Bharat Forge has formed a new joint venture with China's FAW Corporation called FAW-Bharat Forge Changchun.

Bharat Forge will hold 52% and FAW Forge, the FAW Corporation forging subsidiary, the rest.

This JV - capacity 100,000 tonnes - makes Bharat Forge the largest forgings manufacturer in China, supplying customers with highly engineered forged automotive components.

The transaction value was not disclosed but analysts peg it at INR2.4bn.

Bharat Forge chairman and managing director Baba Kalyani said: "China is a very large player with a market for five million vehicles, growing at 11% annually. In the next five years, the market size will be 10 million. The opportunity in China is huge. And it is a low-cost sourcing base serving the dual-shore model adopted by Bharat Forge."

"Adding a partner like Bharat Forge will sharpen the design and engineering skills for the company adding value to our products," said FAW group CEO Zhu Yanfeng.

Deepesh Rathore/Tilak Swarup