Bharat Forge To Transfer Defence Biz To Arm; To Acquire AAM India

Bharat Forge Ltd. on Monday said its board has approved the transfer of its defence business to its wholly-owned subsidiary, Kalyani Strategic Systems Ltd., for up to ₹5 billion. The transfer, part of an internal restructuring plan, is expected to be completed within 45 days, the company said in an exchange filing.

As consideration, Kalyani Strategic Systems will issue optionally convertible redeemable preference shares to the parent. The move is aimed at giving KSSL focused management over the high-growth defence business and cutting-edge tech development, the company said.

KSSL, incorporated in December 2010, had a turnover of ₹12.47 billion in 2024–2025, up from ₹11.45 billion in 2023-24.
The board has also approved acquiring a 100% stake in automotive supplier AAM India Manufacturing Corp. Pvt. Ltd. The deal value has been revised to ₹7.70 billion from ₹5.45 billion earlier, due to higher-than-expected cash balances at the target company.