Steering Towards Success: ZF India's DriveSys Phase II and NexSteer Factory to Fuel Growth in Auto Sector

ZF Steering Gear (India) Limited is taking its strategic expansion plans forward with major developments in its subsidiaries. The company is now making headway with Phase II of DriveSys Systems Private Limited, its wholly-owned subsidiary that specializes in producing machined components for steering systems. Phase II is targeted to be completed by March 2026 and is estimated to involve an additional investment of ₹100 crore in two years.

 

Key Highlights

 

DriveSys Phase II: This expansion is targeted at the development of the company's in-house processing capabilities for semi-finished parts, guaranteeing a stable supply chain for its steering gear systems. Metacast Auto Private Limited, another subsidiary, will collaborate with DriveSys as a captive process vendor for castings.

 

NexSteer Factory: Work on the factory of NexSteer Systems Private Limited is progressing, with a target completion date by the end of June 2025. The cost of the NexSteer project is ₹25 crore.

 

Strategic Expansion: ZF Steering Gear India is planning backward integration via its subsidiaries to enhance operational efficiency and manage costs, strengthening its position in the domestic steering systems market.

 

These announcements highlight ZF Steering Gear India's efforts to enhance its manufacturing strength and increase its presence in the market within the automotive industry.

 

Source Name: Good Returns, HDFC Securities, India Infoline.