Taco targets Rs 3,000-cr revenue from new businesses

Auto components maker and Tata Group company Tata AutoComp Systems Ltd (Taco) is aiming to increase its topline by over Rs 6,000 crore in the next four years

Half of this increase is expected to come from businesses in which it is not currently present. The company, which posted a turnover of Rs 3,436 crore in 2009-10 and expects to cross Rs 4,000 crore during the current fiscal, is aiming at generating Rs 10,000 crore in revenue in the next four years.

Mr R.S. Thakur, Executive Director and CEO, said, 50 per cent of the growth will come from organic growth, and the balance from new businesses.

Non-auto portfolio

Taco is also working on building its non-auto portfolio. “In the next four or five years, 20 per cent of our business will be non-auto, not counting the Rs 10,000 crore,” he added.

Though plans for this have not been firmed up yet, one of the options could be to expand on the plastic injection moulding capability in areas such as furniture or using existing steel stamping capacity for white goods makers with whom the company is in talks, Mr Thakur said.

During the 2010 fiscal, Taco did business of Rs 3,436 crore. The company's current accumulated losses are at Rs 90 crore, he said, adding that these were expected to be wiped out during the current year.

Taco is setting up Technology Centres, and these will gradually be set up in each of its companies for all products, he said. Last week Taco announced capex plans of Rs 300 crore this fiscal to enhance manufacturing capacity and set up new plants in Sanand (5), Jamshedpur (4), Bangalore (2) and Dharwad (1).

Almost all of them will be operational by the year end.

Source: indiacar.com Source : Business Line (Online Edition) (6/24/2010)