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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9906)	12/4/1999 9:53:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Bharat Forge bags Rs 180-cr export order from Meritor (USA) bharatforgelimited.com Our Bureau -Businesss Line MUMBAI, Dec. 3 BHARAT Forge Ltd (BFL) has bagged a Rs. 180-crore export order from Meritor of US. The order was received roughly two months ago, a senior BFL official said. Meritor, among world's biggest producers of axles, has been sourcing from BFL for the last six to seven years. The latest order is the biggest they have placed so far on the Pune-based forgings company. The new order from Meritor is scheduled for execution in fiscal 2001-02, market sources here said. They added that Meritor has also chosen BFL as a "preferred supplier" and that for many items the company will be a single source point enjoying first right of refusal. According to sources, the company has installed a second 16,000-tonne Weingarten Forging Press Line to service the growing demand, making it only the second unit worldwide to work with two such press lines. Incidentally, Meritor's name has been in the news of late as among the parties interested in making an investment in the axle and transmission plant of Tata Engineering as and when that unit is spun off. It is further understood that BFL has emerged with a good score of 144/150 on the vendor evaluation criteria of Volvo. The global average here is 141, the BFL official pointed out. Initial small-sized orders have started coming in from the truck major. Analysts tracking the company estimate the contribution to revenue from BFL's automobile sector-related businesses to dip further. They observed that over the last couple of years, this revenue stream had fallen from 80 per cent to 50 per cent. This reduced dependence is projected to insulate BFL that much from the cyclicality of the commercial vehicles market. Besides Volvo, analysts also considered Mercedes and Caterpillar as potential clients for BFL. From a level of Rs. 217 on November 19, the company's share price climbed to close at Rs. 326 on Thursday.