Kalyani Group Business Report FY ended Mar. 2015

Recent Years

Bharat Forge Ltd.

Business Overview (FY ended Mar. 31, 2015)
-In the fiscal year ended March 31, 2015, Bharat Forge's consolidated sales increased 13.5% to INR 76,248 million. The increase in sales was caused by growth in Bharat Forge's standalone operations and an industrial contract won by Bharat Forge's Alstrom joint venture.

-Bharat Forge's EBITDA increased by 43.2% in the fiscal year ended March 31, 2015 to INR 14,751 million. Improvements in profitability occurred both in Bharat Forge's standalone operations as well as its Indian subsidiaries. In the previous fiscal year, Bharat Forge's Indian subsidiaries had suffered losses in EBITDA.

Business Overview (FY ended Mar. 31, 2014)

-Bharat Forge's consolidated sales in the fiscal year ended March 31, 2014 increased 30.0% over the previous year to INR 67,161 million. Factors contributing to the increase in sales include an improvement in exports from the company's standalone operations and the initial generation of revenue from its Alstom joint venture.

-Bharat Forge's EBITDA also grew 29.8% over the previous year to INR 10,271 million. The increase in earnings was caused by improvement in the profitability of its standalone operations and in its European operations.

-Bharat Forge divested its 50% stake in the joint venture Impact Automotive Solutions Limited to its joint venture partner, KPIT Technologies Limited. Impact Automotive Solutions was formed in 2010 for the development and manufacturing of automotive hybrid solutions. Bharat Forge's stake was sold to KPIT Technologies for INR 108 million. (From an announcement on September 8, 2014)

-Bharat Forge announced that its German subsidiary Bharat Forge Aluminiumtechnik GmbH & Co KG (BFAT) has won a multi-year contract approximately worth EUR 250 million from a German OEM for the supply of suspension components. BFAT will add a new press line to produce additional components for this contract. (From a press release on May 8, 2014)

-Bharat Forge plans to double its standalone revenue from INR 34 billion of fiscal year ended in March 2014 to INR 70 billion by the fiscal year ending in March 2018.

Automotive Axles Ltd.

Note: Starting in 2015, Automotive Axles changed their fiscal year period from a year ending in September, to a year ending in March. Thus, figures reported for the period ended in March 2015 reflect a time span of approximately six months and cannot be directly compared to figures from previous fiscal years.

Business Overview (FY ended Mar. 31, 2015)
-For the six month period ended in March 31, 2015, Automotive Axles had a net revenue from operations totaling INR 4,611.4 million and an EBITDA of INR 378.9 million.

Business Overview (FY ended Sep. 30, 2014)
-For the fiscal year ended in September 30, 2014, Automotive Axles had net revenue from operations of INR 6,769.3 million, an increase of 5.4% over the previous year. Automotive Axles profit before tax for the fiscal year ended September 30, 2014 increased by 39.3% to INR 258.6 million.

Bharat Forge Ltd.

R&D Activities
-In the fiscal year ended March 31, 2015, Bharat Forge invested INR 421.4 million in research and development. Bharat Forge's R&D activities focused on the development of additive manufacturing (3D printing) processes for metals, and the development of cold and precision forging processes and technologies.

Automotive Axles Ltd.

Product Development
-In 2011, the Group and Automotive Axles, Ltd. (AAL), an Indian joint venture with Meritor Inc., announced that it has developed the new two-speed axle MS 13 240. The axle is for a wide range of commercial vehicles including 4x2 dump applications as well as 4x2, 6x2 and 8x2 haulage vehicles. The MS 13 240 is approximately 6-8 percent more fuel efficient than a conventional axle configuration. The MS 13 240 series will enter full production in mid-2011. (From a press release on April 12, 2011)

Bharat Forge Ltd.

Production capacity (FY ended Mar. 31, 2012)
-As of March 31, 2012, Bharat Forge is operating at over 75% utilization levels for both forging and machining operations for the auto component business.

-Bharat Forge is executing INR 5,000 million worth of investment programs from the fiscal year ended March 31, 2012 to the fiscal year ended March 31, 2013 for capacity enhancement. Most of this is in machinery and facilities that add value to the existing product range.

-Bharat Forge is installing an additional 10,000 ton press to increase its forging capacity. The machining capacity is also being expanded as part of the investment program.

Investment Outside India

-Bharat Forge's subsidiary, Bharat Forge Aluminiumtechnik GmbH & Co. KG (BFAT), is increasing its production capacity due to a new EUR 250 million contract to provide suspension components for a German OEM. BFAT is adding a new press line with auxiliary equipment and capabilities including melting. The new press line will be commissioned in January 2015 and will be set up in the state of Saxony at Brand-Erbisdorf. A total of EUR 31 million will be invested into the new line. (From a press release on May 8, 2014)

-Bharat Forge invested INR 987 million in Bharat Forge America during the fiscal year ended March 31, 2012.

Automotive Axles Ltd.

Investment in India
-In the fiscal year ended March 31, 2015, Automotive Axle Limited established a new plant in Jamshedpur, India to develop brakes and trailer axles. The new plant has a monthly production capacity of 30,000 brakes and 2,400 axles.

-In the fiscal year ended March 31, 2015, Automotive Axle Limited started operations of a new production line in its Mysore plant for hub reduction axles. The new line doubled the monthly production capacity of hub reduction axles to 600 sets.

-Automotive Axles established brake manufacturing facility at Mysore and Rudrapur.

Kalyani Hayes Lemmerz Ltd.

Investment in India
-In November 2010, Kalyani Hayes Lemmerz opened a new passenger car wheel plant in India. Kalyani Hayes Lemmerz has booked 1.7 million of its 2 million wheel capacity to meet orders from Fiat, Tata Motors, Mahindra & Mahindra, VW India, VW USA, VW Mexico, VW China, Ford India and Renault Nissan India. (From a press release on November 23, 2010)