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About TATA:• Tata Group is an India multinational conglomerate company headquartered in Mumbai, Maharashtra India. It is one of the largest conglomerates in India by market capitalization and revenue.• It has interests in communications and information technology, engineering, materials, services, energy, consumer products and chemicals. • Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. • It comprises 114 companies and subsidiaries in eight business sectors,27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts.• Companies which form a major part of the group include Tata Steel Tata Tata Consultancy Services, Tata Technologies, Tata Tea, Tata Chemicals, Titan Industries, Tata Communications, Tata Power, Tata Teleservices and Taj hotels .
Tata Group of Companies:Chemicals: Engineering:• Tata Chemicals TAL Manufacturing Solution • Rallis India Tata Auto Comp Systems Limited(TACO)• Tata Pigments Limited Hispano Carrocera• General Chemical Industrial Jaguar and Land Rover• Brunner Method Tata Daewoo Commercial Vehicle• Magadi Soda CompanyConsumer Products: Information Systems & Communications:• Tata Salt Tata Business Support Services• I-Shakthi Tata Consultancy Services• Casa Décor Tata Elxsi• Tata Swatch Tata Teleservices• Tata Global Beverages Virgin Mobile IndiaEnergy: Steel:• Tata Power Tata Steel• Tata BP Solar Tata Steel Europe• North Delhi Power NatSteel Holding
TATA Motors:• Tata Motors Ltd is an Indian Multinational automotive corporation headquartered in Mumabi,India.It is the eighteenth largest Motor vehicle manufacturing company in the world by volume.• It was formerly known as TELCO(Tata Engineering and Locomotive Company). Its products include passenger cars, trucks, vans and coaches.• Tata Motors is South Asia’s largest automobile company; it is the leader in commercial vehicles and among the top three in passenger vehicles. Worldwide it is the worlds fourth-largest truck manufacturer and second-largest bus manufacturer.• It has auto manufacturing and assembly plants in Jamshedpur,Pantnagar,Lucknow,Sanard India and as well as Argentina, United Kingdom, South Africa, Thailand.• Tata Motors has produced and sold over 6.5 million vehicles in India since 1954.• Originally a manufacturer of locomotives, the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.• In 2010, Tata Motors surpassed Reliance to win the coveted title of Indias most valuable brand in an annual survey conducted by Brand Finance and The Economic Times.
History: • Founded : 1945 • Founder : JRD Tata • Headquarters : Mumabi,India. • Key People : Ratan Tata, Chairman, • Cyrus Pallonji Mistry, Chariman Designate • Parent : Tata Group• Subsidiaries : Jaguar and land rover• Products :automobiles and engines• Revenue : USD 27.6 billion• Net profit :USD 1.65 billion
TATA Motors His tory 1977– First CV from Pune plant. 1983– First HCV rolled out. 1986– First LCV (Tata 407) launched followed by Tata 608. 1991– First passenger car Tata Sierra launched. 1992– Tata Estate launched. 1994– Launch of Tata Sumo. 7
TATA Motors History 1995– Mercedes Benz car E220 launched 1997– Tata Sierra Turbo launched. 1998– India’s first SUV launched. 1998– India’s first indigenous Passenger Car Indica launched. 2001– Second Generation Indica v2 launched. 2008– Launch of Suma Grande 2008– Launch of Nano at ninth Auto Expo 8
Global Footprint:OTHER COLLABORATIONS/M&A & JVs West Europe• Tata Daewoo Commercial Vehicle Russia* U.K.• Hispano in Spain & Marcopolo In Brazil Ukraine* Italy• JV with Jardine Matheson for ConcordeMotors Central Asia• Technology Tie Ups at Spain,Italy Afghanistan East Asia Uzbekistan China North Africa South Korea* Egypt South Asia West Africa Bangladesh * Senegal Nepal, Sri Lanka LATAM South East Asia Brazil West Asia Malaysia* Saudi Arabia Thailand Iraq, Iran South Africa East Africa South Africa* Kenya** Assembly Operations also
Technological Resources:• R & D establishments at Jamshedpur, Pune & Lucknow – over 1400 engineers.• India’s only certified crash test facility for cars and hemi anechoic chamber for testing of noise and vibration.• Tata Motors European Technical Centre (TMETC) set up in 2005 – primarily involved in design engineering and development of products, supporting Tata Motors skill sets.• Tata Daewoo Commercial Vehicle Co. has its R&D facility in Gunsan, South Korea.• Hispano Carrocera has its R&D facility at Zaragoza in Spain.
Marketing & Sales:• Structured approach to understanding the requirements of individual customers – QFD’s conducted at regular intervals.• Clear identification of product requirements, leading to development of innovative products – Tata 207 DI, Tata Ace• Pan India presence and global footprint.• Independent teams for addressing the requirements of institutional customers – Defense, State Transport Units• Helping to augment the scarce resources – Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiat’s technology and unutilized capacity.• Quick assessment of the changing market dynamics and consumer preferences – Tata 407 LCV • Large network of dealers – use of technology : DMS.
Procurement:• E procurement initiative.• Global Sourcing Team – China , a key destination for sourcing essential items like tires, power steering units etc., Steel procured from Belarus• Long term relationships with a stable and loyal pool of suppliers.• Technology driven procurement – SAP and VCM.• Strategic subsidiaries & JV’s – TACO group of companies , Tata Cummins• Centralized Strategic Sourcing for key components – FIP’s, Steel etc.• Group resources – Tata Steel and Tata International .• Localized supplier base at mfg. locations – low inventory levels.
Acquisitions:• In 2004 Tata Motors acquired Daewoos truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea.• In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company.• In 2007, Formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in the Indian Market.• In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names.• In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company Trilix for a consideration of €1.85 million. The acquisition is in line with the company’s objective to enhance its styling/design capabilities to global standards.
Key Strategies:International strategy based on the competitive advantage:• New product (eg. Tata Nano, the cheapest car in the World).• Acquisitions (eg. Land Rover and Jaguar brands from Ford Motors).• Partnership with established companies (eg. Alliance with Fiat since 2006) to enhance the product portfolio and knowledge exchange.• Facilities for learning from other companies.• Developing programmes for intensive management development.Consolidate position in India by exploiting opportunities:• New mobility of young Indians.• Government’s substantial road-building program• GDP growth
Stretch and Leverage: • Vision : “best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics” • Engineering, construction and automotive solutions • R&D focus on environment-friendly technologies in emissions and alternative fuels • Maintain cost competitiveness through continuous improvements in control over key inputs and enhanced asset utilization • Best in class human capital that are constantly in touch with the industry, competitors, customers and the suppliers
Stretch and Leverage Contd.Acquisition : Land Rover and Jaguar for $2.3 billion - Complementing Resources - Blending & Balancing • High Replacement cost • Complimentary to Tata Motor in the upstream • business • Access to global markets • Transfer of knowledge, technology from high end market
Stretch and Leverage Contd. Overall .. • Strong product development capability • Manufacture products or deliver services of highest quality at lowest prices • Sufficiently widespread distribution and service network • Working around offering more affordable, • more value-oriented products
Corporate Stragety,Parenting and Synergies:• To buy premium vehicle brands such as Land Rover and Jaguar bolster Tata Motors’ image as a global company and increase its global reach and scale• Overall, the Tata group has spent around $15.5 billion in acquiring foreign companies • The Tata name is a unique asset representing leadership with trust • Leveraging this asset to enhance group synergy and becoming globally competitive • Synergy developed as a result of the strengths of domestic and foreign market share, congregating under the umbrella of Tata group• The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world- wide - lots of experience and resources to draw from for research and development purposes
Corporate Advantages from DiversifiedBusiness: Sharing of Skills/Core Competence Tata Tata Tata TCS Steel Motor Cummins Sharing of Skills/Core Competence Tata Tata Steel Cummins Core Competence TAML TACO 23
Swot Analysis:• Strengths • Opportunities – well-known brand with good – new long-awaited products reputation (Nano) – planned and smart – government support international – emerging market high demand for passengers cars at low costs. – weaknesses • Strategy – low level of infrastructure – smart approach in – lack of experience in certain new responding to the market sectors demand Threat – alliances with key players – downturn of the world economy – fast products development – high level of competition ability – sustainability and environmentalism – oil rising prices
Challenges:• 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, Tatas biggest competitor in the Indian heavy commercial vehicle market.
Conclusion:• TATA Motors must continue to work on grabbing more market share in emerging economies all over the world. • Leverage the brand value, technology associated with JLR and use it to increase the market share of low end affordable passenger cars. • Acquiring a High end commercial vehicle manufacturer.