French MGL operation specializes in parts for oil-and-gas drilling
- Purchase by automotive forging subsidiary
- Strategy is to “move up value chain”
- Closer to customers, increased value services
Bharat Forge Ltd. manufactures components used in surface, subsea, and shale-gas exploration. Examples shown include a spool body, a connector, and a mandrel for subsea valves.
CDP Bharat Forge GmbH, the wholly owned German forging subsidiary of India’s Bharat Forge Limited, has purchased a French machining operation for a reported $14.27 million. Mecanique Generale Langroise (MGL), situated at Saints-Geosmes, in eastern France, is mainly dedicated to precision-machining components for oil-and-gas exploration, as well as other value-adding processes like cladding of critical materials.
MGL’s include turnkey components for drilling, like blow-out preventers (BoP), surface and sub-sea well heads, and other parts for power production in general.
While the statement by Bharat Forge Ltd. announcing the purchase noted that MGL primarily caters to “premium global oil-and-gas customers , all of whom are already customers of BFL,” CDP Bharat Forge is primarily an automotive forging operation, with nine presses at Ennepetal, Germany, producing steering knuckles, crankshafts, control arms, connecting rods, heavy-duty pistons, and other parts.
“The acquisition of MGL is in line with our strategy of moving up the value chain in the industrial business,” explained Baba N Kalyani, chairman and managing director of Bharat Forge Ltd. “This acquisition enhances BFL’s ability to provide turnkey solution and simultaneously strengthens the product offering in the oil-and-gas sector.”
Bharat Forge added that the purchase would solidify its position in the “oil-and-gas space” by expanding services and extending its geographic reach. The group produces parts for surface, subsea, and shale-gas exploration.
The group’s statement also noted the acquisition would bring it closer to customers and increase the value of the service it provides to them. It described the purchase as “first among many opportunities we are looking at addressing in North America, (the) North Sea area, and the Middle East.”