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Globalization of auto parts industry
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Analysis of a Global Company - Bharat Forge
Global Perspective
It's a surprising fact: The world's largest factory for forgings - parts for
engines, axels and the like - sits not in Detroit, Tokyo or Stuttgart, but in the
industrial city of Pune.
The factory, equipped with gleaming robots and networked with plants
overseas for technical support, belongs to Bharat Forge, foremost among a
group of auto parts companies that are rapidly putting India on the world
map for manufacturing.
Bharat Forge has embraced a strategy that includes heavy investment in
technology, a scientifically skilled workforce, and aggressive overseas
acquisitions.
With revenue exceeding $1 Billion, Bharat Forge's success offers a roadmap
to other ambitious Indian manufacturing firms. It's a classic example of a
company with an entrepreneurial management team that understands the
global industry well.
"Information technology leveraged India's intellectual power in services,"
says Amit Kalyani, executive director of Bharat Forge. "We're doing the same
in manufacturing. "
Background
Bharat Forge Ltd (BFL) is one of the most innovative and exciting companies
to emerge in the history of the forging industry. BFL is the flagship company
of the US $ 2.1 billion Kalyani Group.
It is a leading global Full Service Supplier' of forged and machined - engine
& chassis components. It is the largest exporter of auto components from
India and leading chassis component manufacturer in the world. The
company manufacturers a wide range of safety and critical components for
passenger cars, commercial vehicles and diesel engines. The company also
manufactures specialized components for the railway, construction
equipment, oil & gas and other industries.
Bharat Forge has been investing in creating State-of-the-art facilities, worldclass
capacities and capabilities. It has built up a strong capability in design
and engineering, including a full fledged product testing and validation
facility, which gives Bharat Forge a Full Service Supply Capability - from
product conceptualization to designing to manufacturing and product testing
& validation.
4
Its customer base includes virtually every global automotive OEM and Tier I
supplier. Daimler Chrysler, Toyota, BMW, General Motors, Volkswagen, Audi,
Renault, Ford, Volvo, Caterpillar - Perkins, Iveco, Arvin Meritor, Detroit
Diesel, Cummins, Dana Corporation, Honda, Scania and several others
source their complex forging requirements including machined crankshafts,
front axle beams and steering knuckles from Bharat Forge.
Milestones
1961 Incorporation
1962
Technical agreement with SIFCO, USA for hammer forging
technology
1966 Start of hammer shop commercial production
1972 Execution of maiden export order to Greece
1984
Technical agreement with Tokyo Drop Forge, Japan for technology
up-gradation and quality improvement for hammer forgings
1985
Entry in the erstwhile USSR market by winning a large contract for
under carriage components
1990-
91
Major breakthrough in the developed markets of Japan, USA and
UK for the critical suspension and engine components like front
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