Tata AutoComp Systems Ltd. has been supplying components and services to the auto industry since 1995. In December 2016, it acquired TitanX Engine Cooling, a global player offering engine and powertrain cooling solutions to the commercial vehicle industry. We caught up with Mr. Ajay Tandon, MD & CEO of Tata AutoComp Systems, for a detailed discussion to get to know the relevance of this acquisition and other growth plans of the company.
Excerpts:
Firstly, congratulations on taking over TitanX. Could you tell us the rationale behind this acquisition?
TitanX is a leading player in the engine and powertrain cooling space. Its customers include all major OEMs in the medium and heavy duty truck industry. TitanX has a vast manufacturing footprint spanning North America, Europe, Mexico, Brazil and China. TitanX acquisition gives us a global manufacturing footprint and access to major OEMs in the commercial vehicle industry.
Could you give us a brief background of your overall portfolio? Also please take us through some of the recent developments at your end.
At Tata AutoComp, we have divided our portfolio into three verticals – Interior & Exterior, Cooling, Emissions & Suspension, and After Market & Services.
Within our Interior & Exterior vertical we have our Plastics Division, Composites Division, Automotive Stampings and Assemblies, TM Seating and Tata Ficosa Automotive. Each of these business units is currently working closely with its customers to add value to the offering by enhancing functionality, focus on safety & comfort, and is also involved in projects that help reduce weight of the component. For example, our outer rear view mirrors are designed to have a projection lamp, a blinker type side turn indicator, a camera and antenna. By packaging the antenna within the ORVM, we reduce the length of the wiring harness as well as eliminate the external fin-shaped receiver. Both these lead to cost saving for the OEM. Similarly, TM Seating is working on a modular design from a basic 2 way manual seat to an 8-way fully automatic seat.
In our Cooling, Emission & Suspension vertical we have Tata Toyo Radiator offering engine cooling solutions to customers in India, TitanX offering engine cooling solutions to customers outside India, Tata AutoComp Katcon Exhaust offering exhaust and emission after-treatment solutions, Air International TTR offering HVAC solutions, as well as TATA AutoComp Hendrickson Suspensions offering the advanced suspension system for commercial vehicle. Each of business unit has capabilities to offer the latest products required to meet all the specific regulatory changes.
In our After-market & Services vertical, Tata Green Batteries has recently launched VRLA batteries for two-wheelers. Our Supply Chain business offers engineering and supply chain services to leading Indian and global customers.
As a company with business interests in different fields, what are your medium- and long-term plans?
Our present focus is on areas of safety, comfort, emission / fuel efficiency and aftermarket. Going forward we would like to have a role in electric and connected vehicles.
We are examining each opportunity in these areas. For example, we have expanded Tata Ficosa’s portfolio to offer electronic solutions like ADAS, telematics, etc. Tata Toyo has also introduced lightweight EGR and oil coolers. TATA AutoComp Hendrickson Suspension is offering the advanced suspension system for commercial vehicles, Air International TTR is providing HVAC solutions for both passenger and commercial vehicles, and Plastic & Composite division offers solutions for light-weighting, etc.
How do you see the Indian automotive market at present and how to face the challenging times?
We are passing through an exciting phase. In order to take advantage of it or rather remain relevant, one needs to be agile with an entrepreneurial mindset. We are investing in building this culture within our organization so as to be ready to tap the available opportunities at the right time.
