AA

PROJECT REPORTPROJECT REPORT

ONON

TATA MOTORSTATA MOTORS

Submitted in Partial fulfillment of the requirements for the award of

Bachelor of Business Administration

Submitted by: Submitted by: Submitted to:Submitted to:

Mrinal kakakr

BBA – 4TH SEMESTER

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

Summer training is an integral part of PGDBM to undergo a training session in

business organization for 7 weeks to gain practical knowledge in their specialization

and to gain some experience of what he/she is to face in real world. Theoretical

knowledge only provides basic concept about the study. It doesn’t guarantee success

in practical problem. Further, the market condition, technology has changed

tremendously these days. It has lead to growth in the market size and complexity in

business

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

OVERVIEW OF INDIAN ECONOMY AND ITS GROWTH

OVERVIEW OF INDUSTRY

INDUSTRY INTRODUCTION

COMPANIES CONTRIBUTION WITH IN THE INDUSTRY

PROFILE OF THE ORGANISATION

HISTORY OF THE COMPANY

VISION AND MISSION STATEMENT OF COMPANY

ORGANISATION STRUCTURE

CHAPTER 2: COMPANY ANALYSIS

PEST ANALYSIS

PORTERS 5 FORCES MODEL

SWOT ANALYSIS

USP OF ANY DEPARTMENT

CHAPTER3: MARKETING STRATEGIES

INTRODUCTION AND IMPORTANCE OF MARKETING STRATEGIES

MARKETING MIX OF THE COMPANY

STP ANALYSIS OF THE COMPANY

BCG MATRIX OF THE COMPANY

CHAPTER4: FINANCIAL ANALYSIS

SOURCES OF FINANCE

KEY INVESTMENTS

RATIO

CHAPTER5: HR-POLICIES AND STRATEGIES SOURCES OF RECRUITMENT

PROCESS OF RECRUITMENT

TRANING AND DEVLOPEMENT

BENEFITS OF COMPANSATION SYSTEM

CHAPTER6: PRODUCTION POLICIESCHAPTER 7: FINDINGS AND CONCLUSIONS

BIBLIOGRAPHY

INTRODUCTION

CHAPTER 1- INTRODUCTION

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).

Tata Nano car, 2008

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]

He likes to wear Hermès ties and matching handkerchiefs. [1]

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

"Question the unquestionable"

"A promise is a promise"

AWARDS AND RECOGNITION

Ratan Tata serves in senior capacities in various organisations in India and he is a

member of the Prime Minister's Council on Trade and Industry. Tata is on the board

of governors of the East-West Center, the advisory board of RAND's Center for Asia

Pacific Policy and serves on the programme board of the Bill & Melinda Gates

Foundation's India AIDS initiative.[10]

Ratan Tata's foreign affiliations include membership of the international advisory

boards of the Mitsubishi Corporation, the American International Group, JP Morgan

Chase and Booz Allen Hamilton. He is also a member of the board of trustees of the

RAND Corporation, University of Southern California and of his alma mater, Cornell

University.[11][12] He also serves as a board member on the Republic of South Africa's

International Investment Council and is an Asia-Pacific advisory committee member

for the New York Stock Exchange.

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 2006 he received the FIRST Award for Responsible Capitalism.[14]

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]

He was one of the recipients of the NASSCOM Global Leadership Awards

2008, given at a ceremony on February 14, 2008 in Mumbai. Ratan Tata

accepted the Carnegie Medal of Philanthropy in 2007 on behalf of the Tata

family.[16][17]

He was listed among the 25 most powerful people in business named by

Fortune magazine in November 2007.

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]

On 26 January 2008, he was awarded the Padma Vibhushan, the second

highest civilian decoration.[10]

On 29 August 2008, the Government of Singapore conferred honorary

citizenship on Ratan Tata, in recognition of his abiding business relationship

with the island nation and his contribution to the growth of high-tech sectors

in Singapore. Ratan Tata is the first Indian to receive this honour.[19]

In 2009 he was appointed an honorary Knight Commander of the British

Empire [20] .

He has also been conferred an honorary doctorate in business administration

by the Ohio State University, an honorary doctorate in technology by the

Asian Institute of Technology, Bangkok, an honorary doctorate in science by

the University of Warwick, and an honorary fellowship by the London School

of Economics.[10] He has recently received an honorary Doctor of Law from

the University of Cambridge.[21]

In 2010, Ratan Tata was named one of the '50 People Who Matter 2010'[22] by

New Statesman Magazine

The automotive industry is an extremely reliable indicator of economic growth;

quite obviously, its growth boosts the economy’s performance. As India

celebrates its 50 years of independence, the passenger car industry

celebrated a centenary of its existence in India in 1998. Despite this head

start, the industry has never quite matched up to the performance of its

counterparts in other parts of the world. The all-pervasive atmosphere

created by the government's license raj was primarily responsible for this

situation. The various layers of Acts sheltered the industry from external

competition and smothered the development of the Indian automobile

industry. Moreover, the industry was considered low priority as cars were

considered to be an "unaffordable luxury."

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.

Later I went through the process of filling the questionnaires, to know

exactly what the customer’s of small cars perceived about their cars. A

sample size of sixty respondents was taken. Sample unit was a customer who

owned a small car. Secondary data from various sources like magazines,

journals etc was also collected.

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.

The future of Indian cars is purely dependent on advancements and innovations.Just

go back to the olden days when the old Fiat Padmini and Hindustan Ambassador were

shinning on Indian roads. At that period of time, did anyone of us thought that the car

market will prosper to such a height? No one of us ever imagined such a speedy and

accelerated growth of the Indian market.

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

The company’s manufacturing plants in India are at Jamshedpur, Pimpri and

Chinchwad near Pune in Maharashtra, and Lucknow in Uttar Pradesh. Land has been

acquired at Dharwad (Karnataka) to build a fifth plant.

Collaborations

The company has technical tie-ups with:

The Institute of Development in Automotive Engineering (IDEA), S.P.A.,

Italy, for assistance in small car body design and styling; and

Le Moteur Moderne, France, for the development of diesel and petrol engines

for passenger cars.

Subsidiaries

Tata Construction Equipment Company Ltd. (TELCON): Its principal

business is manufacture and sale of construction, material handling and

earthmoving equipment.

Tata Technologies Ltd.: It oversees the IT requirements of Tata Motors and

provides services for SAP implementation, CAD/CAM-based design, and e-

commerce facilities to customers in India and abroad.

Sheba Properties Ltd: It is an investment and finance company and a wholly-

owned subsidiary of Tata Motors since its inception. It is registered with RBI

as a Non Banking Finance company.

Telco Dadajee Dhakjee Ltd. (TDDL): It is an investment and finance

company and proposes to undertake activities pertaining to the sales and

service of Tata Motors’s vehicles and spare parts.

Minicar (India) Ltd.: Formerly known as Mazda Industrial Chemicals Ltd.,

this company was incorporated on January 18, 1972 and is currently engaged

in the business of automobile sales and services.

HV Transmissions Ltd.: It was incorporated on March 13, 2000 with the

objective of acquiring the Heavy-Duty Gear Box Division of Tata Motors at

Jamshedpur as a going concern. It supplies transmissions and their parts to

Tata Motors against purchase orders raised by Tata Motors on HVTL.

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 Cummins Ltd., a joint-venture with Cummins Engine Company Inc.,

USA; makes fuel-efficient, low emission, environment-friendly diesel engines;

Tata Holset Ltd., a joint-venture with Holset Engineering Company, UK,

makes turbochargers for diesel engines manufactured by Tata Cummins Ltd.

and other OEMs;

Concorde Motors Ltd., a joint venture with Jardine International Motors

(Mauritius) for dealerships of passenger vehicles. Concorde has dealerships

for Tata Motors passenger vehicles in Delhi, Mumbai, Bangalore, Ludhiana,

Hyderabad, Chennai and Lucknow.

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.

Expand the frontiers of our business globally.

Play a proactive role in the full realization of India’s potential.

Maintain a healthy financial profile and diversify our earnings across

businesses and geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we

operate.

Create value for our stakeholders.

Financial terms with channel partners

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

Ratan N Tata Chairman / Chair Person

Carl-Peter Forster Managing Director & CEO

J J Irani Director

N N Wadia Director

R A Mashelkar Director

N Munjee Director

Ranendra Sen Independent Director

Ravi Kant Vice Chairman

P M Telang Managing 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

Jaguar XJ

Tata Novus is one of the

best selling commercial

trucks in South Korea.

Hispano Divo at the 2008 FIAA

in Madrid

Tata Daewoo Commercial VehicleMain article: Tata Daewoo Commercial Vehicle

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:

Company's global plans to reduce domestic exposure. The domestic

commercial vehicle market is highly cyclical in nature and prone to

fluctuations in the domestic economy. Tata Motors has a high domestic

exposure of ~94% in the MHCV segment and ~84% in the light commercial

vehicle (LCV) segment. Since the domestic commercial vehicle sales of the

company are at the mercy of the structural economic factors, it is increasingly

looking at the international markets. The company plans to diversify into

various markets across the world in both MHCV as well as LCV segments.

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 CarroceraMain 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.

Jaguar Cars and Land RoverMain articles: Jaguar Cars and Land Rover

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 NanoMain 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 AceMain article: Tata Ace

Tata Ace was India's first mini truck

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 carMain 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

A loaded Tata truck on a Rajasthan highway

Tata Motors Limited is India’s largest automobile company, with revenues of

35,651.48 crore (US$7.88 billion) in 2007-08.[23] It is the leader in commercial

vehicles in each segment, and among the top three in passenger vehicles with winning

products in the compact, midsize car and utility vehicle segments.[23] Tata Motors’

presence indeed cuts across the length and breadth of India. Over 4 million Tata

vehicles ply on Indian roads, since the first rolled out in 1954.[24] The company’s

manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad

(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an

industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to

produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a

new plant at Sanand (Gujarat). The company’s dealership, sales, services and spare

parts network comprises over 3500 touch points; Tata Motors also distributes and

markets Fiat branded cars in India.[23]

Tata's global operations

Tata Motors has been in the process of acquiring foreign brands to increase its global

presence and currently has operations in the UK, South Korea, Thailand and Spain.

Among them is Jaguar Land Rover, a business comprising the two iconic British

brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights

of Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South

Korea’s second largest truck maker. The rechristened Tata Daewoo Commercial

Vehicles Company has launched several new products in the Korean market, while

also exporting these products to several international markets. Today two-thirds of

heavy commercial vehicle exports out of South Korea are from Tata Daewoo.In 2005,

Tata Motors acquired a 21% stake in Hispano Carrocera, a Spanish bus and coach

manufacturer,[8] giving it controlling rights of the company. Tata Motors continued its

product line expansion through the introduction of new products into the market range

of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly

developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009

Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo [25]

They will debut in South Korea, South Africa, the SAARC countries and the Middle-

East by the end of 2009 [25] In 2006, it formed a joint venture with the Brazil-based

Marcopolo to manufacture fully-built buses and coaches for India and other

international markets.[26] Tata Motors has expanded its production and assembly

operations to several other countries including South Korea, Thailand, South Africa

and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern

Europe.[23] Tata also has franchisee/joint venture assembly operations in Kenya,

Bangladesh, Ukraine, Russia and Senegal.[27] Tata has dealerships in 26 countries

across 4 continents.[28] Though Tata is present in many countries it has only managed

to create a large consumer base in the Indian Subcontinent namely India, Bangladesh,

Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and

South Africa

PRODUCTS

Passenger cars and utility vehicles

Tata Xover

Tata Nano Europa

Tata Starbus Low Floor 1610

Tata Marcopolo buses in the Delhi BRT.

Tata Sierra (Discontinued)

Tata Estate (Discontinued)

Tata Sumo/Spacio

Tata Safari

Tata Indica

Tata Vista

Tata Indigo

Tata Manza

Tata Indigo Marina

Tata Winger

Tata Magic

Tata Nano

Tata Xenon XT

Tata Aria

Concept vehicles

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegante

2009 Tata Pr1ma

2010 Tata Versa

2010 Tata Essota

Commercial vehicles

Tata Ace

Tata TL/Telcoline/207 DI Pickup Truck

Tata 407 Ex and Ex2

Tata 709 Ex

Tata 809 Ex and Ex2

Tata 909 Ex and Ex2

Tata 1109 (Intermediate truck)

Tata 1510/1512 (Medium bus chassis)

Tata 1612/1616 (Heavy bus chassis)

Tata 1618 (Semi Low Floor bus chassis)

Tata 1610/1623 (Rear Engined Low Floor bus chassis)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Branded Buses for city,inter city,school bus and standard

passenger transportation)

Tata Globus (Range of fully built luxury coaches)

Tata Hispano Globus (Rear Engined Inter city coach)

Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid

Transit and also standard passenger transportation Buses)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8X2)

Tata 3516 (Heavy truck)

Tata 4018 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata Mine Protected Vehicle (4x4)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 TC (4x2)

Tata Winger Passenger Mini Bus

Tata Motors technology and design subsidiaries

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.

HV Transmission (HVTL) and HV Axles (HVAL)

HVAL and HVTL are 100% subsidiary companies of Tata Motors engaged in the

business of manufacture of gear boxes and axles for heavy and medium commercial

vehicles, with production facilities and infrastructure based at Jamshedpur.

Tata Technologies Limited (TTL)

TTL provides Engineering and Design (E&D) solutions to the Automotive Industry.

Tata Motors holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi)

and operates in the US and Europe through its wholly owned subsidiaries in Detroit

and London respectively. It also has a presence in Thailand. Tata Technologies is a

software service provider in the IT services and BPO space. Its global client list

includes Ford, General Motors, Toyota and Honda, to name a few. It bought over the

British engineering and design services company, Incat International Plc for Rs4b in

August 2005. Incat specializes in engineering & design services and product lifecycle

management in the international automotive, aerospace and engineering markets.

With this acquisition, Tata Motors will have closer proximity to its global customers

and be able to provide a wider range of services.

Tata Motor European Technical Centre

Tata Motor European Technical Centre is Tata's subsidiary based in the UK. It was

the joint developer of the World Truck.

PRODUCT MIX

Indica Indigo

Sumo

Safari

DISTRIBUTION STRUCTURE

TATA motors does not have any C&F agents. The cars are delivered to the

dealers directly by the company owned transportation facility.

Factory/Plant

Dealers Dealers Dealers Dealers Dealers Dealers

SALES STRUCTURE

ChairmanChairman

Passenger Car Business Unit

Passenger Car Business Unit

Business DevelopmentBusiness

Development

VPVP

GMSales (cars)

GMSales (cars)

DGMSales (UV)

DGMSales (UV)

Commercial Vehicle Division

Commercial Vehicle Division

Engineering Research

centre

Engineering Research

centre

GM ServiceGM

Service

DGM Dealer development

& commercial planning

DGM Dealer development

& commercial planning

Regional Manager

South

Regional Manager

South

Regional Manager

West

Regional Manager

West

Regional Manager

East

Regional Manager

East

Regional Manager

North

Regional Manager

North

Dealer Accounts Manager

Dealer Accounts Manager

DealersDealers DealersDealers DealersDealers

TELCO

Currently the largest automobile company in India, Tata Motors ranks among the top

10 commercial vehicle producers in the world.

The transition of Tata Motors from being a predominantly commercial vehicle

manufacturer to a complete automobile company began in the early 1990's with the

launch of the first Sports Utility vehicle from Tata- the Sierra and later the Tata

Estate. The insights gained into customer needs in these markets led to the

development of another world-class Sports Utility Vehicle, the Tata Safari, launched

in 1998.

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.

Setting standards of corporate governance, Tata Motors focuses on Complete

Customer Satisfaction. With benchmarking systems to sell world-class products and

services, Tata Motors continues to uphold the trust of its various stakeholders, viz.

shareholders, customers, employees and business associate.

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

TELCO is primarily a Business-to-Consumer Company (B2C), serving various needs

of a number of its customers. It also practices the Business-to-Business (B2B) Model,

though at a much lower scale.

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

c. Telcoline Pickup Vans

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

- Small Buses (4 models)

- Big Buses (4 models)

b. Trucks

- Light Trucks (5 models)

- Medium/Heavy Trucks (9 models)

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

Leadership with Trust

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.

Excellence - we must constantly strive to achieve the highest possible standards in

our day-to-day work and in the quality of the goods and services we provide.

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.

Responsibility - we must continue to be responsible, sensitive to the countries,

communities and environments in which we work, always ensuring that what

comes from the people goes back to the people many times over.

MANUFACTURING UNITS OF TELCO

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.

This is supported by a fully equipped Foundry which supplies high-grade SG Iron

castings for automobile components and excavators and is rated as one of the cleaner,

better and highly automated foundries in the world. The Foundry has a sophisticated

Kunkel Wagner high pressure molding line, which has a rated production capacity of

90 pairs of moulds every hour. The Foundry has its own melting shop, core shop and

sand plant. Other advanced facilities include Channel Furnaces, Computerized

Testing Equipment etc. In 1993, the Foundry was ISO 9002 certified by the Bureau

Veritas Quality International and later followed it up with the more stringent QS 9000

certification from the BVQI in the year 2000.

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.

The Electronics Division is engaged in the production of a wide variety of Machine

Tool Controllers, PLCs, and Test rig instrumentation, Servomotors, Proximity

Switches. In addition, it has developed a number of components such as flashers,

horns, timers that are used in Tata Motors vehicles.

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

The segmentation of the passenger car market in India is vastly different

from that in the developed nations. In India, the economy segment accounts

for the largest share of the cars sold, as compared to mid-range segment in

the mature markets. The economy and the premium segment face the lowest

competitive threats, while the premium segment will witness intense

competition due to lower volumes.

Segment-Wise Classification of the Indian Car Market Segment

Range Price ('000 Rs.) Models

Economy Maruti 800, Maruti Omni,

Premier, Ambassdor, Hyundai Santro

Mid-range 350-450 Uno, Zen, Ford Ikon, Fiat Palio

Premium 450 - 1,000 Esteem, Opel Astra, Ford Escort,

Mitsubishi Lancer, Hyundai Accent

Luxury > 1,000 Opel Vectra, Rover Montego, Mercedes

benz

Key Demand Drivers

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.

Marketing strategy adopted

Advertisement

1. Tata Motors

2. Radio

3. Internet

4. Newspaper/magazines

5. Hoardings

MARKETING STRATEGIES

INTRODUCTION AND IMPORTANCE OF MARKETING

STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a

sustainable advantage. A marketing strategy should be centred on the key concept

that customer satisfaction is the main goal. Marketing strategy is a method of focusing

an organization's energies and resources on a course of action which can lead to

increased sales and dominance of a targeted market niche. A marketing strategy

combines product development, promotion, distribution, pricing, relationship

management and other elements; identifies the firm's marketing goals, and explains

how they will be achieved, ideally within a stated timeframe. Marketing strategy

determines the choice of target market segments, positioning, marketing mix, and

allocation of resources. It is most effective when it is an integral component of overall

firm strategy, defining how the organization will successfully engage customers,

prospects, and competitors in the market arena. Corporate strategies, corporate

missions, and corporate goals. As the customer constitutes the source of a company's

revenue, marketing strategy is closely linked with sales. A key component of

marketing strategy is often to keep marketing in line with a company's

overarching mission statement.

Importance of Marketing Strategy

The importance of marketing plans outweighs any other decision that can be

taken in the realm of marketing strategies. Yes, marketing plan is essential to

grab the market segment before any other player captures the market. What

are the target groups? Which segment of the market presents higher revenue

generating opportunities? These are some of the questions that marketing

teams ponder over, in the pursuit of achieving a good plan.

This is where the importance of marketing research comes into picture.

The market research team analyzes and understands the requirements of the

consumers. Conducts polls and researches and comes up with data and

statistics that help to logically target a market.

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.

MARKETING MIX OF THE COMPANY

MARKETING MIX

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':

Product - A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible

products are service based like the tourism industry & the hotel industry or

codes-based products like cellphone load and credits. Typical examples of a

mass produced tangible object are the car and the disposable razor. A less

obvious but ubiquitous mass produced service is a computer operating system.

Packaging also needs to be taken into consideration. Every product is subject

to a life-cycle including a growth phase followed by an eventual period of

decline as the product approaches market saturation. To retain its

competitiveness in the market, product differentiation is required and is one of

the strategy to differentiate from its competitors.

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.

Place – Place represents the location where a product can be purchased. It is

often referred to as the distribution channel. It can include any physical store

as well as virtual stores on the Internet. Place is not exactly a physical store

where it is available Place is nothing but how the product takes place or create

image in the mind of customers. It depends upon the perception of customers.

Promotion represents all of the communications that a marketer may use in

the marketplace. Promotion has four distinct elements: advertising, public

relations, personal selling and sales promotion. A certain amount of crossover

occurs when promotion uses the four principal elements together, which is

common in film promotion. Advertising covers any communication that is

paid for, from cinema commercials, radio and Internet adverts through print

media and billboards. Public relations are where the communication is not

directly paid for and includes press releases, sponsorship deals, exhibitions,

conferences, seminars or trade fairs and events. Word of mouth is any

apparently informal communication about the product by ordinary individuals,

satisfied customers or people specifically engaged to create word of mouth

momentum. Sales staff often plays an important role in word of mouth and

Public Relations (see Product above).

STP ANALYSIS OF THE COMPANY

Segmentation

TATA MOTORS has segmented its customer in the following ways:-

Understanding needs and preferences of consumers -- Having housing,

infrastructure, and commercial construction, as demand drivers, the company

analyze the needs and preferences of consumers in these sectors.

Grouping customers based on their needs and preferences -- Customers

with similar needs and preferences are included in this segment.

Targeting the segment that the company can best meet the needs and

preferences of - The Company targets the customers, of which it can meet the

needs and preferences. I.e. customer needs higher- strength or low price.

Branding the commodity -- Though being a commodity product, branding is

important for a company. The company positions its brand among Architects

and Builders rather than household individuals.

Provide required product to meet targeted customers' needs and

preferences -- Delivering up to the expectations of the targeted segment.

Targeting

Its customer base represents the masses of India - individual homebuilders in

small towns, rural and semi-urban India.

The company targets on the important projects like dams, roads in the country

It targets the Manufacturing companies like L&T etc

It Targets Indian Railways.

It targets an individual building his home(Retail Marketing)

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

In BCG Matrix product or business unit are identified as Stars, Cash Cow,Dogs, Question mark. The Matrix can be explained are as follows.Stars (high growth, high market share) Stars are using large amounts of cash. Stars are leaders in the business. Therefore they should also generate large amounts of cash. Stars are frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept.

]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.

Dogs (low growth, low market share) Avoid and minimize the number of Dogs in a company. Watch out for expensive ‘rescue plans’. Dogs must deliver cash, otherwise they must be liquidated.

Question Marks (high growth, low market share) Question Marks have the worst cash characteristics of all, because they have high cash demands and generate low returns, because of their low market share.If the market share remains unchanged, Question Marks will simply absorb great amounts of cash.

Either invests heavily, or sell off, or invest nothing and

generate any cash that you can. Increase market share or

deliver cash.

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.

The USP of Tata Motors is They say there are four M?s of advertising, which are Mission, Money, Media and Message; the most important part is the message execution and image building. Imagery is the kind of associations a brand could get linked with over a period of time.

It has an impact on how consumers perceive the brand and how they will react to it in the long run. The ultimate goal of the advertiser is to ensure that his/her idea marries the brand.

1. Designing a Customer Driven Marketing Strategy:

• Their main strategy that they still follow today is the diversification of

products they offer.

• TATA MOTORS ording to customer’s demand they make their strategies by

keeping following points in mind;

• Which customer they will serve?

Which customer they will serve?

They serve their customers on the bases of income level, age through market

segmentation.

Their main segment which they has captured are combination of higher

incomes & dual career families.

How will they serve these customers?

They fulfill their customer’s demand through;

Value proposition

Positioning

Unique selling proposition (USP)

3. CAPTURE VALUE FROM CUSTOMER IN RETURN:

• Committed to providing uncompromising product quality offering customers

the highest value for money & giving service that is warm, friendly &

personal.

• They also follow social factors to maintain their image through corporate

social responsibility.

4. Designing a Customer Driven Marketing Strategy:

• Their main strategy that they still follow today is the diversification of

products they offer.

• TATA MOTORS ording to customer’s demand they make their strategies by

keeping following points in mind;

FINANCIAL ANALYSIS

SOURCES OF FINANCE & ANALYSIS Tata Motors reports strong profit growth for the quarter endedSeptember 30, 2010

Highlights:• PAT for the quarter registered 427% increase to Rs 39 crore from Rs 7crore in the corresponding period of the previous year• For half year ended 30 September 2010, PAT at Rs 14 crore as againstloss 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. Theconsequent 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 ofretail 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 beenstrong at 10%.

The company has arrived at an amicable solution to the VRS settlement package issueinvolving 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 intwo 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 onOctober 25, 2010 over 93% workers have opted for VRS settlement.

Key Financial Indicators Units Mar-08 Mar-09 Mar-10Revenue Rs million 24,768.1 26,610.4 25,733.8PAT Rs million -16.8 -2,272.8 -453.4Revenue growth Per cent 17.1 7.4 -3.3PAT growth Per cent -101.2 -13,423.9 80.1

In the backdrop of the financial crisis witnessed in the previous financial year and the subsequent fallout, FY 2010 was anextremely challenging year for your Company. However, the resilience and inherent strengths of your Company’s brands, qualitymanufacturing and deep network relationships enabled your Company to weather the downturn and achieve better performancein FY 2010. Your Company continues to be the market leader in its core business. A number of rationalisation and restructuring initiatives were taken during the year under review to further consolidate its strengths and position itself to take advantage of the upturn. During FY 2010, your Company completed the restructuring exercise of the Files & Tools business by transferring it as a going concernon a slump sale basis to its wholly owned subsidiary JK Files (India) Limited (formerly known as Hindustan Files Limited)effective October 1, 2009. This restructuring brings together different entities of your Company’s Files & Tools businesses into a single legal structure and leverage synergies. In view of this restructuring, the standalone performance of the Company is strictly not comparable with that of the previous year.The Company closed down the operations at its high cost Thane unit in December 2009. A section of the workers accepted the voluntary retirement scheme and negotiations are on with the balance workers for an amicable settlement. During the year under review, the adverse changes in European market conditions coupled with the bankruptcy of a major customer rendered the operations of the Company’s wholly-owned subsidiary-Regency Texteis Portuguesa Limitada (Regency), Portugal, unviable and as a consequence, Regency filed for insolvency. The Company has made a provision of Rs.12.14 crores for diminution in the value of its exposures in Regency.For the Financial Year ended March 31, 2010, the gross turnover of your Company was Rs.1339.37 crores as compared to Rs.1393.26 crores in the previous year. Profit before tax and exceptional items was Rs.18.88 crores as against a loss ofRs. 58.75 crores in the previous year. The net profit, after exceptional items, prior year adjustments and provision for taxes was Rs.25.06 crores as against a net loss of Rs.271.54 crores last year.In order to conserve the resources of the Company and taking into account the prevailing economic situation, the need ofresources for growth, the Board of Directors of the Company have decided not to recommend dividend for the financial yearended March 31, 2010.Your Company continues with its task to build businesses with long-term goals based on its intrinsic strengths in terms of itspowerful brands, quality manufacturing prowess, distribution strengths and customer relationships. To accelerate further value creation, your Company continues to evaluate new areas of growth. The initiatives aimed at rationalising and streamlining operations, to bring about efficiencies and reducing costs, remain top priority.

RATIO ANALYSIS: FINANCIAL MANAGEMENTRATIO

Current Ratio = Current AssetsCurrent LiabilitiesYear 2009 = 82490.59 = 2.22:137147.54Year 2008 = 77011.19 = 2.33:132998.18Year 2007 = 65501.32 = 2.60:125109.78Note: Generally, the ratio 2:1 is considered satisfactory. So here is no worry about theCurrent Ratio:-Proprietary Ratio = Proprietors Fund or EquitiesFixed Assets +Current AssetsYear 2009 135615.94 = 0.85 or 85.47%158664.74Year 2008 118994.53 = 0.73 or 73.67%1615235 2Year 2007 110393.53 = 0.88 or 88.48%124755.98

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:

Internal sources of Recruitment :

Present Permanent Employees :  Organizations consider the candidates from

this source for higher level of jobs due to availability of most suitable

candidates for jobs relatively or equally to external sources, to meet the trade

union demands and due to the policy of the organization to motivate  the

present employees.

Present temporary/casual Employees: Organizations find this source to fill the

vacancies relatively at the lower level owing to the availability of suitable

candidates or trade union pressures or in order to motivate them on present

job.

Retrenched or Retired Employees : Employees retrenched due to lack of work

are given employment by the organization due to obligation, trade union

pressure etc. Sometimes they are re-employed by the organization as a token

of their loyalty to the organization or to postpone some interpersonal conflicts

for promotion.

Dependents of Deceased, Disabled, retired and present employees : Some

organizations function with a view to developing the commitment and loyalty

of not only the employee but also his family members.

External Sources of Recruitment:

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.

Private Employment Agencies/Consultants : Public employment agencies or

consultants like ABC Consultants in India perform recruitment functions on

behalf of a client company by charging fees. Line managers are relieved from

recruitment functions and can concentrate on operational activities.

Public Employment Exchanges : The Government set up Public Employment

Exchanges in the country to provide information about vacancies to the

candidates and to help the organization in finding out suitable candidates.

Casual Applicants : Depending on the image of the organization its prompt

response participation of the organization in the local activities, level of

unemployment, candidates apply casually for jobs through mail or handover

the application in the Personnel dept. This would be a suitable source for

temporary and lower level jobs.

Trade Unions : Generally unemployed or underemployed persons or employees

seeking change in employment put a word to the trade union leaders with a

view to getting suitable employment due to latter rapport with the

management.

E_recruitment: The technological revolution in telecommunications helped the

organizations to use internet as a source of recruitment. Organizations

advertise the job vacancies through the world wide web (www). The job

seekers send their applications through e-mail using the internet.

Outsourcing : Some organizations recently started developing human resource

pool by employing the candidates for them. These organizations do not utilize

the human resources; instead they supply HRs to various companies based on

their needs on temporary or ad-hoc basis.

(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:

Reasoning Ability Test - This section contains 75 questions with 50 minutes of

duration.

Aptitude test - This section contains 50 questions with 30 minutes of duration.

General awareness and Basic of computer knowledge - This section contains

50 questions with 25 minutes.

English Skills - This section contains 50 questions with 30 minutes.

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

English grammar basic skills.

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.

2. Reimbursement of conveyance expenses to officers.

3. Reimbursement of telephone expenses.

4. Reimbursement of expenses incurred on purchase of brief case to

officers.

5. Reimbursement of cost of news paper.

6. Reimbursement of medical expenses incurred by officers as out-

patients for self/family members.

7. Providing residential accommodation- quarters facility.

8. Preferential rate of interest on deposits.

9. Concession on locker rent.

10. Providing bank’s furniture to officers at their residence.

PRODUCTION POLICIES

PRODUCTION LAYOUT

manufacturing need process layout for raw-material preparation, which require

crushing, grinding and mixing of the various raw materials such as lime-stone, clay,

bauxite and iron-ore. Once the raw materials are prepared and converted into raw-

meal by mixing different raw materials in predetermined proportion, production

processes such as pre-heating, precalcining, calcinations for conversion of raw meal

into clinker and cooling of clinker would use product layout. Within the plant,

workshop activities are arranged by using process layout, whereas the packing and

dispatch operations of the through trucks need product layout. In cases of repairs of

kiln in plant, which cannot be moved, a fixed layout is to be used.

OTHER RAW MATERIALS- DIFFRENT SUPPLIERS IN

DIFFRENT PLANT

They have implemented a SAP based Enterprise Resource Planning (ERP) system for

the Procurement function. Central procurement is divided into the following major

groups:

Raw materials

Energy, Fuels and Gases

Maintenance spares

Wearing parts, Consumable materials

Administrative & office supplies

Services

Packing

The structure provides for procurement managers at regional level and plants. There is

a Separate projects head for procurement of capital equipment and purchases.

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.

QUALITY CONCEPT USED BY THE COMPANY

Product Development has always been an important activity at TATA MOTORS ,

arising out of a focus on quality and process improvement. It has been a constant

partner, driving research, innovation and evaluation.

TATA MOTORS has effectively pledged its reputation as the market leader in the

quality of . Maintaining this lead calls for harnessing the resources and expertise of

the company - from applied research and production to marketing. TATA MOTORS

ordingly, all TATA MOTORS factories are equipped with state-of-the-art process

control instrumentation and associated quality control and testing laboratories manned

by qualified personnel.

As a result of this focus on quality, TATA MOTORS specifications exceed those set

by BIS by a wide margin. Today, all TATA MOTORS plants have the ISO 9001

Quality Systems certification. This demonstrates our tradition of providing reliable

and consistent quality through the application of modern technology, and justifies the

preferences of a nationwide customer base.

KEY CUSTOMERS:

The Tata Motors targeted customers are:

Labour’s

MNC’s

Senior Citizens

House-wives

Middle/High class income group.

Self employed.

:: Production Policy of Tata Motors::

Group is utilized its production natured over the

years to create reliable, safe production lines. A

comprehensive schedule is being implemented at

all group companies facilities to minimize

manpower requirement and streamline

operations.

ISO certification and production policies as part

of group program to guarantee unsurpassed

Quality and Reliability.

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.

Health and Safety Policy

We firmly believe that, Health and safety of our employees, who are an asset to the company, is

most importance. Therefore we are committed to bring safety on top of mind for all employees

by maintaining high standards of safety culture with all manufacturing processes, activities and

operations.

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.

TATA MOTORS is committed to maximizing customer satisfaction and strives to

achieve the goal of excellence, by continual improvement, through ongoing going

design and development, manufacture and sale of reliable, safe, cost-effective, quality

products and services of international standards, using environmentally sustainable

technologies, for improving levels of efficiency and productivity within its premises

and ancillaries control the quality of its cars TATA MOTORS applies various

stringent measures during the pre-manufacturing stage as well as post-manufacturing

stage.

During the manufacturing stage regulars quality Tata Motorsts are held by the in-

house Tata Motorstors in all the shops. All the process sheets, spot plans, control plan

etc are displayed near the work place.

In the post manufacturing stage once the vehicle comes out of the assembly line it

passes through stringent testing standards such as shower test, wheel balancing etc.

On successful completion of testing, the car is ready to be despatched after Pre

Delivery Inspection (PDI).

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.

A suggestion scheme is started by the management wherein any employee

irrespective of his cadre can suggest an improvement in the work place and if this

suggestion is approved by the concerned authority the employee gets rewards points.

Once an employee achieves a specified limit of points he gets a gift voucher.

Apart from this employees also receive bonus on certain festive occasion.

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.

The perfection of the questionnaire analysis.

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

It was a great opportunity to carry a research project on such a reputed

organization, which gave me a good learning experience and knowledge about

the products and industry.

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:

Kothari. C. R., Research Methodology, New Age International (P) Limited,

New Delhi, 2006

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:

Auto Car 2005

Auto India January 2004.