Shivam Autotech is fundamentally a precision forging shop that makes the metal innards-gears, shafts, and axles-that keep vehicles moving. Born in 1999 to feed parts to Hero MotoCorp and later carved out as an independent company in 2005, it has spent over two decades turning steel into components so precisely shaped they barely need finishing. The recurring approach is simple: bet on a metal-forming technology most rivals don't use, then apply it to whatever moves-two-wheelers first, then four-wheelers, and now electric rickshaws and aerospace parts-always with the same forging presses and the same engineering DNA (D1 p.8, D1 pp.9-12). # Business segments A single engine powering multiple end-markets-transmission gears and shafts for two-wheelers are the core, with the same forging technology branching into four-wheeler components, electric-vehicle axles, and a small but growing export and non-automotive order book. ## 1. Transmission gears and shafts: the heart of the business **Roughly two-thirds of revenue comes from the gears and shafts that transmit power from the engine to the wheels, with Hero MotoCorp alone buying about 40% of everything the company makes.** - **One customer anchors the factory** - Hero MotoCorp Limited has been the major customer since the company was founded to serve it, contributing around 40% of revenue, which makes the relationship both the company's greatest strength and its most visible risk. - **Gears are the main event** - the transmission gear and shaft portfolio-ring gears, pinions, shafts, differential gears and sub-assemblies-contributed approximately 66% of total revenue in FY25, making it the economic centre of gravity. - **Steel costs pass through to customers** - the major raw material, steel, accounts for roughly 40% to 50% of total operating income, but the company has a mechanism where OEMs reset raw material prices monthly, so the cost is accommodated rather than absorbed. - **De-risking by adding names** - while Hero MotoCorp remains dominant, the company has deliberately expanded its customer base to include Hilti, Mando, Maruti, Denso, Bosch, Mitsuba, Yamaha, ZF and Volvo Eicher, reducing the weight of any single relationship over time. ## 2. Four-wheeler and steering components: the diversification play **A dedicated plant in Bengaluru makes parts for passenger vehicles and commercial vehicles, turning the company from a two-wheeler specialist into a supplier present in the majority of cars made in India.** - **A plant built for four-wheelers** - the Kolar (Bengaluru) facility is positioned as a dedicated manufacturing hub for four-wheeler components, producing indigenous parts as an import substitute for Tier 1 suppliers. - **Steering and alternator parts broaden the mix** - the Bangalore plant added steering products and alternator components to the portfolio, diversifying beyond the company's traditional transmission-gear comfort zone. - **Present in most Indian cars** - the company's components reach the majority of four-wheelers produced in India, not by selling directly to carmakers but through Tier 1 partners who integrate its precision parts into larger systems. ## 3. Electric-vehicle axles and gearboxes: the future under construction **The company is designing and trialling differential axles for electric rickshaws and gearboxes for electric two-wheelers, extending its forging know-how into the drivetrains of vehicles that don't burn fuel.** - **Axles for the e-rickshaw economy** - the company has developed integrated differential axles for electric rickshaws and e-carts, and is in the process of launching them commercially, with trials underway for the three-wheeler EV segment. - **Gearboxes for electric bikes** - a gearbox for a 9 kW electric bike motor has been designed and developed, strengthening the company's presence in emerging EV drivetrain technologies. - **Braking systems round out the EV kit** - the EV portfolio also includes mechanical and hydraulic combined braking systems for electric two-wheelers and split service braking systems for three-wheelers, making the company more than just a gears supplier to the electric transition. - **Forward integration into axles** - the company is working on axles for e-rickshaws, three-wheelers and tractors as a deliberate forward integration strategy, moving from individual components toward complete sub-assemblies. ## 4. Exports and non-automotive: the margin-seeking periphery **A small but record-setting export stream and a scatter of non-automotive orders-aerospace, wind turbines, power tools-show the same forging technology finding higher-value homes outside the domestic auto supply chain.** - **Exports hit a new high** - foreign exchange earnings reached their highest ever in FY25 at Rs. 33.59 crore, with the company shipping precision components to international customers. - **Aerospace and industrial gears** - the company supplies components for aerospace applications, industrial and wind turbine gears, and power and construction tools, taking the same near-net-shape forging capability into markets with different demand cycles (D1 pp.9-12, D2 p.11, D24 p.43). - **Home appliances too** - the non-automotive order book also includes components for home appliances, proving the versatility of the underlying manufacturing process (D1 pp.9-12). # Near Net Shape forging: the capability engine **The company's defining advantage is a metal-forming technology that shapes steel so close to the final form that it eliminates most machining-a capability only a handful of Indian auto-component makers possess.** - **Pioneer in gear forging** - the company is a pioneer of near-net-shape and warm forging technology in India, especially in gear manufacturing, and it calls this its unique selling proposition. - **120 parts a minute, precisely** - some of the most technologically advanced high-speed cold and hot forging machines in the country can produce more than 120 parts per minute with precision and accuracy. - **46 patents protect the process** - the company has filed 46 process and product design patents in India and abroad, building an intellectual-property moat around its manufacturing methods. - **Simulation before production** - a suite of software for 2D and 3D CAD modelling, forging process simulation, machining process simulation and gear design means parts are tested in software before steel is ever cut. - **Four plants, two running on sunlight** - manufacturing spans four locations-Binola (Gurgaon), Haridwar, Kolar (Bengaluru) and Rohtak-with rooftop solar already operational at Binola and Rohtak, and plans for a 1 MW hydroelectric plant at Haridwar. # Group structure and partners **The company is a tightly held Munjal-family enterprise with no subsidiaries or joint ventures, funded by a mix of promoter equity and a series of debenture issuances to alternative investment funds.** - **Family-controlled, publicly listed** - the holding company Dayanand Munjal Investments Private Limited owns 69.52% of the equity, with the promoter group led by Managing Director Neeraj Munjal, Whole Time Director Charu Munjal, and Non-Executive Director Yogesh Chander Munjal (D1 p.33, D1 pp.47-48). - **No subsidiaries, no joint ventures** - the company operates as a single legal entity with no subsidiary, joint venture or associate companies, keeping the structure simple. - **A 7% stake converted from debentures** - in May 2025, India Credit Opportunities Fund II converted 250 optionally convertible debentures into 92.73 lakh equity shares, taking a 7.05% stake in the company.