Bharat Forge, the world's second largest forgings company, is eyeing acquisitions in South America and Eastern Europe.
A senior company executive told Business Standard, "We plan to enter these markets either through acquisitions or joint ventures. A strong presence in these regions will help us improve business outside India."
However, he refused to give financial details of the plan.
It is important for Indian companies to have a manufacturing base in South America as the country has a high import duty of 16 per cent on auto components.
Although Bharat Forge has a manufacturing base in the US, it is not feasible for the company to cater to the needs of the South American market from that country. Bharat Forge America Inc, the subsidiary, is based in Michigan.
"Eastern Europe is less expensive. Besides, it is a strategic route for component exports to the other markets of Europe," the official pointed out.South America has a market size of about four million vehicles, growing at 10 per cent annually.