Bonfiglioli Transmissions plans to set up a new manufacturing facility at Talegaon in Maharashtra to expand its presence in the heavy-duty industrial gearbox market, as the Italian transmission systems maker looks to diversify its product portfolio and tap growing demand from steel, cement and other process industries.
The proposed facility, which will come up adjacent to its existing Talegaon plant, will help the company strengthen its position in a segment where it currently has a limited presence. Bonfiglioli's Indian operations have traditionally focused on low- and medium-duty industrial gear motors and gearboxes.
"Our plan is to introduce products in this area, and start manufacturing them in India," Kennady V Kaippally, Managing Director of Bonfiglioli Transmissions, told Autocar Professional.
Kaippally said heavy-duty gearboxes represent an important growth opportunity for the company, which intends to build on its existing manufacturing capabilities, engineering resources and customer relationships to expand into the segment.
The move will also allow Bonfiglioli to supply a wider range of products to existing industrial customers, many of whom require higher-capacity transmission systems for larger equipment.
According to a Frost & Sullivan industry report, India's heavy-duty industrial gearbox market is projected to grow from ₹4,040 crore in FY26 to approximately ₹5,790 crore by FY31.
Demand is expected to come from sectors such as steel, cement, sugar, rubber, plastics and power generation, supported by capacity expansion, factory modernisation and replacement demand.
However, the company faces established competition. The Frost & Sullivan report estimates Bonfiglioli's share of India's industrial gearbox market above 15,000 Nm of torque at just 2% in FY26, compared with 29% for Elecon, 19% for Premium Transmission, 16% for Shanthi Gears and 13% for Flender. This highlights both the room for expansion and the challenge of gaining share in the segment.
The opportunity is also supported by planned industrial investments in India. The Centre's National Steel Policy 2017 envisages expanding the country's crude steel manufacturing capacity to 300 million tonnes by FY31, which could support demand for industrial equipment and related drive systems.
Internal Funding
Bonfiglioli currently operates three manufacturing facilities in India: two in Tamil Nadu at Thirumudivakkam and Mannur, and one at Talegaon in Maharashtra. The existing Talegaon assembly facility, which commenced operations in 2023 following an investment of more than ₹100 crore, primarily serves the company's industrial and automation customers.
Management said additional investment is planned for the heavy-duty gearbox project, however they did not disclose the proposed capital expenditure, commissioning timeline or the proposed plant's manufacturing capacity.
"We have plans to invest for the heavy duty project in Pune in the coming years," Gatham Anandhan Balaji, Whole-Time Director and Chief Financial Officer said.
Asked about the investment requirement, the executive said the company had completed land acquisition and would determine project expenditure based on its needs..
However, the company’s RHP states that the land for the proposed facility was held by group company Bonfiglioli Drive Solutions Private Limited under a lease arrangement with the Maharashtra Industrial Development Corporation.
Although MIDC approval had been received, the transfer of leasehold rights to Bonfiglioli Transmissions was still underway at the time of the filing.
Bonfiglioli expects to finance its immediate expansion requirements through internal accruals, supported by its debt-free balance sheet and cash generation.
Kaippally said the Indian business has continued investing in manufacturing capacity over the past 25 years without accumulating debt and does not require fresh equity capital for its immediate requirements.
The company reported revenue of ₹1,131.87 crore in the first half of 2026, up 17.86% year-on-year, while its EBITDA margin improved to 19.78%. It had net cash of approximately ₹139 crore as of June 30, 2026, according to the RHP.
The planned expansion comes as Bonfiglioli prepares for its initial public offering, which opens on October 15. The issue is entirely an offer for sale by its Italian parent, Bonfiglioli S.p.A., and the Indian company will not receive any proceeds from the IPO.
Industrial automation currently accounts for about 42.5% of Bonfiglioli India's revenue. Management expects additional opportunities from higher-capacity industrial drives, new products and a wider range of applications as Indian manufacturers invest in automation and modernisation.