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.

ZF Steering Gear India has announced a major business development with its subsidiary securing a substantial contract worth ₹151 crores for renewable energy components. This significant contract win marks an important milestone for the company as it expands its operational footprint beyond traditional automotive applications.

Contract Details

The contract details highlight the company's strategic diversification into the renewable energy sector:

Strategic Significance

This contract represents a notable expansion for ZF Steering Gear India, traditionally known for its automotive steering systems and components. The move into renewable energy parts manufacturing demonstrates the company's ability to adapt its engineering and manufacturing capabilities to serve the growing clean energy sector.

The ₹151 crore contract value indicates substantial business potential and reflects the increasing demand for renewable energy infrastructure components in the Indian market. This diversification strategy allows the company to tap into new revenue streams while leveraging its existing manufacturing expertise.

Market Positioning

The contract win positions ZF Steering Gear India's subsidiary as a participant in India's expanding renewable energy ecosystem. By securing this significant order, the company demonstrates its capability to meet the technical requirements and quality standards demanded by the renewable energy sector.

This development aligns with India's broader push toward renewable energy adoption and infrastructure development, providing the company with opportunities to establish a foothold in this rapidly growing market segment.