Documente Academic
Documente Profesional
Documente Cultură
PROJECT REPORT
ON
TATA MOTORS
BHARATI VIDYAPEETH’s
INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI
ACKNOWLEDGEMENT
A lot of effort has gone into this project and my thanks are due to many people with
whom I have been closely associated. First of all, I gratefully acknowledge the
continuous assistance and inspiration given to me by my project guide .Finally, I
would like to thank my family for providing me monetary and non – monetary
support, as and when required, without which this project would not have completed
on time.
ISH MATTA
SIGNATURE
PREFACE
It is from here we learn our flown before actually stepping into our working shoes. It
adds to knowledge and better understanding of the organization. This project has
greatly helped in giving shape to my effort of understanding the practical field
ISH MATTA
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
INDUSTRY INTRODUCTION
ORGANISATION STRUCTURE
CHAPTER 2: COMPANY ANALYSIS
• PEST ANALYSIS
• SWOT ANALYSIS
• SOURCES OF FINANCE
• KEY INVESTMENTS
• RATIO
CHAPTER5: HR-POLICIES AND STRATEGIES
• SOURCES OF RECRUITMENT
• PROCESS OF RECRUITMENT
Ratan Naval Tata (born December 28, 1937, in Bombay, Bombay Presidency,
British India) is the present Chairman of Tata Sons and therefore, Tata Group[1],
India's largest conglomerate founded by Jamsedji Tata and consolidated and expanded
by later generations of his family. He is also the chairman of major Tata companies
such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea,
Tata Chemicals, The Indian Hotels Company and Tata Teleservices.
Early life
Ratan Tata was born into the famous Tata family, a prominent family belonging to
Mumbai's wealthy Parsi community. He was born to Soonoo and Naval Hormusji
Tata. Ratan is the great grandson of Tata group founder Jamsedji Tata. His childhood
was troubled, with his parents separating in the mid-1940s when he was merely seven
and his younger brother Jimmy was five years old. Their mother moved out and both
Ratan and his brother were raised by their grandmother Lady Navajbai.
Early career
Ratan Tata completed his BSc degree in architecture with structural engineering from
Cornell University in 1962, and the Advanced Management Program from Harvard
Business School in 1975.[2] He joined the Tata Group in December 1962, after turning
down a job with IBM on the advice of JRD Tata. He was first sent to Jamshedpur to
work at Tata Steel. He worked on the floor along with other blue-collar employees,
shoveling limestone and handling the blast furnaces.[3] Ratan Tata, a shy man, rarely
features in the society glossies, has lived for years in a book-crammed, dog-filled
bachelor flat in Mumbai's Colaba district and is considered to be a gentleman
extraordinaire.[4][5]
Career
In 1971, Ratan was appointed the Director-in-Charge of The National Radio &
Electronics Company Limited (Nelco), a company that was in dire financial difficulty.
Ratan suggested that the company invest in developing high-technology products,
rather than in consumer electronics. J.R.D. was reluctant due to the historical financial
performance of Nelco which had never even paid regular dividends. Further, Nelco
had 2% market share in the consumer electronics market and a loss margin of 40% of
sales when Ratan took over. Nonetheless, J. R. D. followed Ratan's suggestions.
From 1972 to 1975, Nelco eventually grew to have a market share of 20%, and
recovered its losses. In 1975 however, India's Prime Minister Indira Gandhi declared
a state of emergency, which led to an economic recession. This was followed by
union problems in 1977, so even after demand improved, production did not keep up.
Finally, the Tatas confronted the unions and, following a strike, a lockout was
imposed for seven months. Ratan continued to believe in the fundamental soundness
of Nelco, but the venture did not survive.
In 1977, Ratan was entrusted with Empress Mills, a textile mill controlled by the
Tatas. When he took charge of the company, it was one of the few sick units in the
Tata group. Ratan managed to turn it around and even declared a dividend. However,
competition from less labour-intensive enterprises had made a number of companies
unviable, including those like the Empress which had large labour contingents and
had spent too little on modernisation. On Ratan's insistence, some investment was
made, but it did not suffice. As the market for coarse and medium cotton cloth (which
was all that the Empress produced) turned adverse, the Empress began to accumulate
heavier losses. Bombay House, the Tata headquarters, was unwilling to divert funds
from other group companies into an undertaking which would need to be nursed for a
long time. So, some Tata directors, chiefly Nani Palkhivala, took the line that the
Tatas should liquidate the mill, which was finally closed down in 1986. Ratan was
severely disappointed with the decision, and in a later interview with the Hindustan
Times would claim that the Empress had needed just Rs 50 lakhs to turn it around.
In 1981, Ratan was named director of Tata Industries, the Group's other holding
company, where he became responsible for transforming it into the Group's strategy
think-tank and a promoter of new ventures in high-technology businesses.
In 1991, he took over as group chairman from J.R.D. Tata, pushing out the old guard
and ushering in younger managers. Since then, he has been instrumental in reshaping
the fortunes of the Tata Group, which today has the largest market capitalization of
any business house on the Indian Stock Market.
Under Ratan's guidance, Tata Consultancy Services went public and Tata Motors was
listed on the New York Stock Exchange. In 1998, Tata Motors introduced his
brainchild, the Tata Indica.
On January 31, 2007, under the chairmanship of Ratan Tata, Tata Sons successfully
acquired Corus Group, an Anglo-Dutch steel and aluminium producer. With the
acquisition, Ratan Tata became a celebrated personality in Indian corporate business
culture. The merger created the fifth largest steel producing entity in the world.
On March 26, 2008, Tata Motors, under Ratan Tata, bought Jaguar & Land Rover
from Ford Motor Company. The two iconic British brands, Jaguar and Land Rover,
were acquired for £1.15 billion ($2.3 billion).
Ratan Tata's dream was to manufacture a car costing Rs 100,000 (1998: approx.
US$2,200; today US$2,000 US$2,528). He realized his dream by launching the car in
New Delhi Auto Expo on January 10, 2008. Three models of the Tata Nano were
announced, and Ratan Tata delivered on his commitment to developing a car costing
only 1 lakh rupees, adding that "a promise is a promise," referring to his earlier
promise to deliver this car at the said cost. However, the price of the car has since
been raised. Recently when his plant for Nano production in Singur, West Bengal,
was obstructed by Mamta Banerjee, his decision of going out of the state was warmly
welcomed by the Indian corporate media and the English-speaking middle class.
Banerjee criticised Ratan Tata for forcing people out of their land in collusion with
the Left Front government in the state, which is headed by Budhadeb Bhattacharjee.
On October 7, 2008, after a controversial stay in West Bengal, Ratan Tata and his
team shifted their Rs 1-lakh car Nano project to Sanand near Ahmedabad at an
investment of Rs 2,000 crore (Rs 20 billion), declaring that efforts will be made to roll
out the world's cheapest car from a make-shift plant to meet the deadline. The Gujarat
chief minister Narendra Modi granted him huge subsidy for building the facility,
including free land. Praising Modi for speedy allocation of about 1,100 acres (4.5
km2) of centrally located land, Ratan Tata said that the company had a great deal of
urgency in having a new location and was driven by the reputation of the state.
The car was launched on March 23, 2009, amid much fanfare with advance bookings
that preceded its launch by months.
Personal life
Mr. Ratan Tata«Total Association Total Association» has a metallic blue Maserati
and Ferrari California but prefers to drive himself in an old model Mercedes sedan
much like JRD who seldom used a chauffeur and drove his own Fiat to and from
work.[6] He sometimes likes to fly his private jet himself. He has an outdated Falcon
Jet, which is no longer used for commercial aviation.[7] He has never been married.[8]
Ratan Tata is largely an employee Chairman / CEO of the group and most his own
holding in Tata Sons., the holding company of the group, is a result of inherited
family shareholding. His share is or a little less than 1%, valuing his personal holding
at approximately US$ 1 Billion, if encashed.[citation needed]
About 66% of the equity
capital of Tata Sons is held by philanthropic trusts endowed by members of the
original Jameshedji family and the largest share is with the Shapoorji Pallonji Mistry
family aligned originally to Jamshetji's brother in law. The biggest two of the owning
trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust (different Ratan
Tata), which were created by the families of the sons of Jamshedji Tata. Ratan Tata is
on the board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board
of trustees of the Sir Dorabji Tata Trust.[original research?] Ratan Tata is also best known for
the face behind changing India's automotive industry into global climate change era.
Quotes
• On the occasion of India's 50th Republic Day on 26 January 2000, Ratan Tata
was honoured with the Padma Bhushan, the third highest decoration that may
be awarded to a civilian.[10]
• In February 2004, Ratan Tata was conferred the title of honorary economic
advisor to Hangzhou city in the Zhejiang province of China.[13]
• On August 30, 2005, it was announced that Ratan Tata was elected to the
Board of Trustees of the University of Southern California, Los Angeles, one
of the leading research universities in the United States.
• In March 2006 Tata was honoured by Cornell University as the 26th Robert S.
Hatfield Fellow in Economic Education, considered the highest honor the
university awards to distinguished individuals from the corporate sector.[15]
• In May 2008 Mr Tata made it to the Time magazine's 2008 list of the World's
100 most influential people. Tata was hailed for unveiling his tiny Rs. one
lakh car 'Nano'.[18]
• In 2010, Ratan Tata was named one of the '50 People Who Matter 2010'[22] by
New Statesman Magazine
Hence in the first part of the project I have taken up the strategic group analysis of
TELCO as this is one company whose indigenously manufactured cars like
Tatamobile, Indica and Safari have performed well on Indian Roads. In the second part
of the project I conducted a study on the consumer perception about small cars. Firstly,
I took three brands of small cars; Zen, Indica and Santro for a comparative study of
small car segment.
The findings showed that the consumer’s who owned small cars basically
wanted good performance, after sales service and a car at their budget, a less
expensive one.
All the cars taken for the sample showed that the consumers perceived them
as almost same in all the attributes like safety, comfort and luxury.
Respondents liked Indica more for its looks, whereas Maruti’s after sales
service was perceived to be good.
But, at the end the research was limited due to small sample size, small
sample area and time constraints.
INDUSTRY PROFILE
With the liberalization of the Indian economy, the passenger car industry
was finally deregulated in 1993 and many companies, both Indian and
foreign, announced their plans to enter the market. The last four years
have seen companies like Daewoo, Ford, GM, and Mercedes-Benz
launches their cars in India. The passenger car industry notched
impressive growth rates between 26-30% during the period FY 94-96
even though the economic slowdown has adversely affected the industry
in FY 98 with the growth rate tricking down to 1%. Nonetheless, times
have changed significantly - the days of the customer chasing the dealer
to purchase poor quality cars backed by inefficient service are history.
Today, the customer dictates the terms.
Since that old Fiat and Amby were introduced, the Indian car industry has travelled a
long and bumpy road. Fortunately, today the industry shines at the top with a good
number of cars running on roads. It also plays a key role in the industrial and
economic development of the country.
Today, the Indian industry is flying with the wings of technology, advancement and
innovation. The first car manufactured as a result of technological advancement is
Maruti Suzuki 800 in 1983, a car that revitalized the Indian automobile sector. This
car was a productive result of a joint venture between Government of India and
Suzuki Motors of Japan. Thereafter, many car manufacturers across the world entered
the Indian car market.
Some of the biggest car manufacturers who have set up their manufacturing facilities
in India are Tata, Toyota, BMW, Audi, Ford, Skoda, Volkswagen, Mitsubishi,
Suzuki, Honda, Hyundai, Maruti, Mercedes, Chevrolet Fiat, Mahindra, and Volvo.
These manufactures are currently producing the world’s best car models,
progressively booming the India’s economic growth. Some of these companies are
also importing cars and other car accessories to meet the increasing demand of car
market in India.
The reason why many foreign manufactures entered the Indian markets is availability
of highly skilled engineers, low cost labor, technical know how, less investment,
cheap machinery and raw materials, established quality systems and rewarding
returns. Even the cost of production is reduced to about 25-30% as compared to
overseas production. This pace of advancement and improved production not only
paved way for foreign manufacturers but also provided enhanced ability to Indian car
manufacturers for producing better models.
With the increasing number of cars running on the Indian roads, the future of Indian
car industry is also running with a very high velocity. One of the leading car
manufacturing companies, Ford, is planning to make India a regional hub for
exporting small cars and engines. At the other edge, Skoda is planning to source some
of the European operations from its Indian facility. It is believed that this operation
will increase indigenization level for all the Indian cars to almost 70%, providing
Indian cars a competitive edge in the global market.
Many car manufacturers are rolling out new cars and many are in pipeline. Today, the
car market is congested with world class cars like the Volkswagen Jetta, BMW 7
series, Maruti Suzuki SX4, Ford Fiesta, and Honda Civic. Tata Motors is all set to roll
out the world’s cheapest car, Hyundai Motors waiting to announce the launch of
Hyundai i20, and Maruti Suzuki awaiting the launch of the global car, Maruti Suzuki
A-Star. Likewise, many other car manufacturers including Volvo, Volkswagen,
Mercedes-Benz, BMW, Honda Seil, Rolls Royce Phantom, and even Skoda has a
slew of launches in their pipeline for the Indian car industry.
Apart from new cars rolling every day on Indian roads, there are many new features
added to the cars. Cars are also becoming automated with the use of automatic
transmission system. Some of the high-end technological dazzlers are loaded with
advanced and top-notch technical features. Along with, the entry of alternative fuel
options is also expected to hit the Indian car industry. India will also have cars
powered with air and water in future.
So, the future is definite and India is soon to hit the world’s car market and become
the third largest car industry after US and China. All the domestic and foreign car
manufacturers are making various advancements in the car models with respect to
design, technology, fuel efficiency, colors, innovation, style, performance, luxuries
and price. These advancements are constantly flourishing the Indian car market, a
market that has transformed from a small ray to a competitive sunrise industry.
COMPANY PROFILE
TATA Motors Ltd is subsidiary of TATA Sons, the holding company of the TATA
Group, the oldest and among the largest industrial conglomerates of India. Tata
motors one of India's largest private sector companies with a turnover of over Rs.80
billion, is the country's leading commercial vehicle manufacturer and has significant
presence in the multi-utility and passenger car segments.
Tata motors was established on September 1, 1945, originally for the manufacture of
Steam Locomotives at Jamshedpur. By 1954, the company had diversified into the
manufacture of commercial vehicles in collaboration with Daimler Benz, Germany.
By the time their collaboration ended in 1969, Tata motors had become an
independent producer of Medium Commercial Vehicles with a great degree of
indigenization. It had also developed the capability of designing, testing and
manufacturing such vehicles.
The widely successful Tata Indica, a Euro 2 compliant vehicle, is the country’s first
indigenously designed, developed and manufactured passenger car. Tata Motors
followed that up with the Tata Indigo, a sedan that was launched in December 2002.
The company also makes several other passengers vehicles, including the Safari,
Sumo and Sierra.
The company’s products have received wide acceptance not only in India but also in
the Middle East, Asia, Africa, Australia, Latin America and Europe.
Areas of business
The company manufactures medium, heavy and light commercial vehicles, multi-
utility vehicles and passenger cars. In the year ending March 2001, the company’s
revenues from its four manufacturing plants at three locations in India were Rs. 81.64
billion (US $ 1.73 billion). In 2000, they were Rs. 89.61 billion. (US $ 1.9 billion)
{The average exchange rate has been taken as Rs 47.0 to one US dollar.}
In the year ended 31 March 2001, the company’s total exports were worth about Rs
7.22 billion (US $ 153.6 million), against about Rs 6.09 billion (US $ 129.5 million)
in the previous year.
Locations
Collaborations
• Le Moteur Moderne, France, for the development of diesel and petrol engines
for passenger cars.
Subsidiaries
• HV Axles Ltd.: It was incorporated on March 13, 2000 with the objective of
acquiring the Heavy-Duty Axle Division of Tata Motors at Jamshedpur as a
going concern. It supplies axles and their parts to Tata Motors against
purchase orders raised by Tata Motors on HVAL.
• Telco Automation Ltd.: It was incorporated on March 13, 2000 with the
objective of acquiring the Machine Tool and Growth Divisions of Tata Motors
as a going concern. As and when required, Tata Motors sources factory
automation equipment from TAL.
• Tata Technologies, USA: It was incorporated on August22, 1994 and became
a wholly owned subsidiary of Tata Technologies Limited on December 22,
2000. The company is engaged in the business of computer consultancy and
related services.
Strategic alliances
Tata Motors has several joint ventures and alliances. These include:
• Tata Precision Industries Pvt. Ltd., Singapore, for the manufacture and sale
of high precision too lings as well as electronic and plastic components for the
computer industry;
• Tata Motors Services Ltd., Singapore, for the sale of spare parts for Tata
vehicles; and
• Nita Company Ltd., Bangladesh, for the assembly and sale of Tata
commercial vehicles.
VISION AND MISSION
Vision
To be the leading provider of Tata Motors services in India and a major global
companies.
Mission
Be the Tata Motors of first choice for our customers by delivering high
quality, world-class products and services.
In this network there are no channel partners. The transportation is done through the
company itself and most of the trailers are company owned. If any C&F agent is
required then they are chosen on the basis of their goodwill and their ability to
transport at a pre quoted price.
The dealers are chosen by the company on the basis of their capacity to invest,
experience, existing line of business and most important of all their reputation in the
market. The dealers’ location also is a major factor for their selection for a TATA
dealership.
There is a major misconception that TATA asks for a security deposits from its
dealers. TATA motors do not ask for any security deposit from its dealers instead they
ask them to take a Working Loan from HDFC bank. This loan amount can vary from
dealer to dealer depending on their location. For a small town like DehraDun this loan
amount is about 2.5 cr. The main purpose of this loan is that the dealers can make the
payment of the cars that they take from the company, as the company policy does not
have any credit policy. There is also a benefit in taking this loan. If a dealer takes this
loan then he is charged interest as low as 8% whereas if he takes a loan from some
other bank he is charged as high as 12% to 13 %. TATA motors have a tie up with
HDFC bank exclusively for dealers.
The dealers are expected to keep a stock of two to three weeks at any given point of
time for both spares and cars. The stock is determined on the basis of the segment a
dealer falls into. For example
Category
A: up to 1500 cars per annum
B: up to 1200 cars per annum
C: up to 900 cars per annum
D: up to 600 cars per annum#
* As told to us by the company officials 70% of the dealers fall in the A category
# As told to us by company officials only 2% to 3% of its dealers fall
in D category.
The dealers get a return of 3% on every car they sell depending upon the variant sold.
These days the company offers the dealers various promotional schemes for example.
If a dealer sells five petrol Indicas he can win a trip to Bangkok. They also get sales
incentives like on selling a petrol Indica car the dealer gets Rs. 1000/- per car and
even more on selling a petrol Safari. The return the dealers get on servicing depends
on the amount payable for servicing where the dealer levies a service charge. Most of
the dealer’s profits are made on selling the spare parts
.
BOARD OF DIRECTORS
NAME DESIGNATION
J J Irani Director
N N Wadia Director
R A Mashelkar Director
N Munjee Director
R Gopalakrishnan Director
S M Palia Director
S Bhargava Director
V K Jairath Director
HISTORY
Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons.
The company was established in 1935 as a locomotive manufacturing unit and later
expanded its operations to commercial vehicle sector in 1954 after forming a joint
venture with Daimler-Benz AG of Germany. Despite the success of its commercial
vehicles, Tata realized his company had to diversify and he began to look at other
products. Based on consumer demand, he decided that building a small car would be
the most practical new venture. So in 1998 it launched Tata Indica, India's first fully
indigenous passenger car. Designed to be inexpensive and simple to build and
maintain, the Indica became a hit in the Indian market. It was also exported to Europe,
especially the UK and Italy. In 2004 it acquired Tata Daewoo Commercial Vehicle,
and in late 2005 it acquired 21% of Aragonese Hispano Carrocera giving it
controlling rights of the company. It has formed a joint venture with Marcopolo of
Brazil, and introduced low-floor buses in the Indian Market. Recently, it has acquired
British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand
names.[3][4][5]
Expansion
The FIRST generation Tata Indica V2's excellent fuel economy, powerful engine and
aggressive marketing strategy made it one of the best selling cars in the history of the
Indian automobile industry.
After years of dominating the commercial vehicle market in India, Tata Motors
entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi
utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a
stationwagon design based on the earlier 'TataMobile' (1989), a light commercial
vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility
vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of
India. Though the car was initially panned by auto-analysts, the car's excellent fuel
economy, powerful engine and aggressive marketing strategy made it one of the best
selling cars in the history of the Indian automobile industry. A newer version of the
car, named Indica V2, was a major improvement over the previous version and
quickly became a mass-favourite. Tata Motors also successfully exported large
quantities of the car to South Africa.The success of Indica in many ways marked the
rise of Tata Motors.[7]
Subsidiary Brands
With the success of Tata Indica, Tata Motors aimed to increase its presence
worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South
Korea. The reasons behind the acquisition were:
• To expand the product portfolio Tata Motors recently introduced the 25MT
GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata
plans to leverage on the strong presence of TDCV in the heavy-tonnage range
and introduce products in India at an appropriate time. This was mainly to
cater to the international market and also to cater to the domestic market
where a major improvement in the Road infrastructure was done through the
National Highway Development Project.
Tata remains India's largest heavy commercial vehicle manufacturer and Tata
Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea.
Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus
and World Truck and buses namely, GloBus and StarBus.
Hispano Carrocera
Main article: Hispano Carrocera
In 2005, sensing an opportunity in the fully-built bus segment, Tata Motors acquired a
21% stake in Hispano Carrocera SA,[8] the leading European bus and coach cabin
maker. In 2009, the company picked up the remaining 79% stake in Hispano
Carrocera SA for an undisclosed sum, making it a fully-owned subsidiary.
After the acquisition of the British Jaguar Land Rover (JLR) business, which also
includes the Daimler, Lanchester and Rover brands,[9] Tata Motors became a major
player in the international automobile market. On 27 March 2008, Tata Motors
reached an agreement with Ford to purchase their Jaguar Land Rover operations for
US$2 billion. The sale was completed on 2 June 2008.[6]
In addition to the brands, Tata Motors has also gained access to two design centres
and two plants in UK. The key acquisition would be of the intellectual property rights
related to the technologies.
Joint ventures
Tata MarcoPolo released this low-floor bus in India and now it is widely used as
public transport in Delhi, Mumbai, Bangalore and Lucknow
Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of
Brazil. This joint venture is to manufacture and assemble fully-built buses and
coaches targeted at developing mass rapid transportation systems. The joint venture
will absorb technology and expertise in chassis and aggregates from Tata Motors, and
Marcopolo will provide know-how in processes and systems for bodybuilding and bus
body design. Tata and Marcopolo have launched a low-floor city bus which is widely
used by Chennai,Delhi, Mumbai,Lucknow and Banglore transport corporations.
Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel
engine technology.[10] Tata Motors sells Fiat cars in India and is looking to extend its
relationship with Fiat and Iveco to other segments. Tata has also formed several JV's
with many small companies in various countries around the world.
Tata Nano
Main article: Tata Nano
Tata Nano
In January 2008, Tata Motors launched Tata Nano, the least expensive production car
in the world at about Rs. 100,000 (US $2,500).[11] The city car was unveiled during the
Auto Expo 2008 exhibition in Pragati Maidan, New Delhi.[12]
Tata has faced controversy over developing the Nano as some environmentalists are
concerned that the launch of such a low-priced car could lead to mass motorization in
India with adverse effects on pollution and global warming. Tata has set up a factory
in Sanand, Gujarat and the first Nanos are to roll out summer 2009.
Tata Nano Europa has been developed for sale in developed economies and is to hit
markets in 2010 while the normal Nano should hit markets in South Africa, Kenya
and countries in Asia and Africa by late 2009. A battery version is also planned.
Tata has also been approached by a province in France named Moselle to setup a Tata
Nano manufacturing plant.
Tata Ace
Main article: Tata Ace
Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched
in May 2005. The mini-truck was a huge success in India with auto-analysts claiming
that Ace had changed the dynamics of the light commercial vehicle (LCV) market in
the country by creating a new market segment termed the small commercial vehicle
(SCV) segment. Ace rapidly emerged as the first choice for transporters and single
truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors
had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace
was built with a load body produced by Autoline Industries.[13] By 2005, Autoline was
producing 300 load bodies per day for Tata Motors. Tata Ace - Apka Pyaara Chota
Hathi.
Ace is still a top seller for TML with 5M units sold to date (June 2010).[14]
Ace has also been exported to several European, South American and African
countries and all-electric models are sold through Chrysler's Global Electric
Motorcars division.[15]
Compressed air car
Main article: Tata OneCAT
Tata OneCAT
Motor Development International of France has developed the world's first prototype
of a compressed air car, named OneCAT.[16] In 2007, MDI owner Guy Negre was
reported to have "the backing of Tata".[16]
It has airtanks that can be filled in 4 hours by plugging the car into a standard
electrical plug. In 2008 MDI planned to also design a gas station compressor, which
would fill the tanks in 3 minutes.[17] There are no gasoline costs and no fossil fuel
emissions from the vehicle when run in town, but "the compressed air driving the
pistons can be boosted by a fuel burner".[17]
OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it is
said to run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle.
There are severe physical arguments pleading against those figures. In December
2009 Tata's vice president of engineering systems confirmed that the limited range
and low engine temperatures were causing difficulties.[18]
Electric vehicles
Tata Motors unveiled the electric versions of passenger car Tata Indica and
commercial vehicle Tata Ace. Both run on lithium batteries. The company has
indicated that the electric Indica would be launched locally in India in about 2010,
without disclosing the price. The vehicle would be launched in Norway in 2009.[19]
Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a
50.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of
Norway for US$1.93 M, which specialises in the development of innovative solutions
for electric vehicles, and plans to launch the electric Indica hatchback in Europe next
year.[20][21][22] On 17 Sept 2010 Tata motors presented to the DTC [ Delhi Transport
corporation] Four CNG - Electric Hybrid lowfloored Starbuses to be used for
commonwealth games.These will be the first Environmentally friendly buses to be
used for public transportation in India.
TATA IN INDIA
Tata Xover
• Tata Sumo/Spacio
• Tata Safari
• Tata Indica
• Tata Vista
• Tata Indigo
• Tata Manza
• Tata Winger
• Tata Magic
• Tata Nano
• Tata Xenon XT
• Tata Aria
Concept vehicles
• 2000 Aria Roadster
• Tata 709 Ex
• Tata Starbus (Branded Buses for city,inter city,school bus and standard
passenger transportation)
• Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid
Transit and also standard passenger transportation Buses)
• Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Military vehicles
• Tata LSV (Light Specialist Vehicle)
• Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions
Tata has dozens of technology and design subsidiaries. These include the main ones.
Telco Construction Equipment (TELCON)
TELCON is a joint venture between Tata Motors and Hitachi, which focuses on
excavators and other construction equipment.
Indica Indigo
Sumo
Safari
DISTRIBUTION STRUCTURE
Factory
/Plant
TATA motors does not have any C&F agents. The cars are delivered to the
dealers directly by the company owned transportation facility.
SALES STRUCTURE
Chairman
Chairman
Commercial
Commercial Engineering
Engineering
PassengerCar
Passenger Car
Vehicle
Vehicle Research
Research
Business Unit
Business Unit Division
Division centre
centre
Business
Business
Development
Development
VP
VP
DGM
DGM
Dealerdevelopment
development
GM
GM DGM
DGM GM
GM Dealer
Sales(cars)
(cars) Sales(UV)
(UV) Service &&commercial
commercial
Sales Sales Service planning
planning
Regional
Regional Regional
Regional Regional
Regional Regional
Regional
Manager
Manager Manager
Manager Manager
Manager Manager
Manager
South
South West
West East
East North
North
Dealer
Dealer
Accounts
Accounts
Manager
Manager
Dealers
Dealers Dealers
Dealers Dealers
Dealers
TELCO
Currently the largest automobile company in India, Tata Motors ranks among the top
10 commercial vehicle producers in the world.
Soon after launching the Safari, Tata Motors made an aggressive foray into the
mainline passenger car market with its small car, the Tata Indica. The Indica fulfills
the Tata Group Chairman Ratan Tata's vision of developing and manufacturing a truly
Indian car that would use modern technology and contemporary styling of the small
car genre. It went on to set a benchmark in terms of its value proposition in terms of
best value for money in its segment and internal spaciousness.
The overwhelming customer response that the Indica generated at its launch in early
1999 has translated into its capturing more than 17% of the premium small car
segment, and 8 % of the entire passenger car market in India within a year.
Clearly identifying the core areas as R&D, manufacture of critical components and
the final vehicle assembly, the company continues to be open to global alliances to
effectively enhance its competitiveness in the fast globalizing Indian markets.
Business Sector
The Tata Group runs businesses in seven key industrial sectors, namely, Materials,
Energy, Chemicals, Consumer Products, Engineering, Communications and
Information Systems, and Services. TELCO is Tata’s flagship company in the
Engineering sector.
Business Models
Business
TELCO is into the business of manufacturing and selling medium, heavy and light
commercial vehicles, multi utility vehicles and passenger cars.
Its major product line can be basically classified into three broad categories. There are
various sub-brands and products in these categories:
1. Passenger Cars
2. Utility Vehicles
3. Commercial Vehicles
TELCO currently has three products in its Passenger Car division namely,
a. Tata Indica
b. Tata Indigo
c. Tata Safari
It is in the process of coming out with another member in the passenger car family,
the all-new Indica Sedan, set out to storm the Indian Mid-Size Passenger car
segment, which would be launched in the last quarter of 2008.
Confirming to International standards all these vehicles are available with various
features such as petrol & diesel versions, 2-wheel and 4-wheel drives etc.
TELCO currently has three products in its Multi-Utility vehicle division namely,
a. Tata Sumo
b. Telco Sport
All these vehicles come only in diesel-engine versions and are quite popular on the
Indian roads, especially on the highways and in the rural areas. They are known for
their build quality, reliability, ruggedness, and the various uses that they can be put at.
They are used as people carriers, as emergency vans, goods carriers, pick-up vehicles
and so many more uses.
The utility pick-up vans of Tata International are made for all kind of terrains and are
facilitated with features like 2 & 4 wheel drive, single & crew cabs etc.
TELCO is the undisputed leader as regards the Commercial Vehicle segment. It has a
large number of products in this segments classified as various types namely,
a. Buses
b. Trucks
c. Tippers (3 models)
d. Tractors (3 models)
S.W.O.T ANALYSIS
STRENGTHS
New investment by Tata in factories in the US and China saw 2005 profits rise,
against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen
($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators
argue that this is because the company has the right mix of products for the markets
that it serves. This is an example of very focused segmentation, targeting and
positioning in a number of countries.
In 2003 Tata knocked its rivals Ford into third spot, to become the World's second
largest carmaker with 6.78 million units. The company is still behind rivals General
Motors with 8.59 million units in the same period. Its strong industry position is based
upon a number of factors including a diversified product range, highly targeted
marketing and a commitment to lean manufacturing and quality. The company makes
a large range of vehicles for both private customers and commercial organisations,
from the small Yaris to large trucks. The company uses marketing techniques to
identify and satisfy customer needs. Its brand is a household name. The company also
maximizes profit through efficient manufacturing approaches (e.g. Total Quality
Management).
WEAKNESS
Being big has its own problems. The World market for cars is in a condition of over
supply and so car manufacturers need to make sure that it is their models that
consumers want. Tata markets most of its products in the US and in Japan. Therefore
it is exposed to fluctuating economic and political conditions those markets. Perhaps
that is why the company is beginning to shift its attentions to the emerging Chinese
market. Movements in exchange rates could see the already narrow margins in the car
market being reduced.
The company needs to keep producing cars in order to retain its operational
efficiency. Car plants represent a huge investment in expensive fixed costs, as well as
the high costs of training and retaining labour. So if the car market experiences a
down turn, the company could see over capapacity. If on the other hand the car
market experiences an upturn, then the company may miss out on potential sales due
to under capacity i.e. it takes time to accommodate. This is a typical problem with
high volume car manufacturing.
OPPURTUNITIES
Lexus and Tata now have a reputation for manufacturing environmentally friendly
vehicles. Lexus has RX 400h hybrid, and Tata has it Prius. Both are based upon
advance technologies developed by the organization. Rocketing oil prices have seen
sales of the new hybrid vehicles increase. Tata has also sold on its technology to other
motor manufacturers, for example Ford has bought into the technology for its new
Explorer SUV Hybrid. Such moves can only firm up Tata's interest and investment in
hybrid R&D.
Tata is to target the 'urban youth' market. The company has launched its new Aygo,
which is targeted at the streetwise youth market and captures (or attempts to) the
nature of dance and DJ culture in a very competitive segment. The vehicle itself is a
unique convertible, with models extending at their rear! The narrow segment is
notorious for it narrow margins and difficulties for branding.
THREATS
Product recalls are always a problem for vehicle manufacturers. In 2005 the company
had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front
suspension systems. Tata did not give details of how much the recall would cost. The
majority of affected vehicles were sold in the US, while the rest were sold in Japan,
Europe and Australia.
As with any car manufacturer, Tata faces tremendous competitive rivalry in the car
market. Competition is increasing almost daily, with new entrants coming into the
market from China, South Korea and new plants in Eastern Europe. The company is
also exposed to any movement in the price of raw materials such as rubber, steel and
fuel.
STRATEGIC GROUP MAPS
INTERNAL ANALYSIS
The basic premise is the Customer. So whenever a new product development plan
comes into picture, the idea is to look for ways to offer the customer the best value for
his money. And the way we define value, the word covers all the possible and not so
possible ways to customer satisfaction.
STRATEGIC INTENT
Purpose
Being a part of the Tata Group, TELCO’s corporate purpose is to improve the quality
of life of the communities that it serves, through leadership in sectors of national
economic significance, to which the group brings a unique set of capabilities. This
requires aggressive growth in its focused areas of business.
The Tata Group’s heritage of returning to society what it earns evokes trust among
consumers, employees, shareholders and the community. Formalizing the high
standards of behavior expected from employees and companies continuously enriches
this heritage.
The Tata name is a unique asset representing leadership with trust. Leveraging this
asset to enhance group synergy and becoming globally competitive is the route to its
sustained growth and long-term success.
Core Values
The Tata Group has always sought to be a value-driven organization. These values
continue to direct the group's growth and businesses. The five core Tata values
underpinning the way it does business are:
Integrity - we must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.
Understanding - we must be caring, show respect, compassion and humanity for
our colleagues and customers around the world and always work for the benefit of
India.
Unity - we must work cohesively with our colleagues across the group and with
our customers and partners around the world, building strong relationships based
on tolerance, understanding and mutual cooperation.
Tata Motors owes its leading position in the Indian automobile industry to its strong
focus on indigenization. This focus has driven the company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product evolution
- design, development, manufacturing, assembly and quality control, is carried out
meticulously. Its manufacturing plants are situated at Jamshedpur in the East, Pune in
the West and Lucknow in the North.
Jamshedpur:
This was the first unit of the company established in 1945 and is spread over a area of
822 acres. It consists of 3 divisions - Truck, Engine (including the Gear Box division)
and Axle. The divestments in March 2000 hived off the Axle and Engine plants into
independent subsidiaries. The Truck Division boasts of two assembly lines. The main
assembly line, measuring 180 metres in length, has 20 stations with a vehicle rolling
out every 8 minutes while the other line is dedicated to Special Purpose Vehicles
(SPVs). State-of-the-art facilities like a Centralized Paint and Press Shop with a set-up
of a 5000 tonne Siempelkamp press line and a cut-to-length line for strip preparation
purchased from M/s. Kohler of Germany makes it a fairly advanced production outfit.
The unit is also equipped with a semi-automated forging line, with 40,000 mkg Bache
hammer and state-of-the art presses from Kurimoto of Japan and is one of the most
modern forging set-ups in the country. It produces critical forging like crankshafts,
front axle beams and steering parts for the automobile plant. The new forging line,
installed on April 20, 1984, has the capability to forge front axle beams at 90 sec per
piece and crankshafts at 120 sec per piece. Mechanical presses help produce a variety
of heavy forging. The sophisticated FIDIA Digit 165 CC graphite milling machine
links shop floor machines to the design workstation. The Forge has been certified as
ISO 9002 and QS 9000 by the BVQI.
Pune:
The Pune unit is spread over 2 geographical regions Pimpri and Chinchwad and has a
combined area of around 510 acres. It was established in 1966 and has a Production
Engineering Division, which has one of the most versatile tools making facilities in
the Indian sub-continent. It houses a Vehicle manufacturing complex which is one of
the most integrated automotive manufacturing centers in the country producing a
large variety of individual items and aggregates. It is engaged in the design and
manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and
special tools, as well as models for the development of new ranges of automobile
products. Its capabilities have enabled Tata Motors to introduce new products and
improve existing ones without resorting to imports of dies or fixtures.
Over the years, this division has developed expertise in design and manufacture of
automated dies, fixtures and welding equipment. Its large design group is fully
conversant with state-of-the-art CAD facilities and manufacturing facilities
comprising of light and heavy CNC machine shops, jigs boring room, plastic template
shop, wood pattern and model pattern shop, five axis precision machine tools and
laser control machines. To cope with such a diverse range, four assembly lines have
been established, one each for MCVs and HCVs, LCVs, multi-utility vehicles and one
for Passenger Cars (Indica).
The Passenger Car Division in 'K' block executes the entire process of car
manufacture over five shops - the engine shop, the transmission shop, press and body
shops, paint shop and the trim and final assembly shop. The shops are fully automated
ensuring that there is minimal chance for error in the manufacturing processes. After
the car is completely assembled, it goes through several checks like wheel alignment,
side slip test, brake test, shower test, and a short test run before it is ready for
dispatch.
All systems such as materials management, maintenance and other activities are
computerized, enabling smooth operations and minimum inventory needs.
Industry experts rate the fully automated Foundry at Chinchwad among the best,
worldwide. The Iron Foundry produces 16,000 tonnes of high precision castings per
year with the help of 450 employees. These include Cylinder Blocks, Cylinder Heads,
Gear Box Housing, etc. To dispense with the need for outsourcing, an Aluminium
Foundry with an annual capacity of 700 tonnes has also been established.
Lucknow:
Lucknow Plant is the latest in Tata Motors 's manufacturing facilities. Established in
1991 and covering an area of 600 acres, it was primarily started to assemble Medium
Commercial Vehicles (MCVs) to meet the demand in the Northern Indian market.
However, in 1995, the unit started manufacturing bus chassis of Light Commercial
Vehicles (LCVs) and SUMO's. The unit is equipped with facilities to manufacture
spare parts. Subsequently, G-16 and G-18 Gear Parts were added in 1998. The plant
started to assemble G -16 GearBoxes in 2000 to meet the in-house requirement for
SUMO vehicles.
PASSENGER CARS SEGMENTATION
Traditionally, disposable income was perceived as the one critical factor that
drove passenger car demand. However, household income is no longer the
single most important factor in determining the demand for vehicles. Other
critical factors are the mobility needs of people and the availability of cheap
finance. The top three income groups - middle, upper middle, and high -
have grown from 10% in 1986 to 17% of the population and covers over 52
million families. The number of high-income households is growing very
rapidly, more so in the rural areas. These findings have revolutionary
implications for the passenger car market. The development of the used car
market will also play a major role, as the customers will be encouraged to
trade in their old cars. The key to the growth of future markets is to make
maintenance-free vehicles, to improve the road infrastructure, and to
reformulate fuels and lubricants so as to reduce vehicle-operating costs.
PRICING
In any business, nothing is more dangerous than using money as the magnet for
attracting customers. It kills loyalty, mangles margins, and encourages defections. But
it is the Unique Selling Price the only road to success in the intensely competitive
automobiles business?
Those in the race for winning over the Rs. 7,500-crore small cars market seem to
believe so.
In the small car segment, the only ‘P’ that, suddenly, seemed to matter was the second
in the Product-Price-Promotion-Place marketing-mix.
Evidently, features, technology, and service are secondary. And the only warhead is
price. According to the Research Analyst, Morgan Stanley, “Price is the most
important ‘P’ in this market because it is pyramidal in structure, with a huge base and
a narrow apex”.
Everything else remaining constant, the purchase decision of the first-time buyer is
influenced by the 4 factors: Price, Price, Price and Price. The first is the price of
acquisition. The second is the price of finance, or the rate of interest on a loan to buy a
car. Third is the price of maintenance, which includes the cost of fuel, service, and
spare parts. And the fourth is the price of disposal, or the re-sale value of the car. The
typical Indian car-buyer is obsessed with post-purchase pricing which is, in effect, the
cost of maintenance and the possible re-sale value. And obviously, the lower the
selling price of a second hand model, the less is the purchaser’s incentive to opt for it.
However, not every company plays the price-card. Instead of cutting the price of
Santro, Hyundai Motors has launched an enhanced version with product features like
power steering, and product-plus features like better service and customer-care.
Hyundai arrived at the pricing strategy after a careful analysis. It does not believe in
knee-jerk reactions to rival moves. It also believes that when features are the USP,
second P Marketing cannot help reinforce that position. Strategic price marketing is a
corporate weapon that must be applied in the context of an entire portfolio of cars.
Attempting to sell the lowest priced car in every segment will not enable a company
to survive.
Sure, the lower price will be an attraction to the first-time buyer who is, essentially,
stretching his budget to buy personal transportation. The less the stretch, the more is
the likelihood of actually buying a car instead of, say, a two-wheeler. So, even a drop
of Rs.1000 in the small cars segment could expand its size.
Go beyond the entry level – and the price-value equation will kick in immediately.
Only if all other things are perceived to be equal between competing brands will price
be a decider. Once incomes start rising again, there will emerge increasing numbers of
upgrades as well as first-time buyers who will not necessarily start at the lowest price-
level. Thus, price will become less important. Applied as a brand-level strategy, price
may help the auto-marketers win over only the entry-level customer.
However, only the lowest priced player will milk this segment. The rest of the low-
price aspirants will have to offer additional features as value to convince the budget-
buyer to spend more. As a corporate strategy, leading the charge through price may
have a better pay-off. A low –priced product will enable new entrants to gain entry
into the consumer’s garage. The threat, however, is that of a dangerous dilution of
image.
Thus price can be a selling proposition for only one segment of customers. But a
company that seeks life-long customers, who progressively move up its product
ladder, cannot rely on price alone for success.
Mission Statement
Leadership – Maintain our relationship of the Indian industry Throughout the
continuous modernization and expansion of our Manufacturing facilities and
activities and through establishment of a wide and efficient marketing network
Profitability-Achieve a fair and reasonable return on capital by promoting
productivity throughout the company
Growth- Ensure a steady growth of business by strengthening our position in the
cement industry.
Quality- Maintain high quality of our products and services and ensure their
supply their supply at fair prices.
Equity- Promote and maintain fair industrial relations and an environment for
the effective involvement, welfare, and development of staff at all levels.
Pioneering- Promote research and development efforts in the areas of product
development and energy, and fuel conservation and to innovate and optimize
productivity.
COMPANY ANALYSIS
Political
Taxation policy
Environmental protection laws
Employment laws
Economical
Inflation
Employment
Disposable income
Business cycles
Energy availability and cost
Social
Demographics
Distribution of income
Social mobility
Lifestyle changes
Consumerism
Levels of education
Technology
New discoveries and innovations
Speed of technology transfer
Rates of obsolescence
Internet
Information technology
PORTERS 5 FORCES MODEL
The model of pure competition implies that risk adjusted rates of return should be
constant across firms and industries . Michael Porter provided a framework that
models an industry as being influenced by five forces . the strategic business manager
seeking to develop an edge over rival firms can use this model to better understand
the industry context in which the firm operates.
Tata Motors also analysis on this theory . According to it Since there is stiff
competition in the textile industry with a lot of key players already playing business
so it posses a serious threat to Tata Motors but it has stood still and has still shown
good results.
Since the textile industry and the economy has a whole are both growing , there are
numerous opportunities for new entrants to enter in the market but it would be
seriously difficult for it to launch itself.
Since there are not much substitute products for clothes and other products that Tata
Motors built , therefore it doesn’t impose much threat to it , but researches can do
great guns and thus create problem for Tata Motors
Since Tata Motors is a big manufacturer itself for its products therefore there is not
much pressure from the countable suppliers it has.
Market segmentation
It is the act of dividing a market into distinct groups of buyers who require
separate products.
Its market research division has segmented consumers on the basis of
following:
1. Geographic variables
2. Demographic variables
3. User status and lifestyle
Market targeting
Act of developing measures of segment attractiveness.
Involves evaluating various market segments.
It targets different segments of population of all categories of age groups.
Also targets the population outside India.
Market positioning
India’s largest company.
TATA MOTORS is market capital and no.5 in sales and profit.
TATA MOTORS is the market leader.
They are the highest contributor in revenue.
Another factor that governs the marketing plans is the marketing mix
elements. Marketing mix elements are the sets of factors that help firms to
achieve their targets of reaching the products to the consumers and also
achieve organizational objectives. The importance of marketing mix is, that it
takes into TATA MOTORS ount the four P's of marketing, that
are Product, Price, Promotion and Place of distribution.
The term "marketing mix" was first used in 1953 when Neil Borden, in his American
Marketing Association presidential address, took the recipe idea one step further and
coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy,
proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is
explained in most marketing textbooks and classes.
Four P's
Elements of the marketing mix are often referred to as 'the four Ps':
• Price – The price is the amount a customer pays for the product. It is
determined by a number of factors including market share, competition,
material costs, product identity and the customer's perceived value of the
product. The business may increase or decrease the price of product if other
stores have the same product.
Segmentation
Positioning
A good brand positioning help guide marketing strategy by clarifying the brands
essence but goals it help the consumer achieve and how it does so in a unique way.
The result of the positioning is the successful creation of a customer focused value
proposition, a cogent reason why the target market should buy the product.
BCG MATRIX
]
Cash Cows (low growth, high market share)
Profits and cash generation should be high. Because of the low
growth, investments which are needed should be low.
Cash Cows are often the stars of yesterday and they are the
foundation of a company.
USP
The Unique Selling Proposition
(also Unique Selling Point or USP) is a marketing concept that
was first proposed as a theory to explain a pattern among
successful advertising campaigns of the early 1940s. It states
that such campaigns made unique propositions to the customer
and that this convinced them to switch brands. The term was
invented by Company. Today the term is used in other fields or
just casually to refer to any aspect of an object that differentiates
it from similar objects.
• Their main strategy that they still follow today is the diversification of
products they offer.
Their main segment which they has captured are combination of higher
incomes & dual career families.
Value proposition
Positioning
• They also follow social factors to maintain their image through corporate
social responsibility.
• Their main strategy that they still follow today is the diversification of
products they offer.
Tata Motors reports strong profit growth for the quarter ended
September 30, 2010
Highlights:
• PAT for the quarter registered 427% increase to Rs 39 crore from Rs 7
crore in the corresponding period of the previous year
• For half year ended 30 September 2010, PAT at Rs 14 crore as against
loss of Rs 24 crore for previous year
• Leather segment sales grew by 14%
The Leather segment sales for 2010 registered an increase of 14% to Rs 393 crore on
the back of higher volumes and improved realizations in a buoyant domestic market.
The Leather segment reported Earnings Before Interest and Tax (EBIT) of Rs 90
crore which is up by 44% compared to the corresponding period of previous year. The
consequent EBIT margin for Leather segment has improved to 23% in 2010 from
18% in the previous year.
The net sales of the entire Files & Tools business was up 16% to Rs 59 crore for the
quarter.
The Branded Apparel business witnessed a 6% increase in sales to Rs 174.
The closure costs of Zapp! brand have impacted margins.
Tata Motors continues to operate one of the largest specialty retail networks in India
in the Leather and apparel space with 665 retail stores covering over 1.4 million
square feet of
retail space. In addition, the Company also has 39 stores in Middle East and SAARC.
Like-to-like store sales growth for Company-operated stores for the quarter has been
strong at 10%.
The company has arrived at an amicable solution to the VRS settlement package issue
involving 1885 workers of its Thane Leather factory, which suspended operations in
November 2009. The total package cost is approx. Rs 260 crore, which is to be paid in
two parts – the first part of Rs. 150 crore would be disbursed to the workers
immediately, while the balance Rs 110 crore would be disbursed in three years. As on
October 25, 2010 over 93% workers have opted for VRS settlement.
Note: This mean that out of every rupee of assets employed in the business, 85 paisa
in 2009,
73 paisa in 2006 and 88 paisa in 2005 contributed by the proprietors and remaining
contributes by the outsider creditors.
HR POLICIES & STRATEGIES
HUMAN RESOURCES DEPARTMENT (HRD)
(A).SOURCES OF RECRUITMENT:
The sources of recruitment are broadly divided into internal sources and external
sources consisting of the following:
• Campus Recruitment: These candidates are directly recruited by the Co; from
their college/educational institution. They are inexperienced as far as work
experience is concerned.
(B).PROCESS OF RECRUITMENT:
1. Preliminary Examination
The examination is of 135 minutes. You need to take the objective exam.
Different sub categories under this section are:
2. If you clear the preliminary test then, you will be given a chance to attend the main
SBI recruitment test:. This is an objective test with 2 hours of time. This exam
contains the following category of subjects.
• Reasoning Ability
• Marketing Capability
• Data interpretation
3. After clearing second round, you will be permitted to attend 3rd stage. The final
stage includes group discussion and personal interview.
(C).BENEFITS AND COMPENSATION FOR EMPLOYEES:
Schemes for:
1. Reimbursement of entertainment expenses.
SUPPLIER RELATIONSHIPS
TATA MOTORS treats its vendors as business associates. All vendors are treated
with respect and dignity. Our vendor base includes reputed manufacturers and trusted
brand names, usually the leading 3-4 vendors of their particular industry segment who
are technically and financially sound and have the intrinsic capacity to supply material
of desired quality and on time. TATA MOTORS prefers vendors who demonstrate
good corporate citizenship and promote sustainable development.
Adequate care is taken to ensure transparency in procurement processes. Our
procurement policy has a clearly defined code of practice for procurement conduct
and encourages fair and open competition in markets.
KEY CUSTOMERS:
The Tata Motors targeted customers are:
Labour’s
MNC’s
Senior Citizens
House-wives
Middle/High class income group.
Self employed.
Quality Policy
We at HKGROUP is committed to organizational growth by providing precision quality
components through enhancing customer satisfaction, controlling waste, by using latest mfg.
technology with involvement of all employees and our valued suppliers to achieve excellent
quality & on time delivery by continually improving Quality Management System.
Quality Management :
TATA MOTORS has led the Indian automobile industry's anti-pollution efforts by
introducing cleaner engines. It is the first Indian company introduce vehicles with
Euro I and Euro II norms.
Environmental Management:
TATA MOTORS reaffirms its commitment to minimize the adverse impacts of its
products, operations and services on the environment. It strives to:
• Reduce the emission levels of vehicles in full compliance of the regulatory norms &
proactively work with the industry, Government, other related industries & agencies
to bring in international practices.
• Use of environmentally sustainable technologies & practices for prevention of
pollution and the continual improvement in environment performance.
• Conserve natural resources and energy by minimizing their consumption & wastage.
• The unit is cerified with ISO 14001 : 1996 for Environmental Management System
(EMS)
Work Measurement :
TATA MOTORS is the first Indian Company to introduce the Balance Scorecard
System in automotive sector in India.
The scorecard incorporates SQDCM (Safety, Quality, Delivery, Cost and Morale).
The implementation of the Balanced Scorecard has enabled greater focus on different
elements of operational performance. Defining, cascading and communicating
strategies across the organization have brought about transparency and alignment.
Apart from Balance scorecard half yearly review of the employees is done on the
basis of attendance, kaizen at work place etc.
Value Engineering:
Continuous efforts are made to reduce the cost of service in TATA MOTORS.
Rejection of input parts received from vendors is very closely monitored in all the
departments. The vendors are penalized if rejection exceeds beyond the defined
limits. Apart from rejection of regular parts some stations are identified as CTQ
(Critical to Quality) Stage. Special care is taken of the components added on these
stations. Any negligence on these stations may lead to a customer claiming repla of
the vehicle. Value Engineering team also works for searching energy efficient
alternatives, methods and eco-friendly technology, by adopting effective maintenance
& work. The consumption of electricity, water, LPG, Compressed air etc is
continuously monitored and steps are taken to reduce the consumption of these
resources.
Material Management:
TATA MOTORS uses SAP 4.6C Material Management (MM) module for:
• materials planning and control,
• purchasing,
• goods receiving,
• inventory management,
• invoice verification.
Various spare parts for the machines and other necessary equipments are ordered by
the maintenance and T & PS departments through central maintenance shop and
purchase department. Quotations are invited from the interested parties and after the
negotiations one party is finalised to procure the material.
LIMITATIONS
• Since the sample size considered for the study is only 50-60 people
specifically who are regular customers of Tata Motors, it is quite
possible that the result obtained from the study are not 100% accurate,
because the sample chosen (randomly), may not be an ideal
representative of the target market.
• Since many analyses is done on the basis of personal interaction with the
customers and employees of Tata Motors, the responses received may or may
not be authentic.
LEARNINGS
• Another very crucial area that needs mention is the experience I gained while
talking to & interacting with people. This has been a truly enriching
experience because interacting with people with varied profiles helped in
enhancing my communication skills.
• The project I was doing was going simultaneously with my job in ‘Dainik
Jagran’, so while doing this project I learned how to manage time in a most
effective manner.
RECOMMENDATIONS
• Tata Motors should come with some less calorie products so that it does not
harm the growing children who like eating only junk food. It should come up
with more of products, which are nutritious because growing children are the
major customers of Tata Motors.
• Tata Motors should first advertise and then come up with new products in the
outlets to create maximum recall in the mind of potential customer.
• It should come up with some spicy items also to beat the competition from
other brands
CONCLUSION
• Tata Motors has always been a key player in the real estate industery since its
formation .
• The firm has risen in all aspects over the period of time . The decision of
going public was a wise one but perhaps the firm did not anticipate what the
future had in store for them and did not utilize the funds wisely .
• The Company had also increased Paints prices by a great deal but was forced
to reduce them after the demand dissapeared .
• Later on the firm has regained some strength and is all set for the future .
BIBLIOGRAPHY
Reference books:
Internet:
http://www.tata.com/0_careers/our_people/20020214_suman1.htm
http://www.tata.com/0_b_sectors/index.htm
http://www.cybersteering.com/auto_makers/telco/tata.html
http://www.tata.com/tata_engg/index.htm
http://www.tatainternational.com/automob_products.asp
http://www.tata.com/tata_engg/articles/index.htm
http://www.telcoindia.com/home.htm
http://www.tata.com/tata_engg/media/20020228.htm
http://www.tata.com/tata_engg/articles/2000106051indica2.htm
http://www.tata.com/tcs/articles/20011110_auto_engg_service(1).htm
www.marutiudyog.com
www.hyudaimotorindia.com
www.autoweb.com
Magazines: