BF infrastructure Ventures Ltd, a subsidiary of Bharat Forge Ltd, has sold its entire 50 per cent stake in the joint venture David Brown Bharat Forge Gear Systems India Ltd to JV partner David Brown Systems India (Holdings) Ltd for Rs 3.1 crore ($470.9K), according to a stock market disclosure.
Founded in 2011 as a 50:50 joint venture between Bharat Forge and David Brown, David Brown Bharat Forge Gear Systems manufactures automotive and non-automotive components. The firm caters its services to power, mining, defence, wind, rail and steel sectors.
The JV was formed to open a manufacturing facility and service centres throughout India as well as strengthening its local service centre offering for customers by adding service and repair facilities in Australia, Chile, North America, South Africa, Zambia, UAE, Indonesia and France, as per the information on David Brown's website.
Bharat Forge, a part of diversified business conglomerate Kalyani group, is one of the world's largest forgings companies in the world behind Germanyâs Thyssenkrupp.
Early this year, the company had acquired French oil & gas machining company Mecanique Generale Langroise (MGL).
In September 2014, the firm offloaded its 50 per cent equity stake in Impact Automotive Solutions Ltd to its joint venture partner KPIT Technologies Ltd.
Bharat Forge scrip closed at Rs 923.70, up 1.82 per cent on BSE in a strong Mumbai market on Thursday.
Bangalore-based David Brown Systems India Holdings is an automobile equipment manufacturing company. Over the years, it has expanded into other countries also. The company had acquired Canada-based Unigear, a gearing solutions provider, to strengthen its presence and local manufacturing offering in the Americas.