The company is in talks with several potential partners for more acquisitions in the future.
05 Apr 2025 | 1655 Views | By Ketan Thakkar and Ashutosh Radhey Shyam
Tata AutoComp Systems Ltd. (TACO), a leading automotive components supplier under the Tata Group umbrella, is poised to scale new heights through an aggressive focus on inorganic growth while maintaining a strong trajectory in organic expansion. The company, which recently acquired two key automotive interior suppliers in Europe—Artifex Interior Systems ...
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Tata AutoComp Systems Ltd. (TACO), a leading automotive components supplier under the Tata Group umbrella, is poised to scale new heights through an aggressive focus on inorganic growth while maintaining a strong trajectory in organic expansion. The company, which recently acquired two key automotive interior suppliers in Europe—Artifex Interior Systems in the UK and IAC Sweden—is doubling down on its strategy to accelerate global growth through targeted acquisitions.
“We want to grow both organically and inorganically,” said Arvind Goel, Vice Chairman of Tata AutoComp Systems, in a recent interaction. “The idea is to grow organically at a rate of 30% per year and then supplement that growth through inorganic opportunities.”
The acquisition of an 80% stake in Artifex, formerly known as IAC UK, was completed for £77 million, with a potential deferred payment of £6.3 million. While the financial details of the IAC Sweden acquisition remain undisclosed due to the involvement of the Swedish bankruptcy court, the two acquisitions together are expected to add approximately ₹10,000 crore to Tata AutoComp’s top line—marking a significant leap in its international growth agenda.
Goel emphasized that Tata AutoComp continues to evaluate acquisition targets aligned with its core strengths, particularly in areas such as interiors, electric mobility components, and advanced manufacturing. “We’re constantly looking for the right opportunities at the right time,” he said. “If there is a good business, I don't think investment is an issue. The key is to find the right fit—strategically and operationally.”
According to Goel, more M&A announcements are on the horizon, with the company in advanced discussions with several potential partners. While he declined to specify the number of companies being evaluated, he confirmed that “some more M&As will definitely happen,” he asserted.
While Tata AutoComp’s interior systems portfolio may see further additions, the company is also actively exploring new verticals beyond its current focus. “We are discussing new domains internally. Some more interior-focused businesses may be added, but we’re also looking at completely new verticals,” Goel shared. “As soon as you add more verticals, you create new avenues for growth—both within the Tata Group and beyond. It provides a foundation from which to accelerate expansion across various segments.”
The timing of these moves comes amid increasing strain on European OEMs, creating an influx of stressed assets. Goel acknowledged this shifting landscape: “The opportunities for M&A have increased. With many European businesses under pressure, there are more stressed assets on the table. And it’s not just Tata AutoComp—a lot of companies are currently evaluating these options.”
However, Goel also noted that acquiring stressed assets demands patience and preparation. “You need to be prepared to infuse cash over 3–4 years because recovery takes time,” he said. “You can’t rush into these things. You must plan carefully and assess the worst-case scenario for the next 2–3 years before making a move.”
Such a long-term commitment requires internal strength—both in terms of capital and human capability. “You need bandwidth—both financial and human resource capacity—to manage through uncertain periods. That’s where being part of the Tata Group helps tremendously. We possess the ecosystem, support, and resilience to navigate these cycles more effectively than most.”
Goel added that Tata AutoComp sees significant value in group synergies, with companies such as JLR, Tata Motors, TCS, Tata Technologies, Tata Elxsi, and Tata Power providing collaborative opportunities across multiple domains. “Our Group Chairman often reminds us of the opportunity that exists within the Tata ecosystem itself,” he said.
Despite global headwinds, Goel views today’s disruptions as a window of opportunity. “Disruption creates opportunity. Of course, geopolitical and economic challenges will continue to arise. But that’s what leadership is about—navigating uncertainty, staying prepared, and building for the long term.”
While no formal investment roadmap has been publicly disclosed, Tata AutoComp is expected to continue pursuing international targets that complement its existing capabilities and expand its presence in strategic markets, particularly in Europe and emerging electric vehicle (EV) supply chains.
Tata AutoComp has demonstrated robust financial performance in recent years, reporting a 36% compound annual growth rate (CAGR) from FY20 to FY24 and achieving $2.3 billion in revenue in its most recent fiscal year. The company aims to double its export contribution from the current 16–17% to 30% over the next five years, positioning itself as a key global player in the evolving mobility ecosystem.