Manufactured Capital
Manufactured capital forms the backbone of Bharat Forge’s growth and competitiveness. In FY2025, we strengthened our production base through disciplined capex, strategic asset expansion, and high-utility investments. Our focus remains on building advanced capacity in India, optimizing global operations, and driving capital efficiency across high-growth verticals. Each initiative is aligned to enhance delivery precision, enable product diversification, and improve long-term returns.
Capex deployed for FY2025 in Indian Operations (includes Indian subsidiaries)
| Bharat Forge Certified under Standards |
Scope | Sector |
|---|---|---|
| ISO 9001:2015 | Forging, Machining & Fabrication of Components |
Engineering & Capital Goods |
| IATF 16949:2016 | Forging, Machining of Steel Components | Automotive |
| AS 9100:2016 | Forging & Machining of Components | Aerospace, Defence & Space |
| API Spec Q1 & 20B | Open Die Forging using Steel Alloys | Oil & Gas |
| ISO 14001:2015 | Close, Open Die Forging and Machining | Environment Management |
| ISO 45001:2018 | Close, Open Die Forging and Machining | Occupational Health & Safety |
| NADCAP Heat Treatment | Covers Heat Treatment for Steel, Titanium, Nickel and Cobalt Alloys |
Aerospace |
| NADCAP Non-Destructive Testing |
Covers Inspection for Multiple Impurities including Magnetic Particles |
Aerospace |
| DGAQA | Manufacturing & Machining of Steel, Titanium and Alloy Forging |
Aerospace Quality Assurance |
| ISO 27001:2022 | Information Security | Defence, IT Data Center, IT Services & Support and Engineering Design Center |
| ISO 50001:2018 | Close, Open Die Forging and Machining | Energy Management |
We continued to invest with discipline, prioritizing India-led expansion through greenfield and inorganic routes. New initiatives in EV and defence are expected to begin contributing from FY2026. Our capex strategy balances growth momentum with capital efficiency.
We progressed on multiple fronts – consolidating defence production at KSSL, expanding aerospace capacity through a pioneering Indo-European partnership, and scaling our ferrous casting business under the Europe Plus One and China Plus One tailwind.
We are driving volume growth through improved utilization of existing capacity in India. However, in line with individual sector prospects we are investing/ augmenting capacity in India selectively to capture growth. As of early 2025, overseas aluminum operations reached 60-65% utilization in Europe and 60% in the United States. Our United States aluminum operations are gradually showing improvement across all parameters. Our diversified business mix across defence, aerospace, industrials, and castings de-risks growth and improves asset utilization thereby strengthening our return ratios.
Our response to market volatility is grounded in a strong balance sheet, customer alignment, and a lean cost structure. At our Mundhwa & Baramati facilities, modernization is underway, through increased use of technology in operations. Our strategy to augment efficiency in core forging operations ensures an ideal output level for the capital invested. The upcoming KSSL facility near Pune will consolidate defence operations under one roof, creating scale and ensuring readiness for future demand. Our capital strategy is built to sustain growth, absorb shocks, and position us as the most competitive supplier across cycles.
