The commercial vehicle business comprising of medium and heavy vehicles was growing at a fast rate in India, which is good for component manufacturers, said Baba Kalyani CMD, Bharat Forge.
Baba Kalyani Chairman and Managing Director of Bharat Forge said all their business verticals were growing well and saw huge opportunities in defence and oil and gas business. For the oil and gas biz they supply high-end technology products.
Growth engines got a boost after January Index of Industrial Production (IIP) rose higher than expected at 7.5 percent. It was the third successive month of 7 percent plus IIP growth in India.
Kalyani said manufactures saw a huge bump-up in demand and this strong demand has been more than planned and so there would be a need for capacity expansion.
The commercial vehicle business comprising of medium and heavy vehicles was growing at a fast rate in India because of the peculiar business model in India of using trucks with two axles in the front, and therefore the component business has got a boost, said Kalyani.
The HCVs and MHCVs have seen 20-30 percent growth on a sequential basis, he said.
The passenger car business for them has also been gaining ground both globally in UK, US, and domestically also the volumes are expected to go from 3million to 7 million by 2027, he said.
The defence business has been shaping well but they as yet have to see huge orders flows in, said Kalyani in an interview to CNBC-TV18, adding that once the Platform orders (land system, ammunition etc) start this business will be much larger.
With regards to BEML stake sale, he said he hasn’t heard anything new, it’s kind of status quo.