#### **Overview** Sterling Tools Limited (STL), established in 1979, is a leading Indian manufacturer of high-tensile, cold-forged automotive fasteners. Over the past five years, STL has strategically diversified into the electric mobility space through its subsidiaries, evolving from a traditional auto component supplier into a comprehensive technology-driven player in the EV ecosystem. The company aims to position itself as a future-ready, vertically integrated solutions provider in the Autonomous, Connected, and Electric (ACE) mobility space. --- #### **Business Segments & Operations** ##### **1. Fasteners Division (Core Legacy Business)** - **Market Position**: India’s second-largest automotive fastener manufacturer, with over 46 years of market presence. - **Manufacturing Footprint**: - 3 plants in Faridabad, 1 in Prithla (Palwal), 1 in Kolar, Bengaluru. - A wire drawing unit in Ballabgarh. - **Product Portfolio**: Standard, chassis, engine, and special fasteners with a focus on **high-tensile, cold-forged** components for critical applications. - **Key Customers**: - *Commercial Vehicles*: Tata Motors, Ashok Leyland, Daimler India - *Passenger Vehicles*: Maruti Suzuki, Hyundai, Mahindra - *2-Wheelers*: Hero MotoCorp, Honda, Suzuki Motorcycles - *Farm Equipment*: Mahindra, John Deere, Escorts - *Off-Highway*: JCB - **Distribution**: - Strong pan-India aftermarket presence via **100+ distributors**. - 85% of fastener sales in replacement markets; remaining in OEM, exports, and specialty segments. - **Growth Outlook**: Expected high single-digit growth; revenue normalization anticipated by FY27. - **CAPEX Plans**: INR 25 crores allocated for FY26–27, focused on capacity expansion and process optimization. --- ##### **2. EV & Power Electronics Division – Sterling EMobility Solutions Ltd. (SEM)** *(Formerly SGEM / Sterling Gtake EMobility)* Rebranded in Nov 2025, **Sterling EMobility Solutions Limited (SEM)** is STL’s wholly-owned subsidiary and the company’s **strategic growth engine** under the new identity of SEM. - **Established**: 2020 via partnership with Jiangsu Gtake Electric (China), later transitioning to a 100% STL-owned entity due to FDI restrictions. - **Core Competency**: Motor Control Units (MCUs) — the **largest domestic manufacturer in India**, with an 86% YoY revenue growth in FY24. - **Technology Partnerships**: - **Jiangsu Gtake Electric (China)**: MCU design and firmware. - **Advanced Electric Machines (UK)**: Rare earth magnet-free (REM-free) motor technology. - **Landworld Technology (China)**: On-board chargers (OBCs) & DC/DC converters. - **Kunshan GLVAC Yuantong (China)**: HVDC contactors and relays. - **MOTIVELINK (Korea, formerly Yongin Electronics)**: Magnetic components. - **Product Portfolio**: - **Motor Control Units (MCUs)**: 1–200 kW, 48–700V systems, for 2Ws, 3Ws, LCVs, HCVs, and buses. - **Magnet-Free Motors**: Based on AEM’s licensed technology — a disruptive innovation reducing China dependency on rare-earth materials. - **Integrated Powertrain Systems**: 2-in-1 (motor + controller), progressing toward multi-component integration. - **Power Electronics**: OBCs, Off-board Chargers, DC/DC Converters, HVDC Contactors, Latching Relays. - **Manufacturing & R&D**: - **MCU Plant**: Faridabad – expanded to **720,000 units/year** (from initial 600K), with Surface Mount Technology (SMT) capability being internalized. - **Technology Centers**: Located in **Faridabad** and **Bengaluru**; staffed by **99 engineers**. - **Live Programs**: Over 30 customer programs active across OEMs. - **Customer Diversification**: From initial 1 customer (Ola Electric) to **20+ OEMs**, including Ampere, Torque, Euler, Murugappa Group, Switch Mobility, and Volvo Eicher. --- ##### **3. Emerging EV Components – Sterling Tech-Mobility Ltd. (STML)** A 100% subsidiary established to localize **high-voltage EV power transmission components**, supporting import substitution under ‘Make in India’ and ‘Atmanirbhar Bharat’. - **Key Focus Areas**: - **HVDC Contactors & Relays**: Critical for battery pack safety in EVs (on/off switching, fault protection). - **Latching Relays**: Energy-efficient switches used in EVs, industrial grids, and white goods. - **Magnetic Components**: Transformers, reactors, EMI filters, chokes. - **Strategic Collaborations**: - **GLVAC YT (China)**: Technology partnership for HVDC contactors — investment of **INR 40 crores** in Bengaluru facility. - **Zhejiang Meishuo (China)**: Latching relays for industrial and consumer applications. - **MOTIVELINK (Korea)**: JV in advanced talks for magnet manufacturing. - **Bengaluru Facility**: A **fully automated, state-of-the-art plant** nearing commissioning. - Commercial production of **HVDC contactors & relays** set for **December 2025** (initial timeline) to **Q2 FY26** (revised). - Projected **revenue potential of INR 150–200 crores over 5 years**, with double-digit margins at maturity. - Serves **Tier-1 suppliers** rather than being OEM-concentrated — mitigating customer concentration risk. --- #### **Strategic Vision & Business Model** - **Growth Strategy**: Target new verticals to contribute **50% of total revenue by 2030**, shifting from fasteners to high-margin EV components. - **Focus**: First-mover advantage in import-substituting, high-tech EV components. - **Localization & Import Substitution**: Core tenet across all new businesses — targeting components historically imported from China, Europe, and Japan. - **Technology Transfer Model**: Leverages **7–10-year licensing agreements** to import proven global technologies, re-engineer them for Indian conditions, and build independent capabilities. - **CAPEX Outlook (FY26)**: - **INR 50 crores total**: - INR 25 crores – Fasteners - INR 10–15 crores – STML (DC Contactors) - Additional greenfield capex in planning for new product lines. - **Future Expansion**: - **Power Transmission Unit** under STML — INR 50 crore investment, targeting **INR 200 crores revenue by 2030**. - **REM-Free Motor Assembly Line**: INR 15–25 crores investment; customer trials underway; production expected **FY27**. --- #### **Market Position & Competitive Edge** - **Leadership in MCUs**: - ~**50% market share** in high-speed 2W EV segment (>60 kmph). - ~**26–30% share** in overall EV MCU market (2W, 3W, LCV). - Ola Electric accounted for **60–75% of MCU revenue**; active diversification ongoing. - **First-Mover Advantages**: - **India’s first domestic manufacturer** of HVDC contactors and REM-free motors. - Among the first to offer complete **integrated powertrain solutions** (motor + controller). - **Engineering Strength**: - **Concurrent engineering & VAVE** (Value Analysis/Value Engineering) to co-develop with customers. - In-house expertise in PCB assembly, power electronics, firmware customization, and CAN development — **>90% localization** except for ICs and MOSFETs. - **Customer Base**: - Strong penetration across **startups (Ola, Ampere, Simple Energy)** and **established OEMs (Tata, Mahindra, Volvo Eicher)**. - Engaged with **30+ customers**, including hydrogen and commercial vehicle platforms. --- #### **Government Alignment & Policy Catalysts** - Aligned with: - **"Make in India"** - **"Atmanirbhar Bharat"** - **PLI Scheme & FAME II / PM eDrive** - Key policy support: - **PM eDrive** mandate (CKD by Sep, localization by Feb) driving demand for localized components. - **FAME subsidies** enabling Indian OEMs to source from domestic suppliers like SEM.