ZF Steering Gear (India) Limited informed BSE on January 1, 2026, that its wholly owned subsidiary NexSteer Systems Private Limited has submitted an application to Maharashtra Industrial Development Corporation (MIDC) for assignment of leasehold rights to DriveSys Systems Private Limited. According to the BSE filing, the application follows the receipt of Building Completion Certificate (BCC) and Occupancy Certificate from MIDC, Ahilyanagar, representing progression from the company's earlier intimation dated July 26, 2025.
The leasehold rights assignment involves industrial property at Plot Number E-3/2, MIDC Supa Parner Industrial Park, located in Ahilyanagar, Maharashtra - 414 301. As reported by ZF Steering Gear, the property transfer is intended for DriveSys's Aluminium Project and will be conducted at arm's length price. The property is strategically positioned adjacent to DriveSys's existing plant, which could facilitate operational synergies for the aluminium project.
According to the company's disclosure, the proposed transaction remains subject to MIDC permission and will only be executed after receiving the necessary regulatory approval. The transaction aligns with proposals outlined in the Board's Report for FY 2024-25, as stated in the BSE communication. The company emphasized that the assignment will be conducted at arm's length price, ensuring compliance with transfer pricing regulations.
ZF Steering Gear has clarified that the transaction will have no financial or operational implications for the parent company. As reported in the BSE filing, this assessment is based on two key factors: the transfer is between two wholly owned subsidiaries within the same corporate structure, and NexSteer Systems Private Limited has not yet commenced business operations. Both NexSteer and DriveSys are wholly owned subsidiaries of ZF Steering Gear (India) Limited, making this an intra-group transaction.
