Carraro India Limited, a Pune-based manufacturer of transmission systems, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The IPO, valued at INR 1,812 crore, is entirely an offer for sale by Carraro International S.E.

The company filed its IPO papers on August 23, 2024, and plans to list its shares on both the BSE and NSE. The IPO comprises shares with a face value of INR 10 each. Carraro India primarily serves the agricultural and construction equipment sectors.

The IPO consists entirely of an offer for sale (OFS) of up to INR 1,811.65 crore by Carraro International S.E. Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers for the IPO. Link Intime India Private Limited serves as the registrar for the offer.

Market leadership

Carraro India Limited specialises in producing transmission systems for tractors and off-highway vehicles, along with other components for agricultural and construction equipment. Founded in 1997 as a subsidiary of Carraro S.p.A, the company commenced manufacturing transmission systems in 1999 and axles in 2000. The company leverages intellectual property rights licensed from other entities within the Carraro Group. Carraro India focuses on delivering complex engineering products and solutions to original equipment manufacturer (OEM) customers.

Carraro India positions itself as an independent tier 1 supplier, specialising in axles and transmission systems for agricultural tractors and construction vehicles. The Carraro Group is recognised as a leading independent tier 1 supplier of transmission systems and a key axle supplier in the Indian agricultural tractor and construction vehicle industries. They hold a prominent market share in transmission systems for tractors up to 150HP with four-wheel drive capabilities.

Carraro India’s design capabilities were historically provided through Carraro Technologies India Private Limited (CTIPL) and the Carraro Group. The company’s product portfolio includes crucial components for various off-highway vehicles, gears, shafts, and ring gears for industrial and automotive vehicles.

The company manufactures axles and transmission systems for a range of agricultural tractors and construction vehicles. These vehicles include backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders. Carraro India operates two manufacturing plants in Pune, one dedicated to drivelines and the other to gears.

These facilities are equipped with advanced technologies for various manufacturing processes. These include casting, machining, assembly, prototyping, testing, painting, and heat treatment. The driveline manufacturing plant operated at 81.07% capacity utilisation in fiscal year 2024. The gears manufacturing plant operated at 89.94% capacity utilization during the same period, the company said in a media release.

As of March 31, 2024, Carraro India supplied its products to 38 manufacturers across India. In the agricultural tractor sector, key clients include CNH, TAFE, Mahindra and Mahindra, John Deere India Private Limited, Escorts Kubota, Action Construction Limited, and International Tractors Limited.

Within the construction vehicle sector, Carraro India's customer base includes CNH, Bull Machines, Liugong, Manitou Equipment, Doosan, Escorts Kubota, Mahindra and Mahindra, and Action Construction Limited. CNH also represents a significant customer in other sectors for the company.