Pune: Tata Sons executive director and Tata AutoComp Systems chairman R Gopalakrishnan said the auto industry is at the beginning of a sunrise.
“We believe we will continue to have a role and participate in the growth,” Gopalakrishnan said. Tata AutoComp Systems for the Tatas is a way to participate in the modernisation of auto component industry. “In 10 years, we can become a $4 billion company,” he said.
“From the Tatas point of view, this is an important company for us and there are economic reasons not just emotional. This is one way to participate in the highest growth industry,” Gopalakrishnan said. The American market is shrinking, China has grown and he hoped that the Indian automotive market would see a growth of 10 million to 11 million units. “It is a growth industry and the ambition of customers will also rise,” he said on Wednesday at the 15th anniversary of Tata AutoComp Systems. Tata AutoComp Systems CEO & executive director RS Thakur said the company would become a $2 billion company by 2014-15 and they were very much in line to do that. Each of Taco's business is making profit and by turn it would be among the auto component group, he said.
Tata AutoComp Systems has put its foot on the accelerator to enable it to absorb technology across all its business. “We were busy at growing the business 35%, CAGR and technology absorption got left behind. We want to catch up on lost time,” Thakur said. “Each business needs a technology centre and right now out of the dozen, two will be operational. By December end, the company will start two technology centres — Tata Yazaki, a wiring harness company, and Tata AutoComp GY Batteries, a JV with GS Yuasa for automotive battery and inverter battery.
Taco has nine manufacturing ventures with 44 plants across the country and four service businesses. It has nine joint ventures and five entirely Tata AutoComp-owned companies under its fold. Half of the company's revenues comes from 100% owned companies. Taco has also got a small window opening up to become a supplier for Land Rover as it could be supplying them seating systems when the company starts assembling Land Rovers in India.
Gopalakrishnan said Taco had wisely chosen to partner with world-class companies and almost all of them were either number one or two in their business and that was a great advantage to the company. In the old days, JVs were devices to enter the market and now they enter with the idea of developing technology, he said.