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It contains strength and weakness of tata motors and also include financial analysis for the same.
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TATA MOTORSSTRENGTH AND WEAKNESS
Strength
Market Share
India's largest private automobile and commercial vehicle manufacturing company. It is also the world's 6th biggest commercial vehicle manufacturer. Rs 59,220.94 crore of revenue in March 2012
Consumer Vehicle Market Share continued to improve sequentially, Q3 FY13 market share stood at 62.6%
Global Presence
Long list of product portfolios
Acquiring Foreign Brands to improve global presence JLR, Tata Daewoo(2 thirds of heavy commercial vehicle exports from South
Korea), Fiat, Marcopolo
Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia
Marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South America, CIS and Russia. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal.
Dealership
Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India.
It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai
Acquisition Strategy
Keep local managers in new acquisitions.
Eg: Dr. Ralf D. Speth CEO, JLR
Dr Jongshik Kim CEO, Tata Daewoo
"Tata has always said that going global means managing local. You've got to use local management, which has the local understanding, to grow your business. You should see Forster's appointment in that perspective," says the CEO of a large automotive component company.
The benefit is that Tata has been able to exchange expertise
Weakness
Diminishing Passenger Vehicle Market Share
Market share of Passenger vehicles stood at 10.1% for the period till Dec 2012 moved to 4th place in passenger vehicles section.
"I have a great respect for what Mahindra & Mahindra has been able to do. I also have a certain degree of sadness and shame that we have let that happen," - Ratan Tata
Cases of fire in Tata Nano cars
Public image on Tata cars as cheap models.
Financial
Mar '00
Mar '01
Mar '02
Mar '03
Mar '04
Mar '05
Mar '06
Mar '07
Mar '08
Mar '09
Mar '10
Mar '11
Mar '12
-1000
-500
0
500
1000
1500
2000
2500
Net profit
Mar
'00
Mar
'01
Mar
'02
Mar
'03
Mar
'04
Mar
'05
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
0.0010,000.0020,000.0030,000.0040,000.0050,000.0060,000.0070,000.00
Sales
Mar '00
Mar '01
Mar '02
Mar '03
Mar '04
Mar '05
Mar '06
Mar '07
Mar '08
Mar '09
Mar '10
Mar '11
Mar '12
55
60
65
70
75
80
85
COGS/Sales
Mar '04 Daewoo
Mar '06
Marcopolo
Mar '07Fiat
Mar '08 Jaguar
Mar '09
Hispano Carrocera
Mar '10Trilix
Mar '00
Mar '01
Mar '02
Mar '03
Mar '04
Mar '05
Mar '06
Mar '07
Mar '08
Mar '09
Mar '10
Mar '11
Mar '12
0
20
40
60
80
100
120
Debt/Equity
Mar '04 Daewoo
Mar '06
Marcopolo
Mar '07Fiat
Mar '08 Jaguar
Mar '09
Hispano Carrocera
Mar '10Trilix
Mar’12 Mar’11 Mar’10 Mar’09 Mar’08
ROIC 13.4260873 12.0322 10.9557873 6.692533 17.58475
ROS 7.70520879 9.81232 11.4007773 6.714945 10.53438
COGS / Sales
86.155358 82.5023 81.5713495 83.8807 82.26541
SG&A/Sales
8.96320394 10.129 10.8363118 12.04645 10.99235
Mar’12 Mar’11 Mar’10 Mar’09 Mar’08
Reported Net Profit1,242.2
31,811.8
22,240.0
81,001.2
62,028.9
2
Shares in issue (lakhs)
31,735.47
6,346.14
5,705.58
5,140.08
3,855.04
Net Profit Margin(%) 2.26 3.74 6.26 3.77 6.96
Earnings Per Share 3.91 28.55 39.26 19.48 52.63
VISION STATEMENT
Most admired by our customers, employees, business partners and shareholders for the experience and the value they enjoy from being with us.
Customer
Siebel Automotive CRM
Share holder
Mar
'00
Mar
'01
Mar
'02
Mar
'03
Mar
'04
Mar
'05
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
0
5
10
15
20
25
Dividend Per Share
Mar
'00
Mar
'01
Mar
'02
Mar
'03
Mar
'04
Mar
'05
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
-30-20-10
0102030405060
Earnings Per Share