Warburg Pincus to invest $360m in Tata Technologies
Warburg Pincus has agreed to invest $360 million in Tata Technologies, the engineering outsourcing and product development IT services arm of Indian conglomerate Tata Group.
The firm will take a 43% stake in Tata Technologies, consisting of a 30% stake held by Tata Motors and the entire 13% stake held by Tata Capital's growth fund. Following the transaction, Tata Motors and other Tata Group affiliates will retain a 43% holding, with the remaining stake held by the management team and other shareholders.
Tata Technologies provides engineering, research and development; product lifecycle management; and IT services to major manufacturers in the global automotive, aerospace and industrial machinery industries, with more than 8,500 employees across 23 countries. By bringing in Warburg Pincus Tata Technologies hopes to expand its industry connections and grow its business opportunities outside the Tata Group.
“Tata Technologies has demonstrated the ability to scale accounts in a competitive industry by becoming embedded in the manufacturing and product development process of its customers,” said Vishal Mahadevia, managing director and Inndia co-head at Warburg Pincus, in a statement. “We look forward to backing the strong management team and leveraging Warburg Pincus’ global network and prior experience to help grow the business and create value for all stakeholders.”
Currently Warburg Pincus is deploying its latest global fund, which closed in 2015 at the hard cap of $12 billion. The vehicle invests across the energy, financial services, healthcare, consumer, industrial and technology, media and telecom sectors.
Recently the firm revealed it expects to deploy at least $8 billion in India over the next decade as the quality of entrepreneurs and talent available in the country continues to improve. Its portfolio in India includes jewelry retailer Kalyan Jewellers, logistics company Stellar Supply Chain Solutions, and listed cinema chain PVR.
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