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Akshay Rajawat    

Surat, India

I am CA student and along side perusing the CFA (U.S.). I have a 6 month experience in Equity Research where i have done my internship programme in the same. I am keen to write an articles on Equity.

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Contributor since: 2022







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Tata Technologies Limited

A IPO Analysis

About Tata Technologies

Incorporated in 1994, Tata Technologies Limited is a leading global engineering services company. They offer product development and digital solutions. This includes turnkey solutions, to global original equipment manufacturers (OEMs) and their tier-1 suppliers.

Tata Technologies aspire to create value for their customers by assisting them in the development of products that are safer, cleaner and improve the quality of life for the end customers.

With their deep domain expertise in the automotive industry, they have gained high expertise to serve clients in adjacent industries also, such as aerospace and transportation and heavy construction machinery.

The operation of Tata Technologies Limited is spread globally. They bring together diverse teams from different parts of the world with varied skill sets to collaborate in real time and solve complex engineering problems.

Business Overview

The company is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (“OEMs”) and their tier 1 suppliers. The company have a endeavor to create value for their clients by helping them develop products that are safer, cleaner and improve the quality of life for their end-customers. The company have deep domain expertise in the automotive industry and leverage this expertise to serve their clients in adjacent industries, such as in aerospace and transportation and construction heavy machinery (“TCHM”). As a global organization, they bring together diverse teams from different parts of the world with multiple skill sets to collaborate in real time and solve complex engineering problems for their clients.

In a world that is becoming increasingly complex, with shortening product innovation timelines and rapid technological change, the company believe that their globally distributed onshore-offshore service delivery capability helps them to suitably address their clients’ requirements. The company leverage their deep manufacturing domain knowledge to deliver value-added services to their clients in support of their digital transformation initiatives including product development, manufacturing and customer experience management.

The company primarily categorize their lines of business as follows:

The company primary business line is services (“Services”), which includes providing outsourced engineering services and digital transformation services to global manufacturing clients helping them conceive, design, develop and deliver better products. Company's Services business contributed ₹26,513.51 million and ₹25,571.88 million to their revenue from operations in Fiscal 2022 and the nine-months period ended December 31, 2022, respectively, comprising 75.12% and 84.91% of their revenue from operations for the respective periods.

Technology Solutions:
The company complement their service offerings with their Products and Education businesses (collectively, “Technology Solutions”). Through their Products business they resell third-party software applications, primarily product lifecycle management (“PLM”) software and solutions and provide value added services such as consulting, implementation, systems integration and support. Education business provides “phygital” education solutions in manufacturing skills including upskilling and reskilling in relation to the latest engineering and manufacturing technologies to public sector institutions and private institutions and enterprises through curriculum development and competency center offerings through their proprietary iGetIT platform. In Fiscal 2022 and the nine-months period ended December 31, 2022, their Technology Solutions business contributed ₹8,782.29 million and ₹4,546.06 million to their revenue from operations, respectively, comprising 24.88% and 15.09% of their revenue from operations for the respective periods.

Zinnov has estimated the global engineering, research and development (“ER&D”) spend to be approximately $1.64 trillion as of 2021 and expects it to grow to approximately $2.28-2.33 trillion by 2025. The ER&D spend outsourced to third party service providers reached $85 billion to $90 billion in 2021 and is anticipated to grow at a 10-12% compound annual growth rate (“CAGR”) between 2021 and 2025 (Source: Zinnov Report). Key drivers for growth within the ER&D market, particularly the automotive market, include an increasing propensity to outsource services (following the COVID-19 pandemic), increased regulatory interventions for safer and cleaner products, shrinking product innovation cycles and next-generation product technologies that underpin autonomous, connected, electrification and shared (“ACES”) technologies. Additional growth drivers include a heightened focus on smart manufacturing, reducing product development time and cost, connecting the digital
thread and enhancing customer experience. Typically, the TCHM industry lags behind the automotive industry by three to five years, but the demand for outsourced engineering services is driven by similar regulatory and technological challenges. While the aerospace industry has been disproportionately impacted by COVID-19, the sector has recently shown signs of recovery, largely driven by an increased focus on digitalization, sustainability and improving manufacturing throughput to meet increased demand (Source: Zinnov Report). We intend to continue leveraging our strengths to address the opportunities in the ER&D industry generally and more specifically in the automotive, TCHM and aerospace industries.  

The company is a pure-play manufacturing focused ER&D company, primarily focused on the automotive industry and they are currently engaged with six out of the top 10 automotive ER&D spenders and four out of the 10 prominent new energy ER&D spenders in 2021. Company's automotive revenue attributable to the Services segment for Fiscal 2022 and the ninemonths period ended December 31, 2022 was ₹22,768.74 million and ₹22,614.46 million, respectively, comprising 85.88% and 88.43% of their revenue attributable to the Services segment for the respective periods. Additionally, their revenue attributable to the Services segment from verticals other than automotive for Fiscal 2022 and the nine-months period ended December 31, 2022 was ₹3,744.77 million and ₹2,957.42 million, respectively, comprising 14.12% and 11.57% of their revenue attributable to the Services segment for the respective periods.

Key Performance Indicators

Company's Competitive Strength

Deep expertise in the automotive industry:

The company comprehensive portfolio of services for the automotive industry addresses the product development and enterprise optimization needs of traditional OEM’s and new energy vehicle companies, together with their associated supply chains. Company's automotive ER&D services span the entire automotive value-chain and includes concept design and styling, tear down and benchmarking (“TDBM”), vehicle architecture, body engineering, chassis engineering, virtual validation, ePowertrain, electrical and electronics, connected, manufacturing engineering, test and validation and vehicle launch. In addition to the spectrum of discrete service offerings, the company also offer turnkey full vehicle development solutions for traditional internal combustion engine (“ICE”) powered vehicles, plug-in hybrids (“PHEV”) and battery electric vehicles (“BEV”) which have been developed over a period of 10 years. In this area their services extend from concept, detailed design and development, test and validation to the production launch of the vehicle.

The company automotive domain expertise and deep understanding of client requirements underpins the approach they take to helping their clients leverage digital technologies to optimize the manner in which they conceive, develop, manufacture, sell and service new products. Additionally, their long-standing partnership with their Anchor Clients, including the relationship with JLR since 2010, provides them with opportunities to cultivate skills and refine the company's value proposition for the automotive sector. Specific offerings such as their full vehicle proposition and light weight structures have been incubated and developed with TML and JLR. Moreover, work with TML has helped them to leverage their capability in developing Power of 8 and Amp.IOT platforms and their capabilities in Industry 4.0. Since 2010, through their engagements with their Anchor Clients, the company have won several Tata ‘Innovista’ awards, a forum recognizing innovation among all Tata group companies, as both TML and JLR have been at the forefront of innovation. 

Differentiated capabilities in new age automotive trends – electric vehicles (“EVs”), connected and autonomous

Company's end-to-end solutions for EV development, manufacturing and after-sales services are designed to help OEMs develop competitive EVs while maintaining a balance between cost, quality and timelines. The first step in creating EVs is a compelling vehicle concept and engineering design. The company suite of product engineering solutions including outsourced turnkey EV development, product benchmarking, electric vehicle modular platform (“eVMP”) for accelerating product development timelines and their light-weighting framework can help OEMs develop products within competitive timelines. Further, their suite of omnichannel after-sales solutions powered by the Power of 8 platforms can help OEMs engage with their EV customers early and manage the entire customer journey effectively. The company have a long-standing history of developing EV capabilities since as early as 2010. In 2012, the company unveiled an electric vehicle technology demonstrator (“eMO”) at the North American International Automotive Show in Detroit. Since then, the company have executed a number of BEV programs globally, demonstrating their end-to-end capabilities to deliver production vehicles. Over the past decade, the company have been heavily involved in various aspects of their clients’ journey to electrify their product portfolio, particularly their Anchor Clients.

Strong digital capabilities bolstered by proprietary accelerators

The company suite of digital services and accelerators are designed to help OEMs and tier 1 suppliers manage the entire digital product life cycle and engage the customer throughout the product journey. The solutions leverage their deep manufacturing domain knowledge and intimate understanding of clients. their solutions and accelerators across new product introduction (“NPI”) increase the efficiency of automotive, TCHM and aerospace clients in introducing new products to the market. The company range of offerings span across digital product development solutions to strengthen NPI processes, digital supply chain solutions for agility and risk management, digital manufacturing solutions for better quality, agility and operational efficiencies, digital customer experience and after sales solutions to manage the entire customer journey effectively and digital transformation solutions enabled by proprietary digital wall to manage the digital thread.

Marquee set of clients across anchor accounts, traditional OEMs and new energy vehicle companies
The company have a diversified global presence across Asia Pacific, Europe and North America and partner with many of the largest manufacturing enterprises in the world. As of December 31, 2022, their clients are comprised of more than 35 traditional automotive OEMs and tier 1 suppliers and more than 12 new energy vehicle companies. The company's client portfolio includes their Anchor Clients, TML and JLR, leading traditional OEMs like Airbus, McLaren, Honda, Ford, and Cooper Standard and tier 1 suppliers as well as new energy vehicle companies such as VinFast, among others such as Cabin Interiors and Engineering Solutions, ST Engineering Aerospace. The company key accounts are comprised of six out of the top 10 and 11 of the top 20 global automotive ER&D spenders and four out of the 10 prominent new energy ER&D spenders globally.

Tata Technologies History and Corporate Structure

The company were incorporated as ‘Core Software Systems Private Limited’ on August 22, 1994 and, subsequently, their name changed to ‘Tata Technologies Limited’ in 2001. In 2005, the company expanded through the acquisition of INCAT International plc, a global product solutions and services provider serving the automotive and aerospace industries worldwide. Post-merger integration, they began their capabilities incubation phase, building strategic partnerships with Anchor Clients and expanding to non-Anchor Client accounts. In 2013, the company had acquired Cambric Corporation, adding Romanian delivery centers to their portfolio and expanding their industrial machinery engineering capabilities. In 2017, the company acquired Escenda Engineering AB in Sweden, further expanding their global footprint. During their diversification phase, the company have expanded their client base, building processes for onboarding new clients and showcasing our capabilities as a global engineering services provider. 

The table below sets forth their Services and Technology Solutions lines of business and their percentage contribution to their revenue from operations for the periods indicated:

The company provide global outsourced engineering services to assist their global manufacturing clients in conceiving, designing, developing, and realizing competitive products. The company also partner with their clients to synchronize their people and processes across the company, allowing for optimal product lifecycle realization. The company's service their clients using their global sales network comprising 18 global delivery centers in North America, Europe and Asia Pacific, leveraging our balanced on-shore/offshore global delivery model. From shared services to components, subsystems, and systems, to full vehicle turnkey projects, we deliver complex engineering programs and expert domain services to our clients, leveraging a global resource pool throughout the product realization lifecycle. We also specialize in ‘digital thread’ which enables solutions across processes and enterprises. These enterprise solutions help OEMs address challenges of process effectiveness across their value chain from product development to customer experience and accelerate the digital transformation journey.

full service offerings are depicted below:

The company's key areas of competence in the automotive sector span the following:

  • Concept Design – including ideation, concept design, studio engineering, surface design (computer aided styling (CAS) and Class-A) and prototyping (e.g., a Swedish luxury vehicle manufacturer)
  • Tear Down and Benchmarking– including dis-assembling and carrying out competitive benchmarking of vehicles, shouldcost studies, value analysis and value engineering (VAVE) studies for cost and weight optimization, alternative material studies and proposals and maintaining correlated databases of materials, parts and assemblies (e.g., TML)
  • Vehicle Architecture – including development of the vehicle architecture (base layout structure of the vehicle) based on the overall attributes from marketing, the regulatory requirements for target markets, competitive benchmarks to output the initial engineering concept and high-level engineering (e.g., VinFast)
  • Body Engineering – including design detailed engineering of all body parts (mainly divided into interiors including HVAC, exteriors, body-in-white, and closures), design failure mode and effect analysis (“DFMEA”) studies, geometric dimensioning and tolerancing studies, supplier management for full service suppliers, material studies and alternative material proposals, computer aided engineering ("CAE”) studies, and vehicle crash including passive and active safety (e.g., a Chinese new energy vehicle company)
  • Chassis Engineering– including the design and development of chassis systems such as brakes, steering, suspension, wheels and types and powertrain systems like engine, cooling, fuel and transmission (e.g., British luxury automobile manufacturer)
  • CAE Virtual Validation – including CAE virtual simulation of components, sub-systems, systems and full vehicle analysis for durability, fatigue, crash and visual simulation (digital mockup and analysis) (e.g., VinFast)
  • ePowertrain– including design and development of components like inverters, DC-DC convertors, high-power electric motor, electric drive unit) and mounting, power delivery module (PDM), embedded software development and testing, application and integration of components (motors, batteries, invertors) and systems into vehicles and machines and calibration activities (e.g., a British tier- 1 supplier)
  • Electrical and Electronics – including electrical architecture system design, circuit schematic design, simulation, wiring harness 3D routing, diagnostics, electrical and electronics integration and supplier management (e.g., VinFast)
  • Manufacturing– including simultaneous engineering, DFMEA studies, tool process planning and design for sheet metal and plastic parts like dies, jigs and fixtures, assembly fixtures, plastic molds, tool manufacturing computer numerical control (CNC) support, design for manufacturing (DFM) studies like sheet metal formability simulation and soft-tool design (e.g., a British luxury vehicle company)
  • Build and Test– including support for building prototypes, soft tooling of parts, supplier management and integration support and testing the prototypes for assembly and full vehicles including climate tests. Includes leveraging test facilities at external partners to support full vehicle testing (e.g., TML)
  • Launch – including support during the launch phases of the vehicle, vehicle integration support, supplier interaction for issue resolution and concurrent engineering to fix assembly issues, feedback and implementation of design changes (e.g., a Swedish luxury vehicle manufacturer)

Other service offerings include:

  • Product Data Management – including implementation of PLM solutions for our clients and also helping them reduce the gap between physical and digital product development (e.g., a Chinese new energy vehicle company)
  • Smart Manufacturing – helps manufacturing companies adopt Industry 4.0 technologies across their product development value chain and manufacture competitive products while optimizing cost and improving productivity (e.g., a British luxury vehicle company)
  • Enterprise Resource Planning – including implementation and transformation solutions that are designed to help organizations seamlessly implement, migrate and upgrade to future ready platforms (e.g., a North American new energy vehicle company)
  • Customer Experience Management – including solutions to manage a client’s entire omnichannel customer journey offering the flexibility of virtual product interaction with the convenience of buying products online, enabled through digital applications and mobile apps (e.g., TML)
  • Application Management – including services of enterprise application management cutting across PLM-ERP-MES, legacy applications, digital applications and analytics applications (e.g., TML)
  • Data Intelligence – including implementation of analytics solutions across the manufacturing enterprise. This includes use of AI/ML to solve business problems (e.g., TML)
  • Process Automation– including optimization of enterprise processes through automation and simplification (e.g., TM)

Industry Verticals

The company is provide their Services and Technology Solutions across the industry verticals of automotive and others, including TCHM, aerospace and other verticals:

Company's Global Model

The company service their clients using their global sales and delivery network comprising 18 global delivery centers in North America, Europe and Asia Pacific. At each of their global delivery centers the company employ a majority of local nationals which allows them to maintain a responsive local presence near their clients. The company have a local presence in all the key automotive ER&D markets globally with approximately 1,300 employees in Europe, approximately 330 employees in North America, approximately 300 employees in Asia Pacific, excluding India, and 9,000 employees in India, each as of December 31, 2022. We believe our onshore/offshore global delivery model enables us to provide aligned onshore client proximity required to support the iterative nature of product development services, complemented by the ability to operate at scale with cost effectiveness through offshore sourcing.

The table below sets forth the revenue mix of our onshore/offshore delivery model over the periods indicated: 

The company leverage their low cost offshore delivery model to move a greater portion of the work offshore to India and Romania. The table below sets forth the revenue mix of their onshore/offshore delivery model for revenue sourced outside of India and Romania over the periods indicated:

The table below sets forth our revenue by end market geography (based on location of the specific customer site that we serve, irrespective of the location of the headquarters of the customer) for the periods indicated:

Tata Technologies Managements

Ajoyendra Mukherjee -  Chairman and Independent Director

Ajoyendra Mukherjee is the Chairman and Independent Director of the Company. He holds a bachelor’s degree in engineering (electrical and electronics) from the Birla Institute of Technology and Science. He was previously associated with Tata Consultancy Services Limited for almost four decades, where he held positions such as the head of business operations in Eastern India, Middle East and Africa, Switzerland, global head of CSR function, global head of energy and utilities practice and executive vice president and global head of human resources.

Warren Kevin Harris - Chief Executive Officer and Managing Director

Warren Kevin Harris is the Chief Executive Officer and Managing Director of our Company. He holds a bachelor’s degree in engineering (technology) from the University of Wales Institute of Science and Technology, the University of Wales. He holds a doctorate in philosophy (honoris causa) from Amity University, Uttar Pradesh. He has completed the advanced management programme from Harvard Business School. He is a chartered mechanical engineer registered with and a member of the Institution of Mechanical Engineers. He was also awarded with the Malcolm Baldridge National Quality Award for outstanding services to the nation as part as a member of the Board of Overseers of the Malcolm Baldrige National Quality Award for the period from 2013-2016. He has been associated with our Company since October 1, 2005. He is currently a director of certain of our Subsidiaries, namely, Cambric Limited, Bahamas, INCAT International Plc., Tata Manufacturing Technologies (Shanghai) Co., Limited, Tata Technologies de Mexico S.A. de C.V. (under liquidation), Tata Technologies Europe Limited, Tata Technologies, Inc., Tata Technologies Nordics AB (previously known as Escenda Engineering AB), Tata Technologies Pte Ltd and Tata Technologies S.R.L. 

Shareholding Pattern

Financial Performance Of The Company

Balance Sheet

Risk Factors

  • US slowdown
  • Global Economic Concern
  • Rupee appriciation





I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Disclaimer - Given IPO analysis is not an recommendation as it is knowledge purpose only. Source - DRHP, Company's website

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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