Bharat Forge Forges Deal for Machining Powerhouse

Bharat Forge Ltd has announced the acquisition of a 30% equity stake in Fortuna Engineering Private Ltd for ₹129.60 crore through a cash transaction. This initial acquisition includes an option for Bharat Forge to increase its holding to over 50% in future tranches.

The acquired company, Fortuna Engineering, established in 1989 and located in Nashik, specializes in machining critical automotive and off-highway components such as connecting rods and camshafts. Its financial performance shows revenues exceeding ₹322 crore in recent fiscal years.

This strategic investment aligns with Bharat Forge's objective to enhance its machining prowess and extend its value chain. The company anticipates this move will spur growth and value creation across its domestic operations and international export markets.

The transaction is subject to the fulfillment of certain conditions, including necessary governmental approvals. Discussions with Fortuna's management are ongoing to further scale the business and capitalize on market opportunities.