Bharat Forge is looking to acquire 175 acres in an industrial park near Pune for Rs 240 crore which will house new factories for its defence and electric mobility business divisions.
These new assets which will come up at Khed City, will manufacture speciality vehicles, certain systems and aggregates that go into artillery guns and an assembly plant which will also house a testing facility, a top Bharat Forge official said.
Khed City is a joint venture between the Kalyani Group and the Maharashtra Industrial Development Corporation (MIDC) and the facility is expected to be operational in the next 2-3 years.
Speaking to analysts, Amit Kalyani, Deputy Managing Director, Bharat Forge said, “We are seeing substantial growth opportunities in e-mobility and in defence (businesses) and we are now looking at building two new mega sites in close proximity to each other”.
“We are looking at acquiring a parcel of land of about 175 acres in the Khed industrial park which is a joint venture between the Kalyani Group and MIDC. The total land acquisition cost would be up to Rs 240 crore, Kalyani further added.
The Pune-based forging giant decided to go in for a green field facility, especially for defence, due to a regulatory need that requires some added levels of security.
“As far as defence is concerned, we have to go into an area which is separate from the existing plant because there are very stringent rules regarding security. And for e-mobility we need a supplier park and allied services around it,” Kalyani added.
In May 2021 Bharat Forge said it will assume full control of Kalyani Strategic System by buying the remaining 49 percent stake in the company and thus make it a fully-owned subsidiary.