SOURCE: AFI
Bharat Forge, a leading Pune-based manufacturer, is experiencing a significant surge in its defense business. The company is now poised to become a major supplier of artillery systems, armored vehicles, and towed guns, catering to both the Indian government and international customers.
Bharat Forge’s defense business witnessed a stellar performance in FY24, with revenues reaching an all-time high of ?1,561 crore. This represents a remarkable fourfold increase compared to the previous fiscal year. The company’s success is further underscored by new orders valued at ?4,494 crore and an executable order book standing at ?5,192 crore at the close of FY24.
While exports currently contribute to over 80% of this revenue, Bharat Forge anticipates a shift in the coming years. The company expects domestic orders to pick up pace once the upcoming Lok Sabha elections conclude. This indicates a strategic shift towards catering to the needs of the Indian armed forces as well.
Bharat Forge is streamlining its defense operations by transitioning them entirely to Kalyani Strategic Systems (KSSL) during FY25. This move involves the complete transfer of facilities and related licenses to KSSL, ensuring a dedicated focus on this burgeoning business segment.
Commenting on the future of the defense business, Amit Kalyani, Joint Managing Director at Bharat Forge, expressed confidence. He projects returns on this business to be “comparable to our manufacturing business,” highlighting the company’s commitment to making defense a profitable venture.
Beyond its current offerings, Bharat Forge is actively developing a wider range of defense products. This includes tracked and wheeled infantry vehicles, which the company believes will pave the way for future endeavors in main battle tanks due to technological synergies. Additionally, unmanned vehicles and defense electronics are identified as areas of ongoing development, showcasing Bharat Forge’s commitment to becoming a comprehensive defense solutions provider.