Tata Technologies Explained

Tata Technologies Limited
Type:Public Subsidiary
Key People:Warren Harris (CEO and MD)[1]
Location:Pune, Maharashtra, India
Revenue: (FY24)
Operating Income: (FY24)
Net Income: (FY24)[2]
Num Employees:11,000 (2023)
Parent:Tata Motors (53.39%)[3]

Tata Technologies Limited is an Indian multinational product engineering company that provides services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers as well as industrial machinery companies.[4] [5] It is a subsidiary of Tata Motors.[6]

Tata Technologies has its headquarters in Pune and regional headquarters in the United States (Detroit, Michigan). As of 2023, the company has a combined global workforce of more than 11,000 employees across its 18 delivery centres in India, North America, Europe and the Asia-Pacific region.[7] [8]

History

Tata Technologies was founded in 1989, as the automotive design unit of Tata Motors.[9] It was hived off as a separate company in 1994, with Tata Motors continuing to hold a majority stake and be its biggest client.[10]

Tata Technologies Inc acquired INCAT International, a UK-and US-based automotive and aerospace engineering company, in August 2005 for £53.4 million.[11]

In 2011, Tata Technologies raised 141 crore (US$30 million) by selling 13% stake to Tata Capital and Alpha TC Holdings.[12]

In April 2013, Tata Technologies acquired Cambric Corporation, an American engineering services company, for $32.5 million.[13]

In May 2017, Tata Technologies acquired 100% stake in Swedish automotive design and product engineering company, Escenda Engineering AB.[14]

In 2017, in an effort to reduce Tata Motors' debt, the Tata Group announced that it would sell a 43% stake in Tata Technologies to private equity firm Warburg Pincus for $360 million and cease to be the controlling shareholder in the company.[15] However, the deal was called off in 2018.[16]

In November 2023, Tata Technologies launched its book-built initial public offering (IPO) selling shares worth, making it Tata Group's first public offering in nearly two decades.[17] Its shares began trading on NSE and BSE on 30 November 2023.[18]

Notes and References

  1. News: Tata Tech eyes acquisitions, 69% growth to nearly $800 mn by 2025 . 11 May 2023 . Business Standard . 10 June 2022.
  2. News: 29th Annual Report 2022-23 . 4 May 2024 . Tata Technologies.
  3. News: Agarwal . Nikhil . Tata Tech IPO: Tata Motors to take home Rs 2,300 crore against Rs 34 crore investment . 23 November 2023 . The Economic Times . 22 November 2023.
  4. News: Srivastava . Moulishree . Tata Technologies plans to open more centres in India . 11 May 2023 . mint . 26 March 2014 . en.
  5. News: Kalesh . Baiju . Shah . Sneha . Tata Motors and Tata Capital are looking to sell their 90% stake in Tata Technologies . 11 May 2023 . The Economic Times . 7 April 2015.
  6. News: Baggonkar . Swaraj . Tata Technologies to hire more amid talent crunch . 11 May 2023 . The Hindu Businessline . 16 June 2022 . en.
  7. News: Tata Motors arm Tata Technologies files draft IPO papers with Sebi . 11 May 2023 . Business Today . 10 March 2023 . en.
  8. News: Shinde Nadhe . Shivani . Tata Technologies: Acquisitions key for $1-bn revenue target . 4 July 2023 . Business Standard . 20 September 2014.
  9. News: Tata Tech eyes $250m buys to hit $1bn sales . 11 May 2023 . The Times of India . 23 February 2015.
  10. News: PEs vie for $520 million Tata Tech stake . 11 May 2023 . The Times of India . 22 April 2015.
  11. Web site: Tatas to acquire INCAT International. Rediff. 21 January 2013. 18 August 2005.
  12. News: Tata Tech sells 13% stake for Rs 141 cr to Alpha TC, TCGF . 11 May 2023 . The Economic Times . 3 May 2011.
  13. News: Tata Technologies to acquire US-based firm Cambric for $32.5 million . 11 May 2023 . The Economic Times . 26 April 2013.
  14. News: Tata Technologies acquires Swedish Escenda Engineering . 2 December 2023 . Economic Times . en.
  15. News: Ghoshal . Devjyot . Tata Technologies: One of the best-kept secrets of the Tata Group is leaving the mothership . 11 May 2023 . Quartz . 19 June 2017 . en.
  16. News: Susmit . Sneh . Warburg Pincus, Tata Motors call off $360 million stake sale in Tata Technologies . 11 May 2023 . mint . 5 February 2018 . en.
  17. News: Sen . Meghna . November 22, 2023 . Tata Technologies IPO opens: Should you bet on the Tata group's first IPO in 20 years . CNBC TV18 .
  18. News: Tata Technologies makes bumper D-st debut; lists at 140% premium at Rs 1,200 . 2 December 2023 . Business Today . 30 November 2023 . en.