Bonfiglioli India is eyeing a ₹2,500-crore IPO as its local arm powers 31 per cent of the group’s EBITDA. Managing Director Kennady V Kaippally said, “We have reached a maturity where we can stand on our own.” The firm remains debt-free, showing strong growth in wind and industrial machinery sectors.
Bonfiglioli India, the wholly owned Indian subsidiary of Italy’s Bonfiglioli Group and a manufacturer of gearboxes and drive systems for wind turbines, construction equipment and industrial machinery, is eyeing a ₹2,500-crore-plus initial public offering (IPO) through a stake sale by its parent. The Indian business contributes roughly 31 per cent of the global group’s EBITDA and 17.6 per cent of its revenue.
The proposed offer-for-sale (OFS), estimated by top industry sources, could value the company at over $1 billion. Bonfiglioli has invested close to ₹680 crore over its 25 year Indian journey, building manufacturing facilities, engineering capabilities and customer relationships, Managing Director Kennady V Kaippally told businessline.
“We have reached a maturity where we can stand on our own,” Kaippally said, explaining the rationale for the listing.
Unlike passenger-car gearbox manufacturers, Bonfiglioli supplies specialised drives for excavators, cranes, road-building machinery and industrial equipment. Its global OEM customers include Volvo, Tata Hitachi, Schwing Stetter, Escorts Kubota and Atlas Copco.
India profit engine
Indian revenue increased 10.5 per cent to ₹1,864.08 crore in 2024, while profit from continuing operations jumped 29.4 per cent to ₹191.12 crore. EBITDA rose 20 per cent to ₹293.06 crore.
During the nine months ended September 2025, revenue reached ₹1,460.17 crore, with EBITDA margins climbing to 17.36 per cent. The company remained debt-free, with net cash of ₹162.83 crore.
The OFS brings no fresh capital into the company. However, Kaippally said investors should evaluate its competitive position, financial strength, capital efficiency and underlying growth prospects rather than the issue structure alone.
Beyond wind dominance
Bonfiglioli commanded an estimated 68.3 per cent share of India’s wind-turbine-drive market in 2024. Its gear systems position turbines towards the wind and adjust blade angles to optimise power generation.
Industrial automation, however, remains its largest business, contributing approximately 40 per cent of revenue. The company serves more than 20 manufacturing sectors, while its off-highway drives power construction, mining and agricultural equipment.
Bonfiglioli previously invested ₹100 crore in a 42,500-square-metre smart manufacturing facility at Talegaon, Pune, and proposes a separate heavy-duty gearbox facility nearby. Heavy-duty drives currently contribute 4.3 per cent of revenue.
Exports and electrification
Exports account for approximately 28 per cent of business. “China-plus-one is a real story for Bonfiglioli now,” Kaippally said, pointing to global supply chain diversification.
Product development with OEMs typically takes two to three years, creating enduring customer relationships. The company serves approximately 1,200 customers through 44 dealers, with localisation around 70 per cent.
Electrification of off-highway equipment offers another opportunity, although e-mobility revenue remains relatively small.
Four Indian markets addressed by Bonfiglioli are projected to expand from ₹10,897 crore in FY27 to ₹14,280 crore by FY30.
The Italian parent retains ownership of principal technology and trademarks, licensed to the Indian subsidiary through royalty arrangements that also provide access to global research., Kaippally informed