The joint venture is expected to be operational by April 2012, and TACL will transfer its existing stamping business to this new company after obtaining shareholder approval.

TACL is part of the Talbros Group, a leading automotive components manufacturer in India with consolidated revenue of Rs 720 crore for the fiscal year of 2010-11. The Talbros Group manufactures gaskets, forgings, suspension components, stampings and rubber components for automotive applications. TACL already has technical collaborations with global vehicle makers as well as catering to the leading manufacturing companies in India.

The new company will start its operations in Faridabad, Haryana, manufacturing 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 OEMs. Additional manufacturing facilities across India will be evaluated in near future.

Magneti Marelli will support the joint venture with its design and technology know-how across a full spectrum of suspension components and modules, allowing to the new operation 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 added: “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.”