Fr. anthony reddy (tata

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Fr. anthony reddy (tata

  1. 1. Anchuri Anthony Reddy
  2. 2. Outline• History and Product offerings• Tata Group & Corporate Responsibility• Financial Analysis• Tata’s Future & what impact, if any, for the American auto market
  3. 3. History• Started in 1945 in • The family founded: Mumbai, India. – Ironworks• Original production was – Steelworks on locomotives. – cotton mills• 1954 – hydroelectric-power – First car rolled off of the plants assembly line. • Are of their endeavors• Tata’s are a family of have been proved to be Indian industrialists and crucial to Indias philanthropists. industrial development.
  4. 4. History• Tata Motors is India’s • Together both owns the largest companies started their independent company commercial vehicle in India. operations in 1960.• Mercedes and Tata • in 1986 the company teamed up to create a created and sold the truck line. first LCV – First major business deal – LCV = light commercial with another firm. vehicle – Was the Tata 407
  5. 5. History• Tata Motors decided to • Began creating new pursue joint ventures. lines in the late 1990’s – Cummins Engine Co., and early 2000’s: Inc., was the first – Compressed natural gas company to jointly buses venture with Tata in – 1109 vehicle, used for 1993. commercial purposes. – Manufactured a diesel – Ex-series engine that had high – Newly designed LCV horsepower and emitted called the 207 DI less harmful chemicals.
  6. 6. Products• Tata Indigo – Created in 2002 – Mid-sized sedan. – Different models run on either normal gasoline or diesel fuel. – Seats 5 people. – Same luxuries as American made vehicles.
  7. 7. Products • Tata Indigo SW – Station wagon version of the Indigo. – Same basic features as the Indigo. – Seats 5 people. – Different models fun on different fuels. – Different optional safety features than other vehicles.
  8. 8. Products• Tata Indica – Hatchback version of the Indigo sedan. – Easily affordable. – Smallest in the line of Tata vehicles to date. – Seats 5 people. – Same basic features as the sedan.
  9. 9. Products • Tata Safari – Mid-sized SUV. – Has a special engine called DICOR. • Direct Injection Common Rail. • Allows the engine to intercool itself. – Comes in either a 4x4 or a 4x2. – Can seat 7 passangers.
  10. 10. Products• Tata Sumo – Runs off of diesel fuel. – Seats up to 7 passengers. – Has a separate rear and front suspension for an optimal ride. – Has two separate air conditioners for the front and rear of the vehicle.
  11. 11. Tata Group• 100 companies throughout 7 business sectors •Engineering, materials, energy, chemicals, services, consumer products, information systems and communications •Tata AutoComp Systems - Automotive •Tata Steel - Materials •Tata Power - Energy •Rallis India - Chemicals •Tata Realty and Infrastructure - Service •Tata Tea - Consumer Products •Tata Technologies - Information Systems and Communications
  12. 12. Corporate Social Responsibility•“A Company that cares about the future” •Committed to corporate social responsibility •Signed the United Nations Global Compact•Plays role in community development•Environmentally-friendly products and technology
  13. 13. Corporate Social Responsibility•Two main concerns: •Reduction of pollution •Restoration of ecological balance •Implemented soil and water conservation programs•Cleaner Engines •Advanced emission-testing labs •Developing alternate fuel engines•Sewage treatment facilities•Encourages tree planting
  14. 14. Corporate Social Responsibility•India – Recycling Culture •Value in discarded products•Europe – “Throw-away” culture•European ELV Directive
  15. 15. Corporate Social Responsibility•Community Development •Community Service Division •Promote economic independence •“Self-initiated cottage industries”
  16. 16. Tata Finance: overview• Stock Trend• Growth and Expansion – Sales – assets• Financing Operations• Tata vs. American Companies
  17. 17. Tata Motors Inc. Stock• TTM• NYSE since 2004• $15.84 as of Friday (Yahoo, 2008)• Down 8% in last year
  18. 18. Since 2004: TTM
  19. 19. Growth and Expansion• large Indian market – Familiar with market – Brand loyalty• Fuel efficiency• Mahindra & Mahindra- $1.88 billion
  20. 20. Debt vs. Equity• Debt growth: $2.3 billion  $4.1 billion• Equity growth: $1.2 billion  $2.1 billion – 55 million outstanding shares – ROE : 19%• Debt/ equity ratio: .87 – Industry average: .58 – Cash now for growth
  21. 21. Growth• Asset growth  doubled since 2005 – Acquisition of Jaguar and Land Rover from Ford• Sales: – $7.6 billion and grew 42.2% from 2006• PROFITS!! – $.95 billion on 2005  $1.5 billion on 2007
  22. 22. Cash Management• Liquidity and solvency are good• Inventory• Improved cash management: – 12% of assets in 2005 – 4% of assets in 2007
  23. 23. Comparatively SpeakingBrand: Tata Ford GMSales: $7.6 billion $172 billion $181 billion# of employees 33,900 246,000 266,000Profit Margin 20% 17% 6.7%
  24. 24. Effects on U.S. Economy• Slow economy – High oil prices – Demand for fuel efficiency – Cut backs• Tata’s effect
  25. 25. Jaguar and Ford• Purchase from Ford – Concerns• Changes or Plans – More Tata vehicles – Made in India • Future
  26. 26. U.S. Car Companies• $ 2 Billion in sales• GM-$50; Ford-$40; Honda- $20• In the U.S.• Going overseas – 75% by 2017 for GM• Expanding in India
  27. 27. U.S. Car Companies• Toyota- 7.5% increase in profits• Foreign Markets – No help – 1. Can’t offset – 2. India out of reach
  28. 28. The Next Auto Capital• Detroit current auto capital• 21st century belongs to India• 2050 in India and China – Labor – Environment
  29. 29. Future of the Nano• Not for the U.S. – 3rd world countries – U.S. standards• Detroit make or buy version
  30. 30. Summary• Tata history and products• Tata Group• Tata: Social Responsibility• Tata Motors Finance• Future
  31. 31. Questions

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