Four acquisitions in the past two years by BFL point to increased focus on growth through inorganic route. BFL acquired Carl Dan Peddinghaus and CDP Aluminiumtechnik both in 2004. These acquisitions allowed BFL diversify across product segments by expanding the product portfolio (to cater to passenger car, diesel engine and several non-automotive applications), access to customers and enhanced technological capability. Continuing with its initiatives to expand global presence, BFL acquired Federal Forge, Lansing, Michigan, USA in June 2005 and thereafter, it acquired Imatra Kilsta and Scottish Stampings, a European forging group in September 2005. The company also entered into a joint venture agreement with FAW Group China.
The company's initiatives towards establishing a global presence have allowed it to offer a comprehensive product mix, geographic diversification, scale up its technological expertise in various product segments and gain direct access to global clients.
Notwithstanding the issues associated with the acquisition strategy, the acquisitions in developed automotive markets may allow BFL strengthen its partnerships with the customers. Thus, its relationship with customers may extend beyond mere component supply.