Carraro India to Invest ₹300 Crore Over Three Years to Expand Axle and Driveline Manufacturing Capacity
Carraro India Limited, the Indian arm of Italy-based driveline manufacturer Carraro Group, is advancing a capital expenditure programme of approximately ₹300 crore over the next three years, starting FY27, to expand manufacturing capacity for its axle, transmission and gear businesses.
The company's board has approved expansion of axle manufacturing capacity to 1,54,160 units to support anticipated future demand growth, driven by the shift in India's farm mechanisation toward higher-horsepower and four-wheel-drive (4WD) tractors. The capital outlay is planned at roughly ₹100 crore annually and will be used to debottleneck assembly lines, add new production capacity, and prepare for upcoming programmes from global tractor and construction equipment manufacturers.
Carraro India operates from an integrated manufacturing base in the Ranjangaon area of Pune, with a ready 53-acre land bank and existing gear manufacturing and paint facilities, allowing it to scale operations without major greenfield investment. During FY26, the company invested ₹41.7 crore in capital expenditure toward new telescopic handler axle production, advanced transmission programmes and incremental capacity enhancement, including commissioning of a new 800-pallet machining centre.
The company's engineering services business also continued to gain traction, including a ₹17.5 crore agreement with Montra Electric for industrialisation and supply of e-transmissions, with prototype orders already received for field validation.
Carraro India is targeting annual revenue of more than ₹3,500 crore by FY30, supported by strong order visibility and increasing localisation of its driveline component manufacturing.