Bharat Forge wraps up Rs 490cr acquisition of JS Auto Cast Foundry India
Bharat Forge and its subsidiary BF Industrial Solutions have wrapped up the previously announced INR 489.63 crores acquisition of JS Auto Cast Foundry India.
Founded in 2004, JS Auto Cast Foundry India is a ductile iron foundry that has been manufacturing raw and machined castings. The iron foundry is located in Kuppepalayam, Coimbatore.
Recently, JS Auto Cast Foundry India was given environmental approval for expanding its existing foundry operations at State Industries Promotion Corporation of Tamil Nadu (SIPCOT) from 21,768 tonnes per annum (TPA) to 72,000TPA. This expansion paired with 28,800TPA foundry capacity at Coimbatore offers a considerable growth platform for JS Auto Cast Foundry India, said Bharat Forge, which is a part of the Kalyani Group.
The ductile iron foundry is expected to focus on improving its product portfolio from current small castings to address opportunities in medium sized castings for renewable as well as other industrial applications. In the coming three years, JS Auto Cast Foundry India will begin manufacturing ‘green castings’ by using 100% renewable energy and raw material which is mainly recycled scrap.
Bharat Forge stated: “This acquisition significantly enhances our capabilities and addressable market segments both domestically and in export markets, especially in niche industrial segments. This transaction also brings with it significant synergies that particularly strengthen Bharat Forge’s positioning as a preferred ‘Industrial Solutions’ provider.”