Talbros Automotive Components to sell 40% stake in JV with Nippon Leakless

Talbros Automotive Components Limited (TACL), a prominent player in the auto component industry with a diversified portfolio, has announced the approval of its Board of Directors for the divestment of its entire 40% stake in the joint venture company, Nippon Leakless Talbros. This significant transaction will see TACL realizing Rs. 81.8 crores from the sale, valuing the joint venture company at Rs. 204.5 crores. The completion of this transaction, subject to certain conditions precedent, is anticipated in Q4FY24.

The proceeds from this divestment are earmarked by TACL for future capital expenditures and expansions. Nippon Leakless Talbros was formed in 2005, with TACL owning a 40% stake and Nippon Leakless holding the remaining 60%. The company has been a key manufacturer of gaskets for major two-wheeler Original Equipment Manufacturers (OEMs) in India, achieving standalone sales of Rs. 86.2 crores in FY23.

Anuj Talwar, Joint Managing Director of Talbros Automotive Components Limited, commented on the divestment, emphasizing the strategic review and the Board’s decision. He highlighted that the proceeds will enhance the potential of TACL’s product portfolio and capabilities, as well as explore new opportunities. The investment will also capitalize on the strong acceptance of TACL’s products and quality by both domestic and international automotive OEMs.

The divestment represents a strategic reorientation for TACL, allowing the company to focus more intently on its core product portfolio and new market opportunities. This move is indicative of the dynamic nature of the Indian auto component industry, with companies constantly adapting to leverage new growth avenues. The Board and Management Team of TACL expressed their gratitude to the Nippon Leakless team for a successful partnership and extended their best wishes for future endeavors.