Bharat Forge Completes Acquisition of AAM India: Precision Over Prominence

In a significant but calculated move, Bharat Forge has completed its ₹746.46 crore (Rs 7,464.6 million including Cash on books of the acquired entity of Rs 1,894.8 million) acquisition of AAM India Manufacturing Private Limited. The deal, finalized with a cash-positive balance sheet, hands Bharat Forge full ownership of AAM’s axle business—including manufacturing facilities in Pune and Chennai, as well as a robust R&D centre in Pune.

What distinguishes this acquisition is its surgical precision. While not the largest among recent automotive mergers, Bharat Forge’s strategy focuses on vertical integration, financial agility, and alignment with evolving mobility ecosystems. AAM India’s business spans both traditional vehicle axles and components that feed into next-generation mobility—a perfect match for Bharat Forge’s aim of becoming a global Tier-1 mobility solutions supplier.

To put this into perspective, let’s compare it with other notable industry deals:

• Mahindra & Mahindra acquired SML Isuzu in June 2025 for $277.3 million (~₹2,300 crore), gaining control over medium and light-duty vehicle production—a move focused more on OEM expansion than components.
• Carlyle Group combined Highway Industries and Roop Automotives into a PE-backed components platform worth $400 million, a financial consolidation strategy with international ambitions.
• Ramkrishna Forgings bought a 51% stake in Tsuyo Manufacturing in December 2022 to gain a foothold in EV powertrain systems—smaller in scale but sharper in technology orientation.

What makes Bharat Forge’s play unique is its balance of synergy and sustainability. The inclusion of ₹189.48 crore in onboard cash not only offset acquisition costs but gave the company leeway to invest in future growth or diversification. Unlike many cash-draining takeovers, this one boosts liquidity and operational capability in one swoop.

In a landscape where companies are either going big (like Mahindra) or going niche (like Ramkrishna in EVs), Bharat Forge chose to go precise—strengthening its foundation while keeping an eye on the road ahead.