### **Overview** Bharat Gears Limited (BGL), established in **1971**, is one of **India’s largest and most technologically advanced manufacturers of engineered gears, automotive components, and heat-treating furnaces**. With over **50 years of expertise**, the company is recognized as a **leading global supplier** to major Original Equipment Manufacturers (OEMs) across diverse sectors including **automotive, agriculture, construction, utilities, electric vehicles (EVs), defense, and renewable energy**. Operating from **three modern manufacturing facilities** in **Faridabad (Haryana), Mumbra (Maharashtra), and Lonand (Maharashtra)**, BGL has built a strong foundation on **engineering excellence, innovation, and customer-centric processes**. The company employs **1,104 people** and maintains a **global footprint across 13 countries**, including the USA, Germany, China, Brazil, and the UAE. --- ### **Core Business Verticals** Bharat Gears operates in **three primary business segments**, each contributing to its diversified revenue stream: 1. **Gears (Core Product Line – ~94%)** - Includes ring gears, pinions, transmission gears & shafts, spiral/hypoid bevel gears, differential gears, and gear sub-assemblies. 2. **Furnaces (~2%)** - Manufactures high-end **batch and continuous heat-treating furnaces** in collaboration with **AFC-Holcroft, USA**, customized for durability and cost-efficiency in Indian conditions. 3. **Automotive Components (~4%)** - Supplies **clutch assemblies, turbochargers, axle shafts, propeller shaft parts, steering components, differential cages, brake linings, and steel wheel rims**. > *Note: As of December 2024, BGL has no subsidiaries, associates, or joint ventures.* --- ### **Technology & Innovation Leadership** Bharat Gears has consistently invested in **cutting-edge technologies**, reinforcing its position as a **technology leader in gear manufacturing**: - In **2024**, became the **first Indian manufacturer to develop Bevel Gear Grinding capability** for automotive applications, enabling entry into high-precision EV and hybrid vehicle markets. - In **2025**, began **manufacturing transmission ground gears** and secured its position as the **first Indian company to supply ground bevel gears**, setting a new benchmark for quality and precision. - Pioneered the **Dry Cut Hobbing process (2008)**, enhancing manufacturing efficiency and reducing environmental impact. - Introduced **Hypoflex technology** for noiseless, efficient motion – ideal for EV drivetrains. - Invested in **robotic automation, low-cost automation, and machine retrofitting** to improve productivity, reduce labor dependency, and ensure Built-in Quality (BIQ). - Acquired a **Hofler cylindrical generating grinding machine (Speed Viper 300)** from Germany via finance lease (₹15 crores from Siemens Financial Services), commissioned in May 2024, to elevate production precision. --- ### **Strategic Focus & Growth Initiatives (FY 2024–25 & Beyond)** Bharat Gears is undergoing a **strategic transformation** to diversify and future-proof its business: #### 1. **Diversification Beyond Agriculture** - Historically, **agriculture (especially tractors)** accounted for ~49% of turnover. BGL is **reducing dependence** on this segment by expanding into: - **Electric Vehicles (EVs) & Hybrid Vehicles**: Secured new EV segment orders; entered domestic hybrid car and European leisure vehicle markets. - **Defense & Military Vehicles**: Exploring high-growth opportunities in defense platforms. - **Renewable Energy**: Supplying components for windmills and solar tracking systems. - **Recreational Vehicles (RVs)**: Entry in FY 2024–25; supported by new product development and infrastructure enhancement. - **Hydraulics & Off-Highroad Equipment**: Developing laser hydraulic parts and components. #### 2. **Forward Integration & Sub-Assembly Development** - Actively pursuing **forward integration into gear sub-assemblies** to move up the value chain and increase component complexity and margins. #### 3. **Product Development & R&D** - Streamlined product development processes to manage **over 100 new product launches annually**. - Investing in **next-generation product development**, especially for EV and hybrid drivetrains. - Plans to establish a **world-class product development center by FY 2026–27**. - Strong R&D capabilities supported by **MTE single-flank testers (since 2019)** and proprietary gear optimization software. #### 4. **Operational Excellence** - Focus on **On Time In Full (OTIF)** delivery performance and shortening lead times. - Digitizing operations under **Industry 4.0 initiatives** with business intelligence (BI) tools. - Implemented **ACMA Turnaround Project** to streamline processes and enhance cost efficiency. - Revamped order sourcing and supplier engagement to reduce material costs – the largest component of production. #### 5. **Cost Leadership Strategy** - Targeting **double-digit CAGR in sales and profitability** over the next 3 years. - Aggressive cost optimization through: - Vendor renegotiation and local sourcing. - Machine refurbishment and improved asset utilization. - Automation and lean manufacturing principles. --- ### **Manufacturing Infrastructure** - **Three IATF 16949-certified plants**, with additional ISO 9001:2015, 14001:2015, and 45001:2018 certifications at Faridabad facility. - **India’s largest dry-cutting facility**, reducing machining time and enhancing precision. - Mumbra plant: Largest at 32 acres, specializing in **bevel gears, differential gears, and transmission gears**. - Faridabad: Focus on **spiral & hypoid bevel gears and transmission gears**. - Lonand: Supports transmission and differential gear production. --- ### **Customer & Market Presence** #### **Key Clients** - **Global OEMs**: John Deere, Eaton, Dana, JCB, Toyota Kirloskar, CNH Industrial, ZF (Global), Carraro, Parker, Mahindra & Mahindra, Ashok Leyland, Sisu Axles, Tuff Torq, CLAAS, Yanmar. - **Furnace Clients**: AAM India, Timken India, National Engineering Industries, Avdhoot Industries. #### **Market Reach** - **Domestic**: 71–80 dealers across **22 Indian states**, with sales offices in **Delhi, Mumbai, and Kolkata**. - **Exports**: ~60% of furnaces and a significant share of gears sold abroad; key markets in **Europe, North America (USA, Mexico), South America, and Asia**. - Strategic goal: **Increase export share** to Europe, USA, and Mexico. #### **New Wins FY 2024–25** - Gained new orders in **EV, defense, hybrid, and construction equipment**. - Added **two new clients** in Gears business. - Strengthened position in **domestic tractor and CV (commercial vehicle) segments**. --- ### **Financial Highlights (FY 2024–25)** - **Revenue**: ₹**6,475.3 crores** (₹64,753 lakhs) - **EBITDA**: ₹**278.1 crores** (₹2,781 lakhs) - **Domestic Growth**: Driven by strong demand from OEMs in **tractors and construction equipment**. - **Export Decline**: Due to market downturns in Europe and the US for tractors and commercial vehicles. - One-time event: **Sale of land at Mumbai (Mumbra) plant** in FY 2024–25 for ₹171 crores, resulting in a **net loss of ₹3.4 crores** (after costs), approved by Board in January 2025. --- ### **Leadership & Governance** - **Joint Managing Director**: **Mr. Sameer Kanwar** (since 2022), with over 22 years’ experience and training at **ZF Friedrichshafen, Germany**. Leading strategic shift into **non-fossil fuel-based businesses** (EVs, renewables). - **Non-Executive Director**: **Mr. Nagar Venkatraman Srinivasan**, former Corporate Business Head with 50+ years of cumulative industry experience. --- ### **Historical Collaborations & Partnerships** - **ZF Friedrichshafen AG (1985–2007)**: Technical and financial partnership with 26% equity stake; co-developed **ZF S5-24 and S6-36 gearboxes**. - **AFC-Holcroft, USA (since 1981)**: Long-term technical collaboration for **industrial furnace design and manufacturing**; now a globally competitive commercial product line.