A report in the June 1 issue of India’s Business Standard states that Bharat Forge, the world’s second largest forging company is actively seeking acquisitions in South America and Eastern Europe.
According to the article, a senior company executive told the financial newspaper, “We plan to enter these markets either through acquisitions or joint ventures. A strong presence in these regions will help us improve business outside India.” He reportedly did not give any specific details about target operations.
The attraction of South America is that the market is growing at a rate of about 10% per year. Currently, the market shows sales of about 4 million vehicles annually. The informant stated that Bharat’s North American subsidiary, Bharat Forge America Inc, based in Lansing, MI, is not able to effectively service the South American Market due to high import tariffs.
Eastern Europe is attractive because of the low cost of manufacturing and because “it is a strategic route for component exports to the other markets of Europe,” the official said.