Kalyani Powertrain Teams Up with Taiwan’s Compal Electronics to Manufacture Servers in India

Kalyani Powertrain Ltd. (KPTL) and Compal Electronics, Inc. sign an MoU

Kalyani Powertrain, a subsidiary of Bharat Forge, has entered into a technology licensing agreement with Compal Electronics, Inc. to produce X86 platform servers in India. The partnership aims to develop a server business using locally sourced solutions, aligning with the Indian government’s “Make in India” initiative. Compal will provide Kalyani Powertrain with essential technological support, including overseeing the local production, assembly, testing, and sales processes.

Bharat Forge Vice Chairman & Joint Managing Director, Amit Kalyani, expressed his enthusiasm: “We are thrilled to collaborate with Compal, a global leader in technological products, to manufacture servers in India. This partnership will enhance India’s manufacturing competitiveness and is a testament to the trust Compal has placed in the Kalyani Group for this venture.”

Tony Bonadero, CEO of Compal, commented: “We are excited to work with Kalyani Powertrain. With our shared vision for advancing the server business, Kalyani Powertrain’s deep market knowledge in India will create significant synergy between our companies. We are hopeful that this partnership marks the beginning of more ICT-related business opportunities, which will generate greater value for both parties.”

In a significant move, Kalyani Powertrain’s electronics division announced the launch of its locally manufactured servers in February 2025. The state-of-the-art manufacturing facility in Pune, Maharashtra, is set to stimulate regional business growth and make a considerable contribution to the area’s manufacturing ecosystem. “This factory will help drive local enterprises, supporting India’s growth as a manufacturing hub,” the company stated in an official filing.

This collaboration is key to advancing India’s digital infrastructure, particularly in AI, cloud computing, and large-scale data management. By fostering local server production, the partnership will reduce reliance on imports and provide businesses, cloud providers, hyperscalers, and government entities with affordable, high-performance server solutions tailored to modern technology needs.

Kalyani Powertrain Limited (KPTL) is focused on manufacturing components for electric vehicles, electric motorcycles, electric three-wheelers, and retrofitting internal combustion engine vehicles to electric ones. Expanding its scope in 2024, KPTL ventured into the ICT sector, including AI and server products. The company’s electronics division is gearing up to introduce made-in-India servers from its Pune facility in February 2025.

Founded in 1984, Compal Electronics is a leading manufacturer in the notebook and smart device industries. The company has built significant brand value by collaborating with various sectors. Compal is known for its continuous innovation and high-quality service, earning numerous international awards for its product designs. In 2024, it was named one of Taiwan’s top 6 manufacturers by CommonWealth Magazine and is a consistent presence on both the Forbes Global 2000 and Fortune Global 500 lists. Recently, Compal has focused on expanding its presence in emerging sectors such as cloud servers, automotive electronics, and smart medical devices, leveraging its integrated hardware and software research and development capabilities to deliver innovative solutions.