ZF Steering Gear (India) Completes Transfer of Factory Lease to Subsidiary Following MIDC Approval

ZF Steering Gear (India) Limited has notified BSE Limited that its wholly owned subsidiary, DriveSys Systems Private Limited, formally executed a lease deed on March 18, 2026 with the Maharashtra Industrial Development Corporation (MIDC) for factory premises in Ahilyanagar, Maharashtra. The transaction marks the completion of an internal reorganisation of leasehold rights that had been in progress for several months, following regulatory clearance from MIDC.

The factory premises are situated at Plot No. E-3/2, MIDC Supa Parner Industrial Park, Ahilyanagar, Maharashtra – 414 301, and encompass the factory building constructed on the plot. The leasehold rights over these premises were previously held by NexSteer Systems Private Limited, another wholly owned subsidiary of ZF Steering Gear (India). As part of the deed execution, NexSteer participated in the process as the Confirming Party, formalising the transition of rights to DriveSys.

The company confirmed that the transaction was conducted at an arm's length price and carried out in full compliance with applicable laws, consistent with standard disclosure requirements for related-party transactions between group entities.

The disclosure to BSE, filed under Scrip Code 505163 and dated March 19, 2026, is the most recent in a series of regulatory communications on this matter. ZF Steering Gear (India) had first submitted an intimation regarding the proposed assignment to BSE on July 26, 2025, followed by a subsequent update on January 1, 2026. The proposal had also been formally referenced in the company's Board Report for the financial year 2024–25, indicating that the reorganisation had been under consideration and planning for some time before receiving the necessary regulatory approvals.

The granting of permission by MIDC was a prerequisite for the assignment to proceed, as industrial plots under MIDC jurisdiction require the corporation's explicit approval before leasehold rights can be transferred or reassigned. The receipt of that permission enabled DriveSys to execute the lease deed directly with MIDC, effectively stepping into the role previously held by NexSteer with respect to the factory premises.

Such internal restructuring of property holdings between subsidiaries is not uncommon among listed companies and is typically undertaken to streamline operations, align asset ownership with operational responsibilities, or consolidate functions within a corporate group. While the disclosure does not specify the precise business rationale for the transfer, the involvement of two entities — NexSteer and DriveSys — both operating within the same parent structure suggests an operational realignment within the group's manufacturing or supply chain activities.

ZF Steering Gear (India) Limited is headquartered at Village Vadu BK, Tal. Shirur, Dist. Pune, Maharashtra, and is engaged in the manufacture of steering systems and related automotive components. The company is listed on BSE and operates under the broader umbrella of ZF Friedrichshafen AG, a Germany-based global supplier of automotive technology with operations across multiple countries. The regulatory filing was signed by Satish Mehta, Company Secretary and Compliance Officer, holding membership number F3219.