, under the strategic business framework.
Key Allocation Details:
- Bharat Forge America Inc. (BFA):
- $19.5 million (₹166 crore) retained for market development and repayment/pre-payment of outstanding borrowings.
- BFA functions as a holding company and had a turnover of $4.12 million in FY24.
- Bharat Forge Aluminum USA, Inc. (BFAL):
- $30 million (₹255 crore) allocated to BFAL, which specializes in aluminum automotive components.
- BFAL reported a turnover of $60.73 million in FY24.
- Bharat Forge PMT Technologie LLC (BFPT):
- $15 million (₹128 crore) directed towards BFPT, a producer of steel forgings.
- BFPT generated $38.58 million in FY24.
Investment Rationale:
The infusion is aimed at strengthening the financial stability of these entities by enabling the repayment of outstanding borrowings. This move aligns with Bharat Forge’s broader strategic objective of enhancing its market presence in the US while supporting its subsidiaries’ operational needs.
About Bharat Forge:
Bharat Forge, headquartered in Pune, India, is a global leader in metal forging with a strong presence across automotive, industrial, and aerospace sectors. The company continues to focus on international expansion and high-growth market opportunities.
