Talbros Automotive Components announced that its joint venture firm had secured a multi-year contract valued at around Rs 10 billion from a European original equipment manufacturer (OEM). According to a regulatory filing, the company stated that the order would be executed over the next eight years, starting from the fourth quarter of the fiscal year.
The company disclosed that the order had been secured by its joint venture firm, Marelli Talbros Chassis Systems (MTCS). They mentioned that the focus of the order is on supplying suspension arms tailored for both conventional internal combustion engine (ICE) vehicles and new-age electric vehicle (EV) platforms.
Regarding production, it was stated that the suspension arms would be manufactured at the Pune plant of MTCS. A capex investment of Rs 650 million is projected for the fiscal year 2025 for this purpose, as per the company's announcement. The company also indicated that these investments would be financed through internal accruals and debt.
In the previous year, the company and its joint venture firm had received orders worth Rs 9.8 billion across various product segments. With the addition of order wins in the fiscal year 2024, Talbros Automotive Components (TACL) expects to maintain a consistent momentum in business and profitability.
