Bharat Forge plans to undertake electric vehicle biz, to acquire 100% of Kalyani Powertrain

Bharat Forge has decided to acquire a newly formed Company within Kalyani Group named Kalyani Powertrain Private Limited (KPPL).

Bharat Forge plans to undertake Electric Vehicle (EV) business initiatives including further opportunities (organic as well as inorganic) through a Special Purpose Vehicle (SPV) which would be a wholly-owned subsidiary of the Company.

Taking the initiatives ahead, Bharat Forge has decided to acquire a newly formed Company within Kalyani Group named Kalyani Powertrain Private Limited (KPPL). This would be the initial step of the plan.

Notably, the company has received the ‘Investment Committee – Strategic Business’ approval to acquire a 100% stake in KPPL which shall act as the SPV to carry on the EV business.

At present, KPPL has been formed with an object of the development of electric powertrain transmission systems for the automotive sector.

Bharat Forge said that further, the main object of KPPL shall be changed from its current objective (i.e. Development of Electric Powertrain Transmission Systems for the automotive sector) to include the following:

To engage in and conduct the business of scientific, technical and other research and development in any field, particularly in the field of Electric Mobility including Electric Powertrain Transmissions Systems and other strategic areas and other technologies;

To manufacture, design, implement, test and experiment all kinds of equipment to originate, develop and improve any discoveries, inventions, technology, processes and formulate, turn to account, particularly to integrate, manufacture, purchase or otherwise acquire, own, hold, etc.

At around 2.32 pm, Bharat Forge was trading at Rs596.05 per piece down by 2.4% on Sensex.

Source: indiainfoline