Rs 1,000 Crore Agreement Ushers in New Era for Tamil Nadu and Bharat Forge

9 Jan 2024 , 03:01 PM

Following the company’s announcement of a partnership with the Tamil Nadu government to invest up to Rs 1,000 crore over the next five years for the purpose of expanding its manufacturing operations in the state, shares of Bharat Forge Ltd saw a nearly 3% increase in value.

On January 8, during its global investor event, the business inked a non-binding Memorandum of Understanding with the Tamil Nadu government. There is no appreciable impact on the business’s operations from this Memorandum. The company stated that more updates will be released when they become available.

The stock was up 2.6% from the previous closing on the BSE at Rs 1,289 at 11:35 a.m., while the benchmark Sensex in India increased by 0.77 percent to 71,901 points.

In a recent interview with CNBC, the leadership of Bharat Forge emphasized a strategic approach to expansion and diversity. For long-term success, they emphasized concentrating on high-quality, sustainable endeavours. In two years, Chairman Baba Kalyani hopes to reach an audacious revenue target of Rs 20,000 crore. Furthermore, he believes that the size of the defence industry may soon overtake their main business.

The joint managing director of Bharat Forge, Amit Kalyani, highlighted a strategic approach to acquisitions, focusing on Indian companies. He emphasized the significance of selecting excellent, well-run businesses and steering clear of troubled enterprises for upcoming acquisitions. According to Kalyani, ‘Our acquisitions will be selective, focusing on quality and well-run businesses in India, steering clear of distressed ventures.’

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