Balu Forge Industries Ltd. (BFIL) and Swan Energy Limited (SEL) have signed an MoU to establish a Special Purpose Vehicle (SPV) aimed at developing opportunities in the aerospace, defense, and railway sectors. The agreement outlines a capital structure where BFIL will contribute 40% of the SPV’s equity, with SEL holding the remaining 60%.
The SPV will focus on delivering products and solutions for heavy industries, including aerospace, defense, and nuclear applications. This initiative seeks to combine both companies’ expertise to address growing global demand in these sectors, according to a company announcement.
Balu Forge recently reported a sharp rise in profitability for the September quarter, with consolidated profits after tax increasing to ₹48.1 crore from ₹23.27 crore the previous year. Quarterly revenues also rose by 60.1%, reaching ₹222.8 crore. Meanwhile, Swan Energy reported a decline in consolidated net profit to ₹51.27 crore, down 39.38%, with a 15.61% drop in revenues to ₹1,032.19 crore during the same period.
The partnership highlights a strategic push by both companies to expand their reach in technology-driven and high-value industries.