The company, through its subsidiary Sterling Gtake (SGEM), would develop, manufacture and market Magnet Free traction motors for electric vehicles. The production activities would be undertaken at the company’s plant in Faridabad.
By introducing a mature and commercially viable rare earth magnet-free technology, SGEM will offer its customers an alternative to the China dependent permanent magnet supply chain.
Through this technology licensing agreement, SGEM will serve all segments of the traction motors market that is expected to grow to approx. Rs 15,000cr by 2030. The business plan also calls for the joint development of integrated motor and controller solutions.
Anil Aggarwal, chairman, Sterling Tools, said, “Sterling’s foray into rare earth magnet-free motors demonstrates the Group’s commitment to being a technology leader and an industry pioneer.
We are expanding beyond MCUs to being a complete solution provider and meeting the EV Industry’s growing demand for advanced technology. EV sub-systems are being increasingly consolidated into multifunction units and Sterling will also offer our customers integrated motor and controller solutions.
The diversification into Rare Earth Magnet-Free motors is in line with Sterling’s ambition to develop Powertrain expertise to serve the Indian Auto Industry.”
Sterling Tools has also announced its earnings for the quarter and the year ended on 31 March 2025.
The company has reported 45.8% drop in consolidated net profit to Rs 8.8 crore as total income fell by 23.9% to Rs 205.7 crore in Q4 FY25 as compared with Q4 FY24.
EBITDA declined by 23.1% year-over-year (YoY) to Rs 24.5 crore during the period under review. EBITDA margin, however, expanded by 10 basis points to 11.9% in Q4 FY25.
Profit before tax in Q4 FY25 stood at Rs 11.9 crore, down by 44.2% from Rs 21.3 crore in Q4 FY24.
Sterling Tools manufacture high tensile and premier cold forged hi-tensile fasteners catering to the passenger cars, two wheelers, commercial vehicles, agri-equipment and construction equipment segments. The company’s client portfolio comprises leading OEMs in the domestic market and international markets.