About Company

• Carraro India was incorporated on April 11, 1997. Carraro India is one of the leading independent Tier 1 suppliers of axles, transmission systems and gears for the agricultural tractor and construction vehicle industries in India. Carraro India, the Indian subsidiary of the Carraro Group, is a major global player in the driveline systems industry, particularly for off-highway vehicles like tractors and construction vehicle.

• Carraro India’s foray into the Indian market began in 1997 when it established a manufacturing centre in Pune, India, through a joint venture with Escorts Ltd., In the following years, a second plant was also established for the production of gears and components. Carraro India has since acquired 100% ownership of its manufacturing facilities.

• The Company commenced production of transmission systems in 1999, followed by the manufacturing of axles in 2000, marking its entry into the Indian automotive components industry.

• The Company’s comprehensive service offering sets it apart from other players in the Indian market. It’s ability to provide a seamless, end-to-end experience for its customers - from initial design and customization to material procurement, in-house manufacturing, supply chain management, delivery, and after-sales service - is a key differentiator.

• Carraro India is one of the leading suppliers in the market supplying key OEMs such as Mahindra Farm division and Swaraj, Tata Hitachi, Escorts Kubota Ltd., Sonalika, Bull Machine, TAFE, ACE, John Deere India Pvt Ltd, Caterpillar, Doosan and CNH across the agricultural and construction vehicle manufacturing sector.

• As of March 31, 2024, the Company has established itself as the market leader in providing transmission systems for tractors transmission systems up to 150 horsepower and four-wheel-drive capabilities.

• In August 2022, Carraro India inaugurated a new portal axle assembly capable of producing over 42,000 pieces per year to take care of Carraro India’s customer demand with market shift from 2WD to 4WD in 35HP to 50 HP tractor range.

• In November 2023, Carraro India developed the eT50/eT75 Transaxle. The eT50/eT75 Transaxle has a power rating of 75HP, making it suitable for various agricultural applications.

Strengths

Competitive Strength

• One of the leading tier 1 suppliers of transmission systems and a key supplier of axles in the agricultural tractor and construction vehicle industries in India with competitive moat for mission critical and complex driveline components;

• Customer-centric offering of customized solutions to a longstanding OEM customer base;

• Longstanding relationships with marquee local and international supplier base;

• Strong, in-house R&D capabilities with proprietary IP rights to facilitate innovation of future-ready products;

• Technologically advanced manufacturing plants with large production capacities and in-house gear production capabilities;

• Stable and experienced senior management team with strong industry knowledge and proven track record of growing the business and achieving margin optimization.

Business Strategies

• Maintain the strong positioning in axles and transmission systems with an aim to secure market position;

• Drive the growth through introduction of new products and product application innovation;

• Develop future-ready solutions for emerging technologies and potential entry into new market segments;

• Enhance and expand the production capabilities in India;

• Increase share of localization and further improving efficiencies of the supply chain.

Company Promoters

Company Financials

Carraro India Limited Financial Information (Restated Consolidated)

Carraro India Limited's revenue increased by 4% and profit after tax (PAT) rose by 29% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The Company will not receive any proceeds from the Offer and all the Offer Proceeds will be received by the Promoter Selling Shareholder after deduction of Offer related expenses and relevant taxes thereon, to be borne by the Promoter Selling Shareholder.