Tenneco Clean Air IPO

Tenneco Clean Air India is one of India’s leading manufacturers and suppliers of automotive clean air solutions, powertrain systems and advanced ride performance solutions. The company is part of US- headquartered tier I automotive component supplier, Tenneco Group The company operates primarily through two divisions- clean air & powertrain solutions and advanced ride technologies. Its portfolio includes exhaust aftertreatment systems, mufflers, catalytic converters, shock absorbers, and struts catering to passenger vehicle (PV), commercial vehicle (CV), off-highway, and industrial applications.

The clean air & powertrain solutions segment contributed 56.28% of total revenue in the three months ended June 30, 2025, and advanced ride technologies contributed 43.72%. The company is the largest supplier of clean air solutions to Indian commercial trucks (CT) OEM (57% market share), Indian off-highway (OH) vehicles OEMs, excluding tractors, (68%), among the top four suppliers of clean air solutions to Indian passenger vehicles (PV) OEMs (19% market share) and the largest supplier of shock absorbers and struts to Indian PV OEMs, with a market share of 52%. As of June 30, 2025, the company has 12 manufacturing facilities spread across 7 Indian states and 1 union territory, including seven clean air & powertrain solutions facilities and five advanced ride technology facilities. The facilities are located near the key automotive OEM hubs such as Maharashtra and Tamil Nadu and equipped with automated assembly lines, robotic welding units, and testing infrastructure designed to meet stringent emission and safety regulations. It is supported by a localised supply chain with 83.05% of raw materials sourced domestically, which helps the company achieve cost efficiencies.

The company's operations are significantly influenced by domestic OEM demand. PV OEMs made up 61.26% of revenue in FY25, while CV OEMs made up 20.78%. The remaining 17.96% came from other segments like exports, industrial machinery, 2and 3-wheelers, and aftermarket services. As of June 2025, it had served 101 customers, including all five of India's leading CT OEMs and all seven of India's leading PV OEMs. The average relationship tenure of these key clients is 19.2 years, demonstrating the company's established reputation as a trustworthy supplier. Beyond OEM supply, the company also serves the aftermarket segment through Motocare India Private Limited, an indirect subsidiary of the Tenneco Group. This channel enables the company to extend its product lifecycle beyond OEM sales, while benefiting from Motocare’s established distribution and marketing network across India.

The auto component market size is expected to grow at a 9-11% CAGR between FY25 and FY30 to reach ₹13,500-₹14,500 billion, driven by an increase in production off-take across all vehicle segments, which will support growth in the OEM market. The clean air solution market specifically is expected to grow at a CAGR of 8-10% between FY25-30 to reach ₹79,500-87,500 million. Tenneco Clean Air which has market leadership position in domestic clean air solution market across different categories is well positioned to capture this growth.

The company aims to capitalise on the increasingly stringent global and regional emission standards, enhance competitiveness through strategic localisations and continue to focus on its R&D and innovation.

Now, Tenneco Clean Air Ltd is launching its initial public offering (IPO), which consists of an offer for sale of ₹3,600 crore. Its shares will be listed on the NSE and BSE.