CREDAI STUDY AND TRAINING 2014 PRESENTATION CREDAI STUDY AND TRAINING 2014 B.N. KALYANI FEBRUARY 14, 2014

Introduction STRATEGY DRIVERS Experience Internal activity External markets Global company Global Leadership DRIVERS Business Model Organization – HR Process Speed Ability to deal with adversity Experience Management shapes globalization process There after Global starts shaping the company and the organization

BFL’s Approach to Global Manufacturing Excellence Build the organization Focus on cost quality and internal processes 1997-2000 Leverage domestic market to build export orientation & become a global company Build world class scales and organizational technology capability Conduct operations across the globe 2000-2008 De-risk the business & create new verticals Add non-automotive & capital goods business to the Auto business. Enlarge addressable market and reduce cyclicality 2008-2013

Global Footprint CAPACITY CAPACITY 180,000 Tons 387,050 Tons 4 3 1 2 US SALES OFFICE BFL GLOBAL HEADQUARTERS CAPACITY 180,000 Tons CAPACITY 387,050 Tons CDP BHARAT FORGE Ennepetal, Germany BHARAT FORGE DAUN Daun, Germany BF ALUMINIUMTECHNIK Dresden, Germany BHARAT FORGE KILSTA, Sweden 1 Production base close to the customer Proximity to large marquee Customers Dual Shore manufacturing Worlds largest single location forging facility Technologically advanced, flexible forging & machining facility Proximity to fast growing Auto markets of China & india Dual Shore manufacturing 2 3 4 Capacity of over 560,000 Tons per annum Crankshaft machining capacity of 1,200,000 Nos. Capacity to machine 500,000 FAB & 750,000 steering knuckles 4

CONSOLIDATED REVENUES (RS MILLION) Robust Financial Performance CONSOLIDATED REVENUES (RS MILLION) Financial crisis CAGR 22%

Non Automotive Industry Non Automotive Industry Expanding Horizons Components for Automotive Industry $ 30 - 35 bn Market * Components for Non Automotive Industry Components for Non Automotive Industry Components for Automotive Industry $ 30 - 35 bn Market * Global Automotive Forging Industry $ 30 - 35 bn Market* Indian Automotive Forging Industry $ 1 bn Market* Capital Goods Capital Goods Capital Goods BFL Initially catered to the Indian Automobile market with a small presence in the export market. Leapfrogged the gap thru Organic Growth & strategic acquisition of Technology & Customers. In this process, the company has not only increased its business but also enhanced its addressable market size * Company estimates on the basis of average forgings per vehicle. 6

Automotive: Global Presence 7

Infrastructure Supply Business New Verticals… Greater Focus… India’s Growth Non - Auto Business Energy Transportation Construction & Mining Oil & Gas Aerospace Metal & Mining Power Construction Locomotive General Engineering Thermal Hydro Wind Marine Infrastructure Supply Business 8

Industrial: Global Presence 9

De-risked Business Model – Consolidated – FY 2013 PRODUCT GEOGRAPHY 10

Locally Qualified personnel HR Talent Factory… Key success Factor Global Talent Pool mix of 95% local & 5% Global TALENT POOL FACTORY Locally Qualified personnel Master Degree in Manufacturing Management & Leadership Development program Engg Degree, BITS, Master Engineer, Problem Solving, Team Building, Six Sigma, Kaizen Apprentice Training & Talent Pipeline 11

Thank You www.bharatforge.com 12