- **Z F Steering Gear (India) Ltd is fundamentally a steering-systems specialist that has spent four decades learning to make the one safety‑critical part a truck or tractor cannot do without - and is now building its own supply chain from the foundry floor up. It was incorporated in 1981 as a joint venture with ZF Friedrichshafen AG, bringing hydraulic power steering to Indian commercial vehicles when the technology was new to the country. The recurring approach is visible across its history: pioneer a steering technology for Indian OEMs, then integrate backwards to control the components and costs that determine whether the business wins.** # Business segments Two engines at different stages - a steering‑gear core that supplies India’s truck and tractor makers, and a renewable‑energy side that powers the factory and sells the surplus - with the second engine feeding the first. ## 1. Steering gear systems: the safety‑critical core that moves trucks and tractors **The company designs and assembles the steering gears that sit between a driver’s hands and the wheels of a commercial vehicle or tractor, selling almost entirely to Indian OEMs that demand zero‑defect parts on just‑in‑time schedules.** - **Born from a global technology partnership** - the company was set up as a joint venture with ZF Friedrichshafen AG and introduced India’s first Ball and Nut Integral Hydraulic Power Steering and Worm and Roller Mechanical Steering systems in the early 1990s, so it has been the incumbent supplier while the domestic CV industry grew up around it. - **Two product families, one manufacturing backbone** - it makes power steering gears for commercial vehicles and buses, and both hydraulic‑power‑assisted (HPAS) and mechanical steering gears for tractors, with the HPAS line progressively replacing mechanical gears as tractor horsepower rises. All models were adapted to BS‑VI emission norms, keeping the catalogue relevant as engine regulations tightened. - **OEMs are the customer, and they set the price** - in FY26, direct sales to vehicle manufacturers were roughly nine‑tenths of segment revenue, with the aftermarket making up the rest; the company follows a “zero base costing mechanism and market based pricing methodology” for every customer, which means it absorbs the pricing pressure that large OEMs routinely exert. - **Two plants, deep process control** - manufacturing runs at Vadu Budruk (Pune) and Pithampur (Madhya Pradesh), where the company has embedded 370 poka‑yoke devices, installed automated test rigs, and adopted European‑sourced low‑bake coating technology, all aimed at the zero‑defect standard that a safety‑critical part demands. - **Engineering for the next regulation and the next vehicle** - it has developed an emergency steering system with a PMSM motor and ECU for electric buses, a tilt‑and‑telescopic column for JBM electric vehicles, and a flow‑limiting piston for tractor HPAS that it calls a first in India, so the product pipeline is already pointed at electrification and higher‑horsepower tractors. ## 2. Renewable energy: captive power that cuts the factory’s electricity bill **The company owns wind turbines and a solar farm that together generated about 167 lakh units in FY26, with the bulk of the wind power consumed inside its own plant and the solar power sold to the Gujarat grid under a long‑term contract.** - **Wind feeds the factory** - over 8.10 MW of wind turbines in three Maharashtra districts generated roughly 94 lakh units in FY26, and about 70 lakh of those units went straight into the Vadu Budruk plant, meeting roughly two‑thirds of its total electricity requirement. That share has climbed steadily from about 40% in FY22, so the factory is progressively insulating itself from grid‑price swings. - **Solar sold under a state guarantee** - a 5 MW solar project in Gujarat’s Patan district sells its entire output (roughly 65 lakh units in FY26) to Gujarat Urja Vikas Nigam Limited under a power purchase agreement signed in December 2010, turning sunshine into a predictable, multi‑year revenue stream. - **Rooftop tops up the captive mix** - a rooftop solar installation at the Vadu Budruk plant added another 8 lakh units of captive consumption in FY26, so every square foot of available space is being used to shrink the factory’s external power bill. # Group structure and partners **The company is building a vertically‑integrated supply chain through three subsidiaries - a machining hub, a foundry, and a dormant entity - that together aim to bring casting, machining, and eventually aluminium extrusion in‑house, while a long‑standing vendor relationship with the Supreme Group provides both casting capacity and the joint‑venture partner for the foundry.** - **Metacast: the foundry that pours the castings** - a 51% joint venture with Supreme Iron (India) Private Limited, Metacast operates a 10,000‑tonne‑per‑annum ductile‑iron and cast‑iron foundry in Kolhapur that acts as a captive process vendor to DriveSys, with utilisation reaching 90% in March 2026. The board has already approved an expansion to 25,000 tonnes per annum, signalling that internal demand is outpacing the initial furnace. - **NexSteer: the shell that transferred its assets** - originally formed for backward integration, this subsidiary has not commenced operations and has transferred its leasehold land and factory building to DriveSys, effectively consolidating the group’s machining footprint under one operational entity. - **The Supreme Group relationship** - entities controlled by the family of Metacast’s directors have been reliable casting vendors to the company for over a decade, and they now sit on both sides of the value chain: some castings are bought directly from Supreme Group firms, while others flow through the Metacast‑DriveSys route, creating a network of make‑or‑buy options for the parent. - **Promoter control and the next generation** - the company is led by Mr. Dinesh Munot (Chairman) and his son Mr. Utkarsh Munot (Managing Director), who together hold just under half the equity, while three other promoter‑family members with small stakes have sought reclassification as public shareholders, indicating a consolidation of control in the direct line.