Updated March 5th, 2024 at 18:54 IST

Bharat Forge invests Rs 180 crore in European subsidiary

The infusion of capital, totalling 20 million Euros (equivalent to approximately Rs 179.90 crore), is slated to fortify BFGH's financial reserves

Reported by: Business Desk
Bharat 52 artillery gun developed by Bharat Forge | Image:X
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Bharat Forge investment: Defence equipment maker Bharat Forge Limited has announced investment of Rs 180 crore in its European subsidiary, Bharat Forge Global Holding GmbH (BFGH). The move reinforces Bharat Forge's commitment to bolstering its global presence and expanding its operations in key international markets.

Established in December 2003, BFGH serves as the holding company for Bharat Forge Limited's overseas investments, with a primary focus on manufacturing subsidiaries in Germany, Sweden, and France. As a wholly owned subsidiary of Bharat Forge Limited, BFGH operates as an important channel for the company's international ventures.

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The infusion of capital, totalling 20 million Euros (equivalent to approximately Rs 179.90 crore), is slated to fortify BFGH's financial reserves and support its strategic initiatives aimed at fostering growth and innovation across its European operations. The investment is slated to be completed by March 05, 2024, underlining Bharat Forge's swift action in advancing its global agenda.

BFGH's turnover for the period spanning January 2022 to December 2022 stood at 6.28 million Euros, reflecting its steadfast performance amid dynamic market conditions. The infusion of funds will empower BFGH to pursue its group business activities with renewed vigour, driving value creation and operational excellence across its diverse portfolio.

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Bharat Forge Global Holding GmbH operates as a related party of Bharat Forge Limited, ensuring alignment with the parent company's strategic objectives and adherence to stringent corporate governance standards. The proposed investment will be conducted on an arm's length basis, underlining Bharat Forge's commitment to transparency and fairness in its dealings, the company said in an exchange filing.

Amit Kalyani, joint managing director, Subodh Tandale, executive director, and Dipak Mane, independent director of Bharat Forge, serve on the advisory board of BFGH, contributing their expertise and insights to guide the subsidiary's strategic direction.

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With this investment, Bharat Forge reaffirms its steadfast commitment to nurturing its European operations and leveraging the region's industrial ecosystem to drive sustainable growth and value creation.

 

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Published March 5th, 2024 at 18:54 IST