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MOTORINDIA
l
September 2012
10.4 per cent, while LCVs grew by
9.4 per cent. The largest growth was
seen in the M&HCV segment that
recorded 57.4 per cent growth in CY
2011. BFL has strong relations in
the US CV market and has signifi-
cantly increased its auto exports to
the US on the back of supplies to the
M&HCV segment. It is important to
note that the US now has an aging
truck fleet which augurs well for the
market.
Europe
Driven by economic
uncertainty and the wor-
risome fate of the Euro
zone, Europe remains a
very volatile market with
no long-term trends and
developments in the ho-
rizon.
The total four-wheeler market
grew by a meagre 0.4 per cent in
CY2011. Passenger cars, by far the
largest segment of European mar-
kets, witnessed a 1.4 per cent drop
in sales – with the high end seg-
ment faring better than the middle
and low end. Coincidentally, Bharat
Forge largely supplies products for
higher end passenger cars. Despite
uncertainties, however, the sales of
both MCVs and HCVs were robust,
growing at 25.2 per cent and 35.8
per cent respectively.
It needs to be noted that a large
share of component suppliers in Eu-
rope are owned by small entities. It
is often difficult for them to main-
tain steady supplies in such volatile
markets. The OEMs have increas-
ingly realised the risks of relying
on such companies for their regular
business needs and are looking at
vendor consolidation and focusing
on developing relationships with
technologically strong and finan-
cially stable suppliers. Bharat Forge
is discussing with European OEMs
for better alignment, and devising a
strategy of dealing with the opportu-
nities arising out of this uncertainty
to increase its market share or add
new customers.
The outlook for FY13
looks a bit murky with
slowdown in the Indian
automotive industry and
the Eurozone debt crisis
impacting sentiments and demand.
However, Bharat Forge is in a good
shape with lean Indian operations,
strong balance sheet and a balanced
business model to weather any un-
certainty. BFL believes that its next
round of growth will be propelled
by creating opportunities through
innovation, which can be supported
by the strength of its customer rela-
tionships.
Over the years, Bharat Forge has
invested in new technologies, R&D
and solution-providing capabilities.
Combining such competencies with
the company’s best-in-class, world-
scale manufacturing capacities and
skills will result in Bharat Forge be-
ing an innovation-led, end-to-end
solutions provider and a dynamic
partner of its customers, forging
ahead as always.
w
component zone