Mumbai: Tata AutoComp Systems (Taco), a Tata group company which supplies a range of auto components, is looking at investing Rs 300 crore this financial year.
The Tata Nano sagaA third of this investment will be towards setting up 4 plants in Jamshedpur, 2 plants in Bangalore and one in Dharwad, RS Thakur, executive director and chief executive officer, said. About 20% of the investment will be towards quality improvement and balance for technology upgradation.
Taco is also setting up five plants in Sanand, Gujarat, to supply for Tata Nano. One plant is up already and two would be starting shortly. Thakur said currently they are supplying 20% to 25% of components for Nano and are in talks with Tata Motors to increase the share.
Tata Green batteries constitute 50% for Nano battery supply while 50% comes from Exide.
Thakur said that Taco would talk to Tata Motors to increase this share as well.
On supply of engine parts for Nano diesel, Thakur said, “A lot of things need to be sorted out between us and Tata Motors on that.”
The company is also looking at a 50:50 split between supplying components to Tata Motors and other automotive players. Thakur said, “Currently, two-thirds of our supply goes to Tata Motors and about one-third to the rest. While we would want Tata Motors to keep growing, we would also want to increase our exposure to other players.”
Taco is also in talks with Maruti Suzuki and Hyundai to begin supplies to them.
The company will continue to look at acquisitions and joint ventures, Thakur said.
While it wants to explore component supply for hybrid and electric cars and also look at manufacturing airbags, Taco, in the next five years, is eyeing 20% of its business from non-automotive side such as white goods. Currently, the share is less than 5%.
The company is aiming at increasing its turnover from Rs 3,500 crore last fiscal to Rs 4,191 crore in fiscal 2011. It is also targeting a turnover of over Rs 500 crore of all the group companies in the next 3 years.