Engineering and industrial design services provider Tata Elxsi, a Tata Group company, plans to buy smaller companies in areas such automotive, media and healthcare, helping it grow the business faster. The over Rs1,000 crore company has built capabilities to provide niche automotive design services for driver-less cars and telematics for connected cars.
“We have reasonable cash on the books and we have always been profitable. Right now, we have Rs 200 crore plus cash. It is starting to give us an opportunity to think about inorganic growth. We will continue to focus on organic and inorganic will come in as a layer on top,” Nitin Pai, Head of Marketing, Tata Elxsi, told Business Standard in an interview.
He, however, did not disclose the quantum of money the company might use for any acquisition.
Among the other business verticals, Tata Elxsi has seen significant growth in services for broadcasting equipment makers and operators. It helps people like multi-service operators (MSO) and equipment makers with back-end operations of airing content on satellite TV and internet protocol TV.
The company is confident that factors like the emergence of internet protocol TV in developing countries and delivery of content on smartphones along with television will give a boost to its business going forward.
In July-September quarter, Tata Elxsi added two more to its existing list of 10 customers in the healthcare segment, which gives design and software for diagnostic equipment, therapeutic equipment, in-hospital patient care and connected consumer devices for healthcare.
“We started doing this business three years back with full-fledged medical product designing vertical and attained all the accreditation and certification. We are progressing steadily on the healthcare segment,” Pai pointed out.
The company’s stock price closed Rs 85.95 or 7.43 per cent up at Rs 1,242.85 on the BSE on Friday.
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Source: Business-Standard