Dhoot Transmission Builds Ahead of Demand with Four Plants Under Construction

Dhoot Transmission Ltd., India's largest supplier of wiring harnesses to two- and three-wheeler makers, plans to expand its manufacturing capacity by 23% through two new plants funded from its upcoming initial public offering, with additional facilities planned outside the IPO proceeds.

The Pune-based company, which supplies Bajaj Auto, TVS Motor Co., Honda Motorcycle & Scooter India and Royal Enfield, will spend Rs 150 crore from its Rs 1,400 crore fresh issue on wiring harness plants at Sector 11 in Jhajjar, Haryana, and Shoolagiri near Hosur, Tamil Nadu, according to its updated draft red herring prospectus filed in May. The IPO funds Rs 109.3 crore at Hosur and Rs 40.7 crore at Jhajjar, with deployment planned over fiscal years 2027 and 2028; the two projects will cost about Rs 225 crore in total, with the balance drawn from internal accruals.

Dhoot Transmission's Rs 225-Crore Capacity Expansion Plan

The two plants will add 3.06 million units of annual wiring harness capacity; 1.44 million at Jhajjar and 1.62 million at Hosur, to the company's existing 13.11 million units, an increase of about 23%, per the prospectus. These calculated capacities are based on a generalized circuit count of a standard wiring harness unit, which the company uses as a standard reference for estimation.

"The incremental capacity which will come will be 23%," Nitin Kalani, Group Chief Financial Officer, Dhoot Transmission said on the sidelines of the IPO-related press and analyst briefing held in Mumbai on Tuesday. "But apart from this, we are also adding additional plants that are not funded by the IPO. This year's capex plan includes one additional facility which may come up near Pithampur, and a couple of battery plants."

Jhajjar and Hosur Plants to Serve Honda, Suzuki, TVS and Hero MotoCorp

The Jhajjar Wiring Harness Plant in Haryana is primarily being developed to meet the increasing requirements of major OEM customers in the National Capital Region (NCR), specifically Honda and Suzuki. Additionally, following Dhoot Transmission's recent acquisition of Multilink, Hero MotoCorp has also become a customer served by the company's presence in this region. The completion timeline for the new Jhajjar Wiring Harness Plant follows a phased schedule with final completion targeted for May 2027

Likewise, the new Hosur Wiring Harness Plant in Tamil Nadu, is being constructed on 7.28 acres of land, specifically designed to integrate its existing smaller facilities in that region into a single larger unit. The expansion at the facility is expected to get over by August 2027. Hosur sits within Tamil Nadu's two-wheeler corridor, home to TVS and electric vehicle makers.

Why Dhoot Transmission Keeps Utilisation at 75% Despite Rising Demand

The company operates 22 plants across India, the U.K., Slovakia and Thailand, and has four under construction.

The expansion comes as several of Dhoot's existing units run close to full capacity. Its Manesar, Jhajjar, Hosur and Pithampur plants each operated above 89% utilisation in the nine months ended December 2025, and the prospectus flags high utilisation at Hosur and Pithampur as a constraint on meeting additional demand.

Founder and Managing Director Rahul Dhoot said the company deliberately holds average utilisation at 75% to absorb seasonal surges. "Four and a half to five months a year, there is a seasonal demand wherein the business increases 30% every month," he said. "If we don't keep 75% capacity today, we will not be able to meet 100% of demand during the festive season."

India's Wiring Harness Market Set for EV-Led Growth

Dhoot said the company builds plants before orders are confirmed, a practice he credits for its growth from Rs 900 crore in revenue in fiscal 2019 to Rs 4,626 crore in fiscal 2026. "Customers can only give you projections," he said. "You have to take a step ahead — you have to create the facility well before the orders come in. Had we not envisaged this growth right in the beginning, we would have failed somewhere in between."

The buildout mirrors a wider capacity race among Indian component suppliers as harness and electronics content per vehicle rises. Regulatory changes, including OBD-2 norms and the shift to electric powertrains, have expanded wiring complexity, while EV two-wheeler penetration; 6.4 % in fiscal 2026, is projected to exceed 20-25% by fiscal 2031 Dhoot held a 44.6 % share of India's 2W-3W harness market by value in fiscal 2025, and more than 70% in the electric segment.

Dhoot said the pace will continue as long as customers sustain it. "Till the time we do not get a setback from any of the customers, we would like to continue this kind of an adventure," he said.