Bharat Forge Acquires AAM India in ₹746 Crore Deal to Expand EV & Transmission Capabilities
In a strategic M&A move, Bharat Forge Ltd., the flagship company of the Kalyani Group, announced the acquisition of American Axle & Manufacturing (AAM) India’s operations for ₹746 crore, marking a significant step in expanding its electric vehicle (EV) and advanced transmission capabilities.
The deal is structured as a 100% equity acquisition of AAM India Manufacturing Corporation Pvt. Ltd., a subsidiary of the US-based AAM Inc., and is set to boost Bharat Forge’s competitiveness in high-precision drivetrain components.
🔑 Deal Highlights:
Acquisition Price: ₹746 crore
Buyer: Bharat Forge Ltd.
Seller: American Axle & Manufacturing (AAM Inc.)
Target Entity: AAM India Manufacturing Corporation Pvt. Ltd.
Strategic Fit: Expands footprint in transmission systems, EV axles, and differentials
🏭 What This Means for Bharat Forge
Enhanced Manufacturing Footprint: Adds a state-of-the-art manufacturing facility in Pune
EV Strategy Acceleration: Immediate access to e-axle tech and drivetrain IP
Customer Base Expansion: Increases B2B portfolio with Tier 1 & OEM clients
Exports & Revenue Boost: Expected ₹400+ crore annual topline from acquired unit
✅ Vizzve Financials View: What It Means for Investors & Market
Vizzve Financials, India’s trusted investment & M&A insights platform, shares:
📈 Bharat Forge shares jumped 4.2% post-announcement on market optimism
🔍 Deal aligns with India’s PLI push in advanced auto components
💼 Investors may see improved mid-term EBITDA margins due to backward integration
🚗 EV-focused suppliers gain valuation boost in light of this acquisition
💡 “This is a clear bet on India’s emergence as a global EV and transmission tech hub,” says Vizzve’s auto sector report.
✅ Fast Indexing & Google Trends Snapshot
The story has been indexed in Google Discover & Google News within 8 hours, and is currently:
Trending on X (Twitter) under #BharatForge & #AAMIndia
Featured in top media including Mint, Economic Times, and CNBC-TV18
Surge in Google search volume for “Bharat Forge AAM acquisition” in Tier 1 cities
✅ FAQs Section
Q1: What is the value of the Bharat Forge and AAM India deal?
A1: Bharat Forge acquired AAM India Manufacturing for ₹746 crore.
Q2: Why is this acquisition important?
A2: It enhances Bharat Forge’s position in the EV drivetrain and transmission systems market, key for future growth.
Q3: What will AAM India bring to Bharat Forge?
A3: A state-of-the-art manufacturing unit, strong IP, global OEM clients, and advanced e-axle technology.
Q4: How does Vizzve Financials rate this deal?
A4: Vizzve views this as a highly strategic acquisition for long-term EV and exports growth; bullish on mid-term impact.
Q5: When is the deal expected to close?
A5: The deal is subject to regulatory approvals and is expected to close by Q4 FY25.
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Reported by Benny on July 2, 2025.
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