Bharat Forge enters the marine gas turbine business with a ₹425 crore contract to supply 1.25 MW generators for Kolkata class ships over five years. This strategic move diversifies its defense portfolio and emphasizes indigenous manufacturing.

Bharat Forge Enters Marine Gas Turbine Business with ₹425 Crore Contract

Bharat Forge has secured a significant contract valued at ₹425 Crore to supply Gas Turbine Generators (GTGs) for Kolkata class ships. The execution period for this order is five years.

What just happened

Bharat Forge will deliver 1.25 MW Gas Turbine Generators (GTGs) for Kolkata class ships under a ₹425 Crore contract, to be executed over five years.

Why this matters

This deal marks Bharat Forge's entry into the marine gas turbine sector, diversifying its defence offerings with critical naval infrastructure and enhancing indigenous production capabilities.

The backstory

The company is leveraging its manufacturing prowess to expand into specialized defence segments, aligning with India's push for self-reliance in defence equipment.

What changes now

Bharat Forge will establish a dedicated Integration and Test facility, boosting local manufacturing, maintenance, and overhaul capabilities for naval gas turbines.

Risks to watch

Future success depends on effectively establishing the new facility and securing larger propulsion system contracts.

Peer comparison

While specific peers in the niche marine gas turbine sector for naval applications are not detailed, Bharat Forge's move positions it uniquely.

Context metrics (time-bound)

The contract is valued at ₹425 Crore with a five-year execution period.

What to track next

Investors should monitor the progress of the new integration and test facility and any future bids for larger marine propulsion systems.