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The future is going to be radically different than today. The new verticals have been conceived with this future in mind. Like the Bamboo tree, we have been nurturing them by investing in people, building capacities and competencies – with patience and perseverance. The foundation of these businesses is now strong and we are geared to capitalize on the mega opportunities that will arise.
Light-weighting of components has become an important focus area for automotive and industrial (aerospace, shipping, wind energy) companies to achieve their targets of operational efficiency and become more sustainable, reliable and cost-efficient. This is more so in case of automotive OEMs seeking to reduce emissions.
At Bharat Forge, we are enabling this through our Centre for Light-weighting Technologies (CLWT) facility in Nellore, Andhra Pradesh. The CLWT is a provider of complete-system light-weighting solutions. They have some of the largest and most advanced machines and expert teams to deliver products of highest quality.
The CLWT works closely with clients to imagine the future of the industry and leveraging its world-class R&D facilities towards converting conventional steel components and subsystems into aluminum/magnesium/ composites without compromising on the metallurgical properties of strength. This will help customers achieve their light-weighting targets with the same or even better system efficiencies.
We have started with aluminum die-casting and plan to add magnesium, composites and carbon fiber in the portfolio over time.
Stricter CO2 emission regulation globally and the advent of electrification in the automotive industry is leading to an increase in usage of aluminum and other light-weight materials.
We will focus on development of structural parts for customer globally across automotive and industrial sectors. We intend to be a one-stop shop for all light-weighting requirements.
E-mobility is a mega trend that is disrupting the global automobile industry, given its efficiency and lower emissions. Bharat Forge ventured into this business in 2016 by forming a separate vertical and establishing a formal E-mobility strategy. We are targeting opportunities across 2W, 3W, 4W, bus and truck electrification, ranging from providing sub-systems to complete electric powertrains as well as light-weight structural components.
We offer a wide range of modular and customized solutions for the electric powertrains. Using best-in-class technologies, we developed products that are safe, reliable and economical. With our ability to integrate mechanical and electrical components, as well as complex hardware of various configurations and embedded software, we are a one-stop solution.
We have access to sophisticated development facilities – power electronics facility, Electric Drive Unit manufacturing facility and testing facilities – for almost all the components and sub-systems that go in any technologically advanced electric drive powertrain.
According to an independent study by CEEW Centre for Energy Finance (CEEW-CEF), the Indian EV market is predicted to be a USD 206 Billion opportunity by 2030. This includes sales of BEVs, PHEVs, retrofitting of old ICE vehicles as well as the charging infrastructure. India Energy Storage Alliance (IESA) expects EV sales to grow at CAGR of 44% during the period of 2020 and 2027 to hit 6.34-million-unit, primarily led by 2W and 3Ws.
We aim to achieve 5-6% market share by 2025 with the help of the strong expertise of Kalyani Powertrains Pvt. Ltd. (KPTL) in the key segments of 2W and 3W, commercial vehicles (buses and trucks). It will also align to the Company’s vision of contributing to Atmanirbhar Bharat. In line with this vision, we have devised our business strategies around ‘Making Locally but Selling Globally’. Our diverse portfolio of offerings can address the needs of all global customers, including the need to adhere to cleaner mobility or cost effective, safe, reliable and timebound delivery of customized solutions.
We have been operating in this space for over 10 years and have created a diverse range of products with unique capabilities with Artillery and Protected Vehicles as mainstay. These products, catering to the Indian as well as the Global Armed Forces, are seeing a significant traction. We have several programs ranging from vehicle, small arms, Close-In Weapon System (CIWS), Advanced Towed Artillery Gun System (ATAGS), other artillery guns, torpedo homing heads and Unmanned Aerial Vehicles. The vertical is supported by defence technology and research ecosystem for indigenous innovation in advanced technologies in critical defence systems including next-generation weapons and defence systems.
Our strategic investments/ acquisitions in defence technology start-ups and opening of Defence Incubation Centers, with mentoring from foreign technology experts, has strengthened our capabilities. We are well-positioned to venture into the additional fields of Marine Systems, including Weapon Control Systems (WCS), Command & Control Systems (CMS), and product improvements/ upgrades.
During FY 2021, we have acquired 100% stake in Kalyani Strategic Systems Limited (KSSL) which undertakes all defence related activities. We have emerged as one of the top-ranking defence private industry hubs of India, led by our core metallurgical expertise. We are augmenting our capabilities and production facilities to cater to the defence requirements of India and its allies.
With Government’s strong focus on Atmanibharta (self-reliance), tremendous opportunities are expected to come in the defence sector.
With a strong focus on ESG, we intend to emerge as a major defence product supplier in India and globally. Our strategy will be to Make in India for the world.
Being a highly technical area with high entry barrier, we focused on understanding technologies and business dynamics, gaining knowledge and capabilities, understanding products and technologies, and building strategic alignments with major Aircraft and Engine OEM's. During this time, necessary quality systems were put in place and investments made in developing products and creating infrastructure and digital manufacturing. Parallelly, we worked on getting ourselves accredited with certifications such as NADCAP, AS – 9100 etc.
Over the years, we have worked on several programs with major OEM’s, to gain product competency in engine and aircraft parts. We also are building competencies in part level and sub-assemblies for various Helicopter and Aircraft programs for the Indian market in undercarriage and transmission systems. This exposure, strengthened our product portfolio and has given us a leverage to increase our reach onto the exports. Today, the Company works with 4 major OEM’s supplying engine & structural components.
The aviation industry is poised to recover from the COVID-19 pandemic and the travel restrictions which ensued. The Company's focus on export market will be complemented by the domestic opportunity arising from the Atmanirbharta policy.
We look to deepen our relationships with existing customers and explore new opportunities leveraging our competencies in multiple product areas as well as industry credentials. We are also looking at opportunities for acquisitions or tie-ups with other suppliers across the globe. Our strategy will be to move from a component supplier to a sub- Assembly supplier both for domestic defence and global commercial aviation sector. Parallelly, we would leverage our tie-ups with global aerospace OEMs and technology partners to build expertise in sub systems like undercarriage and transmission systems for rotary wing and fixed wing platforms.
We set-up the Turbomachinery vertical in 2014. We have the largest testing facility in the entire country to test turbochargers upto 3,500 kilowatts. The expertise of this division is facilitating development of new products for railways, defence and aerospace.
As a part of our growth strategy, we intend to do maintenance, repair, and overhaul (MRO) apart from new turbomachinery products including turbochargers. This will help capitalise on the larger opportunities in India and globally. We have also been exploring turbochargers for niche applications which have completely different design requirements. With the expertise that has been developed in design, manufacturing and testing of Turbomachinery products, we have defined our roadmap for expanding into aerospace applications. We are working on few of these development projects with OEM's.
