Bharat Forge Targets 50% Growth in Aerospace Sector to Support ‘Make in India’ Initiatives
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Synopsis
Bharat Forge Limited is poised for a significant growth of up to 50% in its aerospace business, bolstered by capacity expansions and a robust supply chain. Amit Kalyani, the Vice Chairman, emphasizes the need for supportive policies to attract global investments, marking a pivotal shift towards India in global manufacturing.
Key Takeaways
- Bharat Forge anticipates 50% growth in aerospace.
- Quarterly revenue from aerospace to exceed Rs 100 crore.
- New facilities for landing gear and precision forgings.
- Operational by March 2027.
- Addressing European operational challenges.
New Delhi, Feb 15 (NationPress) Bharat Forge Limited anticipates a remarkable growth of up to 50 percent in its aerospace division over the upcoming years, fueled by significant capacity enhancements and a robust supply chain, according to Amit Kalyani, the Vice Chairman and Joint Managing Director. Speaking to reporters, Kalyani highlighted that the firm aims for its quarterly revenues from the aerospace sector to surpass Rs 100 crore within this fiscal year.
“We project a growth trajectory of 30 percent, 40 percent, and 50 percent year-on-year (YoY) from FY26,” he stated during an interview with NDTV Profit.
Kalyani further pointed out that there is a significant opportunity to transition business activities from other regions to India.
He stressed the importance of a new policy framework that promotes manufacturing and guarantees its prompt execution.
Such a policy, as per Kalyani, would entice more international firms to invest in India.
“For an extended period, the focus was on China, then it shifted to Vietnam. I believe it's now India's moment. The advantages of Indian manufacturing are becoming increasingly clear,” Kalyani remarked.
As part of its growth strategy, Bharat Forge revealed in its third-quarter earnings presentation plans to establish a dedicated machining line for landing gear components and a ring mill for high-precision forgings.
These initiatives are aimed at fulfilling the growing global demand for jet engine components.
The company anticipates that these facilities will become operational by March 2027.
Nonetheless, Bharat Forge encountered obstacles in the third quarter, with its consolidated revenue declining by over 10 percent YoY to Rs 3,476 crore.
Its EBITDA also fell by 5 percent YoY, reaching Rs 638 crore.
The firm attributed this downturn to challenging economic conditions in Europe, which adversely impacted its operations and exports.
In light of these difficulties, Kalyani indicated that Bharat Forge will make a significant decision concerning its European operations within the next six months after consulting regional stakeholders.
In response to these updates, Bharat Forge’s stock concluded the week unchanged, with a modest increase of Rs 1.45, settling at Rs 1,077.65 per share on the NSE.
