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Company Profile

Tenneco Clean Air India Limited is a subsidiary of Tenneco Inc., a global leader in clean air and powertrain technologies for the automotive sector. The company operates under Tenneco’s Clean Air division, specializing in emission control systems for light and commercial vehicles. In India, it provides advanced exhaust and after-treatment solutions— such as catalytic converters, diesel particulate filters (DPFs), mufflers, and exhaust pipes—enabling OEMs to meet stringent emission norms like Bharat Stage VI. With 12 manufacturing facilities across seven states and one union territory, including seven Clean Air & Powertrain Solutions units and five Advanced Ride Technology units, the company strategically supports major OEMs and Tier 1 suppliers. Its Clean Air & Powertrain Solutions division offers clean air and powertrain systems, while the Advanced Ride Technologies division designs and manufactures shock absorbers, struts, and advanced suspension systems. Backed by 145 R&D professionals, Tenneco Clean Air India focuses on sustainability, innovation, and regulatory compliance through robust engineering and product development capabilities.

GEPL’s Insights & Investment Thesis:

* Tenneco Clean Air India Ltd is a market leader in providing high tech automotive components with 57% market share in clean air solutions for Commercial transport OEMs and 68% for Off-Highway OEMs.

* The company is leveraging its 5,000+ patents and 7,000+ active trademarks across the world to develop innovative products for the Indian OEMs. It presents a strong investment opportunity driven by its strategic localization, export expansion, and integration within the global Tenneco ecosystem

* Based on the FY25 earnings, relative to the company's post-IPO paid up capital, the issue is priced at a P/E ratio of 28.9x. We believe that the issue is fairly valued compared to its peers, leading market share in the clean air solutions business, healthy financial performance, and developing innovative products for Indian OEMs. Therefore, we recommend a “Subscribe” rating for the issue.

Business Highlights & Services

Tenneco Clean Air India Limited is a market leader in high-technology automotive components, offering clean air, powertrain, and suspension solutions to Indian OEMs and export markets. With dominant positions across key sub-segments in FY25 57% market share in Clean Air Solutions for Commercial Transport OEMs, 68% for Off-Highway OEMs (excluding tractors), 19% in Passenger Vehicles, and 52% in shock absorbers and struts the company’s leadership is supported by long-standing partnerships with top Indian and global OEMs. Serving 119 customers in FY25, including all top PV and CT OEMs, Tenneco benefits from strong customer stickiness driven by technology-intensive products, stringent homologation norms, and high switching costs. As of June 30, 2025, it operated 427 active production programs across 50+ customers, backed by a diversified product portfolio spanning catalytic converters, DPFs, mufflers, engine bearings, spark plugs, and advanced suspension systems. Its balanced revenue mix from OEMs, aftermarket, and exports further enhances resilience, while global linkages within the Tenneco Group strengthen stability and long-term growth visibility. Tenneco Clean Air India Limited offers a strong investment case driven by global R&D strength, advanced manufacturing, and deep OEM integration. Leveraging Tenneco Group’s 5,000+ patents and 7,500 trademarks, it localizes cutting-edge technologies through two world-class R&D centers in Pune and Hosur.

SEBI Registration number is INH000000081.

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