Hinduja Tech, the digital technology arm of Hinduja Group, is in discussions to sell a minority stake in the company. The subsidiary of Ashok Leyland aims to raise $100 million at a valuation of $400 million to meet the expansion needs in the e-mobility industry. Hinduja Tech is engaged in early talks with private equity funds to facilitate the stake sale.
Hinduja Tech, a subsidiary of flagship company Ashok Leyland, provides comprehensive end-to-end SAP Automotive Solutions to clients in the automotive industry. Its key clients include Daimler, Renault, Ford, Toyota, Fiat, Nissan, and Hyundai. The company’s Digital Technologies Services & Solution division offers a range of services, including consulting, implementation, migration, customization, and ongoing support and maintenance services.
Hinduja Tech operates two delivery centers in Chennai and Pune. Additionally, it has wholly owned subsidiaries in Germany, USA, Shanghai, UK, Canada, and the Czech Republic, along with branches in France and Japan.
To facilitate the stake sale, investment bank Rothschild has been appointed to find a suitable investor. Currently, Ashok Leyland owns about 74% of Hinduja Tech. The company’s revenue has been steadily increasing, with a total income of ₹400 crore as of March 31, 2023, compared to ₹260 crore in the previous fiscal year. Hinduja Tech posted a profit after tax of ₹20 crore in FY23, a slight decrease from ₹28 crore in FY22.
Last year, Hinduja Tech expanded its presence in the US market through the acquisition of Drive System Design (DSD), an engineering consultancy that serves the automotive, commercial vehicle, off-highway, defense, and aviation industries. The acquisition allowed Hinduja Tech to offer advanced engineering solutions to its clients in the United Kingdom, the United States, and Asia.
Kumar Prabhas, the CEO of Hinduja Tech, is spearheading the company’s operations. Prabhas, an IT veteran, has previously worked with companies like Unisys, Sasken, Wipro, and Multitech Software.
When approached for comments, an HTL spokesperson declined to provide a statement.
