### **Overview** Sandhar Technologies Limited (STL), founded in 1985 (or 1987 per earlier records), is a leading Indian manufacturer of automotive safety and security systems, operating with a strong global footprint. The company has evolved from a two-wheeler accessories OEM into a vertically integrated, technology-driven Tier-1 automotive component supplier serving over 80 domestic and international Original Equipment Manufacturers (OEMs). With **41 manufacturing facilities globally** and a workforce of **over 11,400 employees**, STL maintains a diversified presence across India, Europe, and the NAFTA region. --- ### **Core Business Segments & Product Portfolio** STL operates through four key divisions, each specializing in high-value automotive systems: 1. **Automotive Division**: Supplies locks, mirror assemblies, latches, switches, and smart security systems globally. 2. **Components Division**: Internal supplier of aluminium die castings, sheet metal parts, and plastic-molded components, ensuring self-reliance. 3. **Automach Division**: India’s leading manufacturer of two-wheeler steel wheels, with advanced capabilities in wheel forming and tri-nickel chrome plating. 4. **Cabins & Fabrication Division**: Produces precision steel cabins and structural parts for off-highway vehicles (e.g., JCB excavators, cranes). The product mix is diversified and EV-ready, covering critical vehicle systems such as: - Locking systems (including smart/electronic locks) - Mirror and vision systems - Aluminium die castings (HPDC & LPDC) - Wheel and brake assemblies - Cabins for heavy machinery - Surface mount technology (SMT) for smart vehicle electronics --- ### **Strategic Growth Initiatives** #### **1. Acquisition-Driven Expansion** STL has executed a transformative acquisition of **Sundaram-Clayton Limited’s (SCL) aluminum die casting business** (Hosur plant) in Q4 FY25, marking a strategic leap: - Enters **Low Pressure Die Casting (LPDC)** market for the first time. - Gains access to high-tonnage machines (>800T), expanding capacity. - Adds **cylinder heads, manifolds, and motor housings** to its portfolio. - Strengthens position as an **integrated HPDC-LPDC player**. - The INR 163 crore deal included a final payment of INR 50 crore in Q1 FY26, with integration underway. #### **2. EV Business Launch** - Incorporated **Sandhar Auto Electric Solutions Private Limited**, a 100% owned subsidiary focused exclusively on EV components. - **Commercial production** of **EV battery chargers** has begun (750W), with positive market response. - Three core EV product lines: - **DC-DC Converters** (15A isolated) - **EV Battery Chargers** (750W, 1kW, 1.5kW) - **Motor Controllers (MCUs)** (250W, 2kW, 6kW) - Technology partnerships with **Dynolt Technologies (chargers)** and **Amberroot Systems (MCUs)**. - **Future roadmap** includes **3-in-1 integrated systems** (MCU + OBC + PDU). - **Revenue targets**: - Initial: ₹10–15 crore in first full year - Target: ₹100 crore within three years #### **3. R&D and Innovation** - **Sandhar Centre for Innovation & Development (SCID)** — DSIR-recognized R&D center with: - 24+ granted Indian patents - 29 patent filings (as of Aug 2025) - Team of 25+ mechanical & electronics engineers - Advanced PLM (Enovia), CAD (Catia, Creo), Altium, 3D printing, and reverse engineering - Focus areas: Smart locks, EV components, TPMS, electronic controls, BS-VI emission systems (e.g., ePCV, Carbon Canister) - **Award received** in 2025: **EV Best Part Development** for smart lock technology --- ### **Global Presence & Manufacturing Footprint** - **Manufacturing Facilities**: - **India**: 27 domestic plants across 8 states (incl. Haryana, Tamil Nadu, Maharashtra, Gujarat, Himachal Pradesh) - **International**: Romania (Sandhar Ro SRL), Poland, Mexico (STM), Spain (Barcelona S.L.) - **41 total facilities** (as of Aug 2025), up from ~40 in 2021 - **Foreign Subsidiaries (100% owned)**: - Romania, Poland, Mexico - Barcelona subsidiary incorporated in 2007; classified as material foreign entity - **Expansion Projects**: - **Pune, Maharashtra**: New die-casting and cabin fabrication plants (commissioned Mar 2025) - **Nalagarh, Himachal Pradesh**: 34+ bigha acquired to consolidate and expand manufacturing capacity --- ### **Customer Base & OEM Relationships** - **Key Customers (2025)**: - **TVS Motors** – 30% of revenue (largest) - **Hero MotoCorp** – 19% - **JCB** – ~9% - Others: Honda (HMSI, Elevate), Royal Enfield, Bosch, TRW, Autoliv, Tata Motors - **Strategic Positioning**: - **Sole supplier** of lock sets and mirrors to **Hero and TVS** - **Exclusive provider** of **excavator cabins to JCB India** - **Single-source wheel assembly** supplier to **TVS and Royal Enfield** - Serves all major vehicle segments: - **Two-wheelers (57.8% FY24 revenue)** - Passenger Vehicles (21.5%) - Off-Highway Vehicles (15.4%) - Commercial Vehicles (5.3%) --- ### **EV and Technology Collaborations** - Partnerships with **MinebeaMitsumi** (post-Honda Lock acquisition) and Korean/Japanese/Taiwanese firms (e.g., Whetron) for smart lock development. - Target: **Smart locks as new standard** in both ICE and EV (pricing: ₹2,000 vs old ₹350–450) - **Internal localization** of SMT electronics (PCB assembly) for smart handles, USB chargers, parking sensors — reduces import dependency. - Supply to emerging EV players: Strom Motors, OZOTEC, IVROOM; NDAs with others ongoing. --- ### **Operational & Financial Highlights (FY24–25)** - **Record Revenue Achieved**: Highest-ever consolidated turnover reported for FY24–25 - **Exports**: Low at **1.13% of total turnover**, but increasing via Mexico and overseas JVs - **CAPEX (FY26)**: ₹180–200 crore planned: - ₹50 crore paid as final acquisition installment - Focus on **new die-cast and sheet metal capacity**; expected operational by Dec 2025 - **Revenue from Overseas**: - Recent consolidation: 14% of total revenue - Mexico plant: ~₹120 crore/year - Romania facility expected to contribute **₹100 crore+** post ramp-up - **Gross Debt**: ₹551 crore (June 2023); focus on **debt reduction** post-capex --- ### **Joint Ventures & Subsidiaries (Material Entities)** - **Joint Ventures**: - **Kwangsung Sandhar Technologies** (Korea): ₹1,008 lakh invested - **Sandhar Whetron Electronics** (Taiwan): ₹978.45 lakh - **Winnercom Sandhar Technologies**: ₹400 lakh - **Exit from Non-core JVs**: Closed Jinyoung Sandhar Mechatronics, Kwangsung Sandhar Mechatronics; now focused on core business - **Profitability**: All 5 remaining JVs are EBITDA & tax profitable - **Subsidiaries**: - **Sandhar Engineering Pvt. Ltd.** (Sheet Metal) – ₹6,450 lakh investment - **Sandhar Auto Castings Pvt. Ltd.** – Mysore and Hosur units (machining, painting) --- ### **Market Position & Competitive Advantages** - **Top 5 player** in both **die casting** and **sheet metal** in India - **Market Leader**: - Two-wheeler locks & mirrors - Operator cabins for OHVs - Aluminium spools in Europe - **Localization Champion**: 100% India-made products vs. China imports – supports **Atmanirbhar Bharat** - **EV Readiness**: Supplies non-EV components (locks, mirrors) to nearly all Indian EV OEMs - **High Wallet Share**: Component value per two-wheeler up to ₹10,000 (from ₹1,500 earlier) --- ### **Recent Developments (Nov 2025)** - **Romania Facility Ramp-Up**: Despite past disruptions from Ukraine war, **energy costs are now declining**, improving cost competitiveness vs. Spain. - **New Overseas Projects**: Shifting **new business orders to Romania** to leverage newly established facility. - **Management Outlook**: Believes the worst operational challenges are over; expects **margins to improve** as production scales and more orders flow through Romanian plant. --- ### **Governance & Investor Communication** - **Acknowledged gap** in investor outreach: Has historically focused on operations, not market communication. - **Planning to appoint an Investor Relations (IR) firm** to enhance engagement and articulate business vision. - **Strategic Restructuring**: Shifted from hybrid model to standalone, focused verticals (e.g., Sandhar Engineering for sheet metal) to improve competitiveness and shareholder value.