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Balu Forge and Swan Energy partner for railways, defence, and aerospace ventures
Industry News- Nov 19,24
According to an exchange filing, BFIL will hold a 40% stake in the SPV, with SEL taking the remaining 60%.
Balu Forge Industries Ltd (BFIL), a leading precision engineering and manufacturing company, has signed a Memorandum of Understanding (MoU) with Swan Energy Limited (SEL), a diversified business conglomerate, to jointly explore opportunities in the railways, defence, and aerospace sectors. The partnership aims to form a Special Purpose Vehicle (SPV) to pursue these ventures.
According to an exchange filing, BFIL will hold a 40% stake in the SPV, with SEL taking the remaining 60%. The SPV will focus on supplying products and solutions for heavy industries, including defence, aerospace, railways, and nuclear sectors, leveraging the strengths and strategic support of both partners. The collaboration aims to expand product offerings, enhance market presence, and drive profitability.
This strategic move aligns with BFIL's recent strong financial performance. The company reported a consolidated profit after tax of Rs 481 million in Q2 FY25, more than doubling its profit of Rs 232.7 million in the same quarter last fiscal. Revenue also surged by 60.1% to Rs 2.22 billion, driven by robust demand for specialised engineering products.
In contrast, Swan Energy reported a 39.38% drop in consolidated net profit to Rs 512.7 million in Q2 FY25, with revenue declining by 15.61% to Rs 10.32 billion. Despite the decline, the partnership with Balu Forge signals a strategic move to tap into growth opportunities in high-value sectors.
(Business Today)
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