### **Overview** JTEKT India Limited (JIN), established in 1984 and formerly known as Sona Koyo Steering Systems Limited, is a leading Tier-1 automotive component manufacturer and a wholly-owned subsidiary of **JTEKT Corporation, Japan**—a global leader in steering systems, driveline technologies, and machine tools. With over four decades of presence in India, JTEKT India serves as a key player in the Indian auto-ancillary sector, supplying advanced components to domestic and international OEMs. The company operates under a B2B model, primarily catering to original equipment manufacturers across passenger, commercial, and utility vehicle segments, and is strategically expanding its footprint in both domestic and global markets. --- ### **Strategic Expansion & Manufacturing Growth (2023–2025)** #### **1. In-House Forging for CVJs (Nov 2025)** - JTEKT India is transitioning to **in-house production of forging parts for Constant Velocity Joints (CVJs)**, currently outsourced. - Initial focus: **JPL 90 component**, with plans to produce **1.4 million forged units annually** using a newly acquired **2000-ton Warm Forging Press (Kurimoto C2F-20GWL)** at the Dharuhera, Haryana facility. - This vertical integration aims to improve **cost control, quality assurance, and supply chain resilience**, supporting growth in both domestic and export markets. #### **2. Gujarat Expansion (Jul–Nov 2025)** - A **new state-of-the-art manufacturing plant** has been established in **Jalisana, Gujarat**, following the acquisition of a **118,484 sqm land parcel for ₹264 crores**. - The plant aims to: - Serve rising demand in **Western India**. - Relocate select product lines from Haryana plants (Gurgaon, Bawal, Dharuhera) to **reduce logistics costs and lead times**. - Improve regional customer responsiveness. - The facility represents a **strategic optimization of the manufacturing footprint** across India. --- ### **CapEx & Investment Roadmap** - **Over INR 700 crores** invested in the past three years across facilities in **Haryana, Chennai, and Gujarat**. - **An additional INR 1,800 crores** allocated by JTEKT Corporation (Japan) for future CapEx in India. - **₹553.67 crores** from net issue proceeds earmarked for machinery at the Dharuhera plant. - Ongoing investments support **new product lines, capacity expansion, and manufacturing rationalization**. --- ### **Product Portfolio & Innovation** JTEKT India specializes in high-precision manufacturing of: - **Steering Systems**: Rack and pinion manual gears, hydraulic power steering (HPS), recirculating ball screw assemblies. - **Electric Power Steering (EPS)**: Column-Type Electric Power Steering (C-EPS) and dual-pinion systems (DP-EPS). - **Steering Columns & Shafts**: Tilt-telescopic columns, intermediate shafts. - **Driveline Products**: Propeller shafts, case differentials, **Constant Velocity Joints (CVJs)**. #### **CVJ Business Launch (2023–2025)** - **Commercial production began in July 2023** with supply to **Maruti Suzuki (Grand Vitara)** and **Toyota (Hyryder)**. - Initial capacity: **4.5 lakh CVJ units/year** (~2.25 lakh drive shaft sets), generating **₹110–120 crores** in targeted annual revenue. - Currently holds **~3% share of India’s CVJ market**, where GKN dominates (~45%), with aggressive plans to expand. - Supports growth in **rear-wheel drive and LCV segments**, with potential for EV applications. --- ### **R&D & Technical Capabilities** - **Enhanced Indian Technical Centre**: - Now handles **full design, prototyping, and validation** of manual gear systems and shafts. - Took over **design responsibility for global projects** from Japan-based teams. - Conducts **NVH (Noise, Vibration, Harshness)**, performance, durability, and strength testing. - Local development of **Proto ECU** and India-specific solutions to improve comfort and cost efficiency. - **Phase 2 expansion underway**, enabling end-to-end product development without disrupting mass production lines. - Engineers undergo **regular training in Japan**, with over **90 training sessions (FY2024–25)** and a robust **DOJO + e-learning platform (7,600+ sessions)**. --- ### **Manufacturing Footprint** - **Seven manufacturing facilities** across India: - **Haryana**: Gurgaon, Bawal, Dharuhera (3 plants). - **Tamil Nadu**: Sriperumbudur and Chennai. - **Gujarat**: Jalisana (new facility established July 2025). - Strategic locations serve major automotive clusters, ensuring proximity to OEMs. - **Optimal capacity utilization target**: 85–90% (currently around 75–64% in CVJ segment). --- ### **Manufacturing Rationalization Strategy** - Long-term roadmap to enhance **agility, scalability, and cost efficiency**. - Since FY2024: - Completed **10 rationalization projects** (plant consolidation, line transfers, layout optimization). - Seven ongoing, six planned for FY2025–26. - Integration of **JTEKT Fuji Kiko Automotive India** into JTEKT India Limited (FY2024): - Improved scale, resource optimization, and cost rationalization. - Reinforced position as a **system supplier for steering products**. - Uses **Obeya methodology** for real-time project monitoring, customer coordination, and faster approvals. --- ### **Customer Base & Market Position** #### **Key Domestic Customers:** - Maruti Suzuki (holds 5.43% equity stake – co-promoter). - Toyota Kirloskar, Mahindra & Mahindra, Tata Motors, Honda Cars India, Stellantis, Renault-Nissan, Isuzu, Force Motors. - JTEKT supplies **~50% of Maruti’s steering requirements**, making MSIL a strategically critical customer. #### **International Customers:** - E-Z-Go Textron (USA), Trenton Pressing LLC (USA), JTEKT Brazil, JTEKT Indonesia, JTEKT France. #### **Winning Business:** - Successfully secured **three new contracts with Maruti Suzuki** through front-loading engagements in early development stages. - Supplied **manual gears to Maruti Fronx**; will provide **CPS systems for Jimny** launch. - Recent **HPS supply to Tata Harrier and Safari** increased Tata segment sales from 2% to 4%. --- ### **Exports & Global Supply Strategy** - Exports contribute **3.86–4% of total sales** (mainly to USA, Europe, Japan). - Target: **Increase exports to 8–15% of total revenue**. - **Landmark Export Order (Nov 2025)**: - Secured **purchase order from JTEKT Brazil** for **manual steering gears**. - Initial volume: **1 lakh units/year**, scalable to **5 lakh units** with new vehicle launches. - Expected revenue lift: **~INR 50–150 crores**, depending on scaling. - Signifies **first major success in supplying group entities overseas**, validating India’s manufacturing reliability. --- ### **Financial & Operational Performance (H1 FY2025)** - **EBITDA Margin**: Improved from **5.3% (Q1) to 7.2% (Q2)**, driven by cost controls and volume increases. - **Gross Margin**: On a **declining trend for six consecutive quarters** due to: - Lower-than-planned sales volume. - Increasing employee costs (up 0.8% as % of sales). - **Administrative Expenses**: Controlled at **1.9% of sales**, despite absorbing **$8.2M in rights issue costs**. - **Fixed Costs**: Could not be fully absorbed due to suboptimal revenue growth, highlighting need for improved capacity utilization. --- ### **Sustainability & Workforce Development** - Employs **~3,400 personnel** (1,042 permanent staff, 2,397 workers; approx. 97% male workforce). - Strong focus on **talent development**: - **159 internal promotions** in FY2025 for trainees and off-roll employees. - Extensive upskilling via DOJO, e-learning, and Japan-based technical training. - Gender diversity remains a challenge and opportunity for improvement. --- ### **Parent Company Linkage** - **JTEKT Corporation (Japan)**: - Global revenue: ₹1.5–1.8 trillion (~¥1,891 billion in FY2024). - Pioneer of **electric power steering (EPS)** and **high-precision extreme-environment bearings**. - Operates **150 subsidiaries across 30 countries**, employing ~45,700 globally. - Continuous **technology transfer, product licensing, and technical support** to India.