Bharat Forge Chair Baba Kalyani Reveals Big Semiconductor Bet

Bharat Forge Chairman Baba Kalyani has revealed that the company has entered the global semiconductor industry and is currently working with three of the world's largest semiconductor firms, signalling the company's ambitions to expand beyond its traditional manufacturing and defence businesses.

Speaking to CNBC-TV18, Kalyani said Bharat Forge is involved in a new semiconductor project and is collaborating with multiple companies to manufacture components used in lithography machines. Lithography equipment is among the most critical and technologically sophisticated tools used in semiconductor fabrication, enabling the production of advanced chips.

The development comes as India intensifies efforts to build a domestic semiconductor ecosystem and reduce dependence on imports. Under the India Semiconductor Mission (ISM), the government has approved investments worth more than ₹1.65 lakh crore across 12 semiconductor fabrication, assembly, testing, and packaging (ATMP) projects.

Defence Business Sees Strong Growth Potential

Kalyani also expressed optimism about the future of India's defence sector, describing recent policy changes as some of the most significant reforms undertaken in the industry.

"We have seen the biggest reform in the defence sector," he said, adding that defence manufacturing has evolved from supplying individual components to building complete platforms and systems.

Kalyani said the company expects a significant expansion in India's defence industry over the next five years, driven by rising domestic procurement and growing export opportunities.

He noted that exports currently account for nearly 40% of the company's defence revenue and said increasing defence spending across major economies is creating opportunities in markets such as India, the United States, and Europe.

Commenting on India's business environment, he acknowledged improvements in the ease of doing business but said further reforms were needed. He added that India should increasingly focus on becoming a product-driven economy rather than relying primarily on services.

Separately, Bharat Forge told CNBC-TV18 that it has secured its largest-ever army carbine order and sees a substantial growth runway for its defence business in the years ahead.