TEAL Expanding Capabilities, Taps Growth in Aerospace, Defence and Semiconductors
Titan Engineering and Automation Limited (TEAL), a wholly owned subsidiary of Titan Company and a precision engineering firm, is expanding its capacity and capabilities in automation solutions and manufacturing to meet the growing demand from the aerospace, semiconductor, and defence sectors, according to Sridhar N P, the managing director of TEAL.
The company plans to invest ₹192 crore and has received approval from the Ministry of Electronics and Information Technology under the Electronics Components Manufacturing Scheme. This investment is in addition to the Rs ₹400 crore investment plan that TEAL is currently implementing. The company is working to expand its presence both in India and with global customers.
Recent growth has primarily come from the electric vehicle (EV) sector, where TEAL has invested in electric two-wheelers. The company has developed battery packs, starter rotors, and transaxles for hybrid four-wheel vehicles. Additionally, TEAL has worked on electronic products and solutions used in intelligent equipment and automation.
In the Electronic Manufacturing Services (EMS) business, it produces standalone equipment and automation solutions and manufactures components for aerospace, defence, and semiconductor fabrication—areas that are rapidly evolving. In the EMS sector, the company collaborates on medical devices, life sciences, and energy solutions.
Sridhar on semiconductors
Sridhar said that semiconductors are becoming an increasingly interesting area, with a growing ecosystem establishing itself in India. There exists equipment across the value chain, presenting significant opportunities for TEAL, particularly in packaging, which necessitates bespoke equipment.
The company is also focusing on material movement automation to facilitate the transfer of wafers between machines through Automated Guided Vehicles and robotics solutions that pick and place. TEAL is using its manufacturing services to develop components for fabrication plants and highvacuum equipment.
TEAL operates an automation and aerospace plant in Hosur and an EMS plant in Chennai, employing 4,000 engineers and utilising 200 CNC machines, along with a diverse supplier base, which gives it scale. This infrastructure positions the company well to seize growth opportunities, and Sridhar mentioned that the company is expanding in both locations.
Positive momentum growth in automation solutions
There is positive growth momentum in both the automation solutions and manufacturing services sectors, which are showing healthy traction. Recently, TEAL has acquired a large space in Chennai for expansion and is constructing another factory in Hosur. To support its growing aerospace business, the company plans to add between 150,000 and 200,000 square feet to its facilities.
Sridhar pointed out that most of the investment in manufacturing services will focus on building capacities and new capabilities as the company moves up the value chain. TEAL aims to add advanced capabilities and technologies to establish itself as a one-stop shop for aerospace, defence, and semiconductor needs.
The company is transitioning from producing very small, precise components to manufacturing meter-sized, critical, and complex components for applications such as engines, landing gears, and actuators.
“Our manufacturing services business is very capital-intensive, requiring precise machines and skilled personnel to manufacture complex engineered products. In contrast, our automation solutions are less capital-intensive but require more human resources,” he explained.
Although TEAL represents a small segment of Titan’s overall business, it is growing rapidly. From April to December 2026, TEAL reported a 78% increase in total income, reaching ₹1,045 crore, with an EBIT margin of 19.2%.
Initially, TEAL focused on manufacturing watch-making equipment for Titan, but that has changed. The company has transitioned to supplying automation solutions and electronic manufacturing services, collaborating with Tier-I suppliers for major aerospace companies such as Airbus and Boeing.
TEAL is also working with notable firms like Safran, Honeywell, HAL, Thales, and Pratt & Whitney, with installations across several countries, including Spain, Portugal, Italy, Germany, France, the Czech Republic, Slovakia, Sweden, Romania, Hungary, Turkey, and Mexico.
In the competitive landscape, TEAL faces challenges from European and Chinese companies in the automation sector. However, the company is differentiating through proximity to customers, simplifying logistics, on-site support, narrowing the cost gap and co-engineering. It has accelerated its delivery times. For example, the time to deliver battery pack production lines has decreased from six to eight months to just three months, Sridhar said.
