Machine industry company Balu Forge has bagged an order for the export of powertrain sub-assemblies. The company in a regulatory filing said that it will supply over 10,000 powertrain sub-assemblies to a corporation manufacturing tractors based out of the middle east. This could further increase to 50,000 annually, it said.
MD Jaspal Singh Chandock said in a statement that securing such an order for international market shows India's manufacturing industry is resilient. He said that this also marks Balu Forge's foray into the powertrain sub assembly production and supplies sector.
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The export of powertrain sub-assemblies has already started under the signed contract, the statement said.
The new order will also contribute to the government's target to cross $750 billion in export in the current financial year, Jaspal said.
"The order is a testament to the Balu Forge's expertise in the agricultural industry. It is also in line with the expansion plan in overseas markets," he said.
The statement added that the order will provide a boost to long term growth plans and result in healthy margins on the financial front.
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Meanwhile, shares of the small-cap company gained marginally to close at Rs 89.68 on BSE during Tuesday's trade.
In another related development, Balu Forge is setting up a manufacturing facility in Belagavi town of Karnataka to increase production. The filing said that the company has also plans for starting assemblies for new energy vehicles to its product mix. During the Q3FY23, the company's net profit jumped by 38 per cent increase to Rs 11.45 crore YoY.
