Bharat Forge Ltd will acquire a 30% stake in Fortuna Engineering Private Limited for ₹129.6 crore, a partnership aimed at scaling Fortuna’s precision-machining business across products, customers and geographies.

The transaction values Fortuna at about ₹432 crore on an equity basis, based on the stake size and consideration announced by Bharat Forge. The deal remains subject to customary closing conditions and applicable approvals.

Fortuna’s precision-machining play

Founded in 1989, Fortuna Engineering is a Nashik-headquartered manufacturer of precision-machined engine components, with core strengths in connecting rods and camshafts for automotive and industrial applications. The company supplies to major automotive OEMs in India across passenger vehicle, commercial vehicle, tractor and off-highway segments.

The partnership gives Bharat Forge exposure to a specialised component supplier with an established customer base in domestic mobility and industrial markets. For Fortuna, the deal brings in a large manufacturing partner with global scale, engineering capabilities and access to export opportunities.

Bharat Forge to support scale-up

Commenting on the deal, Amit Kalyani, vice chairman and joint managing director of Bharat Forge, said the company was “pleased to enter into this partnership with Fortuna,” calling it “a leading supplier of machined components for a wide range of applications in India.”

“We are impressed by the company’s capabilities, operating track record and reputation in the market. We look forward to working closely with the promoters and management team of Fortuna to scale the business further and build on the significant opportunities ahead,” Kalyani said.

Fortuna eyes new products, customers and geographies

Fortuna chairman and managing director Suriya Narayanan said the partnership was a “significant milestone” and would support the company’s next phase of growth.

“This partnership is a significant milestone for us and a strong enabler for our next phase of growth across new products, new customers and new geographies,” Narayanan said.

He added that the partnership would help strengthen the company’s contribution to the Make in India vision by “building world-class capabilities in India for global requirements.”

Pune-based Kalyani Group's flagship company Bharat Forge operates across automotive, power, oil and gas, construction and mining, rail, marine, defence and aerospace, and has manufacturing presence across five countries.

Shares of Bharat Forge ended 0.93% lower at ₹1,890 apiece on the NSE on Thursday. The stock has risen over 71% in the past year, outperforming the Nifty Midcap 50 index, which has declined nearly 3% during the same period.