Tata AutoComp Systems Ltd. Business Report FY ended Mar. 2015

Recent Years

Business Overview

Automotive Stampings and Assemblies Ltd. (ASAL)
-In the FY ended March 31, 2015, ASAL, one of the Company's subsidiaries, had sales of INR 2,886.5 million, a decrease of 14.5% from the previous year. This was caused by a decrease in automotive and commercial vehicle production volumes, especially in models that the Company had a heavy dependence on. Also, reduction in sales of tools, dies and molds had a adverse effect on sales.

Joint Ventures

Katcon Global
-In 2014, the Company signed a 50/50 joint venture agreement with Mexico-based Katcon Global to provide exhaust systems and emission aftertreatment systems to the Indian automotive industry. The range would cover exhaust solutions for passenger cars, utility vehicles, medium and heavy commercial vehicles, buses, farm tractors and off-road vehicles. The product offering will include solutions for both the hot end and cold end of the exhaust system namely, catalytic converters, diesel particulate filters, selective catalytic reduction, mufflers and silencer modules. The joint venture will be headquartered in Pune, Maharashtra, India. (From a press release on October 20, 2014)

Magna International
-In 2014, the Company and Magna International Inc. have signed a 50/50 joint venture agreement to provide seating systems to the Indian commercial vehicle industry. The joint venture, which will be headquartered in Pune, India, will be focused on delivering innovative seating systems to commercial vehicle manufacturers as well as buses. (From a press release on September 23, 2014)

T.RAD
-In December 2013, the Company and T.RAD Co., Ltd. announced that their India-based joint venture, Tata Toyo Radiator (TTR), signed a contract with Air International Thermal Systems, a major HVAC supplier, to establish a 50-50 joint venture. Capitalized at approximately JPY 300 million (USD 2.86 million), the new company will construct a plant in Pune, India to produce HVAC systems for Tata Motors. (From a press release on December 19, 2013)

Dissolution of joint venture with Johnson Controls
-In May 2013, Johnson Controls Inc. announced that it would acquire the Company's 50% stake in Tata Johnson Controls Automotive (TJCAL), a joint venture between the Company and Johnson Controls. The Company divested its stake in the joint venture in May 2013, which made TJCAL a wholly owned subsidiary of Johnson Controls. The financial details of the acquisition were not released. (From a press release on May 28, 2013)

Dissolution of joint venture with Yazaki
-In November 2012, Yazaki Corporation announced that it would purchase all the shares of its wire harness joint venture, Tata Yazaki AutoComp Limited (TYA), from the Company. The purchase made TYA a wholly owned subsidiary of the Yazaki Corporation. Both companies agreed to this acquisition as of November 2, 2012. Yazaki Corporation completed the purchase process in January 2013, changed the corporate name of TYA and pursued further business expansion for the manufacture and sales of automotive wire harnesses. At the time of the announcement, TYA was capitalized at INR 1 billion (USD 18.4 million) and had 5,600 employees. (From an article in the Nikkan Jidosha Shimbun on November 6, 2012)

ISRINGHAUSEN
-In October 2008, the Company's joint venture with Johnson Controls, Tata Johnson Controls Automotive Ltd. (TJCAL), entered into a joint venture with ISRINGHAUSEN GmbH & Co. KG and incorporated ISRI TJC Pvt. Ltd.

Hendrickson International
-In June 2006, the Company and Hendrickson International Corporation, USA formed a joint venture called TACO Hendrickson Suspensions Pvt. Ltd.

Acquisitions

-In 2010, the Company acquired Gestamp Sericios, S.L.'s entire stake in Automotive Stampings and Assemblies Ltd. (ASAL), making it a wholly-owned subsidiary of the Company.

-In 2009, the Company acquired IPM Inc.'s stake in Automotive Composite Systems (International) Ltd., currently known as TACOCL. The acquisition made TACOCL a wholly owned subsidiary of the Company.

Awards

-Major awards that the Company won in 2009 are listed below:

Business Unit	Customer	Awards/Recognition
IPD	Toyota	Achieving quality targets
ASAL	Tata Motors	Excellence in cost reduction
Tata Johnson Controls Automotive - TJCAL	Tata Motors	Excellence in performance, cost reduction and after sales support
TTRL	Cummins	Overall Performance in the areas of quality, cost, delivery, development and management
	Mahindra & Mahindra	Outstanding Performance in the category of Proprietary Engines
	Ashok Leyland	Gold Award for overall performance in the category of Proprietary Engines
Tata Ficosa	Toyota	0 PPM Award

R&D Structure

TTRL
-In March 2011, T.RAD of Japan and the Company signed a memorandum of understanding to set up a research and development center in Pune.

Capital Expenditure

(in million INR)

	N/A since FY ended Mar. 31, 2011	FY ended Mar. 31, 2010	FY ended Mar. 31, 2009	FY ended Mar. 31, 2008
Total	N/A since FY ended Mar. 31, 2011	830.97	2,166.29	2,902.52

-ASAL invested INR 28.9 million in capital expenditures for the FY ended March 31, 2015, a decrease of 59.3% from the previous year.

-The Company reduced its capital expenditure in FY that ended in March 2010 and 2009 as a result of a reduced need to invest in additional production capacity.

-In FY ended March 2008 and 2007, the majority of capital expenditure was invested in production facilities for new vehicle programs such as the Tata "Vista" and "Manza".

Investment in India

ASAL
-In 2012, the Company announced that the expansion activities planned at the Halol Plant to cater new customer programs were scheduled to be completed during the FY ending March 31, 2012.

Tata AutoComp
-In June 2010, the Company announced that it would invest approximately INR 3 billion in plants and equipment by March 2011. Of the total investment, INR 1 billion of the investment would be allocated to constructing seven new plants: four in Jamshedpur, two in Bangalore, and one in Dharwad.

IPD
-In March 2010, the Company inaugurated India's first Laser Scouring Facility at its Interiors and Plastic Division's plant at Chinchwad, Pune.

-In 2008, the Company acquired land and properties at Uttarakhand for its interiors and plastics division for a Tata Motors project pertaining to a low weight carrier.