Gabriel India plans to invest around ₹180 crore in its standalone business in FY27, with the proposed spending covering a new plant at Hosur and capacity expansion across some of its existing facilities.
The company expects a large part of its two-wheeler growth to come from the new Hosur facility, Atul Jaggi, Group President, ANAND Group, and Managing Director of Gabriel India, told Autocar Professional.
“For the organic growth, separate capex has already been identified. For this year, within Gabriel’s standalone business, we have allocated around ₹180 crore for growth,” Jaggi said.
The amount includes expansion at some of Gabriel’s plants and the development of its second manufacturing facility at Hosur, Tamil Nadu. The company recently conducted the bhoomi puja for the project. Gabriel also confirmed the start of the second plant’s construction..
“We are setting up a new plant in Hosur, where we see a majority of the growth coming in on the two-wheeler side,” Jaggi said.
Gabriel has acquired around 17 acres close to its existing Hosur unit for the new facility. It will focus on advanced two-wheeler suspension products, including upside-down front forks and electronic front forks.
“Close to our existing plant, we have taken 17 acres of land and are setting up a new plant where we want to focus on new-technology products in the tubular side,” Jaggi said.
He added that the market was changing rapidly and Gabriel had secured “one or two platforms” for electronic front forks. The company expects such products to play a greater role in its two-wheeler suspension business.
The Hosur investment is significant because two- and three-wheelers remain Gabriel’s largest business segment. They accounted for 62% of its FY26 standalone sales, while the company estimated its market share in the segment at 32%. Its customers include TVS Motor, Honda Motorcycle & Scooter India and Yamaha, according to Gabriel’s FY26 investor presentation.
Gabriel manufactures front forks and rear shock absorbers for two- and three-wheelers and supplies major vehicle manufacturers in the segment. It has also expanded its customer base to include electric two-wheeler manufacturers.
Expansions at Khandsa and Pune
Apart from Hosur, Gabriel is expanding its Khandsa plant near Gurugram, which primarily supplies passenger-vehicle suspension products to Maruti Suzuki.
The expansion includes additional physical infrastructure, automated manufacturing lines and robotic equipment. It will support new vehicle programmes that are scheduled to enter production, Jaggi said.
Gabriel is also expanding its Pune operations to meet expected growth in the gas-damper business. The company entered the gas-spring category after acquiring assets from Marelli Motherson Auto Suspension. The acquisition added annual capacity for 3.2 million shock absorbers and one million gas springs.
JV Plant to Begin Production
Infrastructure spending is also under way at Gabriel’s new joint ventures.
The manufacturing plant being built in Chennai under the Gabriel-Jinhap joint venture is expected to be ready during the second quarter of FY27. The company is targeting the start of production during the third quarter, Jaggi said.
The joint venture will manufacture special-grade fasteners and precision forgings, with a focus on replacing products that are currently imported.
Gabriel’s venture with South Korea’s SK Enmove has already begun aftermarket sales of lubricants. The company has also secured initial original-equipment business for products under the partnership, according to Jaggi.
Currently, Gabriel has a manufacturing network spanning nine plants and three satellite facilities across India.
FY26 Capex Rose Nearly 48%
The proposed FY27 spending follows standalone capital expenditure of ₹189.3 crore in FY26, up from ₹128.1 crore in the previous year. Major investments during FY26 included the Chakan-2 plant, land for the Hosur-2 expansion and spending across other Gabriel facilities.
Gabriel’s standalone revenue increased 16.2% to ₹4,233 crore in FY26 from ₹3,643.3 crore in FY25. Its operating earnings before interest, tax, depreciation and amortisation rose 18% to ₹382.7 crore, with the EBITDA margin improving slightly to 9%.
The company ended FY26 with net cash of ₹297.4 crore. Its relatively low debt and positive cash position provide room to finance organic expansion while it also evaluates acquisitions and new joint ventures.
The investments form part of Gabriel’s wider plan to move beyond its traditional suspension business and become a diversified mobility technology supplier. However, ride-control products will remain central to its growth, with the company targeting a place among the world’s five largest suspension suppliers by 2030.