Talbros Automotive Components Limited (TACL), India’s largest gasket manufacturer, and Magneti Marelli (a 5.4 billion € global automotive systems and components supplier), through its subsidiary company Sistemi Sospensioni S.p.A, signed agreements today for formation of a 50:50 Joint Venture to undertake the business of suspension systems and modules.
The JV is expected to be operational by April 2012, and TACL shall transfer its existing stamping business to this JV, after obtaining shareholder approval.
JV will start its operations in Faridabad, Haryana, and will manufacture various components including control arms, knuckles, front axles and rear axles for automobile applications. It will also have the capability to design and manufacture entire suspension systems for the OEMs. Additional manufacturing facilities across India would be evaluated in near future.
MM will support the JV with its design & technology know-how referred to a full spectrum of suspension components and modules, allowing to the JV to offer in the Indian market the most advanced light-weight solutions in line with carmakers’ requirements for CO2 reduction.
Commenting on the transaction, Mr Umesh Talwar, Vice Chairman and Managing Director of TACL said, “It is a great value proposition for the shareholders of the Company as the joint venture with Magneti Marelli will create a specialized suspension manufacturer with immense growth potential. Talbros’ knowledge of the Indian market and existing customer base will have synergies with Magneti Marelli’s state-of-the-art technology and international expertise to create huge value in the joint venture company.”
Eugenio Razelli, CEO of Magneti Marelli stated: “The JV agreement with Talbros allows us to further extend our presence and footprint in India, adding a business area - the suspension systems - in which we have consolidated know-how and long-time industrial experience. We applied once again our strategy of partnering with Indian leading companies, that up to now has brought good result in our process of localization in the country and that enables us to add value to local clients and major transnational carmakers in the country”.