Bharat Forge Limited (BFL) has successfully completed the acquisition of AAM India Manufacturing Private Limited at an equity value of ₹746.46 crore, a move that significantly strengthens its position in the automotive components sector.

The transaction, first announced on October 17, 2024, was finalized after receiving approval from the Competition Commission of India (CCI) on April 22, 2025. The equity value includes ₹189.48 crore in cash on AAM India’s books, which will be available to fund future growth initiatives and expansion strategies. The final equity value remains subject to net working capital adjustments as of June 30, 2025.

AAM India is a well-established supplier of automotive components, particularly axles for light, medium, and heavy commercial vehicles, with manufacturing facilities in Pune and Chennai and an engineering center in Pune. These components are utilised in KSSL's heavy-duty defence mobility vehicles which is gaining traction with the armed forces. KSSL is expecting to get major orders for its mobility automotives in the near future.

The company has a strong track record of catering to both traditional and new mobility technology segments, supplying major Original Equipment Manufacturers (OEMs) in India and globally.

Bharat Forge stated that this acquisition is a strategic fit, allowing the company to complement its existing component offerings with integrated product solutions for OEMs, both domestically and internationally.

This is expected to enhance Bharat Forge’s product portfolio, broaden its geographic footprint, and support diversification into high-growth mobility segments, including electric vehicles (EVs).

This acquisition aligns with Bharat Forge’s long-term strategy to expand its presence in the global automotive value chain and to address the evolving needs of the mobility landscape. It also comes at a time when Bharat Forge is consolidating its core businesses, having recently restructured its defence segment under its subsidiary Kalyani Strategic Systems Limited (KSSL).

Overall, the acquisition of AAM India Manufacturing marks a significant milestone for Bharat Forge, reinforcing its leadership in the auto component industry and positioning it for accelerated growth in both conventional and emerging automotive technologies.

Agencies