"This investment is backed up by orders already secured from prestigious original equipment manufacturers and has been achieved by leveraging our research and development capabilities," it said in a statement.
"The modern facility will address the aluminium opportunity and have state-of-the-art technology and processes," it said. "As the order book ramps up in the years ahead, we envisage enhancing the capacity through an investment of similar quantum in the coming years."
Bharat Forge said the investment is a key cornerstone of its strategy of enhancing the focus on lightweight materials and improving the financial parameters of overseas operations.
"It will help us to create a strong global manufacturing footprint as part of our aluminium strategy, spanning Europe, Asia and the United States," it said.
Bharat Forge is a Pune-based Indian multinational company involved in automotives, power, oil and gas, construction and mining, locomotive, marine and aerospace industries.
It is the world's largest forging company with trans-continental presence across 10 manufacturing locations spread across India, Germany, Sweden, France and North America.