MD AZAD ALAM M.TECH ( IND. & PROD.)Z.H.C.E.T ,A.M.U ALIGARH
History and Product offerings Tata Group & Corporate Responsibility Financial Analysis Tata’s Future & what impact, if any, for the American auto market
Set up in 1945,Tata Motors is Indias largest automobile company. With close to 4 million Tata vehicles plying in India. It is also the worlds fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer.
• 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 plants the 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.
Tata Motors is India’s Together both owns the largest companies started their independent company in commercial vehicle India. operations in 1960. Mercedes and Tata in 1986 the company teamed up to create a created and sold the first truck line. LCV First major business LCV = light deal with another firm. commercial vehicle Was the Tata 407
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 company to jointly gas 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 called the 207 DI emitted less harmful chemicals.
The Directors are selected based on the following criteria:• Business experience• Expertise in the field• Ability to bring in the external perspective• Relation to the Company and Board
R N Tata R N Tata (Chairman –– Tata Motors) (Chairman Tata Motors) Ravi Kant Ravi Kant (Managing Director) (Managing Director) P P Kadle P P Kadle (ED – Finance &A P Arya PP M Telang M Telang (ED – Finance & A P Arya Corporate Affairs)(President – Heavy and Medium (President –– Light and Corporate Affairs) (President – Heavy and MediumCommercial Vehicles (President Light and Commercial Vehicles Small Commercial Small Commercial Vehicles)) Rajiv Dube Rajiv Dube Vehicles (Sr Vice President – Passenger Engineering (Sr Vice President – Passenger Engineering Cars) Research Centre Cars) Research Centre
The Company has a comprehensive system of control, focused on mitigation of risks to ensure achievement of objectives. The control environment comprising of values, ethics, management philosophy, employee competence, etc. supports risk management. The risks are assessed on an ongoing basis and controls are designed to respond to risk throughout the Company.
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.
• 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.
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.
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.
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.
• 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
•“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
•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
•India – Recycling Culture •Value in discarded products•Europe – “Throw-away” culture•European ELV Directive
•Community Development •Community Service Division •Promote economic independence •“Self-initiated cottage industries”
Stock Trend Growth and Expansion Sales assets Financing Operations Tata vs. American Companies
large Indian market Familiar with market Brand loyalty Fuel efficiency Mahindra & Mahindra- $1.88 billion
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
Liquidity and solvency are good Inventory Improved cash management: 12% of assets in 2005 4% of assets in 2007
Brand: Tata Ford GMSales: $7.6 billion $172 billion $181 billion# of employees 33,900 246,000 266,000Profit Margin 20% 17% 6.7%
Purchase from Ford Concerns Changes or Plans More Tata vehicles Made in India Future
Tata Motors’ goal is to enhance its leadership in India, and establish meaningful presence in select international markets.The company will achieve this by developing and marketing relevant products, on its existing platforms and new ones, which delight consumers in every market they are introduced in.