India's EV push fuels Dhoot growth plans

IPO-bound Dhoot Transmission , opens new tab expects India's shift to electric vehicles to drive growth as the auto components maker expands its product portfolio and ties with automakers, a top executive said.
Chhatrapati Sambhajinagar-based Dhoot Transmission makes wiring harnesses for automotive and industrial applications. Bajaj Auto, opens new tab, India's biggest two-wheeler exporter, accounted for about a third of its annual revenue of 45.3 billion rupees in fiscal year 2026.
'Electrification will be the biggest growth driver for us, ⁠with premiumization following close behind,' Nitin Kalani, chief financial officer at Dhoot Transmission, said in an interview ahead of the company's $322.21 million initial public offering.
The Bain Capital-backed firm's IPO, which includes the sale of fresh shares worth 14 billion-rupee, opens on Aug. 10 and closes on Aug. 12, with trading likely to begin on Aug. 17.
India's EV transition is being led by two- and three-wheelers, as lower vehicle prices and shorter urban journeys ⁠make electrification more viable in those segments.
Dhoot Transmission expects to benefit from the greater wiring-harness content in EVs compared with internal combustion engine vehicles.
Beyond harnesses, the company is building an EV-focused product portfolio that includes battery assemblies, on-board ⁠chargers, DC-DC converters and charging guns.
The shift is also reflected in Dhoot's non-harness portfolio, which rose to 23% of revenue currently from about 18% in fiscal ⁠2024.
Dhoot has spent about 10 billion rupees on capital expenditure over the past four to five years and expects similar investment to ⁠support growth and capacity expansion.
Despite the investment, Kalani said annual margins should remain sustainable at 15%-16%, broadly in line with current levels. ـــReuters