BHARAT FORGE Share price

OUR BUSINESSBrief History and OverviewBrief HistoryWe are the flagship company of the Kalyani Group which has significantpresence primarily in the auto component sector in India. The followingtable gives the major companies of the Kalyani Group which are engagedin the automotive industry related activities.Name of the Descriptions of End useCompany major products Bharat Forge Ltd. Automotive Engine and chassis components components for various such as crankshafts1 automotive front axle beams2 applications such as connecting rods passenger cars steering knuckles3 etc commercial vehicles utility vehicles etc.Kalyani Brakes Automotive air and Braking systems in the hydraulic brake passenger car and two components wheeler segments.Automotive Axles Ltd Axle assemblies Commercial vehicle applications1 Crankshafts are engine parts which transmit the power generated inthe cylinder through connecting rod to the main drive of the vehicle.2 Front axle beam is a chassis component which supports the front twowheels of the vehicle3 Steering knuckle is also a chassis component and a part of the frontaxle assembly and does the operation in the process of steering thevehicle.We were established in 1961 as Bharat Forge Company Limited by Dr.Neelakanth Kalyani with our registered office at 13th Elphinstone RoadKhadkee Pune 411 003. In 1964 the registered office was transferred toMundhwa Pune Cantonment Pune 411 036 Maharashtra India. Wecommenced our production in 1966. The name of the Company wassubsequently changed to Bharat Forge Limited on April 30 1986.Some of our major milestones are as follows:1961 Incorporation1962 Technical agreement with SIFCO USA for hammer forging technology1966 Start of hammer shop commercial production1972 Execution of maiden export order to Greece1984 Technical agreement with Tokyo Drop Forge Japan for technology upgradation and quality improvement for hammer forgings1985 Entry in the erstwhile USSR market by winning a large contract for under carriage components1986 Technical agreement with Jidosha Buhin Kogyo Japan for machining of front axle beams1990-91 Major breakthrough in the developed markets of Japan USA and UK for the critical suspension and engine components like front axle beams and machined crankshafts1991 Implementation of a large US$50 million forging facility upgradation programme by commissioning of 16000 MTs and 6000 MTs Weingarten (Germany) presses1993 ISO 9002 accreditation1996 Technical agreement with Metalart Corporation Japan for small forgings and commissioning of 4000 MTs and 2500 MTs mechanical press lines for small forgings1997-98 Establishment of new machining facilities for crankshafts front axle beams and heavy steering knuckles1999 QS 9000 accreditation2000 Implementation of a US$30 million forging facility expansion programme by commissioning of second 16000 MTs Weingarten (Germany) press and 2500 MTs mechanical press lines2001 Windmill Division and Investment Division were vested in BF Utilities Limited vide a Scheme of Arrangement under Section 391 and 394 of the Companies Act 19562002 Acquired the order book- of Dana Spicer Europe Limited (Kirkstall Forge Division) and got access to new customers in Europe and strengthen our presence in Oil and Gas Sector.2003 Acquired German operations of Carl Dan Peddinghaus GmbH & Co. Germany in an asset purchase deal through our wholly owned subsidiary CDP Bharat Forge GmbHAs can be seen form the table above we have been enhancing/increasingour production capacities from time to time. These expansions have beenfinanced through internal accruals equity and debt. For details of ourshare capital history please refer to page 12 of this Letter of Offer.For year ended March 31 2004 our revenues were Rs. 8511.39 millionrepresenting growth of 31.97% over the previous year. The profit aftertax for the same period was Rs 1249.07 million representing growthof 54.03% over the previous year.