### **Overview** RACL Geartech Limited (formerly Raunaq Automotive Components Limited) is a leading Indian manufacturer of high-precision gears, shafts, and engineered components for automotive and industrial applications. Established in 1983 and headquartered in Noida, the company has evolved over four decades into a globally trusted Tier 1 supplier to premium OEMs. With two manufacturing plants in India (Noida and Gajraula), a wholly owned subsidiary in Austria (RACL Geartech GmbH), and five warehouses across Europe, RACL has built a strong export-centric footprint, serving 22 global customers across 10+ countries. The company went public with its listing on the BSE and NSE on **November 27, 2024**, marking a pivotal milestone in its growth journey. For **FY25**, it reported **revenue of INR 4.27 billion (≈USD 49.94 million)**, with **68% of revenue derived from exports**, primarily to Europe, North America, and Asia-Pacific. --- ### **Core Business & Product Portfolio** RACL specializes in the design and manufacture of: - Transmission gears and shafts - Precision machined parts - Sub-assemblies and gearboxes - Chassis components (including electronically controlled roll bars – ERC) - Industrial and agricultural gears - Parking lock mechanisms, decoupling devices, and electric power steering (EPS) components - Components for e-mobility: electric scooters, e-bikes, EV drivetrains Its products serve a diverse range of applications across: - **Two-wheelers** (premium motorcycles >350cc, e-scooters) - **Passenger cars & commercial vehicles** (ICE, hybrid, EV) - **Off-highway vehicles**: ATVs, agricultural tractors, harvesters - **Industrial machinery**, including defense, medical (CT scanners), and energy (GE, BHEL) - **Electric mobility**: e-bicycles, e-scooters, future EV platforms The company operates under a **"bill-to-print"** model but increasingly collaborates through **concurrent engineering**, co-developing complex components from early stages with global OEMs. --- ### **Strategic Initiatives & Growth Drivers** #### **1. Diversification & Market Expansion** - Successfully diversified from traditional aftermarket and two-wheeler focus to supply **premium OEMs** like **BMW, KTM, Porsche, Kubota, ZF, BRP, MAN, SML Isuzu, and a leading American OEM**. - Expanded into **passenger cars, commercial trucks, and EV ecosystems**, shifting from low-volume, high-variety to more scalable platforms. - Revenue mix transformation: Two-wheeler share declined from ~49% to 43%; three-wheeler exposure reduced from 27% to **<4%** over 8 years. - Growing presence in **domestic market**, particularly with **TVS, Piaggio, and Escorts Kubota**, while maintaining global export footprint (70–75% of sales). #### **2. Entry into E-Mobility & Smart Systems** RACL has positioned itself at the forefront of next-generation mobility: - **BMW AG Partnership**: Sole supplier of a proprietary **lock mechanism** (50+ components) for the upcoming **1000 HP electric M Sports car (2027 launch)**. Project lifetime value: **INR 520 crores**, peak revenue at **INR 130 crores by 2029**. - **Porsche**: Sole supplier of **ERC and AKC rear-wheel steering systems** for a high-end electric model. - **Electric Power Steering (EPS)**: Strategic partnership with **ZF Rane** to supply planetary gear assemblies for a leading American OEM’s pickup truck platform. - Developing **auto-shift mechanisms** for BMW motorcycles (e.g., R1300), enhancing rider convenience and technology leadership. - Foray into **electric bicycles**: Supplying gearboxes for premium European e-bikes (via Pinion and German OEMs), with technologically advanced, **no-sensor, torque-responsive auto-shifting systems**. #### **3. Manufacturing & Technology Leadership** - **State-of-the-art facilities**: - Gajraula plant fully powered by **green energy since Jan 2024**, with **zero water discharge** through recycling. - Dedicated **renewable-powered facility** for BMW Parking Lock Mechanism, featuring **end-to-end traceability** via **Auto Focus 3D laser marking and IoT integration**. - New **NC helix CNC gear shaping**, **5-axis turn-mill centers**, and **gear shaving machines** to meet EV precision requirements (NVH control). - **Digital Transformation**: - Implementation of **QDAS (quality data analysis system)**, **Solidworks/Solidcam** for in-house die/mold design, and **CNC video measuring machines** for high-precision inspection. - **Backward integration**: Achieved **40% in-house forging**, reducing raw material dependency and improving margins. #### **4. Global Presence & Supply Chain Competitiveness** - **Austrian Subsidiary (RACL GmbH)**: Enables **just-in-time delivery**, **local invoicing**, and value-added warehousing, strengthening partnerships with **KTM** and **ZF Austria**. Eliminates logistical disadvantages for Indian suppliers in Europe. - **Export Focus**: Exports account for **68–73% of revenue**, with major destinations including Germany, Austria, USA, Canada, and Italy. - **Green Differentiation**: **Captive solar capacity (5.3 MW total via 4 MW from 15 MW SPV + 1.3 MW rooftop)** allows premium pricing in sustainability-conscious markets. --- ### **Customer & Market Positioning** #### **Customer Base & Relationships** - Long-standing relationships with **BMW (20+ years)**, **KTM, Kubota, Piaggio, ZF**, and **MAN Trucks**. - **Top 5 customers** accounted for **~58% of FY25 revenue**, with **no single customer exceeding 16%**. Strategic cap at **<20%** per customer to mitigate concentration risk. - **Single-source supplier** on multiple platforms (e.g., TVS e-scooter, BMW e-bike, Porsche rear steering), providing long-term business security. - 80% of **world’s premium motorcycle brands** (BMW, KTM, Kawasaki, Aprilia, etc.) are current customers. #### **New Business Wins (Recent)** - **BRP Canada**: High-volume order for **shifting mechanisms** (~150,000 units/year) for ATVs; supply starts FY26. - **TVS Motor**: Entire **drivetrain contract** for **Norton motorcycles** (acquired by TVS), including V4 engine components; SOP by end-2025. - **ZF Rane**: Tier 1 nomination for **EPS components** for American pickup truck; prototyping begins Q2 FY25–26. - **BMW Motorrad**: Shifting mechanisms for **R1000 and R1300 models**, co-developed from pre-prototype stage. - **BHEL Approval**: Direct RFQ access for precision-engineered components, opening PSU opportunities. --- ### **Management & Governance** - **Chairman & MD: Gursharan Singh**, mechanical engineer with decades of leadership and export management experience. - **Stable professional management team** with **>20 years average tenure**, ensuring operational continuity and strategic execution. - Publicly listed (BSE/NSE), CARE A- rated, with **832 employees** as of Aug 2025. ---