TEAL to Put up a Plant in Chennai

Titan Engineering & Automation Ltd (TEAL), a 100 per cent subsidiary of Titan Company Ltd of the Tata Group company, is planning to put up a plant in Chennai, and expand its presence at Hosur.

“At Hosur, the company has three units and the fourth unit will come up in Chennai for electronics. We have identified the land, which will be a leased premise. It will manufacture electronics components, support and proximity to customers,” said NP Sridhar, MD & CEO, TEAL. “In Hosur, we have bought 10 acres for expansion,” he told businessline at the company’s plant in Hosur.

The expansion will be part of the five-year ₹430-crore capex plan that the company committed at the GIM 2024. The investment includes ₹200 crore to manufacture components which go in wafer fab equipment that is used in semiconductors production.

Sridhar said TEAL hopes to achieve revenue ranging between ₹830 crore and ₹900 crore in the current financial year. Last fiscal, the company reported revenue of ₹761 crore. We are aiming at 20-25 per cent annual growth in the years to come,” he said.

“TEAL is a well-kept secret of the Titan Group. We began as a watchmaking unit for the company in the 1990s and later went on to function independently, offering manufacturing and automation solutions,” said Sridhar.

“TEAL was born as an in-house engineering team dedicated to high-precision component manufacturing and designing, manufacturing automation machines. The team now boasts of a full-fledged machine building and automation and component manufacturing businesses catering to the global markets,” he said.

Automation Solutions involve creating modular assembly lines for machine construction for various industries, with demand primarily from the auto industry, energy, life sciences, engineering and consumer products.

For example, the company will manufacture an entire assembly line for a client at the Hosur plant and test the product; dismantle the line and install the same at the customer’s premises for mass production. While it will take nearly nine months to install the line at TEAL, it will take a couple of months at the client’s location, he said.

“In the past, we used to procure machines from Germany, France and Italy. However, today, we export machines to them,” he said. The turnkey assembly and testing solutions include solar wafer, watches, shaving blades and pencils, he added.

The manufacturing services focus on high-precision components and sub-assemblies for aerospace, defence and semiconductor equipment, he said.

To a question on revenue from the Tata group, he said it was less now but has the scope to grow in future. Tata Electronics, which makes iPhones at Hosur, is one of TEAL’s customers.

The aerospace and defence business builds precision components and sub-assemblies catering to the global aerospace and defence customers. Aircraft manufactured by Boeing or Airbus have TEAL’s components such as impellers, diffusers and turbine discs, he said. Raytheon is one of the major customers, he added.

For the defence sector, the company builds high-precision components and sub-assemblies for thermal imaging, radars, radio communications, in-flight connectivity, avionics display units components.

“Our components will be in a car, two-wheeler, mobile phone or an aircraft,” he said. For example, in a car, parts like door latch, fuel injector, brake and engine cooling motor have TEAL components. We build machines that manufacture engines,”, he said.

“We have over 150 clients; have installed over 800 projects globally; export to 19 countries and have seven partners globally,” he said.