We were the first company to export to China and would now be setting up a manufacturing plant in China, Kalyani said. BFLs global strategy is to have a footprint in North America, Europe and Asia.
Europe and North America would be the technology front-end while Aisa will be the manufacturing back-end, Kalyani said. The company is looking at further acquisitions in North America and the trick was to convert it to a technology-oriented company, Kalyani said.
The companys German acquisition of Carl Dan Pedddnghaus (CDP) had turned around and become profitable, Kalyani said. CDPs half-yearly (ended June 2004) topline was Rs 370 crore on which it had made a net profit of Rs 15 crore.
For the first quarter of 2004-05, BFL has registered a 37.6 per cent growth in total income to Rs 260 crore up from PY Q1 of Rs 189 crore. PAT has gone up 29 per cent to Rs 34 crore.
BFL had reached 100 per cent capacity utilisation in the Q4 of last fiscal and has embarked on its Rs 350 crore expansion programme. This is being financed by a combination of issue of equity shares/ warrants on rights bass and debt. BFLs board approved the timetable for the rights issue at the board meeting held today. The issue will be open from August 12 to September 10, 2004. The expansion programme would be completed by this time next year when capacities would almost be doubled. But for this year, the company would be depending on increased productivity to meet surging demand.
BFL is also aspiring to go up the value chain from being a mere component supplier to a complete systems provider with design and development capabilities. Today we are competing on cost. Five years from now we want to compete on intellectual capability and are putting in systems and processes in place to enable us to do that, Kalyani said.
At the AGM held on Tuesday, BFL announced a 100 per cent dividend on equity shares for 2002-03. During 2003-04, the companys revenues went up 32 per cent to Rs 851 crore with exports of Rs 330 crore. Exports account for 39 per cent of the total sales revenue. PAT grew 54 per cent to Rs 125 crore.
Appoints CMD Son As Executive Director
Another son rises in corporate India. Amit B Kalyani, son of BN Kalyani, CMD of Bharat Forge Ltd, has been elevated to the board of BFL. Amit Kalyani has also been appointed as the executive director. The shareholders of BFL has approved Mr Amits entry on the companys board.