Talbros Automotive revs up expansion as capacity hits peak

Talbros Automotive
Image Courtesy: Talbros Automotive

Talbros Automotive Components Ltd. is gearing up for a significant expansion as the company’s capacity utilization hits 80-90% across various segments. This strategic move was announced by the company’s Director and Group CFO during a recent investor call.

The company is advancing its operations in the gasket and heat shield divisions. A new facility has been leased in Chakan, Pune, with supplies expected to commence in July or August. An investment of around ₹20 crore has been allocated for this expansion.

In the forging division, Talbros is enhancing capacity with additional machinery and equipment. Trials are already underway, with commercial production anticipated to start soon. The company has set aside approximately ₹30 crore for this division.

Similarly, for Marelli, capacity expansion is progressing in a premises adjacent to the existing plant. The new shed is expected to be ready by September-October, with machine orders currently being placed. This expansion is expected to incur a capex of ₹60-62 crore. Additionally, for Marugo, the company plans a capex of around ₹6 crore.

According to the company executive, the current capacity utilization stands at approximately 90% for the gaskets division, around 82-85% for the heat shield division, and 82-85% for the forging division depending on the product mix. The Marelli division is operating at around 80%, while the Marugo Rubber division, which includes anti-vibration and hoses segments, is nearing 90% utilization.

With these expansions, Talbros Automotive aims to boost its production capabilities to meet increasing demand and strengthen its position in the auto components industry.