RACL Geartech Secures BMW AG Nomination for Rs. 520 Crore Electric Sports Car Project

RACL Geartech, previously known as Raunaq Automotive Components Limited, has been a pioneer in the manufacturing of transmission gears and shafts since its inception in 1983. Overcoming financial struggles in the early 2000s, the company was successfully restructured under the leadership of Mr Gursharan Singh, emerging from the Board for Industrial and Financial Reconstruction (BIFR) in 2007. Operating from two state-of-the-art facilities in Uttar Pradesh, RACL continues to reinforce its position in both automotive and industrial applications.

In an exciting development, RACL Geartech has been awarded a second nomination from BMW AG. The project focuses on supplying drivetrain components for BMW’s upcoming electric sports car. This marks a significant milestone in RACL’s strategic shift towards catering to the burgeoning electric vehicle (EV) segment.

Key Highlights

• Strategic Focus on EVs: This nomination reflects RACL’s growing prominence in the EV passenger car segment, underlining its commitment to sustainable mobility solutions.
• Green Manufacturing: All production under this project will utilise green electric energy, ensuring minimal carbon footprints—a step in line with global sustainability goals.
• Revenue Projections: Over its lifecycle, Project Venus is expected to generate Rs. 520 crore in revenue, with peak annual revenues projected at Rs. 130 crore by 2029.
• Timeline: Commercial production is slated to commence in 2026, providing RACL ample time to align resources and expand capacity.

Commercial Production to Commence in 2026

The company has received a new nomination from BMW AG for supply of drive train parts for their electric sports car. This nomination marks the second such nomination from the EV passenger car segment which aligns with the company’s strategy to strengthen its EV portfolio. Commercial production of this part is expected to commence in the year 2026. 

Share Price Movement on NSE

Share price of RACL Geartech has jumped over 8% on November 26, 2024. The share price on NSE made a high of Rs 999. Stock had opened the session at Rs 849.40. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.