The Tata Tech IPO was oversubscribed nearly 70 times and slated to list on November 30. In an interaction with Financial Express Online, Warren Harris, CEO & MD, Tata Technologies said that the response will surely help “improve brand perception.” The company is currently focussing on building capabilities across multiple dimensions.
New addition of large ER&D spenders, expansion of digital engineering and embedded software capabilities, strengthening service delivery and expanding client base in the education sector are some of the core areas that Tata Tech is focussing on.
Here is an excerpt of an interview with Warren Harris, CEO & MD, Tata Technologies
Tata Tech is a key partner to the Tata Group for the Reimagine Strategy; details of plans going forward?
Tata Motors and JLR are both our anchor clients, with whom we work across the product value chain from product engineering to digital transformation solutions. Our anchor clients (Tata Motors and JLR) account for approximately 34% of our FY23 revenues.
We also work with other Tata group companies like Air India and Tata Steel, and look forward to collaborating with them on their strategic goals. We believe that we are well positioned to benefit from the Tata group’s business priorities to increase investment in EVs, aerospace and defence. The ‘One Tata’ philosophy further benefits group companies with focus on utilising scale, simplification, and synergies between Tata Group companies.
We also have the opportunity to leverage and benefit from the Tata Groups’ global network for exploring potential business opportunities and acquiring direct access to senior decision makers at potential end clients.
You now have 35+ OEMs and Tier 1 suppliers in your client list, including McLaren, Honda, Vinfast. Can you expand on the focus areas?
We are a pure-play manufacturing focused ER&D company, primarily focused on the automotive industry and we are currently engaged with seven out of the top 10 automotive ER&D spenders and five out of the 10 prominent new energy ER&D spenders in 2022.
We aim to strengthen our business development strategy to focus on high potential accounts with large annual ER&D spends and new energy vehicle companies. In addition, we are committed to building a presence in all geographies that have a significant manufacturing sector. We see large growth opportunities in select geographies, including France, Germany and China. Territory specific strategies, such as the EV proposition for China, aerospace proposition for France and embedded solutions for Germany, are being cultivated to ensure a sustainable growth trajectory.
Tata Tech recently got empanelled by Airbus -Elaborate on the focus areas and scope of growth in the Aviation segment?
Our empanelment with Airbus as an engineering, manufacturing, engineering and client services strategic supplier, makes us well-positioned to benefit from the growth in the aerospace market. In the aerospace vertical, we help global aerospace companies to design, engineer and validate aircrafts using advanced processes, tools and technologies to manage our clients’ capacity utilization, product quality, operations and maintenance costs, and safety and security.
With air travel gradually rebounding and global demand for aviation services increasing, aerospace companies are reinvigorating their R&D efforts. The global ER&D spend for the aerospace and defence market size was valued at $52 billion in 2022 and is expected to increase by approximately $10 billion by 2026.
