Talbros Completes Partial Disinvestment Of Non-Core Materials Business Assets
The total savings expected to accrue from the strategic disinvestment will be in the range of Rs 7-10 million per annum
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Indian auto parts manufacturer Talbros Automotive Components has successfully completed the partial strategic disinvestment of its non-core materials business assets by sale to the Indian affiliate of gaskets maker Interface Performance Materials, USA.
The company further mentioned that it has also entered into a raw material sourcing agreement with them to source various gasket from Interface’s Indian manufacturing unit. The local raw material sourcing will commence in Q4 FY18.
The disinvestment is expected to help the company achieve two important things:
- Sourcing important material locally will lead to faster turnaround time in executing client orders. This will simultaneously help the company reduce imports by 15 per cent, thereby, reducing the working capital requirements and the exposure to foreign exchange fluctuations
- Savings on fixed cost. The total savings expected to accrue from the strategic disinvestment will be in the range of Rs 7-10 million per annum.
Anuj Talwar, Joint Managing Director, Talbros Automotive Components Ltd said, “We continue t focus our energies on enhancing our internal efficiency and leverage on our technological know-how to supply best in class products to our customers. Due to our product capabilities and cost reduction activities we are well on track to achieving our goals.”