Big boost to Make in India: Balu Forge secures order for supplying powertrain sub-assemblies

In a major boost to the Modi government's Make in India initiative, precision engineering major Balu Forge has secured a major trial order to supply powertrain sub-assemblies to a tractor manufacturer firm based out of the middle east. The Pune-based company in an exchange filing said that it will supply a range of powertrain sub-assemblies as part of the deal.

These components will be used in the production of engines that will power a variety of tractors. The order comprises supplying 10,000 sets of sub-assemblies, the filing said. It could increase to over 50,000 annually, it said.

Jaspal Singh Chandock, chairman and MD, Balu Forge, said that the company has already started supplying under the contract and expects to generate revenues in upcoming quarters.

"The company has been at the forefront of precision component manufacturing for many years," he said, adding that the order will cement its position in the agricultural sector.

"On the financial front, the order is expected to support our long term growth plans and yield healthy EBITDA margins," he said.

The order is in line with the management's strategic initiatives on expanding footprints in overseas market and also marks its foray into the field of powertrain sub assembly production and supplies.

Meanwhile, shares of Balu Forge zoomed more than 5 per cent to hit a fresh 52-week high of Rs 92 on BSE.

Balu Forge, incorporated in 1989, is a small-cap company with a market cap of Rs 747.28 crore. The company in the December quarter reported PAT at Rs 114.53 million and Rs 236.74 million for 9M FY23. The revenue from operations stood at Rs 893.92 million.