Bharat Forge Limited

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<p>Bharat Forge Limited (BFL), the flagship company of the USD 2.4 billion Kalyani Group, manufactures various forged and machined components for the automotive and non-automotive sector. Since commencement of operations in 1966, BFL has achieved several milestones and is today among the largest and technologically most advanced manufacturer of Forged &amp; Machined components. As one of Indias emerging multinationals, the company has manufacturing operations across 11 locations and 5 countries - 4 in India, 3 in Germany, one each in Sweden, USA &amp; 2 in China and one each in Sweden &amp; USA. Our customers include the top five Passenger Car &amp; top five Commercial Vehicle Manufacturers in the world. The list includes virtually every automotive OEM and Tier I companies. Backed by a full service supply capability and dual-shore manufacturing model, Bharat Forge provides end-to-end solutions from product conceptualization to designing and finally manufacturing, testing and validation.</p> <p>Bharat Forge Ltd., the flagship company of the US $ 2.4 billion Kalyani Group, is a leading global Full Service Supplier of forged and machined engine &amp; chassis components. It is the largest exporter of auto components from India and leading chassis component manufacturer in the world. With manufacturing facilities spread across 11 locations and 5 countries four in India, three in Germany, one each in Sweden, USA and two in China, the company manufactures a wide range of safety and critical components for passenger cars, SUVs, light, medium &amp; heavy commercial vehicles, tractors and diesel engines. The company also manufactures specialized components for the aerospace, power, energy, oil &amp; gas, rail &amp; marine, mining &amp; construction equipment, and other industries. It is capable of producing complex large volume parts in both steel and aluminium. Over the years, Bharat Forge has been investing in creating State-of-the-art facilities, world-class capacities and capabilities. Our facilities include, fully automated forging and machining lines, the largest of its kind and comparable to the best in the industry. Bharat Forge has built up a strong capability in design and engineering, including a full fledged</p> <p>product testing and validation facility, which gives Bharat Forge a Full Service Supply Capability - from product conceptualization to designing to manufacturing and product testing &amp; validation. Its customer base includes virtually every global automotive OEM and Tier I supplier. Daimler Chrysler, Toyota, BMW, General Motors, Volkswagen, Audi, Renault, Ford, Volvo, Caterpillar - Perkins, Iveco, Arvin Meritor, Detroit Diesel, Cummins, Dana Corporation, Honda, Scania and several others source their complex forging requirements including machined crankshafts, front axle beams and steering knuckles from Bharat Forge. BFL is a recipient of several national and international honors, recognition and awards. Forbes Magazine has listed it for consecutive three years in its global Best under a Billion list. Automotive Component Manufacturers Association of India (ACMA) has honored it over past four years for its export excellence. Outlook recognized BFL as the Best Value Creator for 2004 among large companies. BFL has also been awarded the Indo German Chamber of Commerce (IGCC) Award for Outstanding Contribution towards Promotion of the Indo-German Economic Relations for the Year 2005. Bharat Forge received GKD-NIQR award for Outstanding Organization on 23.4.05. Currently BFL is implementing a major capacity expansion program, which on completion will enable BFL to address global market opportunities even more aggressively and capture larger market share. Simultaneously, the company continues to pursue opportunities for inorganic growth that would result in an enlarged geographical presence and customer base. Global leadership is BFLs dream and under the visionary leadership of its Chairman, Mr. B. N. Kalyani, the company is steadfastly marching towards its goal.</p> <p>Making an in depth study and analysis of India vs. China economy seems to be a very hard task. Both India and China rank among the front runners of global economy and are among the world's most diverse nations. Both the countries were among the most ancient civilizations and their economies are influenced by a number of social, political, economic and other factors. However, if we try to properly understand the various economic and market trends and features of the countries, we can make a comparison between Indian and Chinese economy.</p> <p>Going by the basic facts, the economy of China is more developed than that of India. While India is the 12th largest economy in terms of the exchange rates, China occupies the third position. Compared to the estimated $1.209 trillion GDP of India, China has an average GDP of around $7.8 trillion. In case of per capital GDP, India lags far behind China with just $1016 compared to $6,100 of the latter. To make a basic comparison of India and China Economy, we need to have an idea of the economic facts of the countries.</p> <p>Facts GDP GDP growth Per capital GDP Inflation Labor Force Unemployment 6.7% $1016 7.8 %</p> <p>India around $1.209 trillion 9.1% $6,100 -1.2 %</p> <p>China around $7.8 trillion</p> <p>523.5 million 6.8 %</p> <p>807.7 million 4.3 %</p> <p>If we make the analysis of the India vs. China economy, we can see that there are a number of factors that has made China a better economy than India. First things first, India was under the colonial rule of the British for around 190 years. This drained the country's resources to a great extent and led to huge economic loss. On the other hand, there was no such instance of colonization in China. As such, from the very beginning, the country enjoyed a planned economic model which made it stronger.</p> <p>Agriculture</p> <p>Agriculture is another factor of economic comparison of India and China. It forms a major economic sector in both the countries. However, the agricultural sector of China is more developed than that of India. Unlike India, where farmers still use the traditional and old methods of cultivation, the agricultural techniques used in China are very much developed. This leads to better quality and high yield of crops which can be exported.</p> <p>Liberalization of the market</p> <p>In spite of being a Socialist country, China started towards the liberalization of its market economy much before India. This strengthened the economy to a great extent. On the other hand, India was very slow in embracing globalization and open market economies. While India's liberalization policies started in the 1990s, China welcomed foreign direct investment and private investment in the mid 1980s. This made a significant change in its economy and the GDP increased considerably.</p> <p>Difference in infrastructure and other aspects of economic growth</p> <p>Compared to India, China has a much well developed infrastructure. Some of the important factors that have created a stark difference between the economies of the two countries are manpower and labor development, water management, health care facilities and services, communication, civic amenities and so on. All these aspects are well developed in China which has put a positive impact in its economy to make it one of the best in the world. Although India has become much developed than before, it is still plagued by problems such as poverty, unemployment, lack of civic amenities and so on. In fact unlike India, China is still investing in huge amounts towards manpower development and strengthening of infrastructure.</p> <p>Inflation in India 2009India has been the cynosure for the past few years in the global economic arena owing to its changing inflation patterns. Between the fiscal year 2004-05 and 2007-2008, India had experienced an average growth rate of more than 9%, but the global crunch pinched the economy so hard that the economy gave in to the adverse external shocks and few sectors experienced a slump. Inflation in India 2009 stands at 11.49% Y-o-Y. The inflation rate is referred to the general rise in prices, taking into consideration the common man's purchasing power. Inflation is mostly measured in CPI.</p> <p>In 2008 industry bodies, policy makers were all worried with the steadily-mounting inflation. The middle of the year augmented the tension as the majority of the population was wary of a double-digit inflation but things changed within few months. Inflation in India actually fell below 1% during the third week of March, 2009. The moderate inflation is the desirable of all too much of it or too less of it, in every way worries the policy makers. Understanding in the right manner inflation is such a situation when too many people chase too few goods and too few services, which automatically makes the prices of the goods and services high because of the high demand. At the same time, when inflation falls below the desired mark (in the negative territory), then too few people chase too many goods and too many services, making the prices of the goods and services under-priced. The India inflation is actually measured by the Y-o-Y variation in the Wholesale Price Index. While the inflation as measured by WPI is at present at a very low level, the inflation measured by the Consumer Price Index is at elevated levels of 9 to 10%.</p> <p>Inflation in India statistics</p> <p>export sector of Indian economy made comprehensive progress over the last decade. The exponential growth of the export sector of Indian economy can be attributed to the liberal Government of India economic policy. Indian exports have an ambitious target of US 160 billion in 2007-08. The achievement came to the Indian exports in the last fiscal despite the odds against the exports, minimizing the gains. In the first two months of 2007-08 exports grew by 20.3%, which was a little lower than the previous year over the same period a year ago.</p> <p>The Government of India latest export policy for the exporters will help in stabilizing the export growth levels attained in the 1st quarter of 2007-2008. Ores and minerals exports grew moderately to 12.9% against 37.4% in 2005-06. Similar trend was also observed in the exports of manufacturing sector. The exports of manufactured goods from India grew moderately by 15% in the first quarter of 2007-2008 as compared to 21.2% in the last fiscal year. High value commodities like engineering goods and rice registered very high growth rate in the 1st quarter of this fiscal against the same period last year. The overall exports suggests that the Indian exports grew considerably across all major exporting destinations. The Indian exports to Pakistan, UAE and Italy showed remarkable growth in the first quarter of the current fiscal year. The astronomical growth of the Indian export sector was led by the following industry Information Technology Information Technology Enabled Services Telecommunications hardware Electronics and hardware Pharmaceutical and biotechnology products Consumer durables Textiles Construction machinery Power equipment Food grains Iron and steel Chemicals and fertilizers</p> <p>The robust overall growth of export sector of Indian economy led to secondary growth of the following economic parameters India's economy grew at 9.3% in quarter April-June and it was driven by manufacturing, construction and services sector and agriculture sector GDP factor for the first quarter of 2007-08 was at Rs 7,23,132 crore, registering a growth rate of 9.3% over the corresponding quarter of previous year Exports grew by 18.11% during the 1st quarter of 2007-2008 and the imports shoot up by 34.30% during the same period India's FOREX reserves (excluding Gold and SDRs) stood at $219.75 billion at the end of July ' 07 The annual inflation rate was 4.45% for the week ended July 28, 2007 India's Balance of Payments is expected to remain comfortable Merchandise Exports recorded strong growth According to reports, productivity growth rate of Indian economy is estimated to be around 8% and above until 2020</p> <p>At this stupendous growth of the export sector of Indian economy, it is expected that India will become the second largest economy in the world after China.</p> <p>Industrial OutputIndia occupies 14th position in the world in industrial output. The manufacturing sector along with gas, electricity, quarrying and mining account for 27.5% of the countrys GDP. It also employs 17% of total workers. The economic reforms of 1991 brought a number of foreign companies to the Indian market. As a result, it saw the privatization of several pubic sector industries. Expansion in the production of FMCG (Fast-moving Consumer Goods) started taking place. Indian companies started facing foreign competitions, including the cheap Chinese imports. However, they managed to handle it by cutting down costs, refurbishing management, banking on technology and low labor costs and concentrating on new products designing.</p> <p>India and China are the worlds next major powers. And in a global economy, affected by the financial crisis, where most advanced countries are slumped into recession, India and China are growing. In a PPT India and China it has statistically compared the economies and industries between these two countries. Both the countries have an important role to play in the world economy, with China embracing private entrepreneurship and India facilitating globalization within its economy. Growth of the Indian and Chinese Economies Both India and China have registered strong economic growth since 1980 and opening up to international trade and capital. The Indian and Chinese economies have benefited from FDIs that have provided new goods and services and therefore a spurt in industrial growth. The Chinese and the Indian economies rank number 1 and 2 respectively as the fastest growing economies in the world. But the growth of the Chinese economy has been more spectacular than India and China today has surpassed India on the more important economic and welfare indices. Chinas per capita GDP growth has averaged 8% since 1980, which is double that of Indias per capita GDP growth rate. The Chinese economy is much larger than the Indian economy and labor-intensive manufacture exports contribute almost 40% to the Chinese GDP compared to only 16% in India. Welfare Indicators of India and China As compared to India, China also scores higher on welfare indicators such as living standards, poverty ration, female adult literacy and life expectancy by a wide margin. Since 1990, China has tripled per capita income and has eased 300 million out of poverty. While India still presents a picture of extreme poverty, Indians are playing invaluable roles in the research and development centers of global tech giants, sprouting all over India. Indian companies are also excelling in producing high-quality goods and services at very low prices, competing for a global marketshare. Growth Focus for...</p>