Tata AutoComp Systems Ltd. Business Report FY ended Mar. 2017
Recent Years
Acquisitions
-In August 2016, the Company announced that it would acquire TitanX, a leading engine and powertrain cooling solutions supplier to the commercial vehicle industry. TitanX has plants across North America, South America, Europe and China with sales of approximately USD200 million and is currently owned by EQT Opportunity and Fouriertransform. The transaction is expected to close by the end of 2016.
Subsidiary Performance
Tata Toyo Radiator Ltd
-During the fiscal year ended March 31, 2016, Tata Toyo Radiator Ltd had INR 5.2 billion in revenue from operations and INR 178.9 million in profits after tax.
Automotive Stampings and Assemblies Ltd
-During the fiscal year ended March 31, 2016, Automotive Stampings and Assemblies Ltd. had INR 2.6 billion in revenue from operations and INR 206.9 million in profits after tax.
Nanjing Tata AutoComp Systems Ltd
-During the fiscal year ended March 31, 2016, Nanjing Tata AutoComp Systems Ltd. had CNY 141.8 million in revenue from operations and CNY 10.2 million in profits after tax.
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)
Awards
-During the year, the Company and its subsidiaries received the following various awards and recognitions from OEM customers for improvement in performance in terms of delivery and quality:
| Customer | Awards/Recognition |
| Tata Motors | Extraordinary contribution - Overall Performance |
| Toyota Kirloskar Motors (TKML) | Customer Delight in Service Parts Operations for the year 2014-2015. |
| Mahindra Swaraj | Supplier Excellence Awards - Overall Performance |
| Tata Motors | “Preferred Quality Supplier” |
| Tata Motors | Best Supplier of the Year, for its contribution towards Total Cost of Ownership |
| Tata Motors | Best Supplier of the Year, for supply Performance in Spares and Customer Care Division |
| Fiat India | the “Best Improved Supplier” award for 2015 |
| Nissan Group of India | Outstanding support to Nissan After Sales for FY 2015 |
R&D Expenditure
|
(in million INR) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Total | 71.6 | 66.3 |
R&D Activities
-In the fiscal year ended March 31, 2016, the Company engaged in the following research and development activities:
Interiors & Plastics Division
- Completed development for engine stuffer
- Continued development of cylinder head covers, armrests, fabric integration processes, as well as complete interior and exterior packages for small passenger vehicles and compact SUVs
- Completed implementation of gas-assisted injection molded grab handles for an SUV
- Completed development of low pressure polyurethane foam for applications in side impact door trim
- Continued FSS design and development of trims for a global OEM
- Continued fender design for an SUV
Composites Division
- Continued work on alternative sources of performance additives for sheet molding compounds (SMC) and bulk molding compounds (BMC).
- Continued development of SMC and BMC technology for electrical applications
- Developed pigmented SMC for Webasto and Daimler components
- Completed low and non-sanding SMC formulations for polyurethane paint systems
- Continued research of nano technology applications in composite technology
- Continued development of polyamide based carrier film usage to improve SMC quality
- Implemented adoption of resin transfer molding technology for low volume parts
- Continued development of bulk and dough molding compound technology for electrical applications
- Completed development of low mass SMC
Future research and development activities that the Company plans to engage in are as follows:
Interiors & Plastics Division
- Develop part integration and plastic recycling technologies in part assembly process, as well as improve the quality of new products
- Develop capability to build air vent and mechanism parts
- Integrate high-end assemblies with sensors and wiring harnesses
- Develop thin-walled products
- Improve competency in hot foil stamping and lightweighting of interior and exterior trim
Composites Division
- Develop online paintable standard and low mass SMC materials.
- Develop in-situ PU foaming technology for improving thermal insulation and NVH performance of engine hoods.
- Develop BMC material for motor encapsulation.
- Develop BMC material for Tribological application.
- Develop BMC for electrical coil encapsulation.
- Develop green pigmented SMC for JD parts.
- Develop low pressure SMC for JD roof. 8
- Develop high performance SMC for CAT parts.
Investment in India
-During the fiscal year ended March 31, 2016, the Company made investments in two joint venture companies: INR 4.9 million in Tata Auto Comp Katcon Exhaust Systems Pvt Ltd and INR 49.7 million in TM Automotive Seating Systems Pvt. Ltd.
-During the fiscal year ended March 31, 2016, the Company had acquired land in Chakan to set up a new manufacturing facility for some of its units. The land development job has already started and the construction activity is likely to start during the fiscal year ending March 31, 2017.
Investment outside India
-The Company inaugurated its second manufacturing plant in China on October 16 2015, in the Changshu Economic and Development Zone (CEDZ). The Tata AutoComp Changshu plant commenced its production, supplying parts to both the Chery-Jaguar Land Rover Evoque and Discovery programs. The plant and will start supplying for Jaguar cars in 2016. The Company has invested CNY 20 million in the first phase of operation, and will initially employ 25 people. The plant is equipped with state-of-the-art robotic welding and final assembly facilities. The Company plans to expand its Changshu operation in coming years to set up a fully integrated manufacturing plant and intends to serve Chery-Jaguar Land Rover and other important customers from Changshu.