Bharat Forge rejigs global business; to focus on non-auto sector
27 July 2010
Pune-based Bharat Forge Ltd, the world's second largest forgings maker, has restructured its international business to realign its cost structures to demand.
The company also announced on Monday that its new non-auto facilities will come online from this year at Baramati in Maharashtra. Commercial production will also begin. Bharat Forge expects non-automotive business to contribute 40 per cent to revenues by 2012.
''The company undertook manpower restructuring of various international operations and also transferred the business and assets of the Scottish operations to its Swedish facility, Bharat Forge Kilsta. The rationalisation was to the extent of 40 per cent,'' chairman and managing director Baba Kalyani said.
The company has repaid $131.5 million foreign currency convertible bonds (FCCB) including redemption premium and the principal of $102.3 million, during the year. Subsequent to the FCCB redemption in the last week of April 2010, Bharat Forge raised around Rs626 crore, including warrants through the QIP route.
This has reduced BFL's debt equity ratio net of cash to 0.76, Kalyani added. These funds will be used for investment in new business forays, he said.
On the non-automotive business, Kalyani said the company had won new contracts across sectors focused on shale and offshore drilling related activities in the oil and gas space, orders for critical components in both thermal and nuclear power, and supply of components for railways.