Kalyani Powertrain Partners With Taiwan's Compal Electronics to Manufacture Servers in India

Kalyani Powertrain, a wholly-owned subsidiary of Bharat Forge, has signed a technology licensing agreement with Taiwan's Compal Electronics to manufacture X86 platform servers in India. The companies finalized a Memorandum of Understanding on March 6, 2025, to develop server business using locally manufactured solutions, supporting the Indian government's "Make in India" initiative.

Under the agreement, Compal will provide Kalyani Powertrain with technological support for servers, including oversight of local production, assembly, testing activities, and final sales. The electronics division of Kalyani Powertrain began production at its manufacturing facility in Pune, Maharashtra in February 2025.

Bharat Forge Vice Chairman and Joint Managing Director Amit Kalyani said the partnership with Compal would strengthen India's manufacturing capabilities. Compal CEO Tony Bonadero expressed satisfaction with the collaboration, noting that Kalyani Powertrain's experience in the Indian market would create synergistic effects.

The collaboration aims to support India's growing technology infrastructure by providing domestic server solutions for AI workloads, cloud computing, and data processing. It aligns with national efforts to reduce dependency on imported technology hardware.

Bharat Forge, established in 1966, has grown to become one of India's largest manufacturers of automotive components. The company has diversified into various sectors including defense, aerospace, and now information technology infrastructure through its subsidiary Kalyani Powertrain.

Compal Electronics, founded in 1984, is one of the world's largest manufacturers of notebook computers and electronics products, with extensive experience in IT hardware manufacturing and assembly.

The partnership represents a significant step in India's efforts to develop domestic manufacturing capabilities for critical technology infrastructure components as demand for data centers and cloud computing continues to grow in the country.