Talbros Automotive Components to divest entire 40% stake in Nippon Leakless Talbros

Talbros Automotive Components Ltd (TACL), which has a diversified portfolio of gaskets, heat shields, forgings, suspension systems, anti-vibration products and hoses, today announced that its Board of Directors have approved the divestment of its entire 40% stake in its joint venture company Nippon Leakless Talbros.

After the stake sale by TACL, Nippon Leakless will own 100% of the company. TACL will realise Rs 81.8 crores for its entire 40% equity stake sale with the JV company valued at Rs 204.5 crore). The transaction is expected to be completed in Q4 FY2024. TACL intends to utilise the proceeds for its future capex and expansions.

Nippon Leakless Talbros was formed in 2005 with TACL owning 40% and Nippon Leakless owning the balance 60 percent. The JV company manufactures gaskets for major two-wheeler OEMs in India and achieved standalone sales of Rs 86.2 crore in FY2023.

Anuj Talwar, joint managing director, Talbros Automotive Components, said: “In a strategic review of the business, the Board of Directors have approved the divestment of its entire 40% equity stake in Nippon Leakless Talbros. There are immense opportunities in the Indian auto component industry including our current product portfolio. We believe the proceeds of this stake sale will help us further enhance the true potential of our product portfolio and capabilities as also to explore new opportunities. The proceeds will also help us invest in business to capitalise on the strong acceptance of our products and quality by both marquee domestic and international automotive OEMs.”

TACL together with JV alliances has 10 manufacturing facilities at Haryana, Uttarakhand, and Maharashtra and an R&D technology center at Faridabad. Its clientele includes Bajaj Auto, Tata Cummins, Volvo Eicher India, Ashok Leyland, Escorts Group, Force Motors, Hero MotoCorp, Honda, Hyundai, John Deere, Mahindra & Mahindra, Maruti Suzuki, Suzuki, TAFE, Daimler India, Tata Motors, Simpsons, Carraro, Dana, Musashi, Spicer, GE and QH Talbros.