TEAL Lines up Rs 430 Crore Investment
Titan Engineering and Automation Limited (TEAL), a subsidiary of the Titan Group, has drawn up a Rs 430 crore investment plan to be pitched over five years, across its verticals - electronic components, aerospace, automation, and components for wafer fabs used in manufacturing semiconductors.
In fact, the Hosur-based company is venturing into Chennai with its electronics project. At Hosur, where it has already invested Rs 40 crore to set up a unit for making components for semiconductors being supplied to a global brand, it will invest another Rs 180 crore (out of the Rs 430 crore) to make components for wafer fabs that are used to manufacture semiconductors.
TEAL will also open a fourth facility in Hosur very soon for which it has already acquired 10 acres of land.
“We are on a good growth trajectory and our revenue in 2023-24 fiscal was 761 crore. and we expect to grow between 20% and 25%,” N P Sridhar, MD & CEO, TEAL, told DH at one of the company’s facilities in Hosur. The company is looking at a revenue of Rs 900 crore in the 2024-25 fiscal.
The Chennai facility will come up on leased premises as part of the strategy to be close to electronics manufacturers, Sridhar said, adding that TEAL is now looking to garner more clients in the automation sector from the domestic market with India emerging as one of the largest markets for many products.
“As we speak, both export and domestic markets in the automation sector are 50:50. But the domestic market could be 60 per cent in the next fiscal since we have a lot of engagements with home-grown players. The sectors from where the growth would come are automotive, electric vehicles, electronics, and solar,” he said.
However, components for aerospace and semiconductor would continue to be export-oriented unless manufacturing of planes and chips take place in India.
The company manufactures modern assembly lines at its units in Hosur, put them through extensive tests, dismantle them and install the same at customer’s premises, a process which takes about nine months to a year.
“Our first customer was Delphi Automotive. From importing machines from European countries, we now export assembly lines for automotive companies in France and Germany, the pioneers in the field. We now have 150 plus customers in our automation business and we have delivered about 800 projects,” Sridhar added.
Parts manufactured by TEAL like turbine discs, impellers, and diffusers can be found in wide-body aircraft of Airbus and Boeing and door latch, brake and engine cooling motor in a car or a two-wheeler. Raytheon, one of the world’s biggest defence manufacturers, is also a customer of TEAL.
On semiconductor, Sridhar said the company forayed into the sector during Covid-19 pandemic when no supply chain existed in the country and also because the semiconductor industry had the DNA requirements of aerospace, which TEAL possessed.
“We wanted to leverage our existing capacity and capability and a major player came to us. We have been working with that firm for the past two years. Semiconductor is a growing segment, though the cycle goes up and comes down. Once the enabling ecosystem also comes to India, we will have a clear momentum,“ Sridhar added.
