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Tata Technologies said the company is open to mergers and acquisitions ranging between $30 million and $50 million globally, including in India.
The company provides engineering services outsourcing and product development in information technology (IT) to the global manufacturing industry.
Eyeing OEM-makers“We will continue to look for technology, domain or customers that we don’t have. For example, we took over a company that was bigger than us before ($90 million). We have got over $100 million of cash, so there is no limitation for us. But, $30-50 million range is a good target,” Patrick McGoldrick, Managing Director and Chief Executive Officer, Tata Technologies, told Business Line .
He said the company is also open to acquire global original equipment manufacturers (OEMs) in automotive engineering domain, which have presence in India, but are unhappy or could not manage. “Those kinds of captives are also attractive for us for acquisition,” he said, adding that as of now the company is ‘fishing and searching’ for such acquisitions.
Tata Technologies, in April 2013, had acquired US-based Cambric Corporation, an engineering services to help its clients in Europe and in return, Cambric’s access to the Asia Pacific region.
Key marketsThe company, which has major businesses coming from automotive engineering technology and services, said China and India are growing and there are opportunities in the area, particularly India with more engineering talents coming up. For example, he said that even if the company has 200 openings in Detroit for engineers, but there are no engineers and same in Japan. But, in India, there are a lot of good engineers graduating and it is good for the industry.
Tie-up with varsitiesHe said the company also has programmes with some of the universities to prepare young engineers for automotive industry and make them ready for employment.
“India has an edge in this regard from school onwards,” he added.
On revenue, the company that has a target of achieving $1 billion by 2017 (from around $700 million now), Patrick said it is on track, and such acquisitions will help the company achieve more.
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