Bonfiglioli Targets Electric Off-Highway Equipment as New Growth Opportunity

IPO-bound gearbox and drive systems maker Bonfiglioli Transmissions is looking to expand its presence in electric drive systems for construction and off-highway machinery, as it sees new growth opportunities emerging from the gradual electrification of equipment used in infrastructure, mining, agriculture and material handling.

Bonfiglioli plans to broaden its electric mobility portfolio to include wheel drives for battery-operated pallet trucks and electric stackers, along with wheel and track drives for electric off-highway equipment, according to its Red Herring Prospectus.

The expansion would allow the company to tap emerging demand as manufacturers develop electric and hybrid machinery.

Kennady V Kaippally, Managing Director of Bonfiglioli Transmissions, said that the electric mobility represents an adjacent growth opportunity as electrification gradually extends beyond on-road vehicles to off-highway applications.

"We have globally products available for this application, so we are able to support customer in this journey towards electrification," Kaippally told Autocar Professional in an interaction on the sidelines of the company's IPO conference.

The shift towards electrification is also creating opportunities beyond fully electric machines. Equipment manufacturers are exploring electric drive systems for individual functions such as propulsion, travel and swing operations, while retaining conventional systems for other applications.

Bonfiglioli has already developed several such technologies globally. At the iVT Expo 2026, the group showcased an integrated electric swing-drive system for excavators weighing up to 20 tonnes.

The system combines a planetary gearbox with a permanent magnet motor and delivers up to 35 kW of power. The group also demonstrated electric drive solutions for compact track loaders and hybrid machinery.

The transition is beginning to take shape in India's construction equipment market. Volvo Construction Equipment, for instance, offers electric excavators in its Indian portfolio, including the 5.8-tonne EC55 Electric.

However, electrification is progressing at different speeds across equipment categories, depending on operating requirements, costs and charging infrastructure.

A Frost & Sullivan industry report identifies warehousing and intralogistics as among the faster-growing areas for electrification. Demand for electric forklifts, pallet trucks, stackers and automated guided vehicles is creating opportunities for compact gear motors, electric wheel drives and integrated motor-drive systems.

For Bonfiglioli, its existing relationships with equipment manufacturers and engineering capabilities could provide a foundation for expanding into these applications.

The company supplies transmission and drive systems for excavators, concrete mixers, road construction equipment, mining machinery and agricultural equipment. It also works with OEMs to develop application-specific products.

Kaippally said the company's broader growth strategy is to identify faster-growing applications within its existing industries and introduce products to address those opportunities. He identified electrification and heavy-duty industrial gearboxes as two areas for future expansion.

Bonfiglioli has also strengthened its local manufacturing capabilities. The company began producing electric motors at its Mannur facility in Tamil Nadu in October 2025 as part of its localisation strategy. According to the RHP, the initiative is intended to reduce delivery lead times for these motors from approximately 12 weeks to four weeks.

The company's off-highway mobility business generated revenue of ₹320.38 crore in the first half of 2026, growing 36.36% year-on-year. The RHP attributed this growth primarily to higher OEM production volumes and the ramp-up of new international programmes, rather than electrification-related demand.

Nevertheless, the existing off-highway business provides Bonfiglioli with customer relationships and engineering capabilities it can draw upon as electric equipment adoption increases.

While management sees electrification as a future growth opportunity, it did not disclose a India-specific product launch timeline, fresh manufacturing investment or revenue target for electric off-highway systems.