Home-grown auto components manufacturer RSB Group, which has a global presence in Mexico and the U.S., is looking to expand its footprint in India and overseas through diversification and

expansion, targeting threefold revenue growth by the end of FY30.

Founded in 1973 by two enterprising brothers, R.K. Behera—an alumnus of the National Institute of Technology (NIT) Jamshedpur—and S.K. Behera, RSB achieved a turnover of more than ₹3,000

crore last year and expects to conclude FY25 with a revenue of around ₹3,300 crore. The company has set an ambitious target of tripling revenue in the next five years to reach ₹10,000 crore

objectives, industry outlook, and decision to go public.

On RSB Group’s initial public offering (IPO) plans, the Vice Chairman said that the company is looking to go public by FY27-28 after achieving reasonable growth. “When you are planning to go

public, you should have strong financial metrics, advanced products, and good governance practices so that public are ready to invest in the company,” he explained. 

"Our goal is to achieve turnover of ₹10,000 crore by 2030 through greenfield and brownfield expansions across India," he said.

“As part of our growth strategy, we are prepared to invest significantly in enhancing our technological capabilities and strengthening our position in the global supply chain. This includes

exploring the potential acquisition of synergetic companies, enabling us to harness the strengths of both organisations while leveraging our presence in Mexico to expand exports and increase

sales in the U.S. market,” he said.

Diversification and expansion to fuel the next leg of growth

Behera said that the RSB group is strategising its diversification and expansion plans to cater to evolving market demand and technological advancements to fuel its next leg of growth.

“While the existing matured stage products are to be sustained through quality, delivery, and cost, the company is also looking for inorganic growth opportunities through acquisitions of

organisations that are synergetic with RSB for faster growth,” he pointed out. He added that the group may acquire some plants in the next three to five months, without disclosing further

details.

Currently, the group generates 75% of its revenue from the automotive business, and the remaining 25% from its construction equipment business. The medium and heavy commercial vehicles

(MHCV) segment within the automotive components segment contributes around 65% of the total revenue.

Behera further stated that the company is looking for opportunities in railways and defence to reduce dependency on cyclical vehicle demand. It is also focussing on electric vehicle (EV)

components and expanding production capacity, including new plants in Pune. “RSB Group is developing EV components and plans to generate 25% of its revenue from this sector over the next

five years.”

“The company is eyeing growth in the railway sector by leveraging on competency in heavy fabrication i.e. heavy sheet metal welding and diversification into defense with armored vehicle

components,” the vice chairman said.

He added that the group is also expanding into the passenger car market, with plans to supply products for this segment in addition to the current focus on commercial vehicles and

construction equipment. “The company is leveraging on presence in Mexico to grow sales in the U.S. market.”

“Through strategic partnerships, including Bain Capital, and diversification into sectors like railways, and defence, we aim to achieve ₹10,000 crore in revenue in the coming four to five

years,” he said.

Started with an initial corpus of ₹2 lakh, including ₹20,000 from a state subsidy for technocrats, the group has today grown into a more than ₹3,000 crore global engineering giant, with 19

manufacturing plants across eight locations in India and additional facilities in the U.S. and Mexico. Headquartered in Pune, the company comprises RSB Transmissions (I) Ltd, RSB

Transmissions North America Inc., RSB Transmissions De Mexico, and I-Design Engineering Solutions Ltd.

RSB Group serves both the automotive and CMI sectors, specialising in designing and manufacturing systems such as propeller shaft assemblies, axle beams, gears and gearboxes, fifth-wheel

coupling, trailer axle and suspension and heavy fabrication structures for commercial vehicles, passenger cars, construction, and farm equipment.

The Group serves a diverse clientele, including leading global OEMs such as Tata Motors, Ashok Leyland, VECV, Mahindra & Mahindra, Daimler, Renault Nissan, Tata Hitachi, Caterpillar, John

Deere, JCB, XCMG, Kobelco, Komatsu, Fiat, Ford, Eaton, Dana, Magna, GKN, Kamaz, GE, Volkswagen, and PSA Peugeot Citroen.

RSB has recently achieved a significant milestone by establishing a strategic partnership with Bain Capital, which is poised to accelerate the company's growth exponentially. This

collaboration will empower the group to capitalise on new opportunities, expand into emerging markets, foster innovation, and further solidify its position as a global leader in the

industry.

The group is also committed to expanding its global footprint by capitalising on its strategic presence in Mexico to drive exports from India. “In the coming fiscal year, we plan to grow

exports to at least 20% of our turnover, reflecting our ambitious push to become a global leader in high-tech aggregate systems,” said the vice chairman.