OBSC Perfection Limited, formerly known as OBSC Perfection Private Limited, has made a significant strategic leap in the global automotive component manufacturing industry by securing a substantial international order valued at ₹160 crores. This order, received from Tenneco Automotive Operating Company Inc., is scheduled to be fulfilled over the next five years, with delivery commencement projected for May 2026.

The order involves manufacturing and supplying Leaf Spring Composite suspension parts to Tenneco’s Reynosa facility in Mexico, destined for an end-user client based in Germany. The contract reaffirms OBSC Perfection's growing footprint in international markets and enhances its reputation as a competitive exporter in the auto component sector.

Details of the Transaction:

According to the disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has clarified that the nomination letter from Tenneco marks a confirmed export commitment, and not merely an exploratory memorandum. The projected value is USD 3.7 million per annum, translating to approximately ₹32 crores per year, totaling to ₹160 crores over 5 years.

This development also boosts OBSC Perfection's total order book value to ₹980 crores, a significant milestone that underlines the company’s robust future pipeline and operational capacity.

Key Features of the Order:

• Nature of Work: Manufacturing and export of suspension parts – specifically Leaf Spring Composites.

• Client Entity: Tenneco Automotive Operating Company Inc., an international OEM and a renowned name in the global auto parts industry.

• End User: Based in Germany, indicating European market penetration.

• Supply Location: Reynosa, Mexico – one of Tenneco’s major manufacturing plants.

• Duration: Five years from the commencement date in May 2026.

• Order Type: International and non-domestic, not falling under related party transactions, and compliant with arm’s length standards.

Corporate Context:

OBSC Perfection Limited has been gradually transitioning from a domestic mid-sized manufacturing entity to an international player in the automotive components space. The company’s consistent focus on quality engineering, client-specific customization, and global standards compliance has made it a trusted vendor among major automotive OEMs.

This order reinforces OBSC Perfection’s export competency and aligns with its vision of increasing international revenues. The scale of this deal also offers long-term financial stability, ensuring consistent revenue flow over half a decade, thus potentially improving future earnings visibility.

Disclosures and SEBI Compliance:

As required under SEBI norms, OBSC Perfection Limited submitted the full disclosure of the order under Annexure A, accompanied by a formal letter signed by Director Asha Narang (DIN: 00296714). It is also stated that the Promoter/Promoter Group holds no interest in Tenneco Automotive, thereby ruling out any conflict of interest or related-party issues.

The company has taken full measures to adhere to transparency and governance protocols, reiterating its commitment to investor confidence and shareholder communication.

Business Implications:

From a business strategy perspective, this order indicates:

• Higher International Exposure: The company is expanding beyond Indian borders to cater to international clients with high-quality engineering components.

• Product Innovation: Focus on Leaf Spring Composite signals the adoption of next-gen lightweight materials, critical in modern suspension systems.

• Revenue Visibility: Multi-year contracts like this offer stability and better financial planning opportunities.

Industry Implications:

The Indian auto component industry is aggressively eyeing global supply chain participation. OBSC Perfection’s order win demonstrates the increasing global demand for Indian engineering products, especially in suspension systems, which require precision manufacturing and durability.

It also adds to the ongoing momentum of Indian mid-sized auto suppliers becoming preferred outsourcing partners for global giants seeking cost efficiency without compromising on quality.

Forward Strategy:

While the execution of this order begins only in May 2026, the interim period will likely involve:

• Capacity building and equipment calibration.

• Workforce training for product-specific technical skills.

• Quality system audits by Tenneco or affiliated European end-users.

• Supply chain coordination, possibly involving Indian and North American logistic hubs.

The company may also use this opportunity to forge deeper collaborations or expand its product offerings into other related auto component categories.

In conclusion, the award of this ₹160 crore international order from Tenneco Automotive not only validates OBSC Perfection’s technical prowess and export readiness but also propels the company into the next phase of global integration and long-term growth. With this deal, OBSC Perfection is strategically positioned to enhance shareholder value, consolidate global partnerships, and strengthen its position as an emerging leader in the automotive suspension component segment.

The Upcoming IPOs in this week and coming weeks are Jainik Power Cables, Sacheerome Limited, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Ganga Bath Fittings.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.