Prime Highlight
- Tata Technologies will acquire Germany’s ES-Tec Group for ₹750 crore (€75 million)to expand its presence in the European automotive engineering market.
- The deal strengthens Tata’s focus on next-gen automotive technologies like ADAS, connected driving, and digital engineering services.
Key Facts
- The acquisition is expected to be completed by December 31, 2026, with phased and performance-based payments.
- ES-Tec is projected to contribute around 8%to Tata Technologies’ future revenue, boosting its role as a global engineering partner.
Background
Tata Technologies is set to acquire Germany’s ES-Tec Group for ₹750 crore (€75 million) as part of its strategy to grow in the automotive engineering space. The action will enhance the presence of the company in the major European automotive market and increase engineering and R&D operations.
The acquisition will help Tata Technologies to become more dedicated to next-generation vehicle technologies, including Advanced Driver-Assistance Systems (ADAS), connected driving solutions, and digital engineering services. The transaction is likely to be settled by December 31, 2026, and it will be paid in installments during the first two years with performance-based payments.
Tata Technologies expects ES-Tec to contribute nearly 8% to its overall revenue in the future. The company sees the acquisition as a strategic step toward strengthening its position as a top engineering partner for global car makers, especially in the shift toward smarter, connected, and sustainable vehicles.
Warren Harris, Managing Director & CEO of Tata Technologies, said the acquisition aligns with the company’s goal of helping automotive companies navigate the fast-changing industry. “ES-Tec’s strong technical expertise and customer focus will fit well with our strategy to lead in advanced mobility services,” he added.
Though the picture is optimistic, JPMorgan analysts are also not very hopeful with projections at a 4.6% reduction in constant currency revenue by 2026 and a tightening in profit margins. Tata Technologies is rated as underweight by the brokerage, and its price ranges from 570 per share.
Following the announcement, Tata Technologies shares rose by 2% to ₹716.35 on Monday, though the stock is down 21% so far in 2025, reflecting broader market pressures. The acquisition marks a milestone for Tata Technologies as it works to expand globally and lead in advanced automotive engineering.
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