TATA MOTORS

Mayur Rawat

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

revenues of Rs.35651.48 crores (USD 8.8 bn) in 2007-08. It is a leader in commercial vehicle in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize cars and utility vehicle segments. The company is world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer.

Tata Motors is also expanding its international footprint, established through export since 1961. The company’s commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia and South America. It has franchisee/joint venture assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata Motors recently acquired the Jaguar and Land Rover businesses from Ford Motor company for a net consideration of US $ 2.3 bn

TWO PALM THEORY

Cost RevenueStructure PeopleProcess

Marketing FinanceHuman

ResourceOperationSystem

COST COST CUTTING FEATURES

The Nano's trunk does not open. Instead, the rear seats can be folded down to access the trunk space.

It has a single windscreen wiper instead of the usual pair.

It has no power steering. Its door opening lever was simplified. It has three nuts on the wheels instead of the

customary four. It only has one side view mirror.

REVENUE

Total revenue of Tata Motors is : Rs.41,591.03Crs

Domestic Vehicle SalesRs29,256.57CrsExports Rs3,508.26Crs Domestic Spare Part Sales

Rs2,760.69Crs Dividend/Other Income Rs3,833.03Crs Vehicle Financing Rs18.22CrsOthers Rs2,214.26Crs

STRUCTURE

Managing Director Mr. Karl Slym

Chief Human Resources Officer

Mr. Prabir Jha

Executive Director, Quality

Mr. Satish Balkrishna Borwankar

Executive Director, Commercial Vehicles

Business Unit Mr. Ravindra

Pisharody

President and Chief Financial Officer

Mr. C Ramakrishnan

President and Head, Engineering

Research Centre Dr. Tim Leverton

President and Head, Passenger Vehicles

Business Unit Mr. Ranjit Yadav

Sr. Vice President, Purchasing & Supply

ChainMr. Venkatram Mamillapalle

PEOPLE

EMPLOYEES

SUPPLIERS

CUSTOMERS

COMPETITORS

EMPLOYEES

At Tata Motors, employees are invaluable assets and their career and personal growth are of prime concern to the Company. 

It provides a congenial atmosphere to work, learn and grow. It conducts various programmes to train their staff in the latest and the best technology and management practices.

The Company through its in-house vocational training and apprenticeship programmes trains the technicians   at   Tata   Motors.

SUPPLIERS

SUPPLIERS SUPPLYSAINT GOBAIN GLASSJOHNSON CONTROLS SEATINGFREUDENBERG ENGINE SEALINGCAPARO INNER STRUCTURE PANELSITW DELTAR OUTSIDE & INSIDE DOOR HANDLES

TRW BRAKE SYSTEMCONTINENTAL AG GASOLINE FUEL SUPPLY SYSTEM

DENSO WINDSHIELD WIPER SYSTEM

A company which supplies parts or services to another company.

There are also many other suppliers like the FICOSA, BEHR, MAHLE, TEXSPIN, BOSCH ,HSI AUTO,DELPHI etc..which supply various other materials.

CUSTOMERS A person, company or other entity which buys good and

services produced by another person, company or other entity.

Tata Motors believes in providing customer satisfaction and safety.

They have an wide array of value added services that you could choose from.

It provides its customers with high performance automobiles.

It undertakes efficient and customer friendly sales and service network.

COMPETITORS

Any person or entity which is a rival against another company in the same or similar industry which offers a similar product or service.

Tata Motors relies heavily on its sales in India.

Tata Motors now faces stiff competition from fellow compatriots like Mahindra, Maruti as well as multinational brands like Toyota and Chevrolet.

It has faced controversy over developing the ‘Nano’.

Ashok Leyland, Tata's biggest competitor in the Indian heavy commercial vehicle market

PROCESS

The 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. Our manufacturing plants are situated at Jamshedpur, Pune, Sanand and Lucknow, Pantnagar.

MARKETING

SWOT ANALYSIS• Strong Presence in the Marketplace• Unique Understanding of Customer Need

STRENGTH

• Easier finance schemes• Increasing disposable income with the service- sector

OPPURTUNITIES

• Global crisis• High competition from foreign players

THREAT

• High debt equity ratio • Highly competitive by new player WEAKNESS

MARKETING STRATEGIES

LAUNCH OF TATA NANO

MODIFICATION IN TATA SUMO

NEW VERSIONS OF INDIGO, INDIGO DICOR

TAPPING OF RURAL MARKET

FINANCE Over five decades of expertise in vehicle financing,

Tata Motors Finance Ltd, is a subsidiary company of Tata Motors Ltd.

Established in 1957, we are engaged in financing entire range of Passenger Cars & Commercial Vehicles manufactured by Tata Motors Ltd.

With a core purpose to reach out & help customers realize the dream of owning a TATA vehicle easily, we are present across 150+ locations and at all Tata Motors Ltd authorized dealerships.

HUMAN RESOURCE

The Tata Motors Group employed 62,716 permanent employees.

The increase over last year was mainly at Jaguar Land Rover in view of volume and product development activity.

The Tata Motors Group has generally enjoyed cordial relations with its employees and workers.

OPERATIONS The Operation management of India’s leading and the

largest automobile manufacturer “Tata Motors”. In today’s business environment Operations management plays an important role in deciding the success of the company .Operations management uses the input resources to produce output to fulfil the market requirement.

This report discusses the operation strategy adopted by Tata motors used in the manufacturing of its vehicles in India and its strong value chain which has led to the innovation of new developments, one of which is world’s cheapest car “Tata Nano”. After continuous improvement in their operations today, Tata motors are rapidly increasing their footprints globally.

CONTD… With the recent acquisition of two iconic brands Land Rover and

Jaguar by Ford motors the company has entered into high end luxury segment. The automobile industries in the world adopts either a low cost strategy or a High cost strategy , but Tata motors have been involved in both the strategies , while “Tata Nano” the world’s cheapest car meets the demand of common man the acquisition of Jaguar and Land rover shows us that Tata motors is targeting high end consumers.

If Tata motors are successful in this operational strategy they will have a high margin and high volume revenue which will diminish each other’s risk. The valuable theories and models such as Transformation model, Four V‘s ,Value chain analysis and Michael Porters diamond model will show the strength and weakness of operations management adopted by Tata motors and will give the detail understanding of the insight of the value added by each activity to get the required output.

SYSTEMS Tata Motors Group continue their collaboration in

various Information Technology areas with synergies being explored for cross utilization of IT capabilities.

The Group companies are working together in areas of ERP, outsourcing and technologies.

Tata Technologies continues to be a strategic partner in strengthening Tata Motors Groups’ IT capabilities in process transformation through technology.

HISTORYMaruti Udyog Limited (MUL) : established in

February 1981, though the actual production commenced in 1983 with the Maruti 800, based on Suzuki alto kei.

  Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. (17 Sept. 2007,)

The company's headquarters are located at New Delhi. It has two plants for Manufacturing facility:-

Gurgaon Manufacturing facility Manesar Manufacturing facility

CONCLUSION It is an overall strong company that has

found strength and expansion through its parent company, acquisitions and mergers.

It is overreaching by adding luxury brands to pair with the Nano, the worlds cheapest car.

They have grown internationally in selected markets.

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