June 24, 2010 | Indian Express
Taco looks beyond city, exits 5 ventures
Over the past one year, city-based Tata AutoComp Systems (Taco) has disinvested from seven joint ventures, five of them in Pune. The Tata Visteon Automotive Pvt Ltd that produced lighting systems, TACO Visteon Engineering Center, TACO Faurecia Design Center, TC Springs Ltd and Knorr-Bremse Systems for Commercial Vehicles India Pvt Ld that manufactured braking systems for commercial vehicles are among the five city companies from which Taco has exited. Besides, it has also exited Technical Stampings & Assemblies Ltd, Chennai, and TACO Kunststoff Technik GmbH, Germany, over the year.
Taco chief executive RS Thakur said the company was targeting a turnover of Rs 10,000 crore by 2014, up from around Rs 3,436 crore now. He said none of the 12 new plants, with an aggregate investment of Rs 300 crore, would be located in the city. Sanand in Gujarat, with five units catering to Tata Nano, will be the major gainer while Jamshedpur will get four, Bangalore two and Dharwad one.
Taco also plans to exit from two more joint ventures soon. Thakur said the company would add non-auto products in its portfolio to de-risk itself from any downturn in the automotive sector. “We are yet to finalise the areas in the non-auto portfolio; it will take three-four years to come up with products. We are looking at 20 per cent business from the new segment. White goods, switch boards and other plastic goods are some of the areas we are looking into.”
Taco is also looking at new areas within the auto portfolio, like forging alloy wheels, airbags and sensors. “Tata Motors hold 26 per cent shares in Taco, but we are in talks with all auto manufacturers. A top official delegation had recently visited Maruti Suzuki. We are also in talks with Hyundai.”