Talbros JV Company Lands Multi-Year Rs. 1,000 Crore Contract with Leading European OEM

Talbros Automotive Components Limited (TACL) has announced a significant order win from a major European OEM, valued at around Rs. 1,000 crore for a multi-year contract. The contract, to be executed over the next 8 years starting from Q4FY25, marks a substantial milestone for the company.

The order has been secured by TACL's Joint Venture Company, Marelli Talbros Chassis Systems Private Limited (MTCS). It focuses on supplying Suspension Arms tailored for both conventional Internal Combustion Engine (ICE) vehicles and modern Electric Vehicle (EV) platforms across the EMEA and NAFTA regions.

Production for the contract will take place at MTCS's Pune plant, with an estimated capex investment of approximately Rs. 65 crore in FY25. These investments will be financed through a combination of internal accruals and debt.

The new order not only diversifies TACL's customer base in Europe but also strengthens its position in the highly specialized automotive components market in the region. It is expected to enhance the company's market share and open up new growth opportunities with both existing and new OEMs in Europe.

In the previous year, TACL received orders totaling approximately Rs. 980 crore across various product segments in both standalone and JV companies. Notably, orders worth around Rs. 475 crore were for the supply of components for the EV segment, while exports-related orders amounted to around Rs. 415 crore. With the addition of this latest order win and the momentum gained in FY24, TACL anticipates sustained business growth and profitability going forward.

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