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Chairman & Managing Director Bharat Forge Limited

President and CEO of Bharat Forge Limited (BFL), Baba N. Kalyani, CEO of the US $ 2.5 billion Conglomerate

(Billion) of the Kalyani group. BFL is the largest forging company in India and exporter of components for the automotive industry worldwide.

With manufacturing facilities in India and Europe, Bharat Forge produces a wide range of sophisticated safety components for the automotive and automotive industries including aerospace, rail, marine and conventional and non-conventional power.

Supported by several decades of experience in the production of components and metallurgy, the company

The automotive industry and embarked on an ambitious and exciting journey to expand its presence in other demanding industries such as energy, oil and gas, aviation, rail and navy.

The Kalyani Group has joint ventures with global companies, including Meritor, USA, Carpenter Technology Corporation, USA, Lochpe-Maxion, Brazil and Alstom, France.

Bharat Forge, under the leadership of Flerrn Kalyani, increased from $ 1.3 million in 1972 to about $ 1.2 billion.
In an exclusive interview with the World Business, M. Kalyani appear to be the prospects of India’s economy under the new direction and investment in India’s manufacturing industry in the world order. Excerpts from the interview:

Question. Can you give us a brief overview of your contribution to the trade relationship between India and Germany and the importance of the “Federal Service Cross”?

German companies have been represented in India for over a hundred years, but it was a one-way street.

I think we were the first Indian company to take over production in 2003. We were the pioneers, and now we have four works, including the Saxons.

We have excellent relationships with the government and with companies that have helped us grow.

In this case, this led to the bullet for other Indian companies to take Europe as an investment target.

We are honored by the Order of Merit and I believe this is due to the contribution of a few thousand people who work in the company.

I have the rare opportunity to get a company like this to drive and have always used me as boss:

Mentor. Hard and hard work was done; but carried out by the employees.

Our new factory in Saxony, in eastern Germany, will produce lightweight aluminum components for motor vehicles. It is a so-called “green technology”, which we have brought to the series.

Consume little energy to produce; of these parts. It is a unique technology that includes closed circuit hardware.

The global warming potential (GWP) with effect on the client’s products is reduced by at least 40% with additional benefits, such as weight, weight and cost reduction.

We have decided to be one of the top five in the world and this should be possible through three things.

The point was that we wanted to provide our employees with skills and a special focus on training and qualification; Ninety.

Secondly, we must be experts in technology and innovation.

Thirdly, we wanted to promote the development of our technology and not lend it, because it would become a self-propelled engine.

By International Germany

Baba N. Kalyani, heads the flagship US $2.5 billion Kalyani Group. BFL is India’s largest forging manufacturer and exporter of components to the global automotive industry. Not just that, with manufacturing facilities based in India and Europe, it also manufactures various equipment and components for non-automotive industries including aerospace, railways, marine and conventional & non-conventional energy.

The Kalyani Group has joint ventures with global MNCs including Meritor, USA, Carpenter Technology Corporation, USA, Lochpe-Maxion of Brazil and Alstom, France. Under his leadership, Bharat Forge has grown from US $1.3 million in 1972 to about US $1.2 billion now. In an exclusive interview to Business World, Mr Kalyani talks about the prospects ofthe Indian economy under the new leadership and the place enjoyed by the Indian manufacturing in the global order. Excerpts from the interview:

  1. Can you give an overview of your contribution towards Indo-German business ties and how significant is ‘Bundesverdienstkreuz’ – Germany’s prestigious Order of Merit?

German companies have been in India in manufacturing for over a hundred years and it has been a one-way street. I think, we were the first Indian
company in 2003 to go and set up manufacturing there We were the pioneers and now have four plants including one coming up in Saxony. We have exceller relations with the government and also with companies which has helped us grow our trade there. This, in fac: set the ball rolling for other Indian companies to star looking at Europe as an investment destination.

We feel good about the award and I think it is the contribution of a few thousand people who work in the company. I have had the rare opportunity to lead such s company and I had done my job as a leader and mentc But the heavy lifting and hard work has been done : the employees.

  1. Can you tell us more about your Saxony plant?

Our new plant in Saxony, in eastern Germany, v. produce light weight aluminium components for car This is a green technology that we have innovated a”: uses very little energy to produce these parts.

It is a unique technology comprising closed-mater; cycle that reduces the Global Warming Potential (GV\: impact of customer products at least by 40% with adder benefits of reduced material weight and costs.

  1. How have you reached this pinnacle of success?

We decided to make ourselves one ofthe top five in re I world and that could be done with three things. One was that we will provide skills to our people and put tremendous emphasis on training and skilling people in the nineties itself.The second was to drive our business with technology and innovation. The third was to develop our technology ourselves, and not to borrow, because then it becomes a self-driving engine.

  1. Your website says, “Our strong presence in the passenger car segment is guaranteed by innovative light weight solutions with application of advanced materials and optimised product design.” Please elaborate.

If you look at the trends in automotive-making, you will see that there is a lot of connectivity, a lot of gadgetry but the metal part in the car is getting smaller and is light-weight. We spotted this much earlier and started working on it by two ways. We started using aluminium instead of steel. Second was to reduce the weight of existing components using the desired engineering and technology. So, if you reduce just 10 per cent of the weight of a car, it is a lot of efficiency in terms of fuel efficiency and lower emission levels. The car is greener and less polluting.

  1. Could you please elaborate CSR initiatives undertaken by your Group?

We have been doing CSR for over twenty odd years now. One of our long-running programmes is with the NGO called Pratham which puts children from disadvantage families into school. We are able to do this for almost

  • to 20,000 children in a year and our children are now graduating. Recently we have started building toilets under the Swachch Bharat Abhiyan. We realise the health and education make an impact on people’s lives and this is what matters. A few years back we had also built an Industrial Technical Institute (ITI) which finally became a model ITI.
  1. What do you think about the government’s initiatives?

After more than three years of prolonged economic slowdown, the Indian economy has started to turn around both cyclically and structurally. The performance of the government in the past ten months has created greater optimism and a heightened sense of expectancy.

Prime Minister Modi has given a very important direction to the industry because every leader in this country in the last 20-30 years has said we need to create more jobs and need to have more manufacturing. But nobody could figure it out how to do it. But Prime Minister Modi has a lot of clarity in terms of manufacturing and ‘Make in India’ vision that he has. He
has a lot of steps clear before him and is driving those with a lot of horsepower in a nation of nearly 1.3 billion people with such different kinds of thinking.

  1. What do you feel about the ‘Make in India’ campaign?

Bharat Forge has been a flag bearer of ‘Make in India’ since a long time.The big thing is the ‘Make in India’ campaign and the implication is what you can do in India in terms of defence and aerospace. This initiative will give a huge opportunity to the Indian industry but the Indian industry will have to understand that it will have to create that innovation, the skillsets and then that opportunity will come to you.

We still import a huge amount of hardware in defence while a lot of that can be made here. The railway is another similar area. We have recently inaugurated a high-tech locomotive factory for making railway components.

Under ‘Make in India’, the emphasis would now shift towards import substitution. It is perhaps for the first time that the manufacturing sector has received the kind of attention that it deserves both as a catalyst for investments and to generate employment in the country. But our goal should be to not only achieve 25 per cent share in GDP but also position India as a country with the most advanced manufacturing capabilities.

  1. Would you describe yourself as an industry major that is encouraging SMEs from Indian to invest in Europe.

There is a certain similarity between Indian and German SMEs – most of them are led by technocrat entrepreneurs who are passionate about building strong businesses around a few technical capabilities that they have mastered. Over the last few years, with the Indian economy expanding many Indian SMEs have grown multifold in their operations. Bharat Forge has also leveraged its strength in domestic markets to first promote exports and then acquire assets globally.

One of our major acquisitions abroad was Carl Dan Peddinghaus (CDP), Ennepetal, which even now is the largest among all our European plants. Running plants closer to our customers, in Europe and in particular in Germany has been a pleasant and very enriching experience for us.

We have benefitted immensely by people exchanges and sharing of best practices between our European and Indian manufacturing locations.


Indien beherrscht die f Hannover Messe 2015

Indien ist zum offiziellen Partnerland der Hannover Messe erklart worden. Die Hannover Messe, eine der groRten Industriemessen der Welt, findetvom 13. bis 17. April 2015. statt. AuRerdem wird Premierminister Modi die Hannover Messe zusammen mitderdeutschen Bundeskanzlerin Angela Merkel auf seinem ersten Besuch in Deutschland am 12. April eroffnen.

Was jetzt die Hannover Messe genannt wird,begann 1947 als Hannover Exportmesse . Damals versuchte Deutschland das nach dem zweiten Weltkrieg zerstorte Land wiederzubeleben. Es warsehr wichtig fur das Land, seinokonomisches Potenzial und das groRe Geschick seiner Arbeiter hervorzuheben. Die erste Messe war ein groRer Erfolg, weil 736.000 Besucher aus 53 Landern nach Hannover kamen. Deutschland schloss in den 21 Tagen der Messe Exportvertrage im Wert von 32 Millionen US-Dollar. Seitdem ist die Hannover Messe immerweitergewachsen.

Sehr schnell nach ihrer Entstehung anderte die Messe ihren Namen und hieRdanach die„Deutsche Industrie -Messe” und seit 1961 die „Hannover Messe”.2015wird die Hannover Messe eineAusstellungsflache von 178000 Quadratmetern haben, die etwa 6500 Ausstellern benutzen und etwa 220.000 Besucher sehen werden. Ohne Zweifel ist es eine der wichtigsten Industriemessen und die groRte Ausstellung von Investitionsgiitem.

Indien benutzt die Gelegenheit, aufder Hannover Messe aggressiv seine ‘Makein India’ Initiative voranzutreiben, urn Investitionen nicht nur von Deutschland, sondern auch von anderen Landern anzuziehen.

2oo6 war Indien ebenfalls offizielles Partnerland de- Hannover Messe. Aber diesmal wird Indien eine starkere Prasenzzeigen,mit 350Firmen,die ihreWaren prasentieren, und uber 100 CEOs, die sich daran teilnehmen.Die indischeTeilnahme ist weit gefachert mit Firmen aus dem privaten und aus dem offentlichen Sektor, mittelstandischen und kleinen Betrieben. Die Regierung beteiligt sich auch ,nicht nur, weil de- indische Premierminister Herr Modi selbst da is: sondern auch, weil viele Ministerder zentralen Regierung und der indischen Bundesstaaten erwarte: werden. 17 indischen Bundesstaaten sind vertreter viele davon mit ihren Regierungschefs, urr Investitionsmoglichkeiten zu ergreifen und Handelsbeziehungen zu verbessern. Die Starke Beteiligung Indiens wird herzlich willkommen.D- Jochen Kockler, Vorstandsmitglied der Deutsche- Messe, sagt:„lndien ist ein aufstrebender okonomische- Riese, der ein enormes Verkaufspotenzial fur die deutschen und andere internationale Ausstelle- eroffnet.”

Indien mochte sich als ein Land vor Investitionsmoglichkeiten darstellen. Deshalt organisiert es Seminare, um Regierungsinitiativen i- sechs Bereichen zu prasentieren. Das umfasst „Ne, sunrise” im Bereich Elektronik und Elektrotechni- „Smart Cities” zu innerstadtischen Herausforderunge- und die Bereich erneuerbare Energien, indische Fachkrafte, GroRmaschinenbau und Automation sow e
digitales Indien. Mehrere der Initiativen sind vom indischen Premierminister selbstangekundigt worden und Firmen haben weltweitgroRes Interesse daran gezeigt. Indien hat eine internationale Kampagne gestartet, ,die ‘Make in India’ heiRt. Dabei wird Indien als Investitionsziel beworben mit dem groGeren Ziel, Indien als ein Produktionszentrum zu etablieren. Das Land mochte die globalen Investoren anzuziehen,damit sie Industrie in Indien a u f b a u e n, w e i I das Land talentierte Arbeitskrafte,lnfrastruktur,Rohstoffe und andere Anlagen anbietet.Der Premierminister hofft, dass in Indien nicht nur gebaut und produziert wird, sondern auch, dass fur die indischen Jugendlichen gute Berufschancen entstehen.

Im Europa ist Deutschland der groGte Handelspartner Indiens.Auch ist es der achtgroGte auslandische Investor in Indien. Die auslandischen Direktinvestitionen zwischen 2000 und 2014 betrugen 6 Milliarden US-Dollar.

Mit einem Volumen von 21 Milliarden US-Dollar steht Deutschland an sechster Stelle unter den Handelspartnern Indiens. Die geschaftlichen Beziehungen zwischen den beiden Landern schlieBen Maschinenbau, Automobile, chemische Industrie, Nukleartechnik, Anlagenbau und Entwicklung ein. Indien exportiert Kleider und Textilprodukte,Chemikalien,Lederwaren,Eisen,Stahl undmetallische Waren, elektronische Teile, pharmazeutische Produkte und Autoteilenach Deutschland. Es importiertaus Deutschland


Kraftwerksausrustung, Autoausstattung, komplette Fabrikationsanlagen, Lager, Fahrwerke, Mess- und Steuereinrichtungen und Primarchemikalien. Traditionellerweise erfreuen sich Deutschland und Indien einer guten Beziehung.lndien war das erste Land,das 1951 den Kriegszustand mit Deutschland beendete.Und es hat alseinesderersten Lander nach dem zweiten Weltkrieg mit Deutschland diplomatische Beziehungen aufgenommen. Die freundschaftlichen Beziehungen setzen sich bis heute fort.2011 hat Indien Kanzlerin Merkel denJawaharlal Nehru Preis fur internationale Verstandigung fur das Jahr 2009 verliehen.

Bilateral Beziehungen zwischen Indien und Deutschland waren traditionell stark,weil die beiden Lander starke kommerzielle und kulturelle Kooperation unterhielten. Premierminister Modi und Kanzlerin Merkel haben ein gutes personliches Verhaltnis. Sie haben sich letztes Jahr aufdem G-20 Gipfel in Australien getroffen. Herr Modi hatte zuvor Kanzlerin Merkel auch zu ihrem Geburtstag gratuliert. 2011 begingen die beide Lander das Jubilaum zu 60 Jahren diplomatischer Beziehungen mit einem groBen Fest. Es hatte das Motto ‘Unendliche Moglichkeiten- Deutschland und Indien 2011-2012’. Das Fest, das in ganz Indien ausgerichtet wurde, reiste durch Neu- Delhi,Mumbai, Bangalore , Chennai und Pune. Der zweitagige Besuch des indischen Premierministers in Deutschland und die Eroffnung der Messe werdendie Geschaftsbeziehungen zwischen Indien und Deutschland fordern. Die Flannover Messe ist dazu ein wirkungsvoller Beitrag.

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