A Major Expansion in Automotives Component Capabilities

Bharat Forge Limited has finalized the acquisition of AAM India Manufacturing Pvt Ltd at an equity value of ₹746.46 crore. The deal includes ₹189.48 crore of cash sitting on the books of AAM India. This acquisition brings under Bharat Forge’s umbrella an established axle component supplier with two manufacturing facilities—one each in Pune and Chennai—as well as a research and development center in Pune. The move will help Bharat Forge scale its presence in traditional and EV-based OEM verticals.

Deal Structure and Strategic Financing

Originally announced in October 2024, the deal received approval from the Competition Commission of India (CCI) in April 2025. The final purchase value is subject to adjustments based on the net working capital as of June 30, 2025. This flexible structure ensures both parties maintain fair valuation terms through the transition.

Strategic Fit and Synergy Potential

AAM India’s specialization in axle assemblies and drivetrain components for both internal combustion and electric vehicles aligns perfectly with Bharat Forge’s advanced manufacturing goals. The deal boosts Bharat Forge’s product portfolio, enhances engineering capabilities, and strengthens its position in both domestic and global OEM supply chains. It also improves delivery lead times and local sourcing advantages across multiple platforms.

Competitive Positioning and Industry Relevance

The acquisition comes at a time when India's auto component industry is witnessing rapid consolidation and technological transformation. Bharat Forge’s integration of AAM India reinforces its leadership in the precision component market and better equips it to serve next-generation vehicle platforms. With the automotive sector pivoting toward electric mobility, Bharat Forge now adds another growth engine to its long-term strategy.

Final Word

This transaction marks a bold move for Bharat Forge—strengthening its footprint in axle manufacturing, adding to its R&D capabilities, and positioning it to ride the wave of automotive electrification. The acquisition is not just an addition of assets, but a strategic leap toward building a globally competitive, innovation-led enterprise.