Kalyani Powertrain, a subsidiary of Bharat Forge, has entered into a technology licensing agreement with Compal Electronics Inc. for the manufacturing of X86 platform servers in India. The agreement includes a Memorandum of Understanding (MoU) between the two companies to develop the server business using locally manufactured solutions.
Under the agreement, Compal will provide technological support to Kalyani Powertrain, including overseeing local production, assembly, testing, and final sales of the servers.
Additionally, the electronics division of Kalyani Powertrain launched servers manufactured in India at its facility in Pune, Maharashtra, in February 2025. The company stated in a regulatory filing that the factory is expected to support local businesses and contribute to the region’s manufacturing sector.
These initiatives align with efforts to bolster local manufacturing and reduce reliance on imports in the server industry.
Bharat Forge’s shares experienced a 2% increase following the announcement of the agreement with Compal Electronics.
Kalyani Powertrain specializes in manufacturing electric vehicle components and has expanded into AI-driven and server-related products, marking its entry into the information and communication technology sector.
Compal Electronics, established in 1984, is recognized for manufacturing notebooks and smart devices, and has recently focused on cloud servers, automotive electronics, and smart medical solutions.