Bharat Forge Acquires AAM India for Rs 746 Cr to Boost Auto Biz

• Bharat Forge acquired AAM India for ₹746.46 crore.
• AAM India adds axle manufacturing capacity with facilities in Pune and Chennai.
• Bharat Forge is consolidating defence operations under KSSL.

Bharat Forge Limited (BFL) based in Pune, a leading engineering and manufacturing company, has acquired a 100% equity in AAM India Manufacturing for ₹746.46 crore, the company confirmed in an exchange filing.

AAM India is a manufacturer of axles for light, medium, and heavy commercial vehicles with primary manufacturing facilities in Pune and Chennai, and an engineering and development center in Pune. It has cash balances of ₹189.48 crore, earmarked for future growth. The final amount of the equity will be determined with respect to potential adjustments on working capital as of June 30, 2025.

The Competition Commission of India (CCI) approval was obtained on April 22, 2024, in respect to the acquisition of AAM India.  This acquisition strengthens Bharat Forge's product offering and allows improved component solutions to its OEM customers in domestic and international markets.

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Bharat Forge is a manufacturer of forged & machined components for the automotive, industrial and defence industries. In an additional strategic action in parallel, the company has been restructuring the defence portion of its business by way of transferring selected assets to Kalyani Strategic Systems Limited (KSSL), a wholly owned subsidiary.

This restructuring will consolidate the group's defense assets into KSSL, allowing for better management and operation. The acquisition of AAM India will enhance Bharat Forge's automotive components business while also acquire manufacturing capabilities and expanding its geographic reach.