Your company is recognized as a specialized service provider for product design and engineering services. Our integrated technology and design teams help enterprises re-imagine their products and services – from strategy, consumer research and insights, to service and experience design, technology implementation, integration, launch and beyond.
Technology convergence and digital technologies are creating new opportunities to impact customer experience and fuel the growth of brands and businesses across the world. It is an era characterized by unprecedented volume, variety and velocity of innovation. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, quantum computing and more.
According to NASSCOM, India’s IT-BPM industry (excl. eCommerce) is expected to grow 8% in FY18 to $ 167 billion from $ 154 billion in FY17.Engineering Research & Development continues to be the fastest growing segment at over 12%, driven by global OEMs increasingly embedding software & services into their products. India continues to be the core for digital innovation with a rich ecosystem of start-ups, tech providers and services providers engaging in global delivery and investing in IP, solutions and Centers of Excellence (CoEs).
Our operations are classified into two business segments, i.e. Software Development & Services and Systems Integration & Support.
Software Development and Services: This business segment grew by 14% from ` 1171 crores in the previous year to 1329 crores in FY18. The segment profit increased by 37% from 290 crores in the previous year to 396 crores during FY18. Tata Elxsi has consistently maintained leadership positions globally in the Automotive and Broadcast industries. Tata Elxsi’s integrated Design and Technology teams help enterprises re-imagine their products and services – from strategy, consumer research and insights, to service and experience design, technology implementation, integration, launch and beyond. Your Company’s design capabilities differentiates it from the competitors and its leadership in design and other verticals has helped it retain the customer’s trust and exceed the sector benchmark over the years.
Your Company has been investing in key digital technologies over the past few years, through Centers of Excellence in areas such as AI and Analytics, IoT and Automation, which have helped enhance the service portfolio, not only for existing customers, but also to win new customers across the world. As an example, Panasonic Appliances has selected your company as their strategic global R&D partner. Your company has established an Offshore Development Center (ODC) to enable Panasonic to bring in advanced technologies such as robotics and AI to create smart and futuristic products for global markets.
The Embedded Product Design (EPD) division provides technology consulting, new product design, development, and testing services for the automotive, broadcast, consumer electronics, healthcare, telecom and transportation industries.
Tata Elxsi works with leading OEMs, system suppliers, and software and silicon providers in the automotive and transportation industries for R&D, design and product engineering services from architecture to launch and beyond. We bring together expertise in mechanical, software and electronics development, domain experience across Infotainment, Active Safety, Telematics, Electric and Hybrid powertrains, Body & Chassis systems, along with technologies such as artificial intelligence, analytics, cloud and IoT.
Tata Elxsi addresses the complete product development lifecycle from R&D, new product development and testing to maintenance engineering for Broadcast, Consumer Electronics and Communications. The Broadcast and Communications industries are rapidly converging with Broadcasters & Telecom operators both vying for share of consumer wallet for voice, data, and content services. Your Company is at the forefront of enabling digital transformation for leading media companies and operators across the world, helping them develop innovative services and applications that create subscriber stickiness and drive revenue growth.
Tata Elxsi helps customers develop enduring brands and products by using design as a strategic tool for business success. Our expertise extends across consumer insight, branding, industrial design, visual design & merchandising, design engineering and manufacturing support. Our design services span digital and physical aspects, to provide users with products, solutions and services that humanize the complexity of the underlined technologies and make them intuitive and easy to use, driving customer delight, loyalty and business growth.
As an example, your Company has been selected by the Airports Authority of India (AAI) to improve passenger experience for all AAI managed airports. As a strategic design partner, we will help AAI to provide a seamless passenger travel experience and will be primarily responsible to set the wayfinding and information design guidelines for all AAI airports coming up in the future. We have already commenced work to redefine the passenger experience for 10 airports – Goa, Kolkata, Varanasi, Lucknow, Chennai, Bhubaneshwar, Pune, Trivandrum, Coimbatore, and Guwahati.
Systems Integration and Support: During the year under review, our Systems Integration & Support segment reported a turnover of ` 57crores and profit of ` 8 crores. We implement and integrate complete systems and solutions for specialized applications such as High-Performance Computing, Computer Aided Design, and Virtual Reality. We also provide Professional Services for maintenance and support of such installations in India and key overseas markets. We have also expanded our solution portfolio, with technologies like 3D printing to cater to emerging industry needs. We continue to focus on increasing the share of software sales, value-added systems integration and support services in this segment, for improved margins.
While 87% of your Company’s revenue comes from outside India, we foresee minimized impact on our cost structures as the majority of the delivery team is based in India. Tata Elxsi’s revenue is well distributed between Euro, GBP and US dollar currencies, which protects us from currency related risks arising from any single currency. We also have a hedging policy in place to manage foreign exchange risk.