RACL Geartech is a manufacturer of high-precision gears and transmission parts that has spent four decades climbing the value chain - from selling replacement parts in the domestic aftermarket to becoming a Tier 1 system supplier for some of the world’s most demanding vehicle makers. It started commercial production in 1989 and won its first export order from Japan’s Kubota Tractors in 2005, becoming the first manufacturer to export gears to Japan. The recurring approach is to invest in general-purpose, non-dedicated machinery and deep in-house engineering so it can solve complex problems for customers across two-wheelers, passenger cars, commercial trucks and now electric vehicles - a philosophy management calls being “India's largest technology hub for providing complex gear manufacturing solutions”.
Business segments
A single precision-engineering engine that powers vehicles from motorcycles to electric sports cars - built on transmission gears and shafts, now extending into complete EV drivetrain assemblies and electric power steering systems, all made with the same in-house gear-cutting and machining backbone.
1. Transmission gears and assemblies: the precision heart of the powertrain
The company cuts, grinds, heat-treats and assembles the gears and shafts that sit inside vehicle transmissions - and increasingly supplies the entire gearbox as a single system rather than loose parts.
- From blank to finished assembly under one roof - every gear-making process - cutting, precision machining, heat treatment, welding and sub-assembly - happens in-house, which lets the company make everything from low-end three-wheeler components to aircraft parts without depending on outside shops.
- The machinery is the moat - gear manufacturing requires expensive, imported equipment from Japan, Europe and the US, plus a long learning curve that creates a barrier to entry; the company’s machines include a Gleason power skiving machine from Switzerland and a Kapp Niles gear grinding machine from Germany, both absorbed into production in 2020.
- A customer list that reads like a global motorcycle showroom - most global premium motorcycle brands, barring one or two, buy gears, gearboxes and transmission assemblies from RACL; customers include KTM, Kawasaki, Husqvarna (a BMW group company) and Royal Enfield, for which it is developing gears for the 350cc five-speed gearbox.
- Shifted the revenue mix toward higher-value segments - two-wheeler share has fallen from 40-45% to 30% of turnover, while passenger cars (which began at zero in FY23) reached 13% and commercial vehicles rose from 7-8% to 20%, spreading the business across roughly 29 active customers and more than 1,600 SKUs.
2. Electric vehicle drivetrain systems: the bet on a gear-driven electric future
The company has moved from selling individual gears to designing and manufacturing entire safety-critical assemblies for electric cars - a leap that turned it into an exclusive Tier 1 supplier to a premium German carmaker.
- Won a global bid for a part the carmaker rarely outsources - RACL competed against companies from China, India and Europe to become the exclusive supplier of a Parking Lock Mechanism (a mechanical device that stops an electric car from rolling back) for BMW AG’s electric vehicles, a project known internally as Project Titan.
- Built a dedicated cleanroom-grade factory for one customer - a new facility called ‘UDYAM’ at Gajraula runs on 100% green electricity, is fully air-conditioned for contamination-free manufacturing, and operates as a digital smart factory with zero paper and end-to-end traceability from the steel mill to the finished assembly.
- A second BMW nomination followed the first - Project Venus will supply drive train parts for an electric sports car, with peak annual revenue projected to reach Rs. 130 Crores by 2029; over 4,000 sets have already been dispatched for vehicle validation and mass production is on track for October 2026.
- Even bicycles are going electric and geared - the company received a nomination from a German customer to supply gears for pedal-assisted electric bicycle gearboxes, a patented project being developed at the Noida plant as its first export order in the premium e-bicycle domain.
3. Electric power steering systems: the North American truck and car entry
The company is designing and prototyping precision gear assemblies for electric power steering - a new product category that opens the door to high-volume passenger car and commercial truck platforms in North America.
- Joint development with a global steering giant - RACL signed a strategic nomination with ZF Rane (a ZF Group company) to develop ring gears, sun gears, drive gears and planetary gear assemblies for electric power steering systems on a leading American OEM’s pickup truck platform.
- Prototypes are already in validation - approximately 600 sets manufactured at the Gajraula plant are under testing at the customer’s facilities in Mexico and the US, with the project known as Project Crystal.
- A second ZF nomination targets commercial trucks - the company also won a business nomination to supply critical steering components for electric power steering systems used in North American commercial trucks, with first samples in final validation and start of production expected in FY 2027-28.
Group structure and partners
RACL operates two Indian plants, a wholly owned Austrian subsidiary that handles European warehousing and invoicing, and a growing network of technical and energy partnerships that lower costs and add design capability.
- The parent company, RACL Geartech Ltd, is listed on the NSE and BSE and runs two manufacturing plants: the mother plant at Gajraula, Uttar Pradesh, and a second 32,000-square-foot plant at Noida, inaugurated in February 2024.
- A wholly owned subsidiary, RACL Geartech GmbH, was incorporated in Austria in 2019 to provide business support, warehousing and local invoicing for EU customers such as KTM; the parent guarantees the subsidiary’s liabilities under a tripartite agreement with KTM AG.
- The company invested in Sunsure Solarpark Ten Private Limited for captive solar power; supply began in November 2024, delivering 6 million units of renewable energy annually and meeting more than 40% of the Gajraula plant’s electricity needs from clean energy.
- A technical collaboration with AARK Engineering GMBH of Germany adds product design, prototyping, virtual simulation and testing capabilities, letting RACL design products from inception rather than only manufacturing to customer drawings.
- The company completed vendor registration with Bharat Heavy Electricals Limited (BHEL) under the pre-qualified material suppliers category, opening a potential route into the industrial and heavy equipment segment.