KPIT Cummins acquires mechanical design services business of Harita TVS Technologies
09 July 2008
Bangalore: Speacilist software provider KPIT Cummins Infosystems Ltd today said that it had taken over a substantial part of the mechanical design services business of TVS Group company and provider of engineering design services, Harita TVS Technologies, which in India goes under the name of TVS-E Technologies Ltd, for an undisclosed sum.
With the acquisition of the high-end mechanical design engineering capability from Harita, KPIT Cummins has strengthened its own portfolio of automotive embedded and mechanical engineering services and will now begin providing integrated mechanical product design, development and validation services to existing and new global clients in the automotive and industrials verticals.
Highlights of the Acquisition
- Accretional revenues of nearly Rs 15 Crores
- KPIT Cummins to acquire around 100 specialised employees from Harita TVS with coremechanical design competencies in product design and validation for automotive and industrial products and systems
- Over 20 Harita TVS customers across North America, Europe and India will transition to KPIT Cummins; some customers will continue to be supported by Harita
- KPIT Cummins strengthens its current product engineering services portfolio by adding specialised mechanical design solutions in plastics, sheet-metals, castings and forgings for its automotive and industrials clients.
''Our acquisition strategy has always been aligned with our vision to become leaders in the focused verticals," said KPIT Cummins chairman and group CEO Ravi Pandit. "By acquiring substantial part of Harita TVS, we aim to become the leading global product engineering partner to our existing and potential clients in the
automotive and industrials verticals."
Harita has opted for growth by partnering with a larger firm to enable the business to scale up. Harita with its deep auto domain expertise, process centricity and a committed team accompanied with KPIT's global footprint, account management strength and auto focus will enable the integrated entities to emerge as a dominant player in the automotive sector.
Although the mechanical design services business, owned by Harita TVS Technologies will be transferred to KPIT Cummins along with employees, strategic key customers and assets in India, North America and Europe, the legal entities at North America and Europe will remain with Harita TVS during the transition period.
