Bharat Forge’s wholly owned subsidiary Kalyani Powertrain Ltd. (KPL) has agreed to exit its German joint venture REFU Drive GmbH by selling its entire 50% equity stake to partner REFU Elektronik GmbH for €12,500. The transaction marks the end of a partnership established to develop power electronics and drivetrain solutions for electric vehicles and is expected to be completed within six weeks, subject to customary closing conditions.
The divestment comes as Bharat Forge continues to streamline its electric mobility portfolio. According to the company, the sale consideration was determined through an independent valuation and the transaction has been undertaken on an arm’s length basis, despite being classified as a related-party transaction under applicable regulations.
Bharat Forge Unit Exits REFU Drive Joint Venture
Kalyani Powertrain signed a definitive agreement on July 22, 2026, to sell its full 50% stake in REFU Drive GmbH to REFU Elektronik GmbH.
Following the completion of the transaction:
- REFU Drive GmbH will cease to be a joint venture of Kalyani Powertrain.
- Bharat Forge will exit the German entity completely.
- The sale is expected to close within six weeks.
- The purchase consideration will be received at closing.
Transaction Overview
| Particular | Details |
|---|---|
| Seller | Kalyani Powertrain Ltd. (Bharat Forge subsidiary) |
| Buyer | REFU Elektronik GmbH |
| Stake Sold | 50% |
| Sale Value | €12,500 |
| Expected Closing | Within six weeks |
| Result | REFU Drive ceases to be KPL’s joint venture |
Financial Performance of REFU Drive
The decision follows a challenging financial year for REFU Drive GmbH.
According to Bharat Forge’s regulatory disclosure, the German company reported:
- Revenue: €14.42 million
- Net worth: Negative €3.23 million
The company noted that REFU Drive’s financials were not consolidated into Bharat Forge’s financial statements.
Sale Based on Independent Valuation
Bharat Forge stated that:
- The transaction qualifies as a related-party transaction.
- It has been conducted on an arm’s length basis.
- The valuation was supported by an independent valuation report.
- REFU Elektronik GmbH is not part of Bharat Forge’s promoter or promoter group.
Key Financial Details
| Metric | Value |
|---|---|
| Revenue (Last Financial Year) | €14.42 million |
| Net Worth | -€3.23 million |
| Consideration Received | €12,500 |
| Stake Divested | 50% |
Background of the Joint Venture
Bharat Forge originally entered into the joint venture with Germany’s REFU Elektronik in 2019 to develop and manufacture power electronics for electric mobility applications.
The venture focused on:
- Electric vehicle drives.
- Inverters and converters.
- Battery management systems (BMS).
- On-board controllers.
- Power electronics for hybrid and electric vehicles.
In 2022, Bharat Forge transferred its stake in REFU Drive to Kalyani Powertrain as part of an internal restructuring to consolidate its electric vehicle business under a single subsidiary.
Strategic Implications
The divestment reflects Bharat Forge’s ongoing efforts to optimize its business portfolio and sharpen its strategic focus within the rapidly evolving electric mobility sector.
Potential implications include:
- Simplification of the company’s EV investment structure.
- Exit from a financially stressed joint venture.
- Greater focus on core growth opportunities.
- Improved capital allocation for future mobility initiatives.
Looking Ahead
Bharat Forge’s decision to divest its entire stake in REFU Drive GmbH marks the conclusion of a seven-year partnership in the electric mobility space. While the sale value of €12,500 is modest, the transaction enables the company to exit a joint venture with a negative net worth and continue refining its electric vehicle strategy.
Looking ahead, investors will watch how Bharat Forge redeploys capital and resources toward higher-growth opportunities in electric mobility, defence, aerospace, and advanced engineering. The portfolio realignment also underscores the company’s focus on improving capital efficiency while strengthening businesses with stronger long-term growth potential.
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