### **Overview** Divgi TorqTransfer Systems Limited (Divgi-TTS) is a leading Indian developer and manufacturer of advanced drivetrain systems, specializing in **transmission solutions for internal combustion engine (ICE), hybrid, and electric vehicles (EVs)**. Headquartered in Pune, the company operates four manufacturing facilities across Maharashtra and Karnataka and has transitioned from a joint venture with BorgWarner to an independent, debt-free, technology-agnostic innovator. It serves a global clientele, including Tata Motors, Mahindra & Mahindra, Toyota, MG, Ford, and Tier 1 suppliers such as BorgWarner, Magna, and Aisin. With a unique **"IMTG" model (India. Manufacturing. Technology. Global.)**, Divgi-TTS has positioned itself as a globally competitive, agile, and cost-competitive supplier of high-precision drivetrain systems and components. --- ### **Core Product Portfolio** Divgi-TTS focuses on three key product lines: 1. **Transfer Case & 4WD Systems** – Domestically dominant, exported globally, with electronic shift-on-the-fly and torque-on-demand capabilities. 2. **E-Gear Drive (EV Transmissions)** – India’s first indigenous, mass-produced EV transmission supplier; leader in mechanical EV drivetrain systems. 3. **Components** – Precision-engineered components for global platforms, serving both internal system assembly and direct export. The company’s product ecosystem spans **manual transmissions, automatic transmissions (DCT), EV transmissions, and hybrid systems**, with significant synergy in design, manufacturing, and components across platforms. --- ### **Strategic Focus Areas (Nov 2025)** #### **1. Export Expansion & Global Market Penetration** - Export revenues are **on track to double in FY26**, progressing from 16% in H1 FY26 toward a **20–25% long-term target**. - Active expansion into **Germany, Austria, Portugal, Korea, the U.S., and Mexico**, with secured contracts and new programs. - Strong export growth driven by: - Supply to **U.S. Tier 1 suppliers** (BorgWarner, Magna) for **iconic pickup trucks and SUVs**. - Final production approval on export parts with **~₹7 crore/month revenue potential**. - Shipments underway for a new component program generating **₹90+ crore annually** (~1 million parts/year). - The company is **evaluating U.S. manufacturing footprint** to enhance export resilience and proximity to key OEMs. #### **2. EV & Hybrid Transmission Leadership** - EV transmission production ramp-up scheduled for **H2 FY26** with a major Indian OEM, across **multiple EV platforms**. - Supplying **all EV platforms** of a key customer (Tata/Nexon, Punch, Curvv, E-Jeeto), including **4WD variants**. - Developing **modular global EV solutions** with a **German motor manufacturer** and an **American ATV OEM**. - Engineering in India since 2021 has enabled scalable, noise-optimized (near-zero NVH), and cost-efficient EV drivetrains. - EV business expected to **outperform FY26 levels** and capture new opportunities in **2-wheelers, 3-wheelers, and commercial EVs**. #### **3. Transfer Case Business: Domestic & Global** - Secured a **seven-year, ₹800+ crore lifecycle contract** with a leading Indian OEM (launch: H2 FY27). - Won a **global nomination from a major Japanese OEM** to develop a transfer case for an **iconic pickup truck** (SOP: FY28). - Globalization of transfer case portfolio underway, with bids and quotes to **Korean, Japanese, and U.S. OEMs**. - Exploring **U.S. aftermarket opportunities**, particularly for pickup trucks. - **Military-grade transfer case success** with 1,500 units for Indian Army ALSVs (Operation Sindoor), validating performance under extreme conditions. #### **4. Automatic & Dual-Clutch Transmissions (DCT)** - Skipping 6/7-speed transmissions; **direct focus on 8-speed dual-clutch automatics** aligned with Bharat Stage and CAFE norms. - Submitted **commercial quote for 8-speed DCT** to a leading Indian OEM; vehicle trials completed with strong feedback. - Believed to be **first-mover in India** for localized 8-speed DCT with deep design and manufacturing localization. - Engaged in **Proof of Concept (PoC)** for hybrid automatic transmission with a major Indian OEM. #### **5. Manual & Commercial Vehicle Transmissions** - Strengthening Tier 1 relationships with **existing OEMs (Tata, Mahindra, Ashok Leyland)**. - In **advanced discussions** with one of India’s largest truck OEMs for a **5-speed manual transmission** (RFQ: 150,000 units). - Selective pursuit of high-volume programs aligned with component synergy and localization. - Supporting OEMs in re-engineering their powertrain operations by **outsourcing manual transmission production**. #### **6. Components Business: Growth Engine** - Component exports grew **~100% YoY in H1 FY26**, now contributing **16% of revenue**. - Components used in both internal systems and as standalone exports, creating **cost and operational synergy**. - Exports diversified across **Western markets (U.S., Europe)** and **Asia (China, Korea)**. - **Production approvals secured** for 8 new components across Korea, Europe, U.S., and Mexico. - Pipeline includes **7–8 new programs** (totaling ~₹200 crore in revenue) expected by year-end. #### **7. R&D & Technology Leadership** - Core differentiator: **NVH (noise, vibration, harshness) mastery** across design, prototyping, and production. - In-house **software development** for electronic controllers and calibration (e.g., transfer case logic, thermal shutdown). - Collaborations with **German engineering hubs (Stuttgart, Aachen)**, **Hofer**, **FEV**, and **IITs**. - Developed **India’s first high-speed dynamometer** for testing manual, EV, and 4WD systems. - Rapid development cycle: **prototype in 8 weeks** for a major Indian OEM—among the fastest globally. #### **8. Manufacturing & Infrastructure** - **Four plants**: - **Bhosari** (4WD transfer cases) - **Shivare** (precision grinding/honing) - **Sirsi** (synchronizers, components) - **Shirwal** (EV transmissions, manual/automatic, export components) – **India’s largest EV transmission facility**. - Daily production capacity: **50,000 units/month**, unmatched in India. - State-of-the-art equipment: **Makino, Liebherr, Klingenberg, FEV test stands**. - Fully integrated manufacturing: design, validation, assembly, testing. #### **9. Strategic Partnerships & Growth Enablers** - **Technology-agnostic model**: Sources niche technologies globally while integrating them in-house. - Partnerships with **Toyota Tsusho** (exclusive distribution to Japanese OEMs), **Hofer**, and **BorgWarner**. - Engaged with **Ford, Tesla, Toyota** on future platform needs. - Expanding U.S. presence with **sales teams and a Cologne office** to engage OEM decision-makers directly. #### **10. Financial & Operational Highlights** - **Debt-free** with strong cash flow and ₹264+ crore cash reserves (as of Mar 2024). - **Award-winning** supplier: "Supplier of the Year" (Toyota, 2024 & 2025), "Proprietary Powertrain Supplier of the Year" (Mahindra). - Despite EV market headwinds, **EV business grew 160x in FY24**; **component business up 46% YoY**. - Expected **>50% revenue growth in FY26**, driven by EV, export, and new system wins. - Targeting **₹1,000 crore in annual revenue** by FY27.