Taco plans IPO after meeting key milestones

Pune, Apr 28 | Updated: Apr 29 2007, 05:30am hrs
The Tata Auto Comp Systems Ltd (Taco) on Saturday said that there were definite plans to take the company public.

MD, Taco, DS Gupta, responding to a query on the companys IPO plans, said, There are definite plans to take Taco public. There is a definite milestone we have to reach to take it public. Internally there are clear targets and we have to achieve that and then take it public.

Taco has Tata Motors, Tata Industries and Tata Sons as its main promoters. How the IPO could pan out and the eventual stakes of these promoters were an internal board matter and could not be discussed, he said at the opening of Tacos battery plant at Ranjangaon on Saturday.

Gupta said that the company was going to change the way it was working. We will consolidate into specialised areas and we may decreased it in some areas, he said.

The specialised areas identified by Taco were electronics, interiors, safety and emission in addition to what it was already doing and it was looking at global markets in these areas.

The company will be decreasing its portfolio and has already exited a joint venture with Yazaki. Similar things can happen in other businesses, Gupta said, adding that Taco plans to be a player in the engineering products space and not the commodity space.

The company had crossed the Rs 3,000 crore turnover mark in 2006-07 and is growing at 40% CAGR with 15% of business coming from exports. Investments of Rs 500 crore have been made by Taco in these ventures.

Currently the firm has 24 manufacturing facilities and five engineering centres with footprints in US, Europe and China in the auto component business for Indian and global original equipment manufacturers (OEMs).

Taco is also expanding its global business and is looking at having a base in all the automotive centres across the globe. We are present in the US, Europe and building a plant for plastic parts in China and establishing operations in Japan. We will have both manufacturing and engineering centres in these places and JVs will be the most preferred route, Gupta said.