Machine industry company Balu Forge has received an order for the export of powertrain sub-assemblies. The company said in a regulatory filing that it will supply over 10,000 powertrain sub-assemblies to a tractor manufacturing corporation based out of the Middle East. This can further go up to 50,000 annually.
MD Jaspal Singh Chandhok said in a statement that securing such an order for the international market shows that India’s manufacturing industry is resilient. He added that this also marks Balu Forge’s foray into powertrain sub assembly production and supply segment.
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The export of powertrain sub-assemblies has already commenced under the signed contract, the statement said.
Jaspal said the new order would also contribute to crossing the government’s export target of $750 billion in the current financial year.
“This order is a testament to Balu Forge’s expertise in the agriculture industry. It is also in line with the expansion plan in overseas markets,” he said.
The order will give a boost to long-term growth plans and result in healthy margins on the financial front, the statement said.
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Meanwhile, shares of the small-cap company closed marginally higher at Rs 89.68 on the BSE during Tuesday’s trade.
In another related development, Balu Forge is setting up a manufacturing facility in Karnataka’s Belagavi city to scale up production. The filing said that the company also has plans to start assembly for new energy vehicles to add to its product mix. During Q3FY23, the company’s net profit grew by 38 per cent to Rs 11.45 crore.