• Like
  • Save
A project report on  orgnoziation study of tata motors
Upcoming SlideShare
Loading in...5
×
 

A project report on orgnoziation study of tata motors

on

  • 2,311 views

A project report on orgnoziation study of tata motors

A project report on orgnoziation study of tata motors

Statistics

Views

Total Views
2,311
Views on SlideShare
2,311
Embed Views
0

Actions

Likes
0
Downloads
161
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft Word

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    A project report on  orgnoziation study of tata motors A project report on orgnoziation study of tata motors Document Transcript

    • 1. Industry Overview The automobile industry in India is the eleventh largest in the world with an annualproduction of approximately 2 million units. India is expected to overtake China as theworlds fastest growing car market in terms of the number of units sold and the automotiveindustry is one of the fastest growing manufacturing sectors in India. Because of its largemarket (India has a population of 1.1 billion; the second largest in the world), a low baseof car ownership (7 per 1,000 people) and a surging economy, India has become a hugeattraction for car manufacturers around the world. The automotive industry directly and indirectly employs 13 million individuals inIndia. The industry is valued at about US$ 35 billion contributing about 3.1% of IndiasGDP (nominal). Indias cost-competitive auto components industry is the second largest inthe world. In addition, Indias motorcycle market is also the second largest in the worldwith annual sales of about 5 million units. Among the two-wheeler segment, motorcycles have major share in the market.Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share inscooter and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40%of the market share. Among the passenger transport, Bajaj is the leader by making 68% ofthe three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% sharein passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehiclesMahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more than 60%share. Tata Motors is also the worlds fifth largest medium & heavy commercial vehiclemanufacturer. Babasabpat ilfree pptmba.com 1
    • Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, theAutomobile Industry of India has come a long way. During its early stages the autoindustry was overlooked by the then Government and the policies were also not favorable.The liberalization policy and various tax reliefs by the Govt. of India in recent years hasmade remarkable impacts on Indian Automobile Industry. Indian auto industry, which iscurrently growing at the pace of around 18 % per annum, has become a hot destination forglobal auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of aneconomy, and India is no exception to it. With the growth of transportation system theAutomotive Industry of India is also growing at rapid speed, occupying an important placeon the canvas of Indian economy.1.1 Snippets The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark. Babasabpat ilfree pptmba.com 2
    • 1.2 Segment Know How Among the two-wheeler segment, motorcycles have major share in the market.Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share inscooter and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40%of the market share. Among the passenger transport, Bajaj is the leader by making 68% ofthe three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% sharein passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehiclesMahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more than 60%share. Tata Motors is also the worlds fifth largest medium & heavy commercial vehiclemanufacturer.1.3 Industry Growth Drivers The passenger car penetration in India is at 8.5 vehicles per thousand people absolute terms. It is among the lowest in the world. As per capita GDP of a society grows, mobility needs for its population rapidly increase. The proportion of young people, who are economically active, is rising in the overall population. This has led to increasing urbanization and the need for mobility which translates into a higher demand for two and four wheelers in India. Relatively good availability of money and a favorable interest rate regime has also been a strong contributor to sustained demand. Babasabpat ilfree pptmba.com 3
    •  The Indian auto industry is expected to get a boost from the road development programs that the country has undertaken especially the Golden Quadrilateral program and the NSEW corridors with feeder roads. Indias competitiveness has enabled it to make a steady foray in International markets with passenger car exports crossing the 100,000 mark in 2004. Multinationals use India as a manufacturing hub for small cars in addition to growing exports from indigenous makers such as Tata Motors and furthermore, Indias two-wheeler manufacturers have also stepped up their export plans and apart from export, have also announced CKD operations in many new markets outside India. As India forges free trade agreements (FTA) with Thailand, MERCOSUR and other trading blocs, the industry has the potential to emerge even stronger. However, against this optimism, the industry has felt the effects of cost pressure. The global movement of oil prices has dealt a setback to the countrys economic policy. While the threat of inflation seems to have been temporarily brought under control, sustained fuel price hikes and the consequent hike in operating costs for vehicle owners can cause a depression in demand. The past two years have also seen considerable pressure for the industry from input costs. Prices of steel, which is a primary input for the industry, have doubled over the last three years. The situation has forced players to resort to innovative ways to control costs whilst meeting rising customer expectations Babasabpat ilfree pptmba.com 4
    • 1.4 Industry Statistics (Source: Society of Indian Automobile Manufacturers, SIAM)1.4.1 Automobile Production Trend in India Automobile Production Trends (Number of Vehicles) Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Passenger Cars 500301 557410 782562 960487 1046133 1238032 Utility Vehicles 105667 114479 146325 182018 196506 222111 MPVs 63751 51441 60673 67371 66661 84707 Total Passenger 669719 723330 989560 1209876 1309300 1544850 Vehicels M&HCVs 96752 120502 166123 214807 219295 294266 LCVs 65756 83195 108917 138896 171788 225734 Total Commercial 162508 203697 275040 353703 391083 520000 Vehicles Three Wheelers 212748 276719 356223 374445 434423 556124 Scooters 937506 848434 935279 987498 1021013 943974 Motorcycles 2906323 3876175 4355168 5193894 6207690 7112225 Mopeds 427498 351612 332294 348437 379994 379987 Electrict Two Wheelers - - - - - 7982 Total Two Wheelers 4271327 5076221 5622741 6529829 7608697 8444168 Grand Total 5316302 6279967 7243564 8467853 9743503 110651421.4.2 Automobile Domestic Sales in India Automobile Domestic Sales Trends (Number of Vehicles) Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Passenger Cars 509088 541491 696153 820179 882208 1076408 Utility Vehicles 104253 113620 146388 176360 194502 220199 MPVs 61775 52087 59555 65033 66366 83091 Total Passenger 675116 707198 902096 1061572 1143076 1379698 Vehicles M&HCVs 89999 115711 161395 198506 207472 275600 LCVs 56672 74971 98719 119924 143569 192282 Total Commercial 146671 190682 260114 318430 351041 467882 Vehicles Three Wheelers 200276 231529 284078 307862 359920 403909 Scooters 908268 825648 886295 922428 909051 940673 Motorcycles 2887194 3647493 4170445 4964753 5810599 6553664 Mopeds 408263 338985 307509 322584 332741 355870 Electrict Two Wheelers - - - - - 7341 Total Two Wheelers 4203725 4812126 5364249 6209765 7052391 7857548 Grand Total 5225788 5941535 6810537 7897629 8906428 10109037 Babasabpat ilfree pptmba.com 5
    • 1.4.3 Automobile Export Trend Automobile Exports Trends (Number of Vehicles) Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Passenger Cars 49273 70263 125320 160670 169990 192745 Utility Vehicles 3077 1177 3049 4505 4489 4403 MPVs 815 565 922 1227 1093 1330 Total Passenger 53165 72005 129291 166402 175572 198478 Vehicles M&HCVs 4824 5638 8188 13474 14078 18838 LCVs 7046 6617 9244 16466 26522 30928 Total Commercial 11870 12255 17432 29940 40600 49766 Vehicles Three Wheelers 15462 43366 68144 66795 76881 143896 Scooters 28332 32566 53687 60699 83934 35685 Motorcycles 56880 123725 187287 277123 386054 545887 Mopeds 18971 23391 24078 28585 43181 37566 Electrict Two - - - - - - Wheelers Total Two 104183 179682 265052 366407 513169 619138 Wheelers Grand Total 184680 307308 479919 629544 806222 10112781.4.4 Installed Capacities in the Indian Automobile Industry Installed Capacities in the Indian Automobile Industry 2003-04 2003-2004 2004-2005 Installed Capacity (In Million) Installed Capacity (In Million) a) Four Wheelers 1.51 a) Four Wheelers 1.72 b) Two &Three Wheelers 7.83 b) Two &Three Wheelers 9.13 c) Engines 0.18 c) Engines 0.18 Babasabpat ilfree pptmba.com 6
    • 1.4.5 Gross Turnover of Indian Automobile Manufacturers Turnover of Automobile Manufacturers 1999-00 to 2004-05 900,000 800,000 700,000 Rs (In Millions) 600,000 500,000 400,000 300,000 200,000 100,000 0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Years1.4.6 Domestic Market Share for 2006 - 07 Domestic Market Share in 2006-07 Two Wheelers 77% Passenger Three CVs Vehicles Wheelers 5% 14% 4% Babasabpat ilfree pptmba.com 7
    • 1.5 History of Indian Automobile Industry While automobiles were introduced to India in the late 1890s, the manufacturingindustry only took off after independence in 1947. The protectionist economic policies ofthe government gave rise in the 1950s to the Hindustan Motors Ambassador, based on a1950s Morris Oxford, and, is still ubiquitous in the roads and highways of India.Hindustan Motors and a few smaller manufacturers such as Premier Automobiles, TataMotors, Bajaj Auto, Ashok and Standard Motors held anoligopoly until Indias initial economic opening in the1980s. The maverick Indian politician Sanjay Gandhichampioned the need for a "peoples car"; the project wasrealized after his death with the launch of a state-ownedfirm Maruti Udyog Suzuki which quickly gained over 50%market share. The Maruti 800 became popular because ofits low price, high fuel efficiency, reliability and modern features relative to itscompetition at the time. Tata Motors exported buses and trucks to niche markets in thedeveloping world. The liberalization of 1991 opened the flood gates of competition and growth whichhave continued up to today. The high growth in the Indian economy has resulted in allmajor international car manufacturers entering the Indian market. General Motors, Ford,Toyota, Honda, Hyundai and others set up manufacturing plants. Rolls Royce, Bentley andMaybach are examples of the few high end automobile manufacturers which entered Indiain the recent years. The Tata Nano is at the lower end of the price range costing approxUS$ 2,500 and Bugatti Veyron at the other with a price tag of over US$ 2 million. Indias love affair with the automobile is famously embodied in the 1920s RollsRoyce collections of the erstwhile maharajas. The growing middle class aspires for theautomobile for its convenience and as a status symbol. Upper middle class and wealthy carowners employ full-time chauffeurs to navigate the aggressive and seemingly lawless Babasabpat ilfree pptmba.com 8
    • traffic patterns of most cities. The construction of expressways such as the Mumbai-Puneexpressway have opened up new touring opportunities. The expected launch of a FormulaOne circuit in New Delhi is expected to spark public enthusiasm for a motor sportingindustry.1.6 Classification of Automobile Industry1.6.1 Two Wheelers India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50s. The Automobile Products of India, started manufacturing scooters in the country. Bikes are a major segment of Indian two wheeler industry, the other two beingscooters and mopeds. Indian companies are among the largest two-wheeler manufacturersin the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the listof world companies manufacturing two-wheelers.Easy availability of loans from thebanks, relatively low rate of interest and the discount of prices offered by the dealers andmanufacturers lead to the increasing demand for two-wheeler vehicles in India. This leadto the strong growth of Indian automobile industry. Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML),Honda Motorcycle & Scooter India (P) Ltd (HMSI), Bajaj Auto Ltd (Bajaj Auto) and TVSMotor Company Ltd (TVS) Babasabpat ilfree pptmba.com 9
    • 1.6.2 Three Wheelers Global automobile manufacturers have found huge potential markets in a numberof developing countries. It is not only the cars, consumer vehicles and two wheelers thatare sold in these various countries in large numbers, but the three wheeler market is alsoquite big in these nations. There are a number of reasons that have resulted into the proliferation of the three wheelers in umpteen countries. Three wheelers are quite economical in terms of manufacturing and maintenance. They have also earned huge popularity due to their easy maneuvering capabilities through the narrow lanes that are prevalent in most of the developing countries. It is not that three wheelers are used only in the developing nations. You will also get to see various brands of threewheeler in different parts of US, UK and some of the European nations. Bajaj Auto, Piaggio is the leading players in the three wheeler industry in most ofthe Southeast Asian nations. The vehicles have also given rise to the three wheeleraccessory industry in many countries. It is believed that numerous people have gotemployed in various countries due to these three wheelers. Apart from serving the dailyneed of the commuters the three wheelers also play commendable role in thetransportation of several commodities. Seeking the increasing demand of three wheelers,more automobile companies are considering manufacturing these vehicles.1.6.3 Cars Cars charm one and all be it a new or a used one. They are in many colors, manyvarieties and models of cars on sale. The craze for cars never seems to end. In fact the carmarket is swamped with all segment of cars viz. sports cars, big cars, small cars and manyothers. Even in developing countries like India, the car market has witnessed tremendous Babasabpat ilfree pptmba.com 10
    • growth in the recent years. As a result the competition among the car manufacturer is also increasing and they are finding innovative ways of capturing the market. While Maruti Suzuki India Ltd. has been selling the largest volume of private cars in India for quite some time now, Tata motors has bedazzled the world with the launch of Nano the cheapest car. Variousmultinational car companies are also selling diverse models of cars in India. Used car market is also growing at a parallel speed. Even big car companiesthemselves are now buying the used cars and reselling them. Another notable developmentis the rising popularity of the rental cars in India. This is due mainly to the influx ofpopulation from smaller towns to the big cities and expansion of the business community.Car rental agencies have also emerged in large numbers totarget the car crazy generation. The easy availability of car loans, financiers have also contributed a lot in the boomof the automobile industry in India. Go for the car of your choice without worrying muchfor the maintenance tips of cars, insurance, financiers and other car related issues.Automobile India would take care of that1.6.4 Sports Utility Vehicles The origin of the sports utility vehicles(SUVs) can be traced back to the usage ofmilitary jeeps in the aftermath of the WorldWar II period. On account of their off-roadcapabilities, the SUVs gradually became Babasabpat ilfree pptmba.com 11
    • popular especially in the rural areas of US and Europe and big automobile majors sensed agrowing business opportunity. Starting off with the Toyota Land Cruiser , Land Rovermade their mark on the global automobile market as the sports utility vehicles. In terms of design and aesthetics, the sports utility vehicles do vary but broadlycould be described as non-commercial passenger vehicles built with a body on framechassis as is seen in many trucks. Known popularly as the "off road vehicle" or "fourwheel drive", the SUVs progressively have undergone transformation in design andcomponents for light weight and fuel efficiency have been incorporated into thecontemporary sports utility vehicles. No wonder thus that SUVs are increasingly beingused for recreational and sporting purposes too. The Indian automobile market in the last few years too has undergone significanttransformation. From a few outdated passenger car and truck models to boast of, the carmarket has grown big and offers a range of choices today. While the country is witness toall kinds of car, the sports utility vehicles too have made a mark in the Indian automobilescene. While Tata Motors and Mahindra & Mahindra are the major domestic car makerswith a range of sports utility vehicles, Maruti as the leading Indian car maker was the oneto start off with its Maruti Gypsy. Soon Tata Motors came up with its variants of TataSumo and Tata Safari while Mahindra & Mahindra launched Voyager, Bolero andScorpio. Toyota the global auto major from Japan came hard with its own SUVs like Prado,Qualis and Innova. Hindustan Motors in association with its foreign partners launchedPajero while the Korean auto giant Hyundai launched Terracan and Tuscon. In the contextof continuously increasing demand for the SUVs in India, both the domestic and foreigncar makers are putting their efforts in launching newer and varied form of SUVs. Babasabpat ilfree pptmba.com 12
    • 1.6.5 Commercial Vehicles The rapid growth that marked the commercial automobiles sector afterindependence can be, to a great degree, seen as a fruition of Nehrus far sighted vision ofan industrialized nation and the subsequent exodus of masses to the cities. Today, Indiascommercial vehicles sector is one of the rapidly growing industries in the country. The output of commercial vehicles in India has shot up to 2.8 times between theyears 1998 to 2004; the figure is significant in the light of the fact that the growth inpassenger cars has been only 2.2 times between the same period. Some of the automobilecompanies that are operating in the commercial vehicles sector in India are- Ashok Leyland - One of the first automobile companies in India, Ashok Leylandwas born when Mr. Raghunandan Saran responded affirmatively to Nehru overtures toenter the vacant automobile sector in 1948. Since then the company has seen many tie-upswith reputed international companies and built up a formidable reputation in the country.Ashok Leyland dominates the commercial vehicles sector in India with as many as375,000 vehicles battling on the Indian roads. Babasabpat ilfree pptmba.com 13
    • Force Motors - Force Motors Ltd founded in 1958 as Bajaj Tempo Ltd. is amanufacturer of three wheelers, multi utility and cross country vehicles, light commercialvehicles, tractors and now heavy commercial vehicles. Eicher - Eicher takes great pride in its commercial vehicles that are touted as lowpriced as well strong. Eicher has a range of Buses, Truck and Chassis. Tata Motors - The first Indian company to come up with an indigenous car, TataMotors credentials goes further. In the commercial vehicles sector, Tata Motorsmanufactures Luxury Buses, Trucks and Tractors. Volvo - One of the latest entrant into the commercial vehicles sector in India,Volvo is the largest producers of heavy trucks in the world. Mahindra and Mahindra - manufactures extremely durable buses, trucks, and threewheelers. Mahindra and Mahindra gives a clear priority to vehicles that are meant tosurvive rugged use. Babasabpat ilfree pptmba.com 14
    • 2. Company Overview Tata Motors Limited is Indias largest automobile company, with revenues of Rs.32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehiclesin each segment, and the second largest in the passenger vehicles market with winningproducts in the compact, midsize car and utility vehicle segments. The company is theworlds fifth largest medium and heavy commercial vehicle manufacturer, and the worldssecond largest medium and heavy bus manufacturer. Established in 1945, Tata Motors presence indeed cuts across the length andbreadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled outin 1954. The companys manufacturing base is spread across India - Jamshedpur(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (closeto Kolkata in West Bengal) to manufacture the companys small car. The nation-widedealership, sales, services and spare parts network comprises over 2,000 touch points. Thecompany also has a strong auto finance operation, TML Financial Services Limited,supporting customers to purchase Tata Motors vehicles. Tata Motors, the first company from Indias engineering sector to be listed in theNew York Stock Exchange (September 2004), has also emerged as an internationalautomobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Babasabpat ilfree pptmba.com 15
    • Koreas second largest truck maker. The rechristened Tata Daewoo Commercial VehiclesCompany has launched several new products in the Korean market, while also exportingthese products to several international markets. Today two-thirds of heavy commercialvehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquireda 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with anoption to acquire the remaining stake as well. Hispanos presence is being expanded inother markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, aglobal leader in body-building for buses and coaches to manufacture fully-built buses andcoaches for India and select international markets. Tata Motors also entered into a jointventure in 2006 with Thonburi Automotive Assembly Plant Company of Thailand tomanufacture and market the companys pickup vehicles in Thailand. In 2006, Tata Motorsand Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra,India) to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseasmarkets; Tata Motors already distributes and markets Fiat branded cars in India. In 2007,Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-upvehicle bearing the Fiat nameplate at Fiat Group Automobiles Plant at Córdoba,Argentina. The pick-up will be sold in South and Central America and select Europeanmarkets. These linkages will further extend Tata Motors international footprint, establishedthrough exports since 1961. While currently about 18% of its revenues are frominternational business, the companys objective is to expand its international business, boththrough organic and inorganic growth routes. The companys commercial and passengervehicles are already being marketed in several countries in Europe, Africa, the MiddleEast, Australia, South East Asia and South Asia. It has assembly operations in Malaysia,Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the company‟s growth is a deep understanding of economicstimuli and customer needs, and the ability to translate them into customer-desiredofferings through leading edge R&D. The R&D establishment includes a team of 1400 Babasabpat ilfree pptmba.com 16
    • scientists and engineers. The companys Engineering Research Centre was established in1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabledpioneering technologies and products. It was Tata Motors, which developed the firstindigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicleand, in 1998, the Tata Indica, Indias first fully indigenous passenger car. Within two yearsof launch, Tata Indica became Indias largest selling car in its segment. The ERC in Pune,among whose facilities are Indias only certified crash-test facility and hemi-anechoicchamber for testing of noise and vibration, has received several awards from theGovernment of India. Some of the more prominent amongst them are the National Awardfor Research and Development Efforts in Industry in the Mechanical EngineeringIndustries sector in 1999, the National Award for Successful Commercialisation ofIndigenous Technology by an Industrial Concern in 2000, and the CSIR Diamond JubileeTechnology Award in 2004. The company set up the Tata Motors European Technical Centre (TMETC) in 2005in the UK. TMETC is engaged in design engineering and development of products,supporting Tata Motors skill sets. Tata Daewoo Commercial Vehicle Company andHispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragozain Spain. The pace of new product development has quickened through an organisation-widestructured New Product Introduction (NPI) process. The process with its formal structurefor introducing new vehicles in the market, brings in greater discipline in projectexecution. The NPI process helped Tata Motors create a new segment, in 2005, bylaunching the Tata Ace, India‟s first indigenously developed mini-truck. The years tocome will see the introduction of several other innovative vehicles, all rooted in emergingcustomer needs. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels. Babasabpat ilfree pptmba.com 17
    • Through its subsidiaries, the company is engaged in engineering and automotivesolutions, construction equipment manufacturing, automotive vehicle componentsmanufacturing and supply chain activities, machine tools and factory automationsolutions, high-precision tooling and plastic and electronic components for automotive andcomputer applications, and automotive retailing and service operations. True to the tradition of the Tata Group, Tata Motors is committed in letter and spiritto Corporate Social Responsibility. It is a signatory to the United Nations GlobalCompact, and is engaged in community and social initiatives on labour and environmentstandards in compliance with the principles of the Global Compact. In accordance withthis, it plays an active role in community development, serving rural communities adjacentto its manufacturing locations. With the foundation of its rich heritage, Tata Motors today is etching a refulgentfuture. Babasabpat ilfree pptmba.com 18
    • 2.1 Brief History of Manickbag Automobiles Pvt Ltd In 1920 Manickbag was established by two families headed by visionaries Mr. Manickchand Shah and Mr.Dharmappa Mirji with business of Rice Mill and Soap factory in Belgaum.Then diversified into the manufacturing and exporting of groundnut oil In 1950 entered into automobile field by opening of a workshop under the firm name of Manickbag Engineers. With an advent of Diesel engines in Indian market conversion of petrol engine vehicles with diesel engines was pioneered successfully In 1951 Manickbag Engineers with the success of workshop was awarded with the dealership of Simpsons In 1956 MICO dealership was commenced under the name of Manickag Diesels. Manickag Automobiles was formed with commencing of Ashok Leyland sub dealership under Sundaram Motors In 1965 a machine shop was setup for rebuilding of engine under the name of Manickbag Garage In 1979 Sundaram Clayton TVS Moped dealership was taken up in Belgaum In 1984 the first branch outside Belgaum was setup in Hubli In 1992 TELCO main dealership was taken for the North Karnataka area In 1993 Manickbag Automobiles branches were opened at Bijapur and Ankola In 1999 Tata Motors passenger car dealership was taken up & was awarded all India best SSI & CSI by our honorable chairman Shri Ratan Tata in the very first year of operation Babasabpat ilfree pptmba.com 19
    •  In 2003 Manickbag Automobiles was transformed into Manickbag Automobiles Pvt Ltd in 2004 Manickbag Automobiles Pvt Ltd branch was opened in Gulbarga followed by sales office in Basavakalyan By the end of the year 2005 Manickbag Automobiles Pvt Ltd became the largest networked dealership with 15 sales outlet s across North Karnataka In 2006 Manickbag was appointed as exclusive dealers for Tata Novus a premium product from Tata Daewoo commercial vehicle for North Karnataka Again in the same year Manickbag was appointed as the passenger car dealers for Belgaum district Manickbag started of 2007 with the receipt of LOI for selling Fiat products from their passenger car dealership Babasabpat ilfree pptmba.com 20
    • 2.1 Manufacturing Tata Motors owes its leading position in the Indian automobile industry to itsstrong focus on indigenisation. This focus has driven the Company to set up world-classmanufacturing units with state-of-the-art technology. Every stage of product evolution-design, development, manufacturing, assembly and quality control, is carried outmeticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in theWest and Lucknow in the North.2.1.1 Jamshedpur Established in1945, the Jamshedpur unit was the companys first unit and is spreadover an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory,Cab & Cowl Factories, and the Novus. The Truck Division boasts of two assembly lines.The main assembly line, measuring 180m in length has 20 work stations with a vehiclerolling out every 8 mins. The other line is dedicated to special purpose vehicles and formeeting the requirements of the Indian Army. The Cab, Cowl & Novus Factory isequipped with state- of- art facilities like Centralized Paint Shop and Automated painting Babasabpat ilfree pptmba.com 21
    • set up, Robot painting, BIW Fabrication of day & sleeper cabs for trucks, Articulates (Tractor/ Trailer), BIW Fabrication of Cowls for buses, and other miscellaneousapplications. As one of the most modern forging set-ups in the country, the Forge Division isequipped with a semi-automated forging line with 40,000 mkg Beche Hammer and state-of-the-art presses from Kurimoto of Japan. It produces critical forgings like crankshafts,front axle beams and steering parts for the automobile plant. The new forging line,installed in April 1984, has the capacity to forge front axle beams at 90 sec per piece andcrankshafts at 120 sec per piece. Mechanical presses help produce a variety of heavyforgings. The sophisticated FIDIA digit 165 CC Graphite Milling Machine links shopfloor machines to the design workstation. The Forge has been certified as ISO 9002 andQS 9000 by the BVQI.2.1.2 Pune The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) andChinchwad (130 acres). It was established in 1966 and has a Production EngineeringDivision, which has one of the most versatile tool making facilities in the Indian sub-continent. It houses a Vehicle manufacturing complex which is one of the mostintegrated automotive manufacturing centers in the country producing a large variety ofindividual items and aggregates. It is engaged in the design and manufacture ofsophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well asmodels for the development of new ranges of automobile products. Its capabilities haveenabled Tata Motors to introduce new products and improve existing ones withoutresorting to imports of dies or fixtures. Over the years, this division has developed expertise in design and manufacture ofautomated dies, fixtures and welding equipment. Its large design group is fullyconversant with state-of-the-art CAD facilities and manufacturing facilities comprising Babasabpat ilfree pptmba.com 22
    • of light and heavy CNC machine shops, jigs boring room, plastic template shop, woodpattern and model pattern shop, five axis precision machine tools and laser controlmachines. To cope with such a diverse range, four assembly lines have been established,one each for MCVs and HCVs, LCVs, Utility vehicles and one for Passenger Cars(Indica and Indigo).2.1.3 Lucknow: Tata Motors Lucknow is one of the youngest production facilities among all theTata Motors locations and was established in 1992 to meet the demand for CommercialVehicles in the Indian market. The state of art plant is strongly backed by an EngineeringResearch Centre and Service set-up to support with latest technology and cater to thecomplexities of automobile manufacturing. Fully Built Vehicle business, which is one ofthe fast growing areas of our business, is also established in Lucknow Lucknow plant, rolls out commercial vehicles and is specialized in the designingand manufacturing of a range of modern buses which includes Low-floor, Ultra Low-floor, CNG & RE Buses. The Lucknow facility also specializes in manufacturing HCBS(High capacity Bus System) buses.2.1.4 Uttarakhand The company has set up a plant for its mini-truck, Ace, at Pant Nagar inUttarakhand. The plant will begin commercial production during the course of the year.This is the companys fourth plant, after Jamshedpur (commercial vehicles), Pune(commercial vehicles and passenger vehicles) and Lucknow (commercial vehicles). The company is investing about Rs.1000 crores in the plant. Vendors for thevehicle will make additional investments to set up their plants in the vendor parkadjoining the plant. The operation will generate about 7500 direct and indirect jobs in theplant, among vendors and service providers in the area Babasabpat ilfree pptmba.com 23
    • 2.2 Research and Development Research provides the much-needed inspiration for the birth of new ideas, which inturn breathes new life into products. World-class automotive research and developmentare key factors that contribute to the leadership of the Company.2.2.1 Engineering Research Centre (ERC) The Research Centre at Jamshedpur regularly upgrades components andaggregates. A well-equipped torture track enables rigorous and exhaustive testing ofmodifications before they are used as regular fitments. The Engineering Research Centre in Pune was setup in 1966 and is among thefinest in the country. It has been honored with two prestigious awards - The DSIRNational Award for R&D Effort in Industry - 1999 and National Award for SuccessfulCommercialization of Indigenous Technology by an Industrial Concern - 2000. Babasabpat ilfree pptmba.com 24
    • 2.2.2 Facilities Test Beds Tata Motors has 24 engine test beds for engine development. These are fully automated with computerized data acquisition and logging. They are used to test performance, endurance, and durability. They are also used in development of components and other engine aggregates. Chassis Dynamometer Emission Lab The ERC has a specialized AVL Zollner Chassis Dynamometer with a 508mm-twin roller for checking the emission levels of chassis. It is certified by UTAC, TUV, INTA and ARAI. With a 125 kw generator, it can cater to the maximum vehicle speed of 210 km/h. Inertia simulation ranges from 567kg to 3000 kg. Instrumentation Laboratory The Instrumentation Laboratory at ERC Engines is equipped with a range of instruments to assist engine development. These include data acquisition systems, air flow meters, blow-by meters, smoke meters, oil consumption meters, incometer & topometer, piston profile tester, FIP test rig, Swirl test rig, and many other support equipments to cater to routine engine development activities. Reducing Emissions A specialized laboratory has been set up to measure levels of emission of vehicles using petrol, diesel or CNG. This laboratory helps Tata Motors achieve fuel consumption efficiencies that would conform to international standards, under varying driving cycles. It stands testimony to Tata Motors commitment to help bring down levels of atmospheric pollution caused by vehicular exhaust Test Tracks: High-speed tracks are specialized tracks for testing endurance of cars and commercial vehicles. The Tata Motors torture tracks and high-speed tracks in Jamshedpur and Babasabpat ilfree pptmba.com 25
    • Pune are the only one of their kind in the country. The torture track has 4 segments. Each segment affords a different type and level of stress testing for the vehicle chassis and aggregates. The tracks subject the chassis to shock, twisting, and bending loads. 1000 cycles on this torture track are equivalent to approximately one and a half lakh kms of running on regular roads. It thus provides a valid test of chassis and vehicle durability. Safety (Crash test facility) Tata Motors ERC is the only high-tech facility in India to evaluate the degree of passenger safety in the event of any high-speed impact. Through a special crash test facility. Different types of accidents are simulated; the results analyzed, and put to use in the development of a vehicle that satisfies stringent international safety norms. Minimizing Noise Anechoic chamber is a highly sophisticated noise and vibration laboratory, the nerve centre of which is a vast chamber lined with 88,000 cones projecting at various angles from the walls and ceiling. It is one of its kind in India and is developed completely with in-house facilities. Designing and Styling The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest software. The CAD centre is a vital organ of ERCs Cab Design Section. CAD designing involves development of vehicle specifications, styling interiors and exteriors, reviewing the styling from the engineering and aesthetic points of view, virtual prototyping to check for design acceptability and feasibility of manufacture. Babasabpat ilfree pptmba.com 26
    • 2.3 Corporate Social Responsibility Tata Motors believes in technology for tomorrow. Its products stand testimony tothis. Company‟s annual expenditure on R&D is approximately 2% of our turnover. It hasalso set up two in-house Engineering Research Centers that house Indias only CertifiedCrash Test Facility. It ensures that its products are environmentally sound in a variety ofways. These include reducing hazardous materials in vehicle components, developingextended life lubricants, fluids and using ozone-friendly refrigerants. Tata Motors hasbeen making conscious effort in the implementation of several environmentally sensitivetechnologies in manufacturing processes. The Company uses some of the worlds mostadvanced equipment for emission check and control.Tata Motors concern is manifested by a dual approach Reduction of environmental pollution and regular pollution control drives Restoration of ecological balance. Tata Motors has been at the forefront of the Indian automobile industrys anti-pollution efforts by introducing cleaner engines. It is the first Indian Company to introducevehicles with Euro norms well ahead of the mandated dates. Tata Motors‟ joint venturewith Cummins Engine Company, USA, in 1992, was a pioneering effort to introduceemission control technology for India. Tata Motors has set up effluent treatment facilities in its plants, to avoid release ofpolluted water into the ecosystem. In Pune, the treated water is conserved in lakesattracting various species of birds from around the world thus turning the space into agreen belt. Tree plantation programs involving villagers and Tata Motors employees, haveturned acres of barren village green. Tata Motors has planted as many as 80,000 trees inthe works and the township and more than 2.4 million trees have been planted inJamshedpur region. Over half a million trees have been planted in the Poona region. TataMotors has directed all its suppliers to package their products in alternate materials Babasabpat ilfree pptmba.com 27
    • 2.3.1 Corporate SustainabilityIntegrated Rural Development The company has adopted several villages around its manufacturing units at Pune,Jamshedpur and Lucknow. Integrated Rural Development aims at meeting basic needs infive broad areas - Health, Education, Water, Environment and Livelihoods.Employability The company is establishing the small car plant at Singur in West Bengal. CS atSingur focuses on enhancing the employability of the youth and women in the regionthrough training and skill development. Skills being imparted are attuned to the immediaterequirements and future demands that would be generated with the coming of theancillaries Babasabpat ilfree pptmba.com 28
    • 3. Collaborations8th January, 2001Tata Engineering discusses Co-operative Venture with PSA Peugeot Citroen Tata Engineering and PSA Peugeot Citroen agreed to work together to examine thefeasibility of jointly developing a car on a PSA Peugeot Citroen platform for manufactureby Tata Engineering for the Indian market as part of its passenger car business. Subject tothe feasibility being established, the car may also be considered for overseas markets. PSA Peugeot Citroen is Europes second largest carmaker and would contribute oneof its existing platforms for the development of a newer generation car and its expertise indesigning world class passenger cars. Tata Engineering, as Indias largest commercialvehicle manufacturer and a recent entrant in the passenger car market, will contribute itscompetitive development technology and production processes as well as itsunderstanding of the local market.12th September, 2002Tata Group to acquire Jardine Motors equity in Concorde Motors The Tata Group has reached an agreement with Jardine Motors to acquire its 50%stake in Concorde Motors Limited (CML). CML is currently a joint venture of the TataGroup and Jardine Motors, in which each of the partners holds 50% of the equity andrepresents Tata Engineerings passenger vehicles20th December, 2002Tata Engineering signs a product agreement with MG Rover of the UK Under the agreement, the Tata Indica, incorporating certain Rover-specificmodifications, will be manufactured at Tata Engineerings Pune factory. These Rover-branded vehicles will be marketed through Rovers own dealer network in the UK and in Babasabpat ilfree pptmba.com 29
    • continental Europe. Their choice of the Indica to fill a gap in their model range in order toaddress the high volume small car segment is an affirmation of Tata Engineerings productdevelopment and manufacturing expertise. This agreement should see a substantialaddition to the lifecycle volume of the Tata platform.11th March, 2003Tata and Phoenix agree a new distribution arrangement in the UK and Ireland Phoenix Venture Holdings Ltd (PVH), owners of MG Rover Group, signed anagreement with Tata Engineering to distribute the companys Safari off-roader andLoadbeta pick-up trucks in the UK and Irish markets. Given the specialist nature of bothutility products, the franchises will be managed by Phoenix Distribution Ltd., a newlycreated subsidiary of PVH. This agreement will significantly enhance the Tata brand presence in the UK andIreland. Tata utility vehicles have established a niche presence in the market. Newupgraded versions of these vehicles, with contemporary features, will further enhance thevalue proposition. The vehicles will be distributed through a selection of both MG Roverand former Tata dealerships. The new distribution arrangements will be implemented inthe next few months.29th March, 2004Tata Motors completes acquisition of Daewoo Commercial Vehicle Company Mr Ratan N Tata said, "This is a historic occasion for Tata Motors and the TataGroup. I am happy to note that this is the largest acquisition by any Indian company inKorea and I look forward to increasing the TATA Groups presence in this country. Koreais a shining example of what can be achieved with diligence and dedication, and I am surewe will learn a lot from operating in South Korea". Babasabpat ilfree pptmba.com 30
    • Both Tata Motors and DWCV believe that the combined strengths in technology,customer orientation and product development will provide a cutting edge for competingin international markets and create a new powerhouse in the commercial vehicles industry.3rd November, 2004Tata Motors signs MoU with Andhra Bank for Passenger Vehicle Financing Andhra Bank will offer financing facilities to eligible customers of Tata PassengerVehicles at certain identified branches of the Bank and select Dealer points of TataMotors. It will offer competitive and innovative schemes and packages for Tata Motorpassenger vehicles on an ongoing basis. Further, the customer needs will be evaluated andappropriate financing packages, including product structuring, down payment, tenure ofthe loan, effective rate of interest will be developed for customers on the best possibleterms. The customers request will be processed by the Bank within three working days,with the necessary supporting documents.6th December, 2004Tata Motors nominates State Bank of India as its Preferred Financier forCommercial Vehicles As a Preferred Financier, State Bank of India will work together with Tata Motorsto promote and make available organized finance facility at competitive interest rates andconcessions to Tata Motors customers all over the country, including those in semi urbanand rural areas. As part of the MoU, State Bank of India will offer financing facilities to TataMotors customers at identified branches of State Bank of India (SBI) and select TataMotors dealer locations across all states of India. Customer requests will be processed bySBI on best effort basis. It will evaluate the finance needs of the customers and develop Babasabpat ilfree pptmba.com 31
    • appropriate financing packages, including product structuring, down payment, tenure ofloan and effective rate of interest on best effort basis.10th January, 2005Tata Finance Ltd. to be merged with Tata Motors Ltd. The merger is expected to enable the vehicle financing business of Tata Finance togrow stronger by leveraging its synergies of the direct business model with the dealerdriven business of Bureau of Hire Purchase and Credits (BHPC), a division of theCompany. This merger will also allow the TFL shareholders to participate in the growth ofthe Company, a leading automobile company in the country and thereby significantly gainwith an upside of dividend and shareholder value creation. The proposed merger will enable the Company to grow its auto financing businessand offer complete solutions in line with the global best practices in the auto industry. Thiswill also enable the Company to provide a hedge against the cyclicality of the automotivebusiness and a significant value creation for its shareholders.25th February, 2005Tata Motors to acquire 21% stake in Hispano Carrocera The Board of Tata Motors, Indias largest automobile manufacturing Company,today approved a proposal to acquire 21% stake in Hispano Carrocera S.A (HC), a wellknown Spanish bus manufacturing Company, with an option to acquire 100% holding.Tata Motors will have the license for technology and brand rights from HC. The total dealconsisting of Equity, Debt & Technology Licensing will add up to Euro 12 million (aboutRs.70 crores). HC which currently enjoys a market share of 25% in the bus market in Spain, sellsits buses in Europe and several other countries outside Europe. It has its own in house Babasabpat ilfree pptmba.com 32
    • product development facility for buses and coaches. "This strategic alliance with HispanoCarrocera will give Tata Motors access to its design and technological capabilities to fullytap the growing potential of this segment in India and other export markets, besidesproviding us with a foothold in developed European markets".9th December, 2005Tata Motors, Hitachi, Telcon sign new agreement, enhanced scope of cooperation;Hitachi increases stake to 40% Tata Motors, Hitachi Construction Machinery Co. Ltd. (HCM) and TelcoConstruction Equipment Company Limited (Telcon), an 80:20 joint venture companybetween Tata Motors and HCM, signed an agreement, expanding their scope ofcooperation and partnership with HCM increasing its stake in Telcon from 20% to 40%. It includes sourcing, by Hitachi, of components and machines from Telcon,introducing newer products of construction equipment in India, setting up a productdevelopment facility in India and making Telcon a part of HCMs global network. Thenew arrangement will help Telcon to significantly improve its product offerings to itscustomers and make it evolve as a global manufacturing and design hub.13th January, 2006Fiat cars to be available in India through Tata dealers from March 2006 Fiat Group and Tata Motors signed an agreement to co-operate on dealer networksharing, which encompasses the sale of Fiat branded cars through selected Tata outletsthroughout India. Tata Motors will manage the marketing and distribution of the Fiatbranded cars in India. Following this agreement, a targeted selection of Fiat cars and the Tata productrange along with service and sale of spare parts will be available from March 2006through the Tata dealership network. Dealers will display the new Fiat logo alongside theTata logo at their outlets. Babasabpat ilfree pptmba.com 33
    • 9th March, 2006Tata Motors & ATFCAN of Canada join hands to demonstrate advanced CNGTechnology for Buses Tata Motors has been manufacturing and marketing CNG buses since 2000, asignificant step in Indian road transportation to improve emission standards and to offerbetter fuel economy. More than 60% of buses plying in Delhi are Tata Motors CNG buses. The replacement of current CNG and diesel engines with new lean-burn CNGengines will translate into substantially lower emissions, higher fuel efficiency and reliableperformance. The new roof-mounted cylinders are more than 60% lighter than thosecurrently in use and will provide bus operators with extended driving range, as well asimproved vehicle fuel economy.5th May, 2006Tata Motors, India, and Marcopolo, Brazil, announce joint venture The joint venture, in which Tata Motors will hold 51% of the equity and Marcopolowill hold 49%, will set up a new manufacturing facility. It will go on stream in a yearstime, and produce a variety of buses including 16 to 54-seater standard buses, 18 and 45-seater luxury buses, luxury coaches, and low-floor city buses. The joint venture will alsoexplore emerging opportunities in Bus Rapid Transit System. The joint venture will take help with technology and expertise in chassis andaggregates from Tata Motors, and expertise and know-how in processes and systems forbodybuilding and bus body design from Marcopolo. Both companies will activelyparticipate in the management. The buses will conform to international standards inquality and safety, and will be marketed not only in India but also in all Tata Motorsfocused markets globally. Babasabpat ilfree pptmba.com 34
    • 14th December, 2006Fiat Auto and Tata Motors announce forming a joint venture in India The agreement calls mainly for the creation and establishment of an industrial jointventure in India, located at the Fiat plant at Ranjangaon, in the State of Maharashtra.With capacities to produce in excess of 100,000 cars and 200,000 engines andtransmissions yearly, at steady state, the Ranjangaon plant will manufacture vehicles forthe Indian and overseas markets. Both Fiat and Tata vehicles will be manufactured at thesame facility, which will be managed equally by the two Shareholder Partners. Fiat Auto will introduce its premium cars for the B and C segments, namely theFiat Grande Punto, and the Fiat Linea whose worldwide premiere occurred at the IstanbulMotorshow in early November. Fiat branded cars will be distributed by Tata through the Tata-Fiat dealer networkas per the arrangement already in place since March 2006. The Tata-Fiat dealer networkwill progressively increase to 100 outlets for the launch of the new models to cover theentire length and breadth of the country. Currently, 42 Tata-Fiat dealerships are alreadyoperational. Manufacturing of Tata cars in the joint venture will supplement theproduction capacities of the Tata Motors Car Plant in Pune to meet growing demand andto prepare for new Tata car models.18th December, 2006Tata Motors & Thonburi of Thailand set up joint venture in Thailand for pickuptrucks The joint venture, in which Tata Motors will hold 70% of the equity and Thonburi30%, will get vehicles manufactured in Thonburi‟s manufacturing facility. It will go onstream in a year‟s time. Babasabpat ilfree pptmba.com 35
    • The joint venture will facilitate Tata Motors address the Thailand market, thesecond largest pickup market in the world after the US. Both partners will jointly managethe operation. The pickup trucks will conform to international standards in quality andsafety, and will be marketed in Thailand and exported to other potential markets in theregion.14th February, 2007Fiat and Tata announce agreement for pick-up production in Argentina Fiat and Tata Motors are expanding their strategic co-operation with the start of anindustrial project outside India. This is a further significant step towards an integratedstrategy of targeting specific markets and segments. The pick-up, based on the new generation Tata pick-up truck, will be sold in Southand Central America and select European markets through Fiat Automobiles‟ distributionand importer network. This will permit the Fiat brand to aggressively enter the mediumpick-up sector, thanks to Tata Motors‟ specific know-how.26th March, 2008Tata Motors enters into Definitive Agreement with Ford for purchase of JaguarLand Rover Tata Motors today announced that it has entered into a definitive agreement withthe Ford Motor Company for the purchase of Jaguar Land Rover, comprising brands,plants and Intellectual Property Rights. The transfer of ownership to Tata Motors is expected to close by the end of the nextquarter, subject to applicable regulatory approvals. Babasabpat ilfree pptmba.com 36
    • The total amount to be paid in cash by Tata Motors for Jaguar Land Rover uponclosing will be approximately US $2.3 billion. At closing, Ford will then contribute up toapproximately US $600 million to the Jaguar Land Rover pension plans Commenting on the agreement, Chairman of Tata Sons and Tata Motors, Mr. RatanN. Tata, said, "We are very pleased at the prospect of Jaguar and Land Rover being asignificant part of our automotive business. We have enormous respect for the two brandsand will endeavour to preserve and build on their heritage and competitiveness, keepingtheir identities intact. We aim to support their growth, while holding true to our principlesof allowing the management and employees to bring their experience and expertise to bearon the growth of the business." Mr. Alan Mulally, President and CEO of the Ford Motor Company, said, "Jaguarand Land Rover are terrific brands. We are confident that they are leaving our fold withthe products, plan and team to continue to thrive under Tatas stewardship. Now, it is timefor Ford to concentrate on integrating the Ford brand globally, as we implement our planto create a strong Ford Motor Company that delivers profitable growth for all." As part of the transaction, Ford will continue to supply Jaguar Land Rover fordiffering periods with powertrains, stampings and other vehicle components, in addition toa variety of technologies, such as environmental and platform technologies. Ford also hascommitted to provide engineering support, including research and development, plusinformation technology, accounting and other services. Babasabpat ilfree pptmba.com 37
    • 4. Product Range Indica Indica Indica V2 Xeta Dicor Passenger Indigo Indigo Cars Marina Fiat Cars Utility Safari Sumo Sumo Vehicles Dicor Grande Tata Starbus & Other Motors Buses Globus Buses Medium & Tata Heavy Novus Trucks Intermediate Light & Tata Small TL 4X4 Ace Defence Vehicles Babasabpat ilfree pptmba.com 38
    • 5. Quality Policy Tata Motors is committed to maximizing customer satisfaction and strives toachieve the goal of excellence, by continual improvement, through ongoing design anddevelopment, manufacture and sale of reliable, safe, cost-effective, quality products andservices of international standards, using environmentally sustainable technologies, forimproving levels of efficiency and productivity within its plants and ancillaries. Tata Motors also has commitment towards improving the quality of life of itsemployees, both within and outside its plants and offices, through improved workpractices and social welfare schemes. Our „Quality Policy‟ underlines our commitment to the manufacture of qualityproducts using “environmentally sustainable technologies”. The „Environmental Policy‟makes specific commitment to prevention of pollution and management review of theenvironment management system.5.1 Environmental PolicyTATA Motors reaffirms its commitment to minimize the adverse impacts of its products,operations and services on the environment.Towards this end, it shall strive to: Establish sound environment objectives and targets & a process of reviewing them. Comply with all applications legal / regulatory & other Environment requirement. 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. Babasabpat ilfree pptmba.com 39
    •  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. Minimize wastage generation, enhance recovery & recycling of material and develop Eco-friendly wastage disposal practices. Building awareness of our work force, customers and vendors on Environment issues.6. Management Levels Babasabpat ilfree pptmba.com 40
    • To focus effectively on the issues and ensure expedient resolution of diversematters, the Board has constituted a set of Committees with specific terms ofreference/scope. The Committees operate as empowered agents of the Board as per theirCharter/ terms of reference. Targets set by them as agreed with the management arereviewed periodically and mid-course corrections are also carried out. The minutes of themeetings of all Committees of the Board are placed before the Board for discussions /noting. The relationship between the Board, the Committees and the senior managementfunctions is illustrated alongside. Babasabpat ilfree pptmba.com 41
    • 6.1 Management of Tata Motors6.1.1 Board of Directors Mr. Ratan N Tata (Chairman) Mr. N A Soonawala Dr. J J Irani Mr. V R Mehta Mr. R Gopalakrishnan Mr. Nusli N Wadia Mr. S M Palia Dr. R A Mashelkar Mr. Ravi Kant Mr. P M Telang6.1.2 Senior Management Mr. Ravi Kant Managing Director Mr. P M Telang Executive Director (Commercial Vehicles) Mr. Rajiv Dube President (Passenger Cars) Mr. C Ramakrishnan Chief Financial Officer Mr. P Y Gurav Vice President (Corporate Finance-Accounts and Taxation) Dr. S J Tambe Vice President (Human Resource) Mr. Zackria Sait Vice President (Technical Services) Mr. A M Mankad Head (Car Plant) Mr. S B Borwankar Head (Jamshedpur Plant) Mr. S Krishnan Vice President (Commercial-PCBU) Mr Ravi Pisharody Vice President (Sales & Marketing) Mr. H K Sethna Company Secretary6.1.3 Corporate Communications Mr. Debasis Ray (Head - Corporate Communications) Babasabpat ilfree pptmba.com 42
    • 6.2 Organization Structure of Manickbag Automobiles Pvt Ltd Managing Partner Manager Manager Manager Manager Manager Sales Spares Accounts Service Accidents Event Sales Assistants AssistantsManager Representative Assistant Admin Service Manager Staff Staff Store Supervisor Service Keeper Advisor Biller Works Incharge Cashier Service Supervisor Mechanics Babasabpat ilfree pptmba.com 43
    • 7. Competitors for Tata Motors (LCV Segment)7.1 Piaggio It all began in 1884, when Rinaldo Piaggio constituted the Genoese company Piaggio & Co. which concentrated initially on carpentry for naval outfitting. The rapid growth of both the company and Italian industry on the whole at the beginning of the twentieth century spurred Rinaldo to diversify production, and in 1918, Piaggio & Co.began constructing railway carriages. In 1924, Piaggio was manufacturing funiculars,trams, buses, trains and, above all, aircraft. After the 2nd World War, Enrico Piaggio, having taken over from his fatherRinaldo, converted production to meet growing market needs for the means oftransportation which could overcome the problems of the mobility of the individual andgave the engineer Corradino D‟Ascanio the job of designing what was to become the mostfamous and most sold two-wheeler in the world: the Vespa - one of the best knownsymbols of Italian style. In the April of 1946, the first 15 Vespas left the Pontadera factory. Since then, over16 million have been produced. A few years later, in 1948, Piaggio launched three-wheelvehicle - Ape. Having created a joint venture between Piaggio and Daihatsu in 1993, thecompany started producing microvans under the brand of Daihatsu Hijet (in the UK andBenelux countries) and Porter (in the rest of Europe). The success and brand recognitionwas enormous. In 2001, having refreshed the arrangement twice, both companies agreed toterminate the contract, staying still in co-operation - Daihatsu would now supply drivetrains and technical development to Piaggio, who would market the vehicle. Babasabpat ilfree pptmba.com 44
    • The Group currently operates within the following brands: Piaggio (scooters, light commercial vehicles and vehicles for individual mobility) Gilera (scooters and motorcycles) Vespa (scooters) Derbi (scooters and motorcycles) Aprilia (scooters) MOTO Guzzi (scooters)7.2 Force Motors Force Motors Ltd founded in 1958 as Bajaj Tempo Ltd. is a manufacturer of three wheelers, multi utility and cross country vehicles, light commercial vehicles, tractors and now heavy commercial vehicles. A company that has reinvented itself. Afully vertically integrated automobile company, with expertise in Design, Developmentand Manufacture of the full spectrum of Automotive Components, Aggregates andVehicles. Four decades ago, Force Motors started production of the HANSEAT 3-Wheelersin collaboration with Vidal & Sohn Tempo Werke Germany and went on to establish astrong presence in the “Light Commercial Vehicles” (LCV) field with the MATADOR.The proverbial LCV in India. Through the 80s and 90s, especially in the last 5 years with amajor product development effort, Force Motors has introduced new Light CommercialVehicles, a new family of Utility Vehicles, new state-of-the-art Tractors, and a new rangeof Three-Wheelers. The word Force is not just the product of mass and acceleration. It reflects valuesof ethical business, strength in technology, in manufacturing and energy in productdevelopment. It is also the binding force in close and mutually beneficial relations withcustomers, dealers, suppliers and business associates. Babasabpat ilfree pptmba.com 45
    • Force is the dynamism with which we venture into our future supported by thearray of Technical Collaborations and Business Alliances with world leaders like MAN,Daimler Chrysler and ZF.7.2.1 Five areas of excellence support the five market segments: Research and Development - Using a 150 terminal CAD installation, and modern testing facilities, staffed by 400 young engineers and technicians. Production Engineering - Backed by a modern CAM Tool Room and run by 450 young and skilled engineers and staff. Power Pack Manufacturing - State of the art facilities, for in house manufacturing of engines and transmission components. Vehicle Manufacturing - Complete, with in-house foundry, press shops, robotised body welding, electrophoretic dip painting and high quality assembly facilities. Marketing Excellence - Strengthen organizational commitment to deliver superior customer value through better quality products and higher responsiveness to customer needs and aspirations.7.2.2 Products Offered1. Three Wheelers2. Light Commercial Vehicles3. Multi Utility Vehicles4. Tractors5. Heavy Commercial Vehicles Babasabpat ilfree pptmba.com 46
    • 7.3 Mahindra & Mahindra Mahindra & Mahindra Limited (M&M) is a major automaker in India. It is the flagship strategic business unit of the Mahindra Group. The company was set up in 1945. The company first traded steel with suppliers in England and the United States.Real business activity of M&M began by assembling complete knock down (CKD) Jeepsin 1949. The company expanded to indigenous manufacture of Jeep vehicles with a highlevel of local content under license from Kaiser Jeep and later American Motors (AMC). M&M soon branched out into manufacturing agricultural tractors and lightcommercial vehicles (LCV‟s). It later expanded its operations to secure a significantpresence in many more important sectors. The Mahindra Group‟s Automotive Sector is inthe business of manufacturing and marketing utility vehicles and light commercialvehicles, including three-wheelers. It is the market leader in utility vehicles in India sinceinception, and currently accounts for about half of India‟s market for utility vehicles The company has now transformed itself into a group of business units that catersto the Indian and overseas markets with a presence in vehicles, farm equipment,information technology, trade and finance related services, as well as infrastructuredevelopment. By 2005, M&M had become the largest producer of SUVs in India. The companyhas recently started a separate sector, the Mahindra Systems and Automotive Technologies(MSAT), to focus on developing components and offering engineering services. Over the years, the Group has developed a large product portfolio catering to adiverse customer base spanning rural and semi-urban customers, defence requirements andluxurious urban utility vehicles. In 2002, it launched the indigenously engineered world-class sports utility vehicle-Scorpio, which bridges the gap between style and adventure,luxury and ruggedness, and performance and economy. Babasabpat ilfree pptmba.com 47
    • The Group exports its products to several countries in Europe, Africa, SouthAmerica, South Asia and the Middle East.The International Operations of the AutomotiveSector focuses on the international business. Mahindra International, a joint venturebetween Mahindra & Mahindra Limited and International Truck and Engine Corporation,will manufacture trucks and buses for India and export markets. It will also providecomponent sourcing and engineering services to International Truck and EngineCorporation. AutomartIndia is India‟s largest multi-brand used car company. The Company‟smission is to create India‟s largest automobile and automobile-related productsdistribution network by providing dealers and customers with the largest choice of uniqueworld-class products and services.7.3.1 Products Offered1. 4/3 Wheelers2. Pik – Ups3. Light Commercial Vehicles (LCV‟s)4. Sport Utility Vehicles (SUV‟s)5. Used cars - Purchase, Sale and Finance6. Utility Vehicles Babasabpat ilfree pptmba.com 48
    • 7.4 Bajaj Bajaj Auto is a major Indian automobile manufacturer. It is Indias largest and the worlds 4th largest two- and three- wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and Chakan (near Pune),Waluj (near Aurangabad)and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcyclesand the three wheelers. Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj TradingCorporation Private Limited. It started off by selling imported two- and three-wheelers inIndia. In 1959, it obtained license from the Government of India to manufacture two- andthree-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985,it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicleand produced and sold 1 million vehicles in a year. Over the last decade, the company has successfully changed its image from ascooter manufacturer to a two wheeler manufacturer. Its real growth in numbers has comein the last four years after successful introduction of a few models in the motorcyclesegment.It has been reported that Bajaj is headed for a de-merger into two separatecompanies: Bajaj Auto and Bajaj Finance. It is expected that the sum of the parts createdwill be worth more that the current whole, as was the case in the de-merger of RelianceIndustries. In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG(holding company of KTM Sportmotocycles AG). The two companies have signed acooperation deal, by which KTM will provide the know-how for joint development of thewater-cooled 4 stroke 125 and 250 cc engines, and Bajaj will take over the distribution of Babasabpat ilfree pptmba.com 49
    • KTM products in India and some other Southeast Asian nations. Bajaj Auto said it is opento take a majority stake in KTM and is also looking at other takeover opportunities. On the8th of January 2008, Managing Director Rajiv Bajaj confirmed the collaboration andannounced Bajaj Autos intention to gradually increase their stake in KTM to 25%. The sub-1 ton cargo segment also has shown a robust growth at 15 per cent, andBajaj Auto has grown in line with the industry, with its market share remaining at a littleover 26 per cent. Like the Mega, the Company has launched the CNG version of its cargovehicle in cities where diesel vehicles are now banned.7.4.1 Products Offered1. Motorcycles2. Scooters3. Three Wheelers (Goods Carrier)4. Three Wheeler (Passenger Carrier) Babasabpat ilfree pptmba.com 50