March 10, 2005 | Financial Express
Tata AutoComp forms JV with Singapore firmTata AutoComp Systems Ltd (TACO), the auto componet arm of the Tata group, has entered into a joint venture (JV) with Singapore-based terrestrial communications player, MobiApps to form a new company called TACO MobiApps Telesystem Ltd (TMT). TACO will hold a majority stake of 58% in the new JV while MobiApps will hold the remaining 42% equity. MobiApps is one of the leading provider of satellite and terrestrial communication based logistics and telematics technologies.
“Electronics and veicle telematics in particular, is a growth area in the automotive industry and the launch of TMT marks TACO’s entry into this area,” said TACO managing director DS Gupta. TACO, on its own, already offers a range of products and services in the field of auto components to automotive vehicle manufacturers. According to TMT CEO Praveen Gupta, the objective will be to leverage the strengths of both the partners. “We intend to build TMT to be a global operator, with a clear leadership position in India,” he added.
TACO officials said there was a high potential for improvement of fleet efficiencies through the use of VTS. Both TACO and MobiApps have the necessary technology, automotive domain experience and resources to address this need, they added. “Our challenge is to enable even small fleets to exploit these advanced technologies and vastly improve their short term cash flows,” they explained. “This joint venture continues our growth strategy of being the leader in Vehicle Telematics,” said Sanjay Chakrabarty, CEO, MobiAppsT Holdings.
It is expected that the venture will build on Tata AutoComp’s experience in delivering comprehensive solutions to global automotive OEMs and MobiApps’ competence in wireless and satellite communications.