For ₹400 Crore, TAFE Acquires Faurecia's Indian Interior Systems Business

TAFE (Tractors and Farm Equipment Ltd), the world's third largest tractor manufacturer, announced that it had acquired Group Forvia's Indian interior business, Faurecia, which serves major automotive customers such as Mobis-Kia, Mobis-Hyundai, Volkswagen, FCA, and TATA.

Faurecia, a subsidiary of Group Forvia, ranks among the top ten global automotive suppliers, employing 1,11,000 people in 33 countries. Faurecia offers automotive solutions in four business segments: seating, interiors, electronics, and clean mobility.

The agreement between TAFE and Faurecia covers Faurecia's operations in Maharashtra, Andhra Pradesh, and Tamil Nadu. The transaction for Chakan and Anantapur is complete, and the one for Tamil Nadu is expected to close soon. TAFE is also well-established in engineering plastics, supplying exterior and interior engineered plastic parts to the Indian automotive industry as a full-service provider.

It went on to say that combining TAFE's plastics business with Faurecia's interior systems business provides synergistic benefits to all of its customers. Toyota, TVS Motors, Hyundai, Kia, Renault Nissan, and GE Medical System are among TAFE's current customers. Faurecia will continue to support TAFE and its customers with its design capabilities as part of the agreement.

As part of this agreement, Faurecia will continue to provide design support to TAFE and its customers. According to the company, TAFE will now offer an enhanced value proposition to its customers that include cutting-edge product design, precision tooling design and manufacture, and superior quality.

"TAFE is encouraged by the strong synergistic opportunities this acquisition offers," said Mallika Srinivasan, Chairman, and MD of TAFE. “We would like to reiterate our commitment to our customers in terms of design quality and service. Our journey will be propelled forward by technology, innovation, and manufacturing excellence."

With an annual sales volume of approximately 180,000 units and a turnover of more than INR 10,000 Crores, TAFE is the second-largest tractor manufacturer in India.

The company produces a variety of tractors using both air-cooled and water-cooled platforms. It sells these tractors under the names of its four brands, including Massey Ferguson, TAFE, Eicher, and the Serbian tractor and agricultural equipment brand, Industrija Mainai Traktora (IMT).

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