Title Akshat Shrivastava_ Tata Tech IPO Note.pdf ✅

1. History of the firm 2. How the firm makes money 3. Primary competitors 4. Strengths/weakness of the firm 5. Any major investors/future plans/key projects 6. Anything key we are missing Tata Technologies Limited Tata Technologies Limited, a global leader in product engineering and digital services, has carved its niche in the engineering landscape. In this detailed research piece, we explore the firm's history, financial performance, revenue streams, competitors, strengths, weaknesses, key projects, and its highly anticipated Initial Public Offering (IPO). 1. History of the Firm Tata Technologies traces its roots to 1989 when it was founded as the automotive design unit of Tata Motors. In 1994, it became a separate entity while maintaining Tata Motors as the majority stakeholder. Over the years, the company has expanded its global presence, with headquarters in Pune, India, and regional headquarters in Detroit, Michigan. Currently, it operates 18 delivery centers across India, North America, Europe, and the Asia-Pacific region. The company's history is punctuated by significant acquisitions, such as INCAT International in 2005 and Cambric Corporation in 2013, which have played a pivotal role in its growth. The company has grown significantly since its inception and now has a global footprint with operations in 27 countries. Tata Technologies has deep domain expertise in the automotive industry and has been able to leverage its expertise to expand into other industries, such as aerospace and transportation and heavy construction machinery. 2. How the Firm Makes Money Main Industry Overview: Global Engineering R&D ● In 2021, the global ER&D spend is estimated at $1,635 billion.
● North America has the highest share of global ER&D spend and is expected to grow the fastest – due to the higher penetration of software and internet firms in the region. ● The ER&D services addressed market refers to the sum of the ER&D expenditure by global capability centers (GCCs) and the ER&D expenditure outsourced to third-party engineering service providers (ESPs). ● The global ER&D addressed market was pegged at $145-155 billion in 2021. Opportunity for India India has emerged as a favorable destination for outsourced ER&D spend by global enterprises due to its large talent pool, innovation ecosystem, affordable costs, maturing in-house R&D centers landscape, and geopolitical support. The Indian ESP (Engineering Service Providers) market is expected to grow at a CAGR of 13-16% (second only to Eastern Europe, which has a YoY rate of 16-18%) and account for $20 billion, equating to nearly 1/4th of the overall outsourced ER&D spends of $85-90 billion in 2021.
Global ER&D Market Across Verticals ● Automotive: ○ Original equipment manufacturers are the original producers of a vehicle’s components and are at the top of the automotive supply chain pyramid, whereas Tier-1 suppliers are direct suppliers of independent parts for OEMs and aftermarkets. The global automotive ER&D spend is currently pegged at $167 billion and is the largest contributor among the manufacturing verticals, amounting to approximately 10% of the overall ER&D spend. The automotive ER&D spend during 2021 was $167 billion and is estimated to grow at approximately 6% CAGR to $207 billion by 2025. ● Aerospace & Defense: ○ The industry is regaining growth momentum with an increase in travel demand across the globe and has been adopting new digital technologies to improve services to its customers. The ER&D spend for the aerospace and defense industry for the year 2021 stood at $50 billion and is estimated to grow by $4 billion to reach $54 billion in 2025. ● Transportation & Construction Heavy Machinery (TCHM): ○ The global TCHM ER&D spend was pegged at $41 billion in 2021 and is estimated to grow to $45 billion by 2025. The TCHM service provider outsourced ER&D market is currently pegged at $2-3 billion and is expected to grow to $3-4 billion by 2025.