Balu Forge Industries Ltd. (BFIL), a leader in precision engineering and manufacturing, has signed a Memorandum of Understanding (MoU) with Swan Energy Limited (SEL), a diversified conglomerate, to jointly explore opportunities in the railway, defense, and aerospace sectors. The MoU focuses on the creation of a Special Purpose Vehicle (SPV) between BFIL and SEL, with the goal of subscribing to equity shares in the SPV, which will be established for this collaborative venture, as per a disclosure to the exchanges.
This partnership will combine the strengths of both companies to capitalize on the growing global demand in the railways, defense, and aerospace industries. According to an official statement, Balu Forge will contribute approximately 40% of the SPV’s initial share capital, while Swan Energy will hold the remaining 60% stake.
The SPV’s efforts will be centered on supplying products and solutions for heavy industries related to the global defense, aerospace, railways, and nuclear sectors, benefiting from the strategic expertise and support of both BFIL and SEL. Trimaan Chandock, Executive Director of Balu Forge Industries, shared, “The combination of cost reduction, faster production timelines, improved customer satisfaction, and a more flexible supply chain has laid a robust foundation for the company’s future growth.”
In addition, the SPV aims to broaden its product and service offerings, enhance its market presence, and drive sustainable growth and profitability. Balu Forge recently reported a more than two-fold increase in its consolidated profit after tax (PAT), reaching Rs 48.1 crore for the September quarter, compared to Rs 23.27 crore in Q2 FY24. The company’s revenue for Q2 FY25 rose by 60.1%, totaling Rs 222.8 crore, up from Rs 139.22 crore a year ago, driven by a continued focus on client acquisition and strong demand for specialized engineering products.
On the other hand, Swan Energy reported a 39.38% drop in consolidated net profit, which stood at Rs 51.27 crore, while its revenue from operations declined by 15.61% to Rs 1032.19 crore in Q2 FY25, compared to the same period last year. Profit before tax for Swan Energy decreased by 67.82%, falling to Rs 57.39 crore from Rs 178.37 crore in Q2 FY24.
Balu Forge Industries Limited is a leading manufacturer of high-precision, mission-critical components for the automotive, industrial, and engineering sectors. With a strong focus on quality and innovation, the company produces a wide range of products, including engine components, suspension parts, and high-performance industrial components for various applications across the globe.
Swan Energy Limited is a diversified conglomerate with operations across several sectors, including energy, infrastructure, and manufacturing. The company has a strong presence in the Indian market and is committed to delivering innovative solutions that contribute to the country’s industrial and economic growth. Through strategic partnerships, Swan Energy aims to lead in critical sectors such as defence, aerospace, and logistics.
This partnership between Balu Forge Industries and Swan Energy marks an exciting new chapter in India’s industrial evolution, driving advancements that will benefit key sectors and contribute to the country’s self-reliance in critical industries.
