Tata Technologies sees large opportunities in aerospace sector

Tata Technologies Ltd., a Tata Motors' promoted company, is leveraging its automotive experience to serve clients in adjacent verticals such as aerospace, where it sees large opportunities for growth. It is working to secure projects with top ER&D spenders in automotive, aerospace, transportation and construction heavy machinery. It has been selected as an EMES3 Strategic Supplier by Airbus and the global ER&D spending for aerospace & defense is expected to increase by $10B by 2026. Tata Technologies is involved in refurbishment of Air India's fleet and is involved in reverse engineering process. It provides services like concept design, virtual validation, MRO/tooling, etc. to global aerospace companies. It plans to tap the capital market with an offer for sale public issue of ₹3,000 crore.

Tata Motors’ promoted Tata Technologies Ltd. is leveraging its automotive experience to serve clients in adjacent verticals such as aerospace where it sees large opportunities for growth, a top executive said.

The company is working to secure projects with the top Engineering R&D (ER&D) spenders within its focus verticals of automotive, aerospace and transportation and construction heavy machinery (TCHM).

The company’s clients primarily include tier 1 suppliers and OEMs. For example, it has been selected as an Engineering, Manufacturing Engineering, and Client Services Strategic Supplier (“EMES3”) by the global aerospace company, Airbus.

The global ER&D spending for the aerospace and defense market was valued at $52 billion in 2022 and is expected to increase by approximately $10 billion by 2026, according to a Zinnov report.

The outsourced ER&D market in aerospace would be about $10-11 billion (16-17%) of the total Engineering R&D spend of $62 billion by 2026, according to the Zinnov industry report.

“We are extremely excited about the aerospace sector,” said Savitha Balachandaran, CFO, Tata Technologies. “Building upon our experience in the automotive sector, we are seeing much more opportunities in the aerospace sector. Today 10% of our revenue comes from aerospace and this is going to grow,” she added.

“Also the investment the Tata group is making in the sector provides lot of opportunities. Air India is already a customer and we are going to grow that partnership,” she said. Tata Technologies is involved in the refurbishment of Air India’s existing fleet and is helping in the airline’s revival.