David Brown confirms new 50:50 joint venture in india to supply industrial gearboxes and comprehensive aftermarket services to the country’s high growth, high demand sectors
India 9th May 2011: David Brown Systems India (Holdings) Limited part of the David Brown Group (David Brown), a leading global manufacturer of gearing products and services has today signed a shareholders agreement to set up a Joint Venture Company with Bharat Forge, a global leader in manufacturing automotive and non-automotive components, through its wholly owned subsidiary, BFIVL. The shareholders agreement was signed in India by Mr. Jim McColl OBE, Chairman of David Brown and Mr. Subodh Tandale, Director, BFIVL. The JV Company will be named ‘David Brown Bharat Forge Gear Systems India Limited’ and will serve the Indian heavy engineering industry, supplying both new build gearboxes and comprehensive aftermarket services to high growth, high demand sectors including power, mining, defence, wind, rail and steel. Leveraging Bharat Forge’s World class manufacturing & operational capability, strong sales network, strong brand reputation in the Indian and Global market and proven track record in developing and growing joint ventures, coupled with David Brown’s long standing reputation for highly engineered gear manufacturing, the joint venture will facilitate the growth of both partner companies. Such growth being further leveraged by the support of David Brown’s existing installed base, to developing long term customer relationships through a local network. Initially, ‘David Brown Bharat Forge Gear Systems India Ltd’ is intended to be operational from current Bharat Forge facilities. However, by the middle of 2012, it is intended to have a dedicated site for gearbox assembly and testing.The JV Company intends to set-up two service centres in Bangalore and Kolkata by the end of 2011. Additional locations for more service centres in Delhi and Hyderabad are being planned by the end of 2013. These service centres will be designed as per global standards to provide rapid aftermarket service and support to key industries.
“This is an extremely exciting development in David Brown’s growth strategy. We recognise India is a high growth territory for gearing products and services and so we are delighted to have found such a well-respected and prominent partner in BFIVL. This joint venture enables us to develop these high demand & growing industries by providing customer proximity through a local network. I look forward to working with BFIVL.”
– Mr. Jim McColl OBE, Chairman, David Brown
“Aligned with Kalyani group’s strategy to diversify into non-auto business sectors and also to enter into equipment manufacturing this joint venture is one more step in the direction of reiterating our strong commitment to providing world class technology to the fastest growing core infrastructure market in India. We are proud to be associated with a highly respected global Company like David Brown with its rich heritage and world class technology. This is the first of our many steps to follow in the areas of providing high quality after-sales service to core-infrastructure areas.”
– Mr. B N Kalyani, Chairman & Managing Director, Bharat Forge
Source : David Brown Group