On
January 15, 2004, Baba Kalyani, Chairman and Managing Director
of Rs. 851 cr Bharat Forge Limited (BFL), announced that BFL
acquired Carl Dan Peddinghaus Gmbh & Co Kg (CDP), the
second largest forging company in Germany. This acquisition
helped BFL to become the largest forging company in Asia and
the second largest and the most technologically advanced forge
shop in the world. This acquisition not only enabled BFL to
establish its credentials in the global automotive market
but also helped to establish the competitiveness of the Indian
auto component industry, which has witnessed a phenomenal
growth since 2000, with the emergence of new generation automotive
companies. The Indian auto component manufacturers supplied
products to global auto ancillary companies and Original Equipment
Manufacturers (OEMs).
Leading
global automobile companies like GM, Toyota, Daimler Chrysler,
Audi, Ford and auto ancillary companies like Caterpillar and
Delphi Corporation started to import auto components from
Indian companies like BFL, Sundaram Fastener, and Sona Engineering.
As a consequence, auto ancillary exports reached Rs. 850 mn
in 2004, up from Rs. 578 mn in 2003. The exports were expected
to touch the Rs. 1 bn mark in 2005. In this scenario, acquisition
of the largest forge shop in Europe will only help BFL to
gain more access in lucrative European and American car market.
BFL, which has an enviable client list in both domestic (MUL,
M&M, Tata Motors) and global (Dana Corp. Daimler Chrysler,
Volvo, Toyota, Caterpillar) automotive markets will be more
competitive globally. |
