Tata Technologies debuts with 180% surge over issue, to tap construction transportation and mining sectors

Tata Technologies, an engineering services provider to automotive and other industries, is eyeing huge opportunities available in the transport, construction, and heavy machinery sectors over the next 3–4 years, the company's top executive told Autocar Professional.

Warren Harris, MD & CEO of Tata Technologies, while speaking on the sidelines of his company's listing at the Bombay Stock Exchange on Thursday, said, "So we are positioning to have the same sought-after capabilities in the mining, farm equipment, and construction equipment space that we can mobilise from automotive."

Meanwhile, Tata Technologies made a strong debut on its opening with a 180% premium while rising nearly three times its IPO price of Rs 500 per share to about Rs 1,400 within minutes. 

Asked to comment on certain media reports suggesting an eventual merger of Tata Technologies post-IPO with Tata Elxsi, another Tata Group company whose businesses often overlap, Harris remarked that at present, three Tata Group companies provide services to the manufacturing industries. It includes TCS, Tata Elxsi, and Tata Technologies. "The addressable space for engineering service providers is US$ 100 billion globally." "So we think there are more than enough opportunities for all three companies to grow and continue to flourish. We look from time to time to complement, collaborate, and work together, but more often we operate independently," added Harris.

Tata Technologies specializes in providing cutting-edge engineering services, digital solutions, and product development across sectors, with the automotive industry accounting for almost 70% of it. It primarily caters to the major OEMs and Tier-1 suppliers in the engineering research and development (ER&D) space. KPIT Technologies, L&T Technology Services, and Tata Elxsi are some of the major companies with which Tata Technologies competes in India.

Its obvious that  Tata Technologies' competitors, too, are vying for the lucrative construction and mining space in India. Their enthusiasm to aggressively corner market share in the construction transportation and mining space stems from the fact that India's construction equipment industry is likely to witness over US$ 4.5 billion worth of investments over the next 5–7 years as demand arising out of  infrastructure projects touches a new high. The expected  investments will come from the original equipment manufacturers (OEMs) and their suppliers

Autocar Professional reported earlier, on June 26, that Tata Elxsi, a provider of design and technology services, is looking to bring its global intelligence operator assistance system to India to be deployed in geo-fenced sectors, including mining, ports, agriculture, and airports. The company is already in discussions with a number of infrastructure-related companies to deploy or modify their existing vehicles to make them more autonomous and operationally secure.

Likewise, on October 31, the publication also reported on how KPIT, a leading provider of software-related products for the automotive industry, plans to shift its attention to the off-highway segment, including sectors such as agriculture, mining, and construction equipment. While the company has primarily focused on trucks in the commercial vehicle (CV) segment, it now aims to bring a sharper focus to off-highway applications.

Also read
Tata Elxsi to bring autonomous vehicle technology to India's Infrastructure

KPIT aims to broaden focus on off-highway segment as mining industry transforms

Tata Technologies working on gender-neutral leave policy, expected in a few months