April 2015 | Philip Chacko
'We see opportunities in aerospace and defence'
With the Indian government planning to increase domestic procurements, Tata Technologies sees tremendous growth opportunities in aerospace and defence. Excerpts from an interview with chief executive officer Warren Harris.
Is the company's $1 billion target in annual revenues by 2017 attainable if the current economic climate persists?
Our 'big, hairy and audacious goal' of $1 billion is still attainable but we will need to complement our organic growth plans with targeted acquisitions. We have now successfully integrated the Cambric acquisition and have used this opportunity to institutionalise a serial acquisition process that we intend to leverage for future transactions.
Beyond the automotive industry, where is the greatest potential for growth for Tata Technologies?
We see opportunities in aerospace and defence, which we expect will grow as the Indian government pursues its plans to increase domestic procurements in the next couple of years. We are also receiving a strong response to our full-vehicle proposition in the industrial machinery space. I continue to be excited about the work that we are doing in digitising the value chain of many of our customers with our solutions in product life cycle management, enterprise resource planning and customer relationship management.
What are the principal challenges the company faces as it gears up for expansion? Any booby traps to look out for along this way?
We can never be complacent. Developing scale in relevant areas will continue to be a challenge for us. Finding and developing the best capabilities in our industry is a core competence that we will need to continue to invest in and refine. At a macro level the indicators are positive. The 'engineering and research and development' expenditure of the global top 100 companies is set to grow at a much faster rate than the global economy, and Indian companies like ours — due to talent accessibility — will increasingly be relied upon to satisfy this demand. The majority of issues will, therefore, be about execution and deciding how and where we are going to compete.