Pune-based forging giant Bharat Forge has charted a course for the next five years with two new growth drivers, electric vehicles (EV) and technologies for making cars lighter.
During a phone call with analysts, top executives of the company emphasized that the project involves building components for EVs and lightweight, primary components used to make the body of vehicles. Bharat Forge has even set up an engineering and solutions center for lightweight development in North America.
“These new growth drivers will develop into very meaningful new businesses over the next five years,” says Amit Kalyani, Deputy Managing Director of Bharat Forge.
“One of them is in the field of EVs, where we produce components, subsystems in the field of power electronics, control electronics and the complete BMS (battery management system) for both low voltage extremely small LCVs (light commercial vehicles) and intermediate high voltage LCVs,” Kalyani added.
In 2018, Bharat Forge bought a stake in UK-based Tevva Motors, a provider of electric powertrain solutions for 7-14 tonne buses. Before that, Bharat Forge took a stake in Pune-based electric motorcycle maker Tork Motors. The two companies have been working on plans to supply electric powertrains to manufacturers of three-wheelers.
Bharat Forge’s light-weighting business, which is made up of forging and casting, generates about $50 million in revenues. This also involves becoming a one-stop shop for lightweighting processes, delivering not just lightweight parts but entire lightweighting solutions. The company believes that in the next three to four years this business can scale up to about $200 million to $250 million.
“We expect that this will help create a pipeline of large new businesses for the future and also give us engineering and prototyping business. We are looking at DC motor controllers, inverters and BMS solutions. Additionally, we’re also supplying forged and machined components for EVs to our traditional European customers,” Kalyani added.
The automotive segment is the biggest revenue generator for Bharat Forge, with the focus on the domestic passenger vehicle segment and the US’ heavy truck segment. The oil and gas sector and industrial segment, which includes the tractor segment, are other areas of business for the company.
Bharat Forge identifies two new “growth factors” for the next five years