Mumbai: Bharat Forge, the world’s second largest forgings maker, expects its joint venture with France’s Alstom to start production in 2013, as it continues to increase non-automotive revenue.
“We will produce our first unit in 2013,” executive director Amit Kalyani said over the phone.
The venture, which will manufacture super critical and sub-critical power plant equipment in India, will have a capacity to produce 5,000 MW annually. The plant is being set up at Mundra in Gujarat.
At present, Bharat Forge gets about 37% of its sales from the non-automotive business--very close to its stated target of achieving 40% from this segment by FY12.
Its third-quarter net profit nearly tripled helped by growth in exports and a buzzing Indian commercial vehicle market, which contributes bulk of its revenues locally.
Kalyani said the company’s growth in exports in the non-automotive segment has been higher in Oct-Dec. “Because of the markets in the US still being low, the percentage growth is much higher in non-auto,” he said.
He said the group was evaluating “various options” across India to set up thermal power projects but has made no final decision.
The company has earmarked a capital expenditure of Rs 300-350 crore over the next two years and a bulk of it would go into streamlining and upgrading operations in its automotive business, he said.
He did not disclose the investments Bharat Forge would make in its various joint ventures.
The company has joint ventures with state-run NTPC for power equipment and with KPIT Cummins for manufacture of a plug-in parallel hybrid solution for automotive companies to bring about fuel efficiency.
Shares of Bharat Forge were down 1.29% at Rs 352.95 in a weak Mumbai market.