Tata Technologies looking at acquisitions in the size of $35-50 mn

Tata Technologies Ltd, a part of Tata Group, is looking at acquisition of companies in the size of $35-50 million to bring in technology and new geographical areas, said Samrat Gupta, chief financial officer of Tata Technologies Ltd. The company is eyeing revenues of $1 billion, with a head count of around 17,000 by 2017.

“We have a cash of around $150 million with us and in the next four years we would be looking at acquisition of companies in the size of $35-40 million, to support our growth,” said Samrat Gupta, whos is also heading the human resource management of the company. The company has so far executed four acquisitions.

The company, part of Tata Motors, would be looking at acquisition in embedded technology such as new kind of technologies like the electronisation of automobile and aerospace industries, more diversification in these segments and new geographical areas, to bring in synergy with the existing business.

It is expecting growth of 24-25% organically in the near future, considering the acquisitions it made earlier and the client acquisitions, Rupee depreciation and introduction of new platforms, he added. Last five years, the compounded annual growth rate of the company was at 15%.

Tata Technologies currently has revenue of $376 million, as of March 31, 2013, and employs over 6,570 professionals. The company is eyeing revenues to grow to $1 billion and employ levels to go up to 17,000 by 2017.

The company claims that it is one of the few firms where the HR function is headed by the company's CFO, which has its own benefits. The Ebitda per employee in the last three years has posted a compounded annual growth rate of 55% and the cost of workforce has come down from 53% of the total revenue to around 42-44% of the total revenue, due to financial management, said Gupta.

The company serves automobile companies including Tata Motors and Jaguar Land Rover, and aerospace companies like Boeing and Piaggio Aero. Almost 58% of the current business is from automobile sector while 23% is from aerospace and the rest is from heavy engineering and related industry, he added.