Gears are not a commodity - they are a precision promise. G G Automotive Gears Ltd (GGAG) is a specialist manufacturer that has spent five decades turning that promise into a business, evolving from a small automotive gear shop founded in 1974 into a critical supplier of traction gears for Indian Railways. The recurring approach is vertical integration under one roof: the company designs, cuts, heat-treats, and grinds its own gears at a single, expanding campus in Dewas, Madhya Pradesh, controlling quality from raw steel to finished, tested component. # Business segments A single, integrated gear-making engine - one factory, one technology backbone, but two distinct customer worlds that pull the business in different directions: the tender-driven, relationship-deep world of Indian Railways, and a diverse industrial portfolio spanning metros, defence, and wind energy. ## 1. Traction gears and pinions: the locomotive heartbeat **GGAG is a leading supplier of the gears that transfer power from a locomotive’s motor to its wheels, built on a 50-year relationship with Indian Railways and a tender-based model that rewards proven precision.** - **The railway relationship is the foundation** - the company’s most significant customer is Indian Railways, where it operates as a key player in the traction gear ecosystem through a longstanding strategic partnership governed by specific tender requirements. This is not a transactional relationship; the company is entrenched in the customer’s critical and strategic initiatives. - **Made for the largest locomotive build in the world** - Indian Railways produced a record 1,681 locomotives in FY24-25, more than the combined output of the USA and Europe, creating a deep and sustained domestic demand pool for the gears and pinions GGAG supplies. - **Precision is the entry ticket** - the company manufactures helical and spur gears from 50 mm to 1,600 mm in diameter, hardened and ground to DIN class 3 and 4 accuracies, the tight tolerances required for traction applications where failure is not an option. - **Quality is audited into the product** - every piece of raw material and every gear at each stage of production passes through stringent quality checks, and the company holds the IRIS (International Railway Industry Standard) certification, the global benchmark for railway component suppliers. ## 2. Industrial gears and gearboxes: the diversification engine **Beyond the rails, the same Dewas factory produces custom gears and assembled gearboxes for industries from metro systems to wind turbines, spreading the company’s precision know-how across a dozen end-markets.** - **One process, many industries** - the same integrated manufacturing line that cuts railway gears also produces industrial gears for metro systems, oil and gas, defence, wind energy, power transmission, cooling towers, mining, earth-moving equipment, and steel, giving the company a hedge against cycles in any single sector. - **Moving up the value chain to gearboxes** - the company does not just sell loose gears; it designs and manufactures complete industrial gearboxes, assembling the housings and gear sets into a finished product that commands a higher engineering premium. - **The metro opportunity is a second railway** - India’s ambition to become a global hub for metro systems creates a parallel demand stream for traction gears, and GGAG has a dedicated metro gear division positioned to capture it. - **Global reach is being built from the ground up** - the company is actively exploring newer export markets, with a focus on East Asia and the Americas, using online and offline exhibitions to generate leads beyond its domestic base. # The Dewas manufacturing engine **All gears - railway or industrial, domestic or export - are born in a single, expanding campus in Central India where the company controls every step from raw steel to finished product.** - **Fully integrated under one roof** - the company offers end-to-end solutions from product conceptualisation through design, forging, cutting, heat treatment, grinding, and rigorous testing, all performed at its Dewas, Madhya Pradesh facility. - **Capacity is being built ahead of demand** - in both FY24 and FY25, the company added over 30,000 square feet of additional floor space to accommodate new equipment, with recent capital expenditure focused on gear grinding, teeth cutting, and heat treatment to remove production bottlenecks. - **Raw material is the dominant cost** - carbon steel, non-ferrous, and ferrous alloys account for 60-70% of operating revenue, making procurement and process efficiency the central levers of profitability in a material-intensive production process. - **Delivery is a discipline** - the company operates on an OTIF (On Time, In Full) principle, and standard operating procedures are continuously refined to optimise cycle times and reduce consumable costs. # Group structure and partners **GGAG is a standalone, promoter-led company with no subsidiaries - a single legal entity where the founding family remains at the helm and has recently put its own capital into the business.** - **A single-entity structure** - the company has no subsidiaries, joint ventures, or associate companies as of March 31, 2025, and its shares are listed solely on the BSE in Mumbai. - **Founder-led with generational continuity** - Mr. Kennedy Ram Gajra, who promoted the company at its founding in 1974, continues as Chairman and Managing Director, while his son Mr. Anmol Gajra serves as Whole Time Director, ensuring family stewardship into the next generation. - **Promoter capital backs the balance sheet** - in January 2025, shares were issued upon the conversion of warrants to both promoter and non-promoter investors, and in March 2026, the board accepted an unsecured, interest-free loan of up to ₹10 Crores from the Chairman to fund capital expenditure and working capital needs.