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Bharat Forge - Business Report FY2007
Business Highlights
Highlights in FY2007 (ended Mar.
2007)
Financial Overview
-In FY2007, the Company's consolidated revenue increased by about
39% to 42,752 million Rs. The target of 1 billion USD was achieved
a year ahead of FY2008.
-Exports revenue (on a stand-alone basis)
| (in million Rs.) | FY2007 | FY2006 |
Rate of change |
| Total income | 19,453 | 16,310 | 19.3% |
| Exports revenue | 7,513 | 6,555 | 14.6% |
| Total
exports revenue as a % of total income |
38.6% | 40.2% | - |
In FY2007, exports revenue of the Company touched 7,513 million Rs. mark, an increase of 14.6% over previous year. During FY2007, the Company continued its strategy of enhancing its presence in heavy duty engine and passenger car crankshafts segments. The Company bagged new orders for machined crankshafts from USA and Europe, which will significantly increase its export business.
Overseas
The Company announced that FAW Bharat Forge (Changchun) Co., Ltd, which has been set up as Joint Venture between the Company and FAW Group Corporation, has been formally inaugurated. The newly established Joint-Venture Company (JV) will be engaged in manufacturing of highly engineered components for the automotive industry. The JV will focus on offering its range of products and services to FAW Group Corporation and the other automotive groups operating within China.(From a press release on Apr. 13, 2006)
Domestic
The Company signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to jointly develop a multi-product Special Economic Zone (SEZ) in Khed Taluka of Pune District. The project will attract world-class Indian and foreign companies in automotive, machinery & equipment, machine building, general engineering etc. industries. (From a press release on Aug. 23, 2006)
R&D
-R&D Expenditure
| (in million Rs.) | FY2007 |
| R&D Expenditure | 47.6 |
| Total Income (on a stand-alone basis) | 19,452.9 |
| Total R&D expenditure as a % of total income | 0.24% |
-Technology imported
| Year | Technology imported |
| 2004 | Technical know-how and assistance from MetalArt Corporaiton, Japan for the manufacture of forged products for Toyota's joint venture in India |
Investment Activities
Domestic Investments (FY2007)
-The Company completed its forging and machining capacity expansion
project at Mundhwa. This has taken its Indian forging capacity to
240,000 TPA whereas the annual crankshafts and chassis component
machining capacity has reached 650,000 and 753,000 numbers respectively.
| Products | Investments in FY2007 |
| Crankshafts | The Company set up state-of-the-art facility at Mundhwa to manufacture medium and heavy duty machined crankshafts for the exports market. 2 lines were commissioned last year and the 3rd line has been productionised during FY2007. Equipment has been ordered for the 4th line which will be comissioned during FY2008. |
| Forgings | 12,500T press has been fully productionised. Consequently, the installed forging capacity at Mundhwa plant is now 240,000 MTs per annum. |
| Front axle assembly and components | The new
expansion programme for machining axle beams and knuckles has
been fully completed and has helped in increasing supply of
more value added products. The Company has received the necessary industrial licenses or the acknowledgements in respect of expansion of capacities for the manufacture of : 1)Steel forgings from 200,000 MTs. 240,000 MTs per annum at Mundhwa, Pune. 2)Finished machined crankshafts from 400,000 Nos. to 600,000 Nos. per annum at Mundhwa, Pune. 3)Front axle assembly and components thereof from 300,000 Nos. to 600,000 Nos. per annum at Mundhwa, Pune. 4)Front axle assembly and components thereof from 200,000 Nos. to 300,000 Nos. per annum at Chakan, Pune. |
Overseas Investments (FY2007)
China
-FAW Bharat Forge has a capacity of 100,000 TPA of forged products
and produces about 400 different forged products for light, medium,
and heavy CV applications. The Company is further augmenting this
capacity and this will take the total capacity to around 135,000
TPA by FY2009 (ended Mar. 2009).
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