Bharat Forge acquires AAM India Manufacturing for ₹746.46 crore

Defence major Bharat Forge Limited (BFL) acquired 100 per cent stake in AAM India Manufacturing, the company announced in an exchange filing.

 

Pune-based Bharat Forge acquired AAM India Manufacturing at an equity value of ₹746.46 crore. The acquired company has ₹189.48 crore cash on its books, which will be used to support future growth of the company. ''The final equity value is subject to net working capital adjustments as of June 30, 2025'', the company said.

 

AAM India Manufacturing is an axle manufacturer of light, medium and heavy commercial vehicles in India. The company operates major manufacturing facilities in Pune and Chennai, as well as an engineering and development center in Pune.

 

 

The Competition Commission of India (CCI) had approved the proposed acquisition on April 22, 2024.

 

Through this acquisition Bharat Forge aims to enhance component offerings with product solutions to OEMs domestically and globally. 

 

Bharat Forge is an engineering and manufacturing company, specialising in forged and machined components for the automotive, industrial, and defense sectors.

Internal restructuring

In June, Bharat Forge Limited had conducted internal restructuring by transferring its defence business to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL). As part of the exercise, Bharat Forge signed an agreement to transfer BFL's certain defence assets to KSSL. This transfer is being executed at fair market value as determined by an independent valuer. In return, KSSL will issue Optionally Convertible Redeemable Preference Shares (OCRPs) to Bharat Forge as consideration for the transaction.

 

This strategic move is aimed at consolidating the defence business under KSSL, enabling focused management and operations in the defence sector.