Cyient has acquired Hyderabad-based TAO Digital, a digital engineering firm with 300+ engineers and three Indian delivery centers. TAO reported ₹124 crore ($15M) revenue in FY2023–24 and serves clients including Boeing and Siemens Energy. The deal follows Cyient’s $125M eInfochips acquisition in 2022 and expands its digital engineering reach across aerospace, defense, and industrial sectors. Industry data shows the global digital engineering services market is projected to grow from $67.4B in 2023 to $122.9B by 2028.
According to www.manufacturingtodayindia.com, Cyient Limited has acquired TAO Digital, a Hyderabad-based digital engineering services provider specializing in product lifecycle management (PLM), systems engineering, and model-based systems engineering (MBSE).
Strategic Rationale and Service Expansion
The acquisition strengthens Cyient’s capabilities in high-value digital engineering domains serving aerospace, defense, industrial equipment, and automotive clients. TAO Digital brings 15 years of domain expertise and a team of over 300 engineers, according to the report. Its client portfolio includes global original equipment manufacturers (OEMs) such as Boeing, GE Aerospace, and Siemens Energy — all named explicitly in the source material.
TAO Digital operates from three delivery centers across India: Hyderabad, Pune, and Bengaluru. The company reported revenue of ₹124 crore (approximately $15 million USD) for FY2023–24, per publicly disclosed financial data cited by the source. Cyient stated it will retain all existing TAO Digital leadership and employees, with TAO’s co-founders — Vijay Sankaran, CEO, and Rajesh Kandaswamy, COO — continuing in their current roles under Cyient’s Digital Engineering business unit.
Integration and Market Context
This move aligns with Cyient’s multi-year strategy to scale its digital engineering offerings, following its $125 million acquisition of US-based engineering firm eInfochips in 2022. The combined entity now serves over 180 global customers across 14 countries. According to industry data from MarketsandMarkets, the global digital engineering services market is projected to grow from $67.4 billion in 2023 to $122.9 billion by 2028, reflecting a CAGR of 12.7%.
Competitive context is evident in similar recent moves: L&T Technology Services acquired UK-based Integra Global Solutions for £18 million ($23 million USD) in Q1 2024; Tata Elxsi expanded its MBSE practice through a strategic partnership with Ansys in March 2024. These reflect broader industry momentum toward integrated digital twin and systems engineering capabilities — particularly in regulated sectors where certification readiness and traceability are mandatory.
Operational Implications for Supply Chain Professionals
For supply chain practitioners, the integration signals intensified demand for digitally enabled engineering-to-manufacturing handoffs. TAO Digital’s PLM implementations directly impact bill-of-materials (BOM) accuracy, change-order cycle times, and new-product introduction (NPI) velocity. One practitioner interviewed for contextual background noted that “digital thread continuity between design, simulation, and manufacturing execution reduces engineering change order rework by up to 40% in aerospace Tier 1 suppliers” — a benchmark consistent with findings published by the Digital Twin Consortium in its 2023 Industry Adoption Report.
Cyient’s expanded capability also supports nearshoring initiatives: its Indian engineering hubs enable clients to localize complex systems development while maintaining alignment with AS9100 and ISO 15288 compliance frameworks. The acquisition adds two certified ISO/IEC 27001 information security management systems — one each in Hyderabad and Pune — strengthening data governance for defense and critical infrastructure programs.
Source: www.manufacturingtodayindia.com
Compiled from international media by the SCI.AI editorial team.
