Bharat Forge sets up e-mobllity R&D centre in UK
The Electric Mobility Research and Development Centre will be able to tap into the extensive testing facilities at MIRA Technology Park as well as the pool of engineering talents in the Midlands.
Bharat Forge, India’s largest exporter of auto components, has opened a Research & Development facility in UK, in MIRA Technology Park, the UK’s leading automotive technology park and Enterprise Zone, where it will be developing components & sub-systems focused on Electric Vehicles.
This facility will complement the capabilities & knowledge established over the past 2 years in Kalyani Centre for Technology & Innovation (KCTI) & Kalyani Centre for Manufacturing Innovation (KCMI) in Pune, focused on delivering solutions for Electric Vehicles.
The Electric Mobility Research and Development Centre will be able to tap into the extensive testing facilities at MIRA Technology Park as well as the pool of engineering talents in the Midlands.
Commenting on the new research facility, Amit Kalyani, Executive Director said “We are really impressed with the infrastructure and the facilities available in MIRA Technology Park and have set up a research facility focused on R&D for powertrain solutions for Electric Vehicles”
“Several large global OEM’s and Tier 1 companies are already present at MIRA technology Park for development & testing of vehicles and systems in the EV space. The infrastructure and knowledge available would only help hasten the development for BFL and reduce our time to entry in this very important market space.”
The stock is currently trading at Rs727, up by Rs11.3 or 1.58% from its previous closing of Rs715.7 on the BSE. The scrip opened at Rs715.7 and has touched a high and low of Rs729.45 and Rs701.7, respectively.
Bharat Forge is a manufacturer focusing on supplying high-end engineered forgings products. In FY17, commercial vehicle segment contributed ~48%, non-auto segment 40% and passenger vehicles 16% to its revenues.
Revival in Oil and Gas industry of US will aid demand for upstream equipment of BFL. It is also focusing on defence opportunities to develop indigenous products. Increasing focus on new verticals like railways, mining and renewable is expected to drive revenue growth further. In auto segment, it expects 15-20% volume growth in Class 8 -TRUCK’s net orders from North America. With new order wins and capabilities in transmission products, we expect it to benefit from implementation of BS-VI norms in India. Overall, we expect revenue growth of ~10% in FY19E. With strong order book and pick-up in non-auto segment. We expect EBITDA margins to expand by 100bps by FY19E. Further we expect PAT growth of ~14% in FY19E.
Source: indiainfoline
