Indian private-sector defence leader Kalyani Group’s Bharat Forge has entered into contract negotiations with the Ministry of Defence (MoD) to supply 307 indigenously developed Advanced Towed Artillery Gun Systems (ATAGS).
“Following the completion of the technical evaluation process and the opening of commercial bids, the contract negotiation procedure between Bharat Forge Ltd. and the Indian Ministry of Defence is currently underway,” the company informed stock exchanges on Tuesday.
In March 2023, the MoD granted Acceptance of Necessity (AoN) for the acquisition of 155mm/52-caliber ATAGS and Gun-Towing Vehicles (GTVs) for the Indian Army. Developed by the Defence Research and Development Organisation (DRDO) in collaboration with Bharat Forge and the Tata Group, the ATAGS is a key element in India’s push for Indigenous defence capabilities.
Sources reveal that Bharat Forge emerged as the lowest bidder after bids were opened in late October. Under the procurement plan, Bharat Forge is expected to receive 60% of the order, while Tata Group could secure the remaining 40% if it agrees to match Bharat Forge’s pricing. The negotiations are anticipated to conclude by the end of the current fiscal year.
Bharat Forge is no stranger to international success, having secured an export order for ATAGS from Armenia in 2022. With the systems performing successfully in service, Armenia is now reportedly exploring a follow-on order for a larger quantity.
Meanwhile, Bharat Forge’s defence division continues to showcase robust financial performance. In Q2 FY24, the company reported revenue of Rs 509 crores, marking a year-on-year growth of 67%. New orders in the defence segment amounted to Rs 642 crores, contributing to an executable order book of Rs 5,905 crores as of September 30, excluding prospective domestic and export deals.
With negotiations for the ATAGS contract expected to conclude by the end of FY 2024-25, Bharat Forge is poised to solidify its role as a key player in India’s defence manufacturing ecosystem.
Ravi Shankar
