Tenneco India eyes new factories, inorganic push for future growth

Tenneco Clean Air India Ltd (TCAIL) seeks to sharpen its growth strategy in the country, with a clear focus on capacity expansion and inorganic opportunities, as the India-listed arm of US-headquartered $17-billion Tier-1 auto parts supplier Tenneco Group looks to capitalise on India's favourable automotive cycle and sustain double-digit growth in the coming years.On the manufacturing front, the company is evaluating the addition of 2–3 new factories, as some of its existing plants near full capacity. The proposed units are likely to come up in western and southern India, closer to passenger vehicle (PV) OEM hubs. The expansion has been necessitated by strong growth visibility in the PV segment and rising demand for advanced suspension systems.Alongside organic expansion, Tenneco is also actively exploring acquisitions to deepen its presence in adjacent segments and new technologies. "As a zero-debt company with robust cash flows, we have the flexibility to raise $400–500 million for acquisitions," said Arvind Chandra, CEO and Whole-Time Director of TCAIL, in an interaction with TOI at the Hosur facility.He added: "We are looking at opportunities in areas such as transmission and braking, as well as technology-led businesses. The idea is to integrate these companies, improve margins through our operational frameworks, and leverage our OEM relationships to scale them. Over the next five to seven years, the company's growth in India will be driven by a mix of organic and inorganic initiatives." Following its listing on Indian bourses last year, TCAIL—with annual revenues of about ₹5,000 crore, 12 factories, and two R&D centres—is positioning India as a key growth engine. Its portfolio in the country is balanced between engine and chassis components, with a strong presence in suspension systems, where it holds about a 52% market share in shock absorbers and struts. "One in two passenger vehicles in India runs on shock absorbers produced by Tenneco. Going forward, we see strong potential to double volumes by 2030 and increase our market share to 60–65%, driven by our advanced suspension technologies, DaVinci DCX and CVSA (Control Valve Semi-Active)," Chandra said.The company is also investing in a new R&D facility in Hosur, with an investment of a couple of million dollars, to strengthen its engineering capabilities. It currently has around 150 R&D personnel, a number expected to grow to at least 200 over the next few years.(This correspondent was in Hosur at the invitation of the company)