This comprehensive investor profile details the operational, financial, and strategic position of **Federal-Mogul Goetze India Limited (FMGIL)**, a subsidiary of **Federal Mogul Holding Limited, Mauritius**, and a key entity within the global **Tenneco** group. ### **Corporate Structure and Strategic Global Integration** FMGIL operates as a critical hub within the **Tenneco** network, leveraging international technical expertise to maintain leadership in the Indian automotive component sector. * **Ownership & Control:** The company is a subsidiary of **Federal Mogul Holding Limited, Mauritius**. It operates a significant joint venture, **Federal-Mogul TPR (India) Limited**, in which it holds a **51%** equity interest alongside **Teikoku Piston Ring Co. Ltd, Japan (40%)** and **Federal Mogul UK Investments Limited (9%)**. * **Centralized Support:** The company pays **Management Support Charges** (approximately **₹3,026.06 lacs** in FY25) to **Federal-Mogul Powertrain LLC**. This fee covers global executive services, operations management, and technical support, ensuring the Indian operations remain aligned with global standards. * **Leadership:** Following a transition in early 2024, **Mr. T. Kannan** was appointed as **Managing Director** for a three-year term effective **February 1, 2024**. ### **Core Product Portfolio and Revenue Streams** The company operates through a single reportable segment: the **manufacturing and sale of auto components**. It provides high-precision engine parts to **Original Equipment Manufacturers (OEMs)**, the **Aftermarket**, and export clients. | Main Activity | Product Categories | NIC Code | % of Turnover | | :--- | :--- | :--- | :--- | | Manufacturer of Automotive Components | **Pistons, Piston Rings, Piston Pins, Valve Seats & Guides, Structural Components** | **2811** | **100%** | **Geographical Revenue Distribution (Standalone):** While domestic demand remains the primary driver, the company has seen a notable increase in its export footprint. | Revenue Source | FY 2024-25 (₹ in Lacs) | FY 2023-24 (₹ in Lacs) | Growth % | | :--- | :--- | :--- | :--- | | **India (Domestic)** | **157,969.27** | **150,880.29** | **4.7%** | | **Other Countries (Exports)** | **14,131.56** | **11,314.88** | **24.9%** | | **Total Revenue** | **172,100.83** | **162,195.17** | **6.1%** | | **Export % of Sales** | **8.21%** | **6.98%** | — | ### **Advanced Engineering and Technology Absorption** FMGIL utilizes a blend of German, Japanese, and proprietary Tenneco technologies to meet **BSVI Phase-II**, **CAFE III**, and **Euro 7** standards. * **Piston Innovation:** Development of **Advanced Elasto-Oval 2** architecture and **low-weight thin-section forged pistons**. For **Gasoline Direct Injection (GDI)** engines, the company produces **fully machined crowns** and **gallery-cooled gasoline pistons**. * **Coating Technologies:** Implementation of **PVD Coating** (Japanese tech), **DLC coating** on Gudgeon Pins, and premium friction coatings (**AV15, AV21, AV19**) to enhance component life and reduce friction. * **Simulation & Design:** Use of **PRiME 3D®** for ring design, **Pisdyn** for secondary motion analysis, and numerical simulations for forged piston material forming. * **Import Substitution:** Successfully localized the "**lower side sharp edge grinding feature**" on piston rings, reducing reliance on imported components. ### **Manufacturing Footprint and Operational Efficiency** The company maintains three primary manufacturing facilities, positioning India as a global innovation hub for the parent group. * **Plant Locations:** **Patiala** (Punjab), **Bengaluru** (Karnataka), and **Bhiwadi** (Rajasthan). * **Process Automation:** Transitioned to **auto-loading systems** on grinding machines and **auto-inspection** in the Valve Seat value stream. * **Capacity Upgrades:** Deployment of **45-ton and 60-ton** low-cost effective compaction presses and increasing ring productivity on **CNC ADA machines** from **8 to 10 units**. * **Quality Control:** Installation of **X-ray machines** for casting defects, **Eddy current machines** for material defects, and **Vision camera systems** for coating verification. ### **Sustainability and Environmental Stewardship** FMGIL is aggressively transitioning to green energy to reduce its carbon footprint and comply with evolving environmental regulations. * **Renewable Energy:** The **Bengaluru facility** now sources **97%** of its energy from **Wheeling Energy** (Wind/Hydro/Solar), supported by a new **23 MW Solar Power** project. * **Fuel Transition:** Conversion of traditional **LPG/HSD** furnaces to **Piped Natural Gas (PNG)**. Large Gensets (**810 and 1500 KVA**) have been fitted with **dual-fuel kits** (70% gas / 30% diesel). * **Resource Management:** Implementation of **Zero Liquid Discharge (ZLD)** systems; treated water is recycled for cooling towers and irrigation. * **Efficiency:** Installation of **VFDs** in compressor rooms and **PID Controllers** for furnace heaters. ### **Financial Performance and Capital Structure** The company maintains a strong balance sheet characterized by high liquidity and negligible debt. **Standalone Financial Highlights:** | Metric (₹ in Crore) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Gross Sales** | **1,669.57** | **1,608.54** | **1,321.98** | | **Net Profit After Tax** | **125.05** | **97.23** | **52.75** | | **Cash & Equivalents** | **331.20** | — | — | * **Liquidity & Debt:** The group reports **zero outstanding borrowing amounts** in interest risk disclosures. Total sanctioned credit facilities (Kotak, HDFC, Yes Bank) aggregate to **₹17,906 Lacs** for the parent and **₹1,200 Lacs** for the TPR subsidiary, which remain largely unutilized. * **Working Capital:** Trade payables were reduced to **77 days** in FY25 (from 84 days). Customer payment terms are maintained between **30 to 90 days**. * **Capital Expenditure:** Significant reduction in overdue **Capital Work-in-Progress (CWIP)**, falling from **₹4,061.91 Lacs** in 2024 to **₹451.06 Lacs** in 2025, signaling the completion of major plant upgrades. ### **Risk Factors and Regulatory Landscape** FMGIL faces a complex risk environment involving litigation, market shifts, and geopolitical pressures. * **The "Open Offer" Litigation:** Following the global merger of **Tenneco LLC** with **Pegasus Merger Co.**, an Open Offer was triggered. While the **Securities Appellate Tribunal (SAT)** ruled in favor of the Acquirer in late 2024, **SEBI** has appealed to the **Supreme Court**, leaving the ownership transition in a state of legal flux. * **Environmental & Regulatory Hurdles:** The **Patiala plant** faced scrutiny from the **Punjab Pollution Control Board**, resulting in a **₹50 Lakh** compensation deposit and a **₹1 Crore** bank guarantee. The company also incurred penalties from **BSE/NSE** for delayed compliance and a **₹10.89 Lakh** penalty for stamp duty deficits. * **Labor & Provisions:** A long-term settlement with the **Bhiwadi union** is in place until **2028**. However, the company made an exceptional provision of **₹15.06 crore** (consolidated) to account for the financial implications of the **New Labour Codes, 2020**. * **Market Risks:** * **Technological Shift:** The rise of **Electric Vehicles (EVs)** and alternate fuels (Hydrogen/CNG) poses a long-term risk to traditional engine component demand. * **Input Costs:** Volatility in **steel, aluminum, and copper** prices directly impacts margins. * **Geopolitical Impact:** A provision of **₹195.58 Lacs** was made for doubtful recovery from a related party due to the **Russia-Ukraine crisis**.