Bharat Forge Expands Influence with Stake in Fortuna Engineering

Bharat Forge has announced the acquisition of a 30% stake in Fortuna Engineering for Rs 129.60 crore, aiming to enhance machining capabilities and support growth in domestic and export markets. The deal includes an option to increase holding to 50% and aligns with Bharat Forge's forward integration strategy.

Bharat Forge announced on Thursday its acquisition of a 30% stake in Fortuna Engineering Private Limited, a precision-machined engine components manufacturer, for Rs 129.60 crore. The acquisition, executed through a cash transaction, is part of Bharat Forge's strategy to bolster its machining capabilities and advance its forward integration.

The company has the option to increase its holding to 50% by acquiring an additional 20% plus one share, subject to conditions in definitive agreements and approvals. The transaction is pending customary closing conditions and necessary approvals, Bharat Forge noted in a regulatory statement.

Amit Kalyani, Vice Chairman of Bharat Forge, expressed enthusiasm for the partnership and the potential growth opportunities it presents. Suriya Narayanan, Chairman of Fortuna Engineering, highlighted the partnership as a milestone that aligns with India's 'Make in India' vision, facilitating global capabilities within India.