Bharat Forge to Enter Naval Propulsion Systems Segment for Indian Navy
Bharat Forge Limited, part of the Kalyani Group and a manufacturer of defence products, is entering the naval propulsion systems manufacturing segment for the Indian Navy. In an interview with CNBC TV-18, Mr. Baba Kalyani, Chairman of Bharat Forge, said that with this initiative, the company targets to become the first Indian firm to deliver a fully indigenously designed naval propulsion system.
Propulsion systems are integrated mechanical and electronic components that generate thrust to move a vessel through water. In naval platforms, they typically include engines, gearboxes, shafts, propellers, and control systems that together determine a ship’s speed, maneuverability, and operational efficiency.
Bharat Forge’s Step Towards Indigenous Design and Development of Naval Propulsion Systems
By entering the naval propulsion systems segment, Bharat Forge is targeting a technologically complex and critical area of naval engineering. This development is significant, as India has traditionally relied on foreign suppliers for naval propulsion technologies.
Bharat Forge’s propulsion system package, currently under development, includes the propeller shaft, gearbox, controllable pitch propeller, and associated pitch control electronic systems. During the interview, Mr. Kalyani highlighted that all these systems will be designed and developed in India. However, the company has not disclosed the exact timeline and capital expenditure for the development of these propulsion systems.
Importance of Indigenous Naval Propulsion for Self-Reliance and Defence Capability
The project is being executed in collaboration with the Indian Navy. This collaborative approach is intended to accelerate development timelines while ensuring that the final systems are suitable for deployment across a range of existing and future naval platforms. The collaborative approach could shorten timelines for naval construction projects by an estimated 12 to 18 months.
The use of domestically manufactured components can lower overall platform costs, allowing defence budget allocations to be redirected towards the acquisition of additional platforms or the development of advanced sensor and combat systems.
Defence Exports, Order Book Growth and Revenue Outlook for Bharat Forge
Bharat Forge’s under-development naval propulsion systems also present an opportunity to expand export market potential. India’s defence exports reached Rs. 23,622 crore in FY25, reflecting a 34% Year-over-Year (YoY) growth, with naval platforms accounting for the highest-value export segment.
The company currently has a defence order book of approximately Rs. 10,000 crore and expects this to grow to Rs. 12,000–14,000 crore by the end of FY26. During FY25, Bharat Forge reported revenue of Rs. 15,123 crore and a Profit After Tax (PAT) of Rs. 1,322 crore.
About Bharat Forge Limited: Bharat Forge Limited is headquartered in Pune and was incorporated in 1961. The company is a part of Kalyani Group. The company operates several manufacturing plants in India, primarily around Pune, in Vadodara, in Coimbatore and in Nellore.