Tenneco India Exploring Sector Diversification and Acquisition Opportunities: Report

Tenneco Clean Air India is evaluating mergers and acquisitions to diversify its business beyond the automotive sector, focusing on industrial markets including rail, aerospace, and defence alongside powertrain-agnostic automotive products compatible with internal combustion engines, hybrids, and electric vehicles, according to a report by PTI.

Chief Executive Officer Arvind Chandra stated, "We are looking for related diversification. We are also looking for unrelated diversification. There are inorganic M&A opportunities that we are looking at. We are quite excited about it".

The company seeks acquisition targets featuring strong technology, healthy margins, clear market differentiation, and an operational connection to India. Operating as a zero-debt company with strong internal cash generation, Tenneco possesses the financial capacity to pursue sizeable acquisitions.

At the same time, the company is expanding its core automotive portfolio to remain powertrain-agnostic, ensuring products suit internal combustion, electric, and hybrid platforms.

Chandra noted that Tenneco's order book has reached INR 16,500 crores, growing from approximately INR 12,000 crores in the previous quarter. Suspension products comprise roughly 65 percent of the outstanding order book, driven by rising consumer demand for premium features and semi-active technology such as the DaVinci product.

Consequently, the company's revenue mix has shifted to about 51 percent from suspension and 49 percent from clean air and powertrain solutions, moving away from a historically even split.