ZF Steering Gear (India)'s subsidiary Drivesys Systems has announced significant expansion initiatives through strategic business partnerships and facility acquisitions. The company has entered into deals with two key partners while simultaneously expanding its manufacturing footprint in Maharashtra.

Strategic Partnership Agreements

Drivesys Systems has successfully signed deals with Om Tejshree and Microtech, marking important collaborative agreements that are expected to strengthen the company's operational capabilities. These partnerships represent strategic moves to enhance the subsidiary's market position and business operations.

Manufacturing Expansion in Maharashtra

The company has acquired two factory locations on a sub-lease basis in Maharashtra, demonstrating its commitment to expanding its manufacturing infrastructure. This expansion move indicates Drivesys Systems' focus on strengthening its production capabilities in one of India's key industrial states.

Business Development Impact

These developments reflect Drivesys Systems' strategic approach to business growth through both partnerships and infrastructure expansion. The combination of new business deals and facility acquisitions positions the subsidiary for enhanced operational capacity and market reach.

The expansion in Maharashtra, known for its robust industrial ecosystem, provides Drivesys Systems with access to skilled workforce and established supply chains. The sub-lease arrangements offer flexibility while enabling the company to establish its presence in strategic locations within the state.

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.