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8th February 2008

Bharat Forge Ltd signs MOU with NTPC Ltd to set up a joint venture company

Bharat Forge to hold majority stake in the Joint Venture...

  • Bharat Forge Ltd signs MOU with NTPC Ltd to set up a Joint Venture Company
  • JV to manufacture power plant equipm ent s along with balance of plants.
  • Bharat Forge to hold majority stake in the JV.
  • Bharat Forge and NTPC to jointly scout for technology partner

Bharat Forge Ltd (BFL)... , the flagship company of the USD 2.1 billion Kalyani Group and a leading global supplier of forged and machined components today signed a Memorandum of Understanding (MOU) with NTPC Ltd , to set up a Joint Venture Company for its foray into the Capital Goods sector.

The MOU was signed in Delhi by Mr T Sankaraling am, Chairman & Managing Director, NTPC Ltd and Mr B N Kalyani, Chairman & Managing Director, Bharat Forge Limited in the presence of senior officials of the Ministry of Power, members of the Board & Senior Management of NTPC. T he JV is set to be incorporat ed as a private limited company with Bharat Forge holding a majority stake in the joint venture.

The Joint Venture will initially be engaged in manufacturing forgings, castings, casings, fittings and h igh p ressure piping ’ s required for Power and other ind ustries, Balance of Plant (BOP) equipment for the power sector etc. and will induct technology related strategic partners where ever needed. The company would also manufacture other power plant equipments & machinery, in due course.

The joint venture wil l invest in manufacturing large forgings & castings for high value, critical components such as rotor shafts, components for turbo generators and other capital goods , which currently constitute strategic bottlenecks from a national capacity building point of view causing major slow down in execution . These components require an extremely high degree of metallurgical technology and process know - how . Bharat Forge and the Kalyani Group have vast experience in metal forming, Metallurgical and related technolog y and the group therefore, will bring to the table unique mix of comprehensive capabilities to manufacture these sophisticated components in the new venture, thereby filling a much needed gap in the nations critical sector.

Commenting on the joint ventur e, Mr B N Kalyani, Chairman & Managing Director , Bharat Forge Ltd ., said that “ we have been present in this sector for the last 25 years but in a small way. The joint venture is basically to further strengthen our strategy of getting into the capital goods sector”. I am confident that our partnership with NTPC will prove momentous in changing the power sector landscape not only in India but also in the region , he added.

NTPC Limited is the largest power generation company having large expertise and strengt h in areas such as setting up, operation & maintenance of power projects and sale of power to various state power utilities and other bulk customers. NTPC has developed comprehensive in - house expertise in various facets of power generation from concept to commissioning, efficient operation to nurturing of ecology and environment in accordance with National Power Policy of Govt. of India.

About Bharat Forge

Bharat Forge Limited., a public limited company is a leading global ‘Full Service Supplier’ of forg ed and machined - engine & chassis components. It provides end - to - end solutions from product conceptualization to designing and finally manufacturing, testing and validation . It is the largest exporter of auto components from India and leading chassis comp onent manufacturer in the world. With manufacturing facilities spread over 12 locations and 6 countries – four in India, three in Germany, one in Sweden, one in Scotland, one in North America and two in China, the company manufactures a wide range of safet y and critical components for passenger cars, commercial vehicles and diesel engines. The company also manufactures specialized components for the aerospace, power, energy, railway, construction equipment, oil & gas and other industries. It is capable of p roducing large volume parts in both steel and aluminum.