BHARAT FORGEGuided by- Prof. Dr. Nilesh Gokhale

By-16MBA006- Rupal Gupta16MBA024- Suraj Patole16MBA025- Pranav Kenjale16MBA026- Darshan Bothara16MBA030- Jyotsna Sistla

CONTENTS

Bharat Forge Limited

Executive Summary

Introduction

Enterprise History

Vision And Mission

Corporate Social Responsibility

Acquisitions

Joint Ventures

Organization Structure

Geographic Presence

Quality Certifications

Market

Competitions

Financials

Corporate Governance

Future Plans

Conclusion

Bibliography

EXECUTIVE SUMMARY Bharat Forge Limited, is the world's largest single-

location forging company, with an annual output of over 4,03,750 TPA.

BFL is among the top 26 innovative companies in India. The world's largest forging company with

manufacturing facilities spread across India, Germany, Sweden etc.

It is India's largest manufacturer and exporter of automotive components.

BFL has a diversified global customer base including the top five CV & PV manufacturers in the world, automotive, power, oil and gas industries.

INTRODUCTION Incorporated in 1961 by Neelkanthrao Kalyani BFL is the

flagship company of the Pune-based Kalyani Group, which has interest in forging, auto components, specialty steels, infrastructure, renewable energy and specialty chemicals business.

Today it is the Largest forging company in the world. The company operates in two main segments –

manufacturing of automotive components (vehicles, diesel engines) and non-automotive components (railways, energy, construction equipment.)

As of 18-10-2016 stock value of BFL BSE- Rs. 915.40 NSE-Rs. 916(Source- MoneyControl)

ENTERPRISE HISTORY 1950’s- Indian Automotive Industry based highly on Imports. 1961- Creation of Bharat Forge. 1970’s- Monopoly being created in Forging Industry. 1980’s- Diversification into an engineering enterprise. 1990’s- Bharat Electronics dominating the market. 1995- The Company had entered into a technical knowhow

and Assistance agreement with Metalart Corporation, Japan for the manufacture of small precision forgings.

2014- Entry into the Indian civil and military aerospace. 2015- Inauguration of the ‘High Tech Rail Component

Manufacturing Facility’

VISION AND MISSION Vision-

1. To be committed to listening and responding to the needs of our customers, associates and business partners and honouring their individual value.2. To be committed to an entrepreneurial spirit that fuels the growth of our companies and increases shareholder value.

Mission- Spirit of innovation is the core of the organization's DNA and plays a paramount role in delivering value to customers through extensive focus on technology & value addition.

CORPORATE SOCIAL RESPONSIBILITY

BFL has taken social initiatives not just for the sake of adhering to the Companies act of 2013, Schedule 7- CSR, but they strongly believe that success in business is deeply rooted in the progress of the society this can easily be seen by-

1. 'Pratham Pune Education Foundation'(PPEF)- making primary education accessible to the less fortunate has been running succesfully for the past 10 years.

2. Community Initiative for Women.3. ‘Lakshya’- Sports Initiative specially for Tennis.

ACQUISITIONS Overseas acquisitions by Bharat Forge, with the Rs

689.2-crore Bharat Forge Ltd (BFL) disclosing its acquisition of Carl Dan Peddinghaus GmbH (CDP) in 2003.

Bharat Forge’s German subsidiary CDP Bharat Forge GmbH had acquired 100 per cent equity shares of Oil & Gas Machining Company,  Mécanique Générale Langroise (MGL) for Euro 11.8 million (Rs 90 crore).

JOINT VENTURESJoint Venture Name Companies Year of JV formation

Automotive Axles Limited

(AAL)

Kalyani Group and Meritor

Inc., USA.

1980

Kalyani Carpenter Special

Steels Ltd.

Technology Corporation, USA 1995

Kalyani Lemmerz Ltd (KLL) Hayes Lemmerz, USA and the

Kalyani Group.

1995

FAW Bharat Forge (Changchun)

Co Ltd

FAW Corporation, China 2006

BF NTPC Energy System Limited NTPC and Bharat Forge 2008

Kalyani ALSTOM Power Ltd Alstom, France 2009

KPIT Cummins , Bharat Forge KPIT Cummins , Bharat Forge 2010

David Brown Bharat Forge Gear

Systems India Limited

David Brown Bharat Forge 2011

ORGANIZATION STRUCTUREBFL follows a Matrix organization

structure wherein International Division and Product Division Structures are combined.

GEOGRAPHIC PRESENCE

QUALITY CERTIFICATIONISO 9001: 2008 CERTIFICATION

ISO 9001:2008 – Common For all Mundhwa, Chakan & Baramati 

ISO/TS 16949: 2009 ISO TS16949:2009 – Mundhwa Plant ISO TS16949:2009 – Chakan Plant ISO TS 16949:2009– Baramati Plant 

ISO 14001: 2004 ISO 14001- Mundhwa Plant ISO 14001- Chakan Plant ISO 14001- Baramati Plant 

EC CERTIFICATE OF QUALITY SYSTEM APPROVAL EC Certificate of Quality System Approval

MARKETMajor Product Lines-

Automotive, PowerOil and GasRailClaw Lock and PistonMarineAerospaceConstruction and Mining

COMPETITORS Prime Competitor to Bharat Forge Globally is Germany

based Thyssenkrupp whereas in India are- Mahindra CIE, Electrosteel, Ram Krishna Forge, MM Forgings, Alicon Castallo, Kalyani Forge.

Combined the 5 share more than 90% of the total Market Cap and either one of them is used in both, Sensex or Nifty. Whereas Bharat Forge alone owns almost 40% of the total market capital amongst these 5 companies.

Metalyst Forging, Nelcast, Sanghvi Forging, Simplex Casting, Hinduja Found take the rest part of the cake in the mentioned order.

The total assets of the top ranking Bharat Forge are more than the combined assets of the second ranked Mahindra CIE and third ranked Electrosteel combined, as of FY2015.

FINANCIALS FY 2015-16 witnessed a

marginal decline of 5% in total revenues from ` 45,481 Million in FY 2014-15 to 43,054 Million in FY 2015-16. Domestic sales grew by 4%, primarily on account of a buoyant M&HCV market, aided by revenues from the industrial sector, which showed marginal growth. This happened, despite a tough demand environment, amid slowdown of infrastructure activities.

YEAR ON YEAR GROWTH

Mar '12 Mar '13 Mar '14 Mar '15 Mar '160

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

3686025.08% 31512

-14.51%

339937.87%

4548133.08% 43054

-5.34%

Y-o-Y Growth

Net Sales (in million)

LISTING ON STOCK EXCHANGES Exchanges where BFL in listed are- BSE, NSE,

Luxembourg, MCXSX.

CORPORATE GOVERNANCE Bharat forge believes that it

is imperative and non-negotiable for a world– class company to adopt transparent accounting policies, appropriate disclosure norms, best-in-class board practices and consistent high standards of corporate conduct towards its stakeholders.

ICRA has assigned ‘A1+’ and ‘LAA’ Rating to Bharat Forge

FUTURE PLANS Establishing core platform for Smart Manufacturing under

Industry 4.0 Program Exploring Product Life Cycle Management (PLM) for Aerospace

Business Vertical Implementing Integrated Customer Relationship (CRM) Solution Implementing Company-wide Data Leakage Prevention (DLP)

Solution Redesigning campus-wide network to support converged

communications of Data, IoT, Video and Voice Integrating Industry 4.0 with Bharat Forge Excellence System to make it a part of the Company’s DNA Upgrading SAP to ensure compatibility to implement GST related functional needs

CONCLUSIONBharat Forge Limited is World’s Second Largest forging

company in the world, after Germany based Thyssenkrupp, It is already the world's largest single-location forging company, with an annual output of over 120,000 tonnes, supplying to Toyota, Honda, Volvo, Cummins and Daimler Chrysler. Though the company has seen total revenue decline by 5.3%, EBITDA margins expanded by 110 bps driven by focus on cost control and supported by benign commodity prices. Bharat Forge being an Innovative company has many plans for the. The Company is preparing to take advantage of this opportunity and trying to create their own ecosystem of a digital organization. Bharat Forge has started this journey in areas of connected enterprise, big data, mobility, augmented reality (human-machine interface) and additive manufacturing.

BIBLIOGRAPHY Times of India, articleshow (297243) History from- ET (

http://economictimes.indiatimes.com/bharat-forge-ltd/infocompanyhistory/companyid-13958.cms)

Organization Structure- http://www.theofficialboard.com/org-chart/bharat-forge

United States Agency for International Development. Bharat Forge , 55th Annual Report 2015-16 , Dion Global

Solutions Ltd. Investor Presentation October 2016 Bharat Forge Ltd,

Pune.

BIBLIOGRAPHY http://bharatforge.com/ 8th October 2016 , Saturday. http://www.business-standard.com/article/companies/bharat-

forge-acquires-france-based-mgl- 115010200459_1.html date 13th October 2016 , Thursday.

http://www.thehindubusinessline.com/2003/11/23/stories/2003112301510100.htm 13th October 2016, Thursday.

http://www.business-standard.com/article/companies/bharat-forge-acquires-france-based-mgl- 115010200459_1.html 1st November 2016, Saturday.

http://www.moneycontrol.com/ 7th October 2016, Monday. http://economictimes.indiatimes.com/ 7th October 2016,

Monday.