As part of its focus on growing its non-automotive business, leading Indian manufacturer ,and the second largest forging company in the world, Bharat Forge, is in talks with renowned aviation engine maker, Rolls Royce, for a possible alliance.
Like a host of other Indian companies, Bharat Forge too is lining up to participate actively in the 'offsets' programme, as foreign companies, which win contracts larger in size than Rs300 crore, look out for suitably equipped local partners to take on 30 per cent of the contract for domestic manufacture or servicing.
With the Indian aviation sector set to buy aircraft worth $5 billion every year, Bharat Forge, along with other Indian manufacturing and aerospace majors, such as Hindustan Aeronautics Ltd and L&T, see a big chunk of business coming their way.
With Rolls Royce and other engine manufacturers set to partner a lot of foreign civil and military aerospace companies, which win contracts here for various types of aircraft, Bharat Forge would be looking forward to putting its expertise and manufacturing capacities at their disposal.
It would appear that apart from Rolls Royce, Bharat Forge would also be in talks with GE, Pratt & Whitney, as also airframe manufacturers, Airbus and Boeing.
Currently non-automotive businesses contribute around 18 per cent of the company's revenue, and it expects the share of the non-automotive businesses to go up to 40 per cent over the next five years.