Cyient Limited — Combination C-2026/06/1433

Notice under Section 6(2) of the Competition Act, 2002 given by Cyient Limited

CORAM:

Ms. Ravneet Kaur Chairperson

Ms. Sweta Kakkad Member

Mr. Deepak Anurag Member

Order under Section 31(1) of the Competition Act, 2002

1. On 15th June 2026, the Competition Commission of India (Commission) received a notice (Notice) under Section 6(2) of the Competition Act, 2002 (Act) given by Cyient Limited (Acquirer).

2. The Notice was filed pursuant to the Stock Purchase Agreement dated 30th May 2026, entered into amongst the Acquirer, Tao Digital Solutions Inc. (Target), existing shareholders of Target (Sellers) including Rajkumar Velagapudi1 [hereinafter, the Acquirer and the Target are collectively referred to as the ‘Parties’].

1 Rajkumar Velagapudi is one of the Sellers as well as a representative of all the Sellers.

3. The proposed combination entails the acquisition of 100% of the share capital of the Target from the Sellers by the Acquirer (Proposed Combination).

4. In terms of Regulation 14 of the Competition Commission of India (Combinations) Regulations, 2024 (Combinations Regulations), vide letters dated 29th June 2026, 16th July 2026 and 05th August 2026 certain information and clarifications were sought from the Acquirer. The Acquirer submitted its responses vide communications dated 06th July 2026, 22nd July 2026 and 13th August 2026, respectively (Responses).

5. The Acquirer is stated to be a public limited company incorporated in India and is listed on BSE Limited and the National Stock Exchange of India Limited. As of 31st March 2026, 76.25% shareholding in the Acquirer is held by public shareholders, while the remaining 23.16% and 0.58% shareholding is held by the promoter and promoter group, and the employee trust, respectively. As part of the promoter & promoter group, Mr. Krishna Bodanapu is stated to have control over the Acquirer.

6. The Acquirer is engaged in providing engineering and global technology services and solutions specializing in utilities and spatial intelligence, communications, healthcare and life sciences, semiconductors, energy, rail transportation, engineering design, IT solutions and data analytics. It is stated to be an engineering and R&D services company with industrial and domain-specific capabilities, delivering full lifecycle engineering across products, plants, and networks, with core expertise in aerospace, defence, automotive, rail, healthcare, semiconductors, and energy sectors.

7. The Target, incorporated in the United States, is the ultimate holding company of the TAO Group (Target Group). The Target Group comprises of wholly owned subsidiaries located in various countries. The Target Group is engaged in the provision of digital transformation and technology services globally. In India, the Target operates through its wholly owned subsidiary, TAO Digital India Private Limited (Indian Target) that primarily functions as a delivery and technology services center supporting the Target’s global operations.

8. Based on the information provided in the Notice, the Commission observed that certain activities of the Parties (including affiliates) exhibit horizontal overlap in the broad segment of ‘market for provision of Information Technology (IT) and Information Technology enabled Services (ITeS) in India’ (Broad Market) and its narrow segmentation of: (i) ‘market for provision of Application Implementation and Managed Services in India’ and (ii) ‘market for provision of Data Analytics Services in India.’ Further, the Commission also observed that the Parties (including affiliates) do not exhibit any existing or potential vertical/complimentary linkages with respect to their operations in India.

9. Considering the nature and extent of aforesaid overlaps and the competition assessment given in the subsequent paragraphs, the Commission observed that the Proposed Combination is not likely to cause appreciable adverse effect on competition (AAEC) in the aforesaid relevant market(s) and decided to keep the delineation of the relevant market open.

10. Based on the submissions of the Acquirer, the Commission noted that the combined market share of the Parties in the Broad Market as well as its narrow segments is in the range of [0-5] %.

11. Considering the material on record, including the details provided in the Notice and the assessment of the Proposed Combination based on the factors stated in Section 20(4) of the Act, the Commission is of the opinion that the Proposed Combination is not likely to have AAEC in India. Therefore, the Commission approves the Proposed Combination under Section 31(1) of the Act.

12. This order may be revoked if, at any time, the information provided by the Acquirer is found to be incorrect.

13. The information provided by the Acquirer shall be treated as confidential in terms of and subject to provisions of Section 57 of the Act.

14. The Secretary is directed to communicate to the Acquirer accordingly.