Bharat Forge Acquires AAM India Manufacturing for Rs 746.46 Crore

Bharat Forge Limited (BFL) based in Pune has successfully acquired AAM India Manufacturing Private Limited valued at an equity value of 746 crore rupees which is a leading player in making axles of commercial vehicles. The transaction, which was completed on July 2, 2025, following Competition Commission of India (CCI) approval on April 22, 2025, is recognized as one of the largest increases in BFL automotive product offerings.

The acquisition which was first announced on October 17, 2024, brings along with it 189.48 crore worth of cash reserves on the books of AAM India that will aid the future growth plans of the company. As of the 30th of June, 2025, final equity value is treated to the net working capital adjustment.

AAM India has been known to serve the top Original Equipment Manufacturers (OEMs) in both the traditional and new mobility technology fields with axles. The purchase will enable BFL to deal with more global OEMs to supply them with the high-performance components to enhance their business operations. BFL is a multinational, technology-focused enterprise, which has already shown a powerful presence in the automotive, aerospace, and defense industry, establishing marketing plants in five countries.

Separately, BFL is in the process of restructuring its defense business wherein it shall transfer selected assets to its wholly owned subsidiary Kalyani Strategic Systems Limited (KSSL) at fair market value upto 500 crore Rupees. This new strategic move, along with what it acquired in AAM India, will serve to give BFL a further edge in the market.

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After the announcement, the shares of Bharat Forge increased as investors gained confidence in the strategy adopted by the company to grow. The acquisition is in line with the BFL vision to develop its global presence and enjoy the benefits of opportunities in the emerging automotive and defense markets.