Business of Tata Technologies
Tata Technologies is a global leader in engineering services outsourcing and product development IT services to the global manufacturing industry; enabling ambitious manufacturing companies to design and build better products. A company of innovators, specialists in the design engineering space, who apply cutting-edge technology to provide a competitive advantage to customers in the manufacturing sector.
The company is a strategic partner for developing complete vehicles, engineering subsystems and components, managing the New Product Introduction (NPI) process through collaborative engineering tools, such as Product Lifecycle Management (PLM) and tying together information created and used throughout the extended manufacturing enterprise.
Tata Technologies is headquartered in Singapore, with regional headquarters in the United States (Novi, Michigan), India (Pune) and the UK (Warwick) with a combined global workforce of more than 8,500 employees serving clients worldwide from facilities in North America, Europe, and the Asia-Pacific region.
History of Tata Technologies
The Tata Technologies is found under the Legacy of Trust of Tata Group in 1989. Since 1989, Tata Technologies’ professionals have been contributing engineering and design services to the world’s leading manufacturers.
INCAT– It was based in the UK and was developing a reputation as a world leader in engineering and design staffing to the world’s top automotive OEMs.
Integrated Systems Technologies (IST)– It was developing as North America’s fastest-growing and most forward-thinking systems integrator and Product Lifecycle Management (PLM) software solutions provider.
In 1998, INCAT and IST merged to form INCAT International, a global product solutions and services provider serving the automotive and aerospace industries worldwide. In late 2004, INCAT plc became a publicly-traded company on the London Stock Exchange and, within a year, was acquired by Tata Technologies.
That move created a unique global provider of Engineering Services Outsourcing (ESO), Product Development IT services, and PLM solutions with combined expertise, resources and experience that are unequaled in the industry.
The Year 1989
Tata Technologies is founded as a business unit of Tata Motors.
INCAT formed from existing European and North American companies.
The Year 1994
Tata Technologies spins off as an independent business unit, headquartered in Singapore.
The Year 1996
Tata Technologies commencing operations in India.
The Year 1997
Wins Tata Motors E&D and IT outsourcing engagement.
The Year 2003
Moves India operations to new world-class, state-of-the-art campus Pune Infotech Park
The Year 2005
Tata Technologies acquires 100% of INCAT International UK, expanding the global footprint.
Products of the Company
1. Autodesk: Autodesk makes software for people who make things. If you’ve ever driven a high-performance car, admired a towering skyscraper, used a smartphone, or watched a great film, chances are you’ve experienced what millions of Autodesk customers are doing with Tata Technologies software. Autodesk is the leader in 3D design, engineering, and entertainment software.
2. CAD Solutions
3. INDUSTRIAL DESIGN & VISUALIZATION
4. Products Innovation Platform
5. Data Management
Services of the Company
1. Engineering Research and Development
2. Product Lifecycle Management
3. Connected Enterprise IT
Industries the Company Caters to:
Automotive, Defence, Aerospace and Industry Heavy Machinery
Video of Tata Technologies
FY19-20 Performance Analysis
1. FY19-20 was quite challenging for Tata Technology. Falling vehicle sales and push towards ACES( Autonomous, Connected, and Electric Shared) has pushed clients of Tata Technology to reduce costs. We know 80% of Tata Technology revenue comes from the global automotive sector, the problem in that sector has impacted the overall growth of the company.
2. However, despite the problems, Tata Technology has earned a revenue of 2852 Cr in FY20, a tad lower as compared to last year where they earned 2984 Cr. The company has made operating margins of 16% in FY20. EPS of FY19-20 stands at 60 per share.
3. As per management commentary, Tata Technology has seen revenue growth of 4.4% and operating profit growth of 32% QoQ basis in the last quarter of FY20. This has achieved due to the operational efficiency program that resulted in saving ~100 Cr in FY19-20.
4. In FY19-20, Tata Technology has participated in the Electric Vehicle event in China to showcase its product called EVMV( Electric Vehicle Modular Platform). This product helps OEMs of EV to reduce costs in manufacturing.
5. Tata Technology partners with PTC to provide smart manufacturing and digital solutions to manufacturing industries worldwide.
1. Tata Technology is looking to align its business portfolio with new markets and opportunities. They are doing investment in embedded electronics, digital, and software segments.
2. Last year they build the project called Autostar (Automotive Open System Architecture) for a major tier-1 automotive supplier. 20% of service business revenue comes from Digital now.
3. Tata Technology is looking to diversify its client base to grow in adverse situations. In FY19-20, the company has shown strong growth in North-America and India, however, over-dependence upon the automotive sector, especially specific clients in UK, Sweden, and China has impacted the business.
Key Takeaways from FY20-21 Annual Report:
1. Launched an AUTOSAR (AUTomotive Open System ARchitecture) development center in India for GKN – a testament to the growing reputation that Tata Technology Unlisted Company is thriving in the fast-growing eMobility and embedded electronics space.
2. Partnered with a North American original equipment manufacturer (OEM) to develop an SUV for the Chinese market – the largest automotive market in the world.
3. Secured a multi-year PLM-enabled, digital thread engagement with a tier 1 automotive supplier. This solution enabled the digital representation of mechanical/electronic components and embedded software data to be linked with requirements, test and behavioral simulations, certifications, bill of materials (BOMs) and associated process plans.
4. Rolled out the next-generation ERP solution for a North American Battery Electric Vehicle (BEV) company in support of its plans to launch multiple vehicles in the calendar year 2021.
5. This year Tata Technology has secured a breakthrough deal with Government of Karnataka to modernize 150 Industrial Training Institutes (ITIs) across the state. The award was predicated upon Tata Technology proprietary i GET IT e-Learning platform and will necessitate the development of educational content in the areas of Smart Manufacturing and Industry 4.0.
|Total Available Shares:||1000|
|Face Value:||₹ 10 Per Equity Share|
|Lot Size:||10-50 Shares|
|Current Unlisted Share Price:||₹ Best in industry Per Equity Share|
|Category||No. of Shareholders||No. Of Shares||% of Paid Up Capital|
|Tata Motors Limited||1||3,03,00,600||72.48|
|Alpha TC Holdings Pte. Ltd.||1||37,46,505||8.96%|
|Tata Capital Growth Fund I||1||18,73,253||4.48%|
|Tata Motors Finance Limited||1||8,11,992||1.94%|
|Particulars (In Crores)||Quarter Ending||Year Ended|
|Cost of Products of Sale||111||87||103||87||338||367|
|Profit before exceptional items||100||122||93||135||320||400|
|Profit Before Tax||100||121||93||131||315||392|
|Profit After Tax||72||98||70||89||239||251|