Talbros Automotive’s JV Secures ₹1,000 Crore Contract

On April 18, 2024, Talbros Automotive Components Limited informed the stock exchanges that the company’s joint venture company, Marelli Talbros Chassis Systems Private Limited, secured a landmark multi-year ~₹1,000 crore contract from a large European Original Equipment Manufacturer (OEM).

Details of the Contract 

Talbros Automotive Components Limited (TACL) announced an order win from a large European OEM for a multi-year contract valued at approximately ₹1,000 crore. These orders will be executed over the next eight years, commencing from Q4 FY 2025.

The company stated that the order was won by TACL’s joint venture company, Marelli Talbros Chassis Systems Private Limited (MTCS). This order is centred on the supply of Suspension Arms tailored for both conventional Internal Combustion Engine (ICE) and the new-age Electric Vehicle (EV) platforms for Europe, the Middle East, and Africa (EMEA) and The North American Free Trade Agreement (NAFTA) regions.

The suspension arms would be produced from MTCS’s Pune plant, for which a capex investment of approximately ₹65 crore is envisaged in FY25. The investments would be made through internal accruals and debt.

TACL said that this order adds a new customer for the TACL group in Europe, which is a highly

specialised market for automotive components. This will further improve the market share in Europe and open new avenues of growth with existing and new OEMs in the region.

Last year, the company received orders to the tune of approximately ₹980 crores across varied product segments in standalone and joint venture companies. Amongst these, orders worth about ₹475 crore were for supply for the EV segment. Furthermore, orders worth approximately ₹415 crore were related to exports. Coupled with order wins in FY 2024, TACL expects continued momentum in business and profitability.

On April 18, 2024, the share price of Talbros Automotive Components Ltd opened at ₹294.60, touching the day’s high at ₹294.60, as of 12:01 PM on the NSE.

About Talbros Automotive Components Limited

Talbros Automotive Components Limited is the flagship manufacturing company of the Talbros Group, which manufactures industrial and automotive gaskets in collaboration with Coopers Payen in the UK.

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