Balu Forge Industries Ltd lays foundation to set up new facility in Belgaum

Balu Forge Industries Ltd has announced that it is in the process of setting up a new 52,000 Sg.mt manufacturing facility in Belgaum, Karnataka. This new facility will house a state-of-the-art precision engineering center that will increase efficiency in production and enable an extension of the existing product portfolio to enhance the company's offering in both the ICE & the new energy sphere.

The new manufacturing campus will consist of a range of key production units for example a precision machining & Forging center, a defence production unit, dedicated railway wheel & axle production unit & a unit with key emphasis on the components for the new energy & mobility industry which will enable BFIL to expand its product portfolio and cater to new industries.

The defence production unit will focus on the production of undercarriage parts & heavy forging components for the global defence industry. The rail wheel, axle & wheelset production unit will cater to the growing demand for railway systems & solutions both domestically and abroad. The new energy components unit will allow BFIL to expand its reach into the new energy sector. The company will focus on building key expertise in fuel agnostic systems & components as to further widen & balance the overall product mix.

Commenting on the announcement, the Management team of Balu Forge Industries Ltd, stated: "We are pleased to announce that the Company is in the process of setting up a new 52,000 sq. mt state-of-the-art manufacturing facility. This new facility will play a crucial role in expanding our product range and supporting the production of vital components which will cater to numerous industries and enable us to provide step ahead and diversified forged components / products.

Our dedicated defence production unit will be equipped with cutting-edge infrastructure and will be staffed with highly skilled professionals, focusing on the production of undercarriage parts and heavy forging components for defence applications. Additionally, a railway wheel and axle production unit to cater to both domestic and overseas demand, reinforcing our commitment to serving sector of national importance.

The expansion of our product portfolio through this new facility will enable us to better serve our customers, meet the growing demand for high-quality forged components, and position Balu Forge Industries Ltd appropriately to capitalize on the growth opportunities.

We expect the plant to initiate operations in the beginning of Q2 FY 23/24 & be fully operational by the end of FY 23/24.

We are thrilled to announce this exciting development in our Company's growth. We are confident that this investment in our manufacturing capabilities will allow us to continue delivering highquality products and exceptional customer service."

Shares of Balu Forge Industries Ltd was last trading in BSE at Rs. 85.35 as compared to the previous close of Rs. 83.40. The total number of shares traded during the day was 54672 in over 408 trades.

The stock hit an intraday high of Rs. 86.80 and intraday low of 84.00. The net turnover during the day was Rs. 4676206.00.

Source : Equity Bulls

Keywords

BaluForgeIndustries INE011E01029 Capex ExpansionProject Belgaum PrecisionEngineeringCenter