Dhoot Transmission Bets on the ‘Tangle’ Inside Electric Scooters to Drive Future Growth
The wiring hidden inside an electric scooter may not look like a major investment theme, but for Dhoot Transmission, it could become one of the most important drivers of future growth. The Bain Capital-backed auto-component manufacturer is positioning itself to benefit from India's shift toward electric mobility, particularly in two-wheelers and three-wheelers.
The company makes wiring harnesses—the network of wires, connectors and electrical components that carries power and signals throughout a vehicle. As electric vehicles become more sophisticated, Dhoot believes the amount and complexity of wiring inside them can increase, creating an opportunity beyond its traditional internal-combustion-engine business.
The strategy comes as Dhoot Transmission prepares to enter the public markets, with the company looking to use its IPO proceeds partly for debt reduction and new manufacturing capacity.
Why Electric Scooters Matter to Dhoot Transmission
India's electric-vehicle transition is being led in large part by two-wheelers and three-wheelers. Lower vehicle prices and the relatively short distances travelled by many urban users make electrification particularly attractive in these categories.
For Dhoot Transmission, this shift creates a potentially important change in the content supplied per vehicle.
Electric vehicles require wiring for batteries, power distribution, sensors, controllers and other electronic systems. Dhoot's own product portfolio includes integrated wiring harnesses, battery cable systems, power-distribution harnesses and DC-DC power-supply harnesses. Its broader EV offering also includes battery packs.
That means the company's opportunity is not simply to sell more wires. The bigger opportunity is to become a more important electrical and electronic systems supplier as vehicles become increasingly software- and electronics-driven.
Dhoot Transmission Is Moving Beyond Wiring Harnesses
Wiring harnesses remain the core of the business. According to its updated IPO documents reported by ETMarkets, wiring harnesses generated about ₹2,687 crore, or 78% of FY2025 revenue.
But the company is gradually building other businesses around that foundation.
Dhoot has expanded into EV-specific components including:
Battery assemblies
Onboard chargers
DC-DC converters
Charging guns
EV electrical systems
Electronic sensors and controllers
Reuters reported that non-harness products had increased to 23% of revenue, compared with about 18% in fiscal 2024.
This diversification matters because relying almost entirely on one product category can limit growth. If Dhoot can increase the share of higher-value electronics and EV systems, its revenue mix could become broader over time.
The Company Already Has a Strong Position in Electric Two-Wheeler Wiring
Dhoot is not entering the EV component market from scratch.
According to its updated IPO documents, the company was among the top two players in India's two-wheeler and three-wheeler wiring-harness market, with a 44.64% market share by value in FY2025. It also claimed more than 70% market share in electric two-wheeler and three-wheeler wiring harnesses during the same period.
That existing position could give the company an advantage as EV adoption increases.
Its customer base includes major automotive manufacturers such as Bajaj Auto, TVS Motor Company, Honda Motorcycle & Scooter India and Royal Enfield, according to the company's IPO disclosures reported by ETMarkets.
At the same time, the concentration of business with large customers is something investors should monitor. Reuters reported that Bajaj Auto accounted for roughly one-third of Dhoot Transmission's FY2026 revenue.
IPO Funds Could Support the Next Phase of Expansion
Dhoot Transmission's EV strategy is being accompanied by significant investment in manufacturing capacity.
Reuters reported that the company had spent about ₹10 billion on capital expenditure over the previous four to five years and expected to maintain a similar level of investment to support expansion. Management indicated that annual margins could remain around 15%-16% despite the investment requirements.
Its IPO plans also point toward further capacity creation.
The updated IPO documents provide for a ₹1,400 crore fresh issue, alongside an offer for sale. A portion of the fresh proceeds is intended for debt repayment, while ₹150 crore is earmarked for new wiring-harness manufacturing plants at Jhajjar in Haryana and Hosur in Tamil Nadu.
The company also plans to deploy funds toward borrowings of subsidiaries, potential acquisitions and general corporate purposes.
Acquisitions Are Adding Another Piece to the Strategy
Dhoot's expansion is not limited to building factories.
In April 2026, the company acquired Multilink, an electronics and electrical-products manufacturer serving two- and three-wheeler makers. The deal was intended to strengthen Dhoot's electronics manufacturing capabilities and create procurement, manufacturing and supply-chain synergies.
Earlier, Dhoot also announced a strategic partnership involving FourFront, with the company set to become part of Dhoot's automotive electronics and electrical platform. The objective was to expand capabilities in higher-electronics-content and electrification-led vehicle programmes.
Together, these moves show the direction of the strategy: Dhoot wants to evolve from a wiring-harness manufacturer into a broader automotive electrical and electronics supplier.
What Could Go Right for Dhoot Transmission?
The strongest part of the investment story is the combination of EV growth, existing OEM relationships and increasing electronics content.
If electric two-wheelers and three-wheelers continue gaining market share, demand for EV wiring systems and related components could increase. Dhoot's existing position gives it a starting point rather than requiring the company to build an entirely new customer network.
Its expansion into battery systems, charging equipment and electronics could also increase the amount of value captured from each vehicle platform.
The company is therefore effectively betting on two trends at the same time: more electric vehicles and more electronic content inside every vehicle.
The Risks Investors Should Not Ignore
The opportunity comes with several risks.
First, EV adoption is not guaranteed to follow a straight line. Consumer demand, financing costs, charging infrastructure, government incentives and battery economics can all influence the pace of adoption.
Second, Dhoot remains heavily dependent on wiring harnesses. Despite diversification, harnesses accounted for about 78% of FY2025 revenue.
Third, major OEM customers can have significant bargaining power. A slowdown at a large customer can affect supplier revenue, particularly when customer concentration is high.
Finally, expansion requires capital. Dhoot's planned manufacturing investments and acquisitions can create opportunities, but they also increase execution requirements. Investors will need to watch whether new capacity generates sufficient revenue and returns.
What Investors Should Watch Next
For investors following Dhoot Transmission after its IPO, several indicators will be particularly important:
Growth in EV-related revenue
The pace of non-harness product expansion
New OEM programmes and customer additions
Capacity utilisation at new plants
EBITDA and net profit margins
Debt reduction after the IPO
Capital expenditure and acquisition spending
Bajaj Auto and other major-customer concentration
Growth in electric two- and three-wheeler production
The key question is whether Dhoot can turn its existing wiring-harness strength into a broader, higher-value EV electronics business.
Dhoot Transmission's EV Strategy: The Bigger Picture
Dhoot Transmission's bet is ultimately about much more than the wiring inside an electric scooter.
As vehicles become increasingly electrified, the electrical architecture becomes more important. A company that can supply the wiring, connectors, power-distribution systems, electronics and other EV components has the potential to capture more value from that transformation.
Dhoot is already moving in that direction through product expansion, acquisitions, new plants and relationships with major vehicle manufacturers.
But the strategy still needs to translate investment into sustainable earnings. For investors, the most important signal over the coming quarters will be whether EV growth and diversification actually improve Dhoot Transmission's revenue quality and profitability—not simply whether India's EV market expands.
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This article is for informational and educational purposes only and should not be considered investment advice
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