ZF Steering Gear (India) Limited has announced a significant expansion move through its wholly owned subsidiary, DriveSys Systems Private Limited, which has acquired two adjacent factory premises in Maharashtra to establish manufacturing facilities for its new Electrical Division. The acquisition was disclosed under Regulation 30 of the SEBI (LODR) Regulations, 2015, following an earlier intimation dated May 17, 2025.

Acquisition Details

DriveSys Systems Private Limited entered into two separate agreements on January 9, 2026, with M/s. Om Tejshree Technologies and M/s. Microtech Industries for the acquisition of factory premises on a sub-lease basis. Both facilities are strategically located in MIDC, Ahilyanagar Industrial Area, Nagapur, Taluka - Nagar, District – Ahilyanagar - 414111, Maharashtra.

Strategic Purpose and Timeline

The acquired factory premises will serve as manufacturing facilities for DriveSys Systems' proposed Electrical Division. This expansion aligns with the company's announced new line of business in electric equipment components and supports future growth objectives of the subsidiary. The company expects to commence operations at these facilities in Q4 of FY 2025-26.

Transaction Structure

Both acquisitions are structured as sub-lease agreements with a tenure of 15 years each. The combined facility spans 2,778 square meters of plot area with a total built-up area of 1,157 square meters across the two adjacent premises. The company confirmed that none of the promoters, directors, or key managerial personnel have any existing interest in these transactions.

Business Expansion Context

This acquisition represents a strategic move by ZF Steering Gear's subsidiary to enter the electrical equipment components manufacturing sector. The establishment of dedicated manufacturing facilities for the Electrical Division demonstrates the company's commitment to diversifying its business portfolio and capitalizing on opportunities in the electric vehicle and electrical components market. The choice of location in Maharashtra's established industrial area provides access to necessary infrastructure and supply chain networks for efficient operations.

ZF Steering Gear (India) Limited has updated BSE regarding a significant development involving its wholly owned subsidiaries. The company informed the exchange on January 1, 2026, that NexSteer Systems Private Limited has submitted an application to Maharashtra Industrial Development Corporation (MIDC) for assignment of leasehold rights to DriveSys Systems Private Limited.

Property Transfer Details

The leasehold rights assignment involves specific industrial property located in Maharashtra's growing industrial corridor. The transaction encompasses both land and building assets that will support expansion plans.

Regulatory Process and Timeline

The application submission follows the receipt of Building Completion Certificate (BCC) and Occupancy Certificate from MIDC, Ahilyanagar. This represents a progression from the company's earlier intimation dated July 26, 2025, and aligns with proposals outlined in the Board's Report for FY 2024-25.

The proposed transaction remains subject to MIDC permission and will only be executed after receiving the necessary regulatory approval. The property is strategically located adjacent to DriveSys's existing plant, which could facilitate operational synergies for the aluminium project.

Corporate Structure and Impact

Both NexSteer and DriveSys are wholly owned subsidiaries of ZF Steering Gear (India) Limited, making this an intra-group transaction. The company has emphasized that the assignment will be conducted at arm's length price, ensuring compliance with transfer pricing regulations.

ZF Steering Gear (India) Limited has clarified that the transaction will have no financial or operational implications for the parent company. This assessment is based on two key factors:

• The transfer is between two wholly owned subsidiaries within the same corporate structure
• NexSteer Systems Private Limited has not yet commenced business operations

Strategic Implications

The leasehold rights assignment appears designed to consolidate industrial assets under DriveSys for its aluminium project development. The strategic positioning of the property adjacent to DriveSys's existing plant suggests potential for integrated operations and operational efficiencies.

The company's communication to BSE demonstrates transparency in subsidiary transactions and adherence to disclosure requirements for material developments involving wholly owned subsidiaries.