Ladies and gentlemen, good day and welcome to Gabriel India Limited Q2 FY 2027 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mahendra Goyal, Group CEO and Managing Director, for opening remarks. Thank you, and over to you, sir.
Good morning, everyone. Hope I am audible. Good morning, a very w elcome to all of you, and thank you for joining the call today and w e will take this opportunity to begin with an important strategic development for Gabriel India before we get into the operational review. As a strategic initiative, 6th October 2026, we signed a joint venture agreement with a company named Faurecia Automotive Seating India Limited, part of Forvia, the global automotive technology group, to establish Faurecia Anand Seating India Private Limited, which was subsequently incorporated on 19th October 2026.
This represents another important step in Gabriel India's transformation into a diversified, technology-led mobility solution enterprise. The joint venture will focus on developing, manufacturing, supplying seat frames and complete seating systems for Passenger Vehicle, where Gabriel India will be holding 50% less one share, and Forvia will be holding 50%+1 share. With this joint venture, we bring Forvia's global seating technology, product engineering, complete seat capabilities, and manufacturing expertise with ANAND Group's strong relationship with Indian OEMs, extensive local operating footprint, and deep understanding of the domestic automotive market.
Importantly, this partnership builds on the trust relationship between Forvia and ANAND Group in an emission control business so that was going on before 2000. And with Forvia, I think they acquired a partnership, this business globally in sometime in 2009, 2010. So while the business of emission control has been before 2000, partnership with Forvia is almost 2009 and 2010 onwards actually. The venture is expected to benefit from access to Forvia's wider seating product and engineering portfolio, and to strengthen manufacturing supply chain and talent capabilities in India.
The partnership is fully aligned with Forvia's seating ambition to reach approximately 10% market share in India over the next five years as its first growth milestone. For Gabriel India, entry into the Passenger Vehicle seating system is strategically important because it further broadens our product offering into the powertrain exhausting category, strengthens our participation across the automotive value chain, and provides a platform for long-term technology-led growth.
The JV reaffirms our stand that Gabriel would be the principal growth engine of ANAND Group's automotive business. That continues. Moving to our consolidated performance revenue from operation for quarter two financial year 2027 stood at INR 1,608 crore, reflecting a year-on-year growth of 23%. For half year 2027, consolidated revenue stood at INR 3,034 crore, registering a growth of 19%. Consolidated EBITDA for Q2 2027 stood at INR 141 crore, reflecting a year-on-year growth of 12% with an EBITDA margin of 8.8% and h alf year consolidated EBITDA stood at INR 265 crore, registering growth of 9% year-on-year with an EBITDA margin of 8.7%.
Coming to our equity accounting investing companies, which includes Dana ANAND India Private Limited, Henkel ANAND India Private Limited, SK Enmove Gabriel India Private Limited, along with our new strategic investments in HL Mando ANAND India Private Limited and HL Klemove India Private Limited. Our share of profit before tax stood at INR 48 crore in Q2 FY 2027, reflecting a year-on-year change of 39%. For H1 FY 2027, this stood at INR 91 crore, which grew almost 24% year-on-year.
Importantly, the contribution from HL Mando ANAND reflects only for few days as the transaction took place on 11th September 2026. So results only including very, very few numbers in the current quarter. Those will start reflecting on the full quarter basis from the next year, so from the next quarter. Consolidated PBT before exceptional item for Q2 FY 2027 stood at INR 148 crore, reflecting a year-on-year growth of 14% with a PBT margin of 9.2% and half year PBT before exceptional item stood at INR 281 crore, registering a growth of 10% year-on-year with a margin of 9.3%.
Overall, our consolidated performance reflects the contribution from operating subsidiaries together with the share of earnings from our joint venture and associates under the expanded business structure. So it means that now onwards our results are standalone Gabriel, of course, subsidiaries companies of Gabriel, and also profit coming from associate companies, especially HL Mando, HL Klemove. Those will start reflecting from the following quarters on a full quarter basis but This quarter we had results from Henkel, Dana, and other subsidiaries basically.
With the strategic investment undertaken through Project Rise and Project Jupiter, we continue to strengthen our presence across a wider range of automotive component and technical business, so t hose results will start keep on moving now into our business. I am also pleased to announce that Board of Directors have declared an interim dividend of INR 2.15 per share, having the face value of INR 1 each. With this, I would now request Mr. Jaggi to update you on the standalone Gabriel and also about the industry trend. Before Mr. Jaggi starts, I take this opportunity to wish you all a happy Diwali. Thank you.
Thank you, Mr. Goyal. Good morning, everyone, and warm welcome to all the participants on the call. Coming to the automotive industry, manufacturing activity remained quite strong during Q2 FY 2027. This was supported by the GST-led affordability, improving financing conditions, and resilient rural demand supported the festive season momentum. Coming to the Two-Wheeler segment, the production grew by 16.5% YoY in Q2 FY 2027, while overall production growth for H1 FY 2027 stood at 19.5%.
Scooters continued to outperform the industry, recording strong growth of 31% during the first half of FY 2027, while motorcycle production increased by 14%. Coming to Passenger Vehicles, industry production increased by 25% year-on-year in quarter two FY 2027, while growth for H1 FY 2027 stood at 21%. Utility vehicles continue to lead the segment, recording growth of 25% during H1 FY 2027, reflecting sustained customer preferences for SUVs. Commercial Vehicle production registered a very strong growth of 34% year-on-year in quarter two FY 2027, taking the overall growth for the first half of the year to 25%.
During the first half, LCV production increased by 27%, while the M&HCV production grew by 21%. Three-Wheeler production also remained healthy, growing by 24% in quarter two and 34.5% during the first half of the year, supported by strong last-mile mobility and cargo transportation demands. Overall, the industry performance reflects resilient domestic demand and improving customer sentiment, although geopolitical uncertainties and volatility in crude oil and commodity prices remain important factors to monitor. Coming to our Q2 FY 2027 performance, as explained in the previous quarter, following the completion of restructuring, our financial results now reflect the expanded business portfolio of Gabriel India.
During September 2026, we successfully completed the allotment of INR 1,000 crore of unsecured rated listed and redeemable NCDs through private placement carrying an annual coupon of 8.15% with tenure for three years. This form part of our financing arrangements to support the company's strategic growth and expansion initiatives. Coming to the standalone performance, revenue from operations stood at INR 1,399 crore in quarter two FY 2027, reflecting a YoY growth of 23%.
The performance was supported by demand across our core suspension business, Aftermarket operations, and contribution from the Anchemco business added to the restructuring, called as the fluid business. For H1 FY 2027, standalone revenue stood at INR 2,673 crore, registering a year-on-year growth of 21%. Standalone adjusted EBITDA for quarter two stood at INR 115 crore, reflecting a YoY growth of 15% with an EBITDA margin of 8.2%.
For H1 FY 2027, adjusted EBITDA stood at INR 222 crore, registering a growth of 13% YoY with an EBITDA margin of 8.3%. Standalone PBT before exceptional items for quarter two stood at INR 89 crore, representing a YoY growth of 7% with PBT margin of 6.3%. For H1 FY 2027, PBT before exceptional items stood at INR 188 crore, registering a growth of 17% year-on-year with a margin of 7%. I also take this opportunity to wish everybody a very happy Diwali, and with this, I come to an end of my opening remarks. Now request the moderator to begin the question and answer session. Thank you. Over to you.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Participants, please limit your questions to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jay Kale from Elara Capital. Please go ahead.
Yeah, good morning. Thanks for taking my questions and season's greetings to the management. Also congratulations on your JV with Forvia, the addition of new product. Sir, the first question is in terms of your Vision 2030 of INR 50,000 crore, you seem to have multiple paths to reach there apart from organic and group consolidation, like new JVs, buying out companies, expanding product portfolio, and existing group JVs as well. Which of these, according to you, is likely to be a bigger opportunity in the next two to three years, as per your discussions currently? And a lso, any threshold the management has for these actions in terms of what return profile, margin profile, technology client access you would want from your addition of new products? How should we think about these likely opportunities?
Okay, thank you. So I think considering our vision statement of INR 50,000 crore in 2030, the current initiative which we have taken, especially in the current year, where we have added a couple of new joint ventures. Of course, one is HL Klemove India, another very recently on the seating side with the Forvia Group. So I think these are the very, very important joint ventures with our journey of INR 50,000 crore in 2030. So it's very difficult to share the numbers. As I said, it's very, very important business aspects from these two businesses.
Simply that they are high-value items, that is one. Generally, their product value could be, I would say, in the range of, for the Passenger Car, INR 30,000-INR 50,000 per car set when it comes to the product value. T hat way, I think these business will have a good prospectus. Especially on ADAS side, as you will know that ADAS regulations are expanding in the industry with the Passenger Car, with the Two-Wheeler, Three-Wheeler, and of course, in the Commercial Vehicle. I think that will give us more and more opportunity growing our market in this segment.
And also the seating side, I think if you look at from the car perspective, it's very important that interior of the car is going to play a very key role in the growth and from the product contribution side. So, the seating is one thing that is primarily will add lot of value from the technological changes point of view within the interior setup in the car. So I think with these two joint ventures and of course, the way the Indian market has grown in the current year, I mean, for 2026, the growth which we have seen, it is taking us closer to our target of 2030.
Of course, we are not there yet, and for which we have a good time and good preparation to visit or achieve our strategic objective. From a technology point of view, I think we continue, as I said, that with our global players, so ADAS is one of the global players, HL Group, Mando, which is dealing with the brakes and the steering system, and helping providing a integrated solution from the technology point of view, while the product will come from the different companies, but from the technology point of view, it helps to integrate the technology in the HL system. Forvia is one of the leading players in the technology when we talk about the seating. So as usual, we continue to work with the global players who are market leaders in their field, and that is our vision to bring technology or focus technology in the future.
Great. Thanks for this. Next question is regarding the Forvia seating JV. You mentioned that the mechanisms portion is out of the JV, and it will be supplied directly by Forvia. If you could just give a broad sense of what is the content per vehicle and how much of that is in the JV and how much is not in the scope of the JV?
Yeah. So I think when we talk from the customer perspective, for the customer perspective, we are going to quote for the entire seating system, which will include the mechanism part also. So Roughly, to share any number, maybe mechanism will contribute around, I would say, 15%-20% of the car seat overall. As far as the joint venture is concerred, we are the single face to the customer for providing the entire solution. While in turn, we will be procuring mechanism from the Forvia as 100% owned company in India, actually, basically. So as far as the business is there, we are 100% seating arrangement business, so Forvia mechanism company will be the integrated supplier for the mechanism to the joint venture.
Understood. Also, there are a few questions on your JVs, on your subsidiaries. If you have seen that PAT margins of some of these subsidiaries have been a little volatile, especially if you see Henkel. If we just throw some light, is it got to do with some of the commodity pressures that we are seeing? Because while Dana performance has been good, Henkel has been a little subdued in PAT margins. Any seasonality over there? If we can just throw some light over there.
So there is no seasonality. It is only, I think the business are globally impacted across India, all because of the commodity changes. And of course, there is the logistic increase. And of course, everybody is running behind the demand and trying to meet the customer demand very regularly actually. So that, of course, putting a lot of pressure on the logistic cost as well. So it is not a seasonal kind of a thing, so i t is just a situation where there is a gap between the price recovery from the customer and the price cost which we are incurring right now, so th at is the only thing, so which is true to every business.
The only difference between Dana has a lot of exports, we continue to take advantage of the exchange benefit, which is offsetting even the commodity impact actually, basically. Otherwise, the challenges for the business are same, whether it is Henkel or Dana or Gabriel. But yes, there are certain disadvantage in certain businesses with respect to the exports that is benefiting and equating or offsetting the extra cost, basically.
Understood. Just one last from my side as the—
I am sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Amit Hiranandani from PhillipCapital India Private Limited. Please go ahead.
Just following up from the previous participant on the seating business, can you just explain more on the seating business? The competitive scenario looks to be very tough, and generally, each OEM has at least one core supplier in the seating business. And secondly, I also wanted to understand, is the existing Forvia business in India part of this JV, and is there any kind of royalty or a technical fee involved here?
Yeah. Thanks for your questions. So again, as I said, it is a market where players are already there, and in the same way, I think this automotive industry market is growing as well, so t hat is one part of the business aspect. The second part of the business aspect is that I do not want to say that somebody has the technology or not in India, but we feel that a company like Forvia, an organization like Forvia, which is a global leader for many, many years in this industry, while they were not in India, but they have been global players for many, many years. I think we can differentiate in India with respect to the technology, which we should be able to take advantage of with the competition, basically.
And I think when it comes to the complete seating management, we should be able to take good lead and also grab some market share in the growing market. So we are confident because of the current technology available and the technology which company can provide in future. So that is what our confidence level is, still relevant in the business despite being so many players already in the market. As far as I think technology is concerned, again, there is an R&D center in India, so most of the technology will be coming from India only and t here is, of course, a royalty fee payment for that and t hat is not unusual. That is very much in line with the business.
As far as Forvia is concerned, the Forvia entire business related to the seating will be part of the joint venture, except the mechanism. So mechanism will continue to be separate as entity, but from the customer front of view, it is an integrated solution which will be provided, including the mechanism. So instead of having this part of the joint venture, mechanism will be bought from the Forvia 100% company and will be supplied to customers in India. Otherwise, all business related to the seating is part of the joint venture.
Just one clarification, sir. Are we going to set up a new plant for this JV?
Oh, yes. We will have to set up the new plant for the joint venture. So I think we are already starting this. We will be having plant in Chennai, and of course, we have plant in Pune as well.
Okay, that is helpful, sir. Sir, second question to Atul sir. Sir, we have noticed basically, there is a market share loss in the Passenger Vehicle shock absorber in the H1, and similarly, the growth in the Commercial Vehicles revenue is slightly lower than the industry growth. Can you please throw some light here?
Yeah. I think this Commercial Vehicle, there is no degrowth. The growth purely on the CV side is exactly matching the industry growth because obviously with the more than 85% market share, that is bound to be in line with the market. The numbers that you see, they also include the Aftermarket and railway, and I think other numbers are clubbed with the CV numbers. That is why you are seeing a change because last year, I think in this quarter, the Aftermarket numbers were much higher, but because of lot of pressure from the OEM this time, the Aftermarket number, you do not see a similar growth there.
So on the CV side, the numbers purely are matching exactly as per the market. On the PV side, yes, you are right. I think the lack of growth is primarily on account of the Passenger Car, the smaller cars, because post the GST last year, the new norms, the small car growth has been much higher and I think there, the models where we are present, unfortunately, have not done so well as compared to the models where I think we have not been there. It is more of a mix issue there in the PV side, b ut yes, we are lagging behind on the PV side in this quarter, as is the market side. On the CV, there is nothing to worry about.
Just last one question, sir. Anchemco is basically a better margin business and is still now a part of standalone entities. But we have noticed a drop in the EBITDA margin, so last three quarters consistently.
Two things here. Amit, two things. One, Anchemco is a very small part of the business. Obviously, when you look at the overall numbers, the contribution is relatively smaller. Secondly, Anchemco also is not sort of immune to the changes there because their raw material is different, where I think, say, urea as an example, is a big raw material consumption for them, and obviously, the prices there also have fluctuated. The recovery is happening. But as Mr. Goyal mentioned, that I think customer to customer, sometimes there is a delay. Unfortunately, in quarter two, while everybody expected that the prices may soften up and obviously the numbers would look much better, but the prices in quarter two also has shot up. If there was a lag in the recovery, it continues even in the quarter two also there. Otherwise, I think the fluid business is doing quite well.
Yes, sir. Thank you, sir, and all the best. I will come back later.
Thank you. Yeah.
Thank you. The next question comes from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead.
Yes. Happy Diwali, and congratulating on the healthy results and the recent seating JV announcement. Sir, firstly, just want We were reading like Forvia has won some order on the PV side. Just want to understand for this JV, do you have some anchor order supporting this JV?
Yes. We have this business. This JV is formed with the existing business which are there already won by the company, actually.
Possible to quantify, sir, how big the order book would be there, sir?
I think it is difficult, but I think we look at it is a Volkswagen business, which will be coming along with the joint venture. So, I think once the closing is done, we should be able to share the information rightly, basically.
Got it, sir. Secondly, sir, on the PV ADAS regulation draft which has announced, just want to understand how one should look at the potential for the ADAS market and for the Klemove, sir?
See, that is what I was talking generally in our opening remarks. If you look at the ADAS technology, I think it is going to have increase announcement from the existing regulation point of view, including the segments. I think the draft regulation is talking about not only Passenger Car, but also Commercial Vehicle and Two-Three Wheeler. So, it is a general way to answer that this market will grow. The ADAS business will definitely continue to grow in India, and our business will take advantage of this for sure, because while our products are coming from the different companies, but it is a technology is integrated within Mando Group.
As you know that ADAS products are to deal with the steering and the brake, both are part of Mando is globally leader in these products. I think that way we should be able to also have a integrated solutions. Based on the current regulations, we are doing the complete product mapping in all segment, whether it is Commercial Vehicle and Passenger Car, and of course, on the Two-Wheeler and Three-Wheeler side, so that we can take more advantage in this revised notifications actually, basically. But in general, I think this market will continue to grow actually, and we will continue to take advantage of it actually.
Got it, sir. Lastly, sir, on the Sandvik side—
I am sorry to interrupt, sir. We may request that you return to the question queue for follow-up questions. A reminder for all the participants that you may press star and one in order to ask a question. The next question comes from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Thank you, sir, for the opportunity. Just a couple of questions. Sir, again, onto the ADAS market. When we look, before this draft also came out for ADAS, the market was already growing at 15%-20%. Sir, how are we positioned in terms of growth, like 15%-20% growth, and considering our clientele profile, are we ready to tap and grow in line with the industry, or because we have a limited set of clientele, we might grow slightly lower? And post this notification, like implemented by 2032, the growth would actually be higher of some 30%-40%, so h ow well are we ready to tap this opportunity, sir? Just wanted to know.
So it' s difficult to share any numbers specifically, but as we generally covered in our opening statement also that we see high prospective from this business in our growth of INR 50,000 crore at the group level, so that is some of the things which can answer that what is our expectation from this business. I think ADAS penetration is increasing overall. It has gone very, very significantly up in last four, five years, and which will continue to grow. I think we see this business definitely growing much more than what is the industry growing, as I think the more and more penetration will hel and w e are already there in this market.
I think this company, the joint venture which we have, while we have participated now, but that has been in business for last seven, eight years, especially in ADAS business, so i t is not a new start. It is a business which is already there, company already growing, already manufacturing setups are there. So we will take advantage of all these existing facilities which are there, the technology which is available, and the market which is already growing. I think, as I mentioned, even the size of the business, product size is very, very large as compared to the normal our products which we have in other car. So all put together, I mean, we see high prospective from this business.
Got it. Sir, my second question is onto the sunroof side. Sir, sunroof we have witnessed, like since last quarter, we have seen profitability has also ramped up that one-off loss in volumes could have been recouped. So where are we standing today, sir, in terms of the volume, like phase 1, where it is operating phase 2, and are we set to look out for new client because some models also were not working onto the Hyundai side for in our favor? Where are we standing right now and what is the outlook for the next two years?
I think from the business perspective, if we look at, nothing has changed for us as far as the right now the performance is going on, except the market situation. So we continue to supply for the business which we started this business two to three years back. And of course, there are certain models which did not pick up, especially the AY1, so that did not pick up. But yes, after that we have added a few of the new businesses which are continuing. BC4 has already started, BC4i and BC4T. So that is already in the commercial production now and w e started the supply, and of course, we have another business which is already in hand, AI4 so t hat will come up in next year.
So I think the business is growing as of today. Yes, last quarter was slightly difficult because there was a fire in one of the plant of Hyundai supplier, which derailed the complete business for Hyundai, on which our panoramic sunroof is going on, so t hat is one to deal with Hyundai and Kia. And of course, we continue to bid for other businesses, especially for other customers like Tata and Mahindra. As soon as they materialize, we will think about the capacity expansion basically. It could be depending on the customer, we will have this CapEx incurred on this basically, or the capacity relocation may also happen basically.
Okay. Sir, one last question.
I am sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Radha from Agarwalla. Please go ahead.
Hi, sir. Thank you for the opportunity. In the Faurecia seating business press release, it was highlighted that Gabriel India will be acquiring the Faurecia India seating business on a lump-sum basis. That business is currently doing a revenue run rate of INR 250 crore with margins of 10%. So out of this, as the seat mechanism will be excluded, how much revenue and margins will be included in the Gabriel India business, and from which quarter should we do that?
So right now, the closing is going on. As I said, I think the exact number we will be able to share once the closing is done. I think we are targeting to complete the closing by December end. But I think as a business, the agreements are already in place so w hatever business is there other than the mechanism, all will be transferred to Gabriel India. I think it will be transferred the way it is. If the margin is 10%, it will be transferred at 10%. But we are not talking anything with respect to the mechanism. We are talking primarily with respect to the frame business, and that will be transferred to Gabriel India so t hat could be a business size of around INR 150 crore or so, basically.
Understood, sir. Sir, secondly, could you give us some color on the new order wins in the HL Mando and Klemove businesses, and what kind of growth rates are you expecting for these two businesses separately for the next two years?
Okay. HL Mando is expanding its activities. So definitely, they will be growing ahead of market or better than market, I am sure. It is difficult to say how much better. But yes, as you know, primarily the company, of course, almost 60%-65% is related to the Hyundai and Kia. That is going on completely. We are expanding our reach. With Tata Motors, we are extremely doing good. We started our entry with Maruti Suzuki also. We are already in with Mahindra & Mahindra. As far as the company base is concerned for the HL Mando, we are there with everyone now. While the company started with Hyundai, Kia only, but now we are with everyone so t hat will definitely start reflecting in a growth number
And of course, from the HL Klemove point of view, HL Klemove was already present, as I said, in the market. So we are already there with Hyundai, we are already there with Tata Motors, we are already there with Mahindra & Mahindra. And of course, now we will start expanding our penetration with other customers like Maruti Suzuki, especially. So that will give us some entry. So I think in a nutshell, we should be doing definitely better than the market in both these businesses.
Thanks and all the best.
Thank you. The next question comes from the line of Amit Hiranandani from PhillipCapital India Private Limited. Please go ahead.
Sir, just need a CapEx outlook for the consolidated business for FY 2027 and annual run rate one can expect for coming three years.
I think generally, the CapEx is again capacity driven and many, many things are ther but w e feel that we should be able to at least continue spending on capacity and also many things to deal with the new plant, and also I think with respect to the lot of improvement in the plant. We expect that our CapEx should be always running between INR 1,000 crore- INR 1,500 crore on a consolidation basis.
Okay. And sir, any concerns on the sunroof businesses so far? Because the margins look to be very depressed in H1.
So I think I just shared it. Nothing has changed as such. From the sunroof business point of view, the situation has been better as compared to the last year. As I said that we have new business already in place, nothing has changed. And margins are impacting, and you know that everybody is expecting in today's time because of the commodity change and of course, the forex, so they are not favorable and qe continue to work with the customer and try to get recovery, but I don't see any other impact on the business actually.
Just last on the sunroof, sir. On the Creta side, till what time we have Creta with us? An from FY 2028, what models we will be supplying to Hyundai Kia?
So I think as Creta seems to be phasing out next year by Hyundai, we will continue to supply the EV model of the Creta, so that will continue. And other than, we continue to supply on AYI, PS7i, BC4i, and T, and of course, the new program which will also come up in future on AI4 side.
Okay, sir. All the best. Thank you so much.
Thank you. The next question comes from the line of Dishant Jain from Anand Rathi. Please go ahead, sir.
Hello. Thank you for the opportunity, sir. My question is, as it is a mix of both panoramic and half sunroof, and also on the exposure to other Hyundai plants globally.
Bayon model, I think if we look at overall, it is just launched actually. So as far as the customer is concerned, customer is right now, of course, building their stock, so t herefore, the current offtake will be high, but of course, once it is launched, generally the monthly rate reduce. But when we look at from the customer perspective, most of the business is with respect to the panoramic sunroof, which is around 75%-80%, so that will be supplied by us. So they are talking from the customer perspective, we understand they are talking almost 100,000 number of the car per annum, which will include around 60% for India and 40% for out of India actually.
Okay. Any new update on new order wins and any new model, also on the Bayon plant?
So as I said that next year we will have AI4, which will be coming for the production so t hat will have significant volume, and we are currently in the bidding position with other customers.
Okay. Sir, one more question.
I am sorry to interrupt. We may request that you return to the question queue for follow-up questions. The next question comes from the line of Jay Kale from Elara Capital. Please go ahead.
Yeah, thanks for taking my question. Just one question. Like I see actually in Klemove Financials, the ROE, ROCEs currently are around sub 10%. How do you see this shaping up going forward with the expansion of new customers and growth in this segment? Where should we expect this to settle?
I think generally, our businesses are making good ROI actually. So obviously, it is the initial phase. As you said, that capital investment are in place. We have invested heavily in last couple of years, o, once we are able to utilize this capacity, I think, as again, it comes to the future number, which is difficult to share, which I said that this company will have a significant growth that will help us to improve the ROI as they utilize the capacity basically.
Okay. Is it fair to assume it will at least be at the current company average at a steady- state basis?
Sorry, I did not get your question.
Is it fair to assume that it will at least trend towards the company average on a steady- state basis?
Oh, yes, of course. As I said, generally, we do not compromise on the ROI. It is a temporary phase because of the investment already done. Definitely, they will be on the company average side for sure.
Understood. Okay, thanks. That is all from my side.
Thank you. The next question comes from the line of Varun Jain from Bajaj Org. Please go ahead.
Hello, sir. Thank you for the opportunity. Most of my questions are answered., so a very quick question on the highest growth segment, specifically on the sunroof and electric Two-Wheelers. So historically, we have held a high market share in these. Given the evolving subsidy landscapes and some competitive dynamics in the EV space, are we seeing any pressures on our realization or order books in this?
On the Two-Wheeler space, no, I think the order book is quite strong. We continue to win more orders. Just to share with you, I think last month, we have started the supplies for the Bajaj Chetak model, which was missing in our portfolio, or the Bajaj EV portfolio was missing. We have started the supplies there also. We have a good business pipeline with most of the customers, and especially, I think a lot of them are getting into new models and ramp-up phases, so I think we are quite well-placed on the EV side, so on the Two-Wheeler side.
And sir, on the sunroof side?
On the sunroof, I think Mr. Goyal has already mentioned that in addition to the old models, the Bayon, the start of production is just happening. Our last quarter was a challenge, as I think everybody knows that, because of the unfortunate incidents in one of the suppliers can happen in the industry, but I think the Bayon, the initial booking, initial feedback is quite good. We will have to wait and watch. As I think a couple of times Mr. Goyal mentioned, next year, we are looking for one more SOP. So I had shared earlier that there is a business pipeline with Hyundai and Kia, and obviously, they will come into the different phases of production in the next year also.
Mm-hmm. Thank you, sir. That is a good news for us. Thank you so much.
Thank you.
Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand over to Mr. Mahendra Goyal for closing comments. Over to you, sir.
Good morning.
Sir, you are not audible.
Yeah, can you hear me?
Yes, sir.
Yeah. Okay, thank you. Thanks everyone for participating. Hope we are able to provide answer to all of your questions. And In case, of course, if anything is there missing or any more clarification is required, please connect with our investor cell, and I am sure that we should be abie to take up your questions and provide all the clarification as may be needed by all of you. So nothing special to add. I think we are in the festive mode. The auto industry continue to do very, very well and w e are all, today's time, having lot of pressure on the supply, so we continue to fulfill customer requirement. And on this festive note, again, take this opportunity to wish you happy Diwali, and maybe seeing some of you soon in the near future. Thank you so much.
Thank you. On behalf of Gabriel India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.