Balu Forge Industries Expands with Advanced Forging Facility in Belagavi

On May 21, 2024, Balu Forge Industries Limited (BFIL) informed the exchanges that the company had acquired three state-of-the-art forging production lines capable of manufacturing 72,000 tons of forged products.

This setup includes a 16-ton closed die forging hammer, a 10-ton closed die forging hammer, and an 8,000-ton capacity mechanical press. These lines will be fully automated with the latest technology, including an anti-vibration system press line with robotic handling, compliant with the Industry 4.0 model. They will be installed in the company’s upcoming greenfield project in Belagavi, Karnataka.

The new forging unit will be easily integrated with Mercedes Benz’s newly acquired precision machining unit. This will further bolster the company’s product engineering and improve its precision product offerings to global majors operating in the critical engineering and safety components industry with an end-to-end solution under one roof.

This forging unit includes a 16-ton closed-die forging hammer, one of the largest in the country, capable of producing forgings weighing up to 800-900 kgs. This capacity will be further improved with a 10-ton closed-die forging hammer line and an 8,000-ton capacity mechanical forging press. With these facilities, the company is strengthening its position in key engineering industries such as Aerospace, Oil and Gas, Defense, Mining, Railways, Aluminum, Auto part manufacturing, etc.

The company further added that this acquisition maintains and expands its critical engineering products portfolio and enhances R&D capabilities in alloy mixing and metal combinations. It provides them with a unique strength in developing products from different alloys based on Aluminum to Titanium, which shall help the company grow its product offering to major growth industries for critical engineering products and further capture the OEM market that they cater to across Europe, Asia, the Middle East and North America regions.

Speaking on the announcement, the Executive Director of BFIL, Trimaan Chandock, said, “These recent three acquisitions are not only value accretive in terms of business financials but also a start of the new chapter for Balu Forge Industries Ltd. These newly acquired production lines fantastically complement the existing precision machining capacity of 32,000 tons, positioning BFIL as a fully integrated company.”

He further added, “This strategic integration of precision/special engineering and forging will not only bring margin enhancement but increased R & D capability addressing end-to-end needs & solutions for a substantial global clientele. Apart from the manufacturing prowess, the new facility, once commercialised, will create large-scale employment opportunities in the area and empower local societies around the plant. The team strength is expected to reach 1,000+ employees (including contracted workforce), growing continuously from 375 in FY23 to 525 currently.”

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