Talbros Automotive to sell its entire 40% stake in JV Nippon Leakless Talbros for Rs 81.8 crore

Talbros Automotive Components, a company operating in the Indian auto component industry, has approved the sale of its entire 40% stake in the joint venture company Nippon Leakless Talbros.

The development will result in Nippon Leakless owning 100% of the company. TACL will gain Rs 81.8 crore from this transaction, valuing the JV company at Rs 204.5 crore. The completion of this deal is anticipated in Q4FY24, subject to certain conditions, the company said in a statement. 

Utilization of the funds

The company said the proceeds from this divestment would be channelled towards future capital expenditures and expansion projects. The strategic move is aimed at enhancing the company's product portfolio and exploring new opportunities in the dynamic Indian auto component industry, it said. 

Background of the JV

Nippon Leakless Talbros, formed in 2005, was a collaboration between TACL and Nippon Leakless. TACL held a 40% stake, while Nippon Leakless owned the remaining 60%. The JV company manufactures Gaskets for major 2-wheeler OEMs in India. In FY23, the JV company reported standalone sales of Rs 86.2 crore.

Anuj Talwar, Jt. Managing Director, Talbros Automotive Components Limited 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 capitalize on the strong acceptance of our products and quality by both marquee Domestic and International Automotive OEMs.”

What does Talbros Automotive Components do?

Established in 1956, Talbros Automotive Components Limited is the flagship manufacturing company of the Talbros Group. The company manufactures automotive and industrial gaskets in collaboration with Coopers Payen of the UK.

Currently, Talbros is renowned for gaskets, chassis, rubber products, and forgings in India. The group also includes a Mercedes-Benz dealership for passenger cars. It has 10 manufacturing facilities across Haryana, Uttarakhand, and Maharashtra, and a technology centre in Faridabad.

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