LAPL Automotive Limited

1. Overview

LAPL Automotive Limited (formerly LAPL Automotive Private Limited), incorporated in 2004, is an integrated automotive components manufacturer operating across two complementary business models: ODM (Original Design Manufacturing) and OBM (Original Brand Manufacturing) under its proprietary brand "LAPL." The Company's diversified product portfolio spans automotive lighting systems, mirrors, and plastic moulded components, serving OEMs across passenger vehicles, commercial vehicles, two-wheelers, and the emerging electric mobility segment.

The Company operates three manufacturing units, all located in Chhatrapati Sambhajinagar (Aurangabad), Maharashtra — Unit-I (mirror assembling and warehousing), Unit-II (lighting manufacturing), and Unit-III (registered office and manufacturing of starter motors, wiper motors, BLDC fans, and rotor assemblies). LAPL is an IATF 16949:2016 certified company with an in-house testing facility, and several of its products carry certifications from CIRT, ICAT, VRDEA, and ARAI.

The Company derives over 90% of its revenue from its top 10 customers, reflecting a concentrated but stable client base built on long-standing relationships in the automotive OEM ecosystem.

2. Business Model and Revenue Streams

Dual Business Model: ODM and OBM

Under the ODM vertical, LAPL designs and manufactures automotive components for customers who market these products under their own brands. Under the OBM vertical, the Company designs, manufactures, and sells components under its own "LAPL" brand, giving it end-to-end control over design, manufacturing, branding, and sales. (₹ Cr)

Segment-Wise Revenue Bifurcation

The Motor Division is the largest contributor at nearly 60% of revenue, followed by the Lighting Division at roughly 34%. Both segments have grown consistently across the three fiscals under review.

Client Concentration

The Company's revenue is meaningfully concentrated among a small set of customers:

This high client concentration — with a single customer contributing over three-quarters of revenue — is a structural feature of the business and a key risk factor discussed later in this report.

Geographic Footprint

Revenue is overwhelmingly domestic, with Maharashtra alone contributing 86.20% of FY2026 revenue-from-operations, followed by smaller contributions from Madhya Pradesh, Gujarat, and other states. Export revenue is negligible.

3. Products and Service Portfolio

LAPL's product architecture is organized into four principal divisions:

A. Lighting Division

Covers blinkers, cabin/step lamps, utility lamps, head lamps, height markers, hooter flashers, indicators, DRLs, number plate lamps, reflex reflectors, roof lamps, side marker lamps, and tail lamps — a comprehensive suite of AIS-compliant automotive lighting products designed for two-wheelers, three-wheelers, and commercial vehicles.

B. Motor Division

The Company's largest revenue contributor, comprising starter motors, rotors, wiper motors, and stators — precision electromechanical components engineered for ignition systems, alternator performance, windshield wiping mechanisms, and broader electromechanical applications including EVs.

C. Mirror Division

Rearview mirrors for two- and three-wheelers, featuring anti-glare and scratch-resistant coatings with impact-resistant housing.

D. Hoods and Other Accessories

Includes soft canopies/hoods, BLDC fans (for air conditioning/cooling), mobile chargers/inverters, and bottle holders — a diversified tail of accessory products.

Capacity Utilization: As disclosed in the Objects of the Issue, the Company currently operates at an average capacity utilization of 81.24% across its existing facilities, a key driver behind its planned capacity expansion funded by this Issue.

4. Key Business Strengths

• Integrated ODM and OBM Business Model — dual revenue streams combining OEM partnership flexibility with proprietary brand equity under "LAPL."
• Strong In-House Design, Engineering and Manufacturing Capabilities — end-to-end capabilities spanning design, tooling, prototyping and production, reducing development timelines and enhancing cost efficiency.
• Stable Customer Base and Long-Standing Relationships — repeat business driven by consistent engagement, despite the absence of long-term contractual agreements.
• Well Positioned to Capitalize on the Growing EV Opportunity — platform-agnostic LED lighting solutions compatible with both ICE and EV architectures.
• Strategically Located Manufacturing Facilities — three units concentrated in the Chhatrapati Sambhajinagar automotive hub, Maharashtra.
• Experienced Promoter and Management Team — Promoters bring a combined 60+ years of automotive industry experience.
• Diversified Product Portfolio — spanning lighting, mirrors, motors and plastic moulded components, reducing single-category dependency.
• Focus on Quality and Customer-Specific Solutions — consistent quality standards across both customized (ODM) and standardized branded (OBM) product lines.
• Scalable and Flexible Operations — manufacturing framework built to ramp production in line with evolving industry requirements.
• Established Brand Recognition under "LAPL" — brand ownership supporting better margin potential and long-term value creation.

5. Future Growth Strategy

• Platform-Based OEM Engagement — shifting from part-wise supply to platform-level co-development with OEMs, including DFMEA support and faster PPAP readiness, to enable multi-year platform lock-ins.
• Deepening EV Segment Presence — expanding engagement with EV OEMs through next-generation, platform-agnostic LED lighting technologies.
• Technology-Led Product Mix Expansion — shifting toward LED/projector lighting, BLDC and high-efficiency motors, and design-oriented assemblies to improve margin stability versus commodity components.
• Integrated Supply Chain and Vendor Support — formal exclusive supply arrangements with group entities (Annu Industries for moulded components; Riansh Corporate for hoods) to strengthen supply continuity.
• Aftermarket Brand Development — building a structured distributor network, standardized SKU coding, and catalog-based selling to reduce OEM cyclicality dependence.
• Capacity Expansion and Backward Integration — funding a new manufacturing facility (this Issue's primary Object) at Plot No-68-1, Auric City Shendra, alongside automation and tooling ownership initiatives.
• Customer Diversification — broadening the customer base across EV manufacturers, export-oriented OEMs, and new mobility platforms to reduce concentration risk.
• Strategic Partnerships and Technology Alliances — pursuing collaborations with global component manufacturers to access advanced design capabilities and accelerate new OEM qualification.