JS Autocast Foundry India Private Limited, based in Coimbatore, has been successfully acquired by Pune-based Bharat Forge Ltd and its subsidiary BF Industrial Solutions.
The deal to acquire JS Autocast, which supplies critical machined ductile castings for wind, hydraulic, off-highways and automotive applications, was announced in February.
“Bharat Forge Limited along with its subsidiary, BF Industrial Solutions Limited has successfully completed the previously announced acquisition of JS Autocast Foundry India Private Limited. The Enterprise Value of the transaction is Rs 489.63 crores,” the company said in a release.
“This acquisition significantly enhances our capabilities and addressable market segments both domestically and in export markets, especially in niche industrial segments and also brings with it significant synergies that particularly strengthen Bharat Forge’s positioning as a preferred ‘Industrial Solutions’ provider,” it said.
Despite a challenging and volatile environment, JSA reported 59.5% growth in revenues to Rs 416.87 crore, according to the announcement.
Recently, JSA has been granted environmental clearance to expand its existing foundry operations at SIPCOT (State Industrial Promotion Corporation of Tamil Nadu) from 21,768 tonnes per annum to 72,000 tonnes per annum, it stated.
Combined with the 28,800 TPA foundry capacity in Coimbatore, this provides a significant growth platform for JSA, Bharat Forge said. JSA will therefore focus on extending its product portfolio from its current small castings to address opportunities in medium-sized castings for both renewable and industrial applications.
In three years, JSA will start manufacturing “green castings” with 100 percent renewable energy and raw materials mainly recycled scrap, the company announced.