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Talbros divests part of materials business assets to Interface Performance

Auto component firm has also entered into a raw material sourcing pact with the US-based Interface

Talbros’ gaskets heat shields
Talbros’ gaskets heat shields
Rakesh Rao Mumbai
Last Updated : May 25 2017 | 11:53 AM IST
The Gurgaon-based Talbros Automotive Components Ltd has decided to partially divest its non-core materials business assets to the Indian affiliate of Interface Performance Materials, the US-based manufacturer of gaskets materials. Talbros has not disclosed the financial details of the deal. 

Interface Performance Materials manufactures and provides advanced materials, sealing solutions, thermal management systems and specialty products to customers worldwide for a range of applications across the heavy-duty diesel, automotive, small engine, industrial and related industries.

Talbros has also entered into a raw material sourcing agreement with Interface Performance Materials, as per which Talbros will source various gasket raw materials from Interface's Indian manufacturing unit.

Disinvestment will enable Talbros to source materials locally leading to faster turnaround time in executing client orders. This will result in reduction of imports by 15 percent, thereby, reducing the working capital requirements and the exposure to foreign exchange fluctuations. The savings in operational costs, reduction in raw material inventory and working capital investments will reduce the interest burden and, therefore, enhance the profitability of Talbros.

Commenting on the agreement, Anuj Talwar, joint managing director, Talbros Automotive Components Ltd, said, “This agreement is a part of our constant endeavour to reduce costs and improve profitability and is therefore a step in right direction. It is a validation of our cost improvement strategy. With this agreement, our annual savings could be in the range of Rs 7-10 million. It will also help us immense in improving our servicing capabilities with our clients. Partial disinvestment will result in enhancing our liquidity for business purpose. We are clearly focused on enhancing our internal efficiencies and leverage on our technological know-how to supply best in class products to our customers. The established capabilities and cost reduction activities will help us achieve our goals.”

Talbros Automotive Components Ltd, the flagship manufacturing company of the group, was established in 1956 to manufacture automotive & industrial gaskets in collaboration with Coopers Payen of UK. Today, Talbros offers products such as gaskets & heat shields, forgings, suspension systems & modules, anti-vibration components and hoses to some of the leading auto OEMs worldwide.

Last week, Talbros announced that its forgings division has secured an order worth about Rs 175 crore for supply of parts to an undisclosed German luxury car manufacturer. 

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