Whalesbook
Bharat Forge Ltd. has agreed to acquire a 30% stake in Fortuna Engineering Private Ltd for ₹129.60 crore. This strategic cash deal aims to strengthen Bharat Forge's machining capabilities and expand its supply chain integration within the automotive and off-highway sectors.
Expanding Machining Capabilities
This acquisition is a key step for Bharat Forge, increasing its ability to add value to its products. The company can buy an additional stake of up to 20% plus one share in later stages, subject to certain conditions and approvals. This flexible approach allows for strategic adjustments as integration progresses.
About Fortuna Engineering
Fortuna Engineering Private Ltd, founded in 1989 and based in Nashik, specializes in machining key components like connecting rods and camshafts, plus fixtures, for the automotive and off-highway industries. The company has reported steady revenues of around ₹320-340 crore in recent years and holds a net worth over ₹150 crore.
Growth and Integration Goals
This partnership is expected to drive growth for Bharat Forge in both domestic and export markets. Fortuna Engineering, which operates exclusively in India, serves the commercial vehicle, passenger vehicle, and off-highway segments. The integration aims to build world-class Indian manufacturing capabilities for global demand.
Management Views
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, welcomed the partnership, highlighting Fortuna's capabilities and market standing. He expects to scale the business further. Suriya Narayanan, Chairman and Managing Director of Fortuna Engineering, sees Bharat Forge as a strategic partner enabling their next growth phase, aligning with the 'Make in India' initiative.
Bharat Forge shares closed Thursday down 0.76% at ₹1,892.70 on the BSE.