Tenneco Clean Air India (TCAIL) IPO

About Tenneco Clean Air India (TCAIL)

Incorporated in 2018, TCAIL is a leading manufacturer and supplier of advanced emission control systems and related automotive components in India, catering to both original equipment manufacturers (OEMs) and aftermarkets. The company focuses on critical clean air, emission control and performance systems like exhausts, shock absorbers and ignition systems, supporting major automakers in meeting BS-VI norms and improving vehicle performance.

Part of the global Tenneco Group, the company operates 12 manufacturing facilities across India and holds significant market share (60%) in commercial vehicle OEMs and 42% in off-highway vehicles excluding tractors, while also ranking the top 4 suppliers in the passenger vehicle segment, highlighting its strong and diversified presence across India’s automotive ecosystem.

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Financials of Tenneco Clean Air India (TCAIL)

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Issue size

Funds Raised in the IPO	Amount
Overall	₹3000 crores
Offer for sale	₹3000 crores

Strengths

• Growth driven by R&D, emission compliance and long-standing client relationship
• Strong position in CV, OH and PV segments
• Leading supplier of critical, highly engineered and technology intensive clean air solutions
• Manufacturing facilities located strategically across India ensuring supply chain efficiencies
• Backed by global clean air tech leader Tenneco group, Diversified OEM Portfolio
• Consistent positive operating cashflows and profit growth over recent years

Risks

• Heavy dependence on few customers for revenue generation, with top 10 contributing to ⅘ of total sales
• Business is closely tied with emission standards and regulatory policy
• High Reliance on Indian PV and CV OEMs(over 80% of revenue), exposes the company to demand shifts and sectoral changes
• Shift towards EVs could reduce long-term demand
• Disruption in raw material supply chain