Tractors and Farm Equipment (TAFE), the Chennai-based tractor major with a well-established engineering plastics business that supplies exterior and interior automotive engineered plastic components as a full service provider to the automotive industry in India, has acquired French group FORVIA’s Indian interior business Faurecia which serves major automotive customers that include Mobis-Kia, Mobis-Hyundai, Volkswagen, FCA and TATA. The deal size is around Rs 400 crore.
The deal covers Faurecia’s operations at Chakan in Maharashtra, Anantapur in Andhra Pradesh and Tamil Nadu. The transaction with respect to Chakan and Anantapur has been completed and the Tamil Nadu operation is expected to be concluded shortly. TAFE will be fully acquiring the company.
Also read: Tata Motors delivers 50,000th EV, a Nexon EV, to Tata Group Chairman
Mallika Srinivasan, chairman & MD, TAFE, said, “TAFE is encouraged by the strong synergistic opportunities that this acquisition offers. We value our relationship with our customers and thank them for the encouragement and support and would like to reiterate our commitment to our customers towards the highest standards of design quality and service. Technology, innovation and manufacturing excellence will drive our journey forward.”
The integration of TAFE’s plastics business with Faurecia’s interior systems business offers synergistic benefits to all its customers. TAFE’s current customers include Toyota, TVS Motors, Hyundai, Kia, Renault Nissan and GE Medical Systems. TAFE, with its state-of the-art tool room, possesses world-class tool design and production capability. Faurecia, as a part of this deal, will continue to support TAFE and its customers with the acclaimed Faurecia design capabilities. With complementary capabilities coming together, TAFE will now offer an enhanced value proposition to its customers that includes cutting-edge product design, precision tooling design and manufacture, and superior quality, that TAFE has been recognised for.
Also read: Top 5 hybrid cars launched in India in 2022: Grand Vitara to Innova HyCross
The privately-held TAFE is world’s third-largest tractor manufacturer and second largest in India by volumes with an annual sale of about 180,000 tractors. It is one of the leading exporters of tractors from India with a turnover above Rs 10,000 crore and manufactures a range of tractors, in both the air-cooled and water-cooled platforms, and markets them under its four iconic brands – Massey Ferguson, TAFE, Eicher, and the Serbian tractor and agricultural equipment brand – Industrija Mašinai Traktora (IMT). TAFE’s products and services are present in over 100 countries across the world, including developed countries in Europe and the Americas.
FORVIA, the seventh largest global automotive supplier, was created in 2022 by bringing together two automotive technology leaders: Faurecia and HELLA. With 111,000 employees in 33 countries, Faurecia is a top 10 global automotive supplier and accelerates mobility through its four business groups: seating, interiors, clean mobility, and electronics.
