Global Footprint Malaysia* Thailand Bangladesh * Nepal, Sri Lanka Kenya* Russia* Ukraine* U.K. Italy Senegal Afghanistan Uzbekistan Brazil South Africa* Egypt Saudi Arabia Iraq, Iran China South Korea* LATAM West Africa North Africa West Europe Central Asia East Asia South Asia South East Asia West Asia East Africa South Africa * Assembly Operations also
OTHER COLLABORATIONS/M&A & JVs
Tata Daewoo Commercial Vehicle
Hispano in Spain & Marcopolo In Brazil
JV with Jardine Matheson for ConcordeMotors
Technology Tie Ups at Spain,Italy
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.
Process Approach – EPM (derived from APQC processes and TBEM model.
Ethical business practices – guided by the Tata Code of Conduct
Successful handling of integration issues – Tata Daewoo, Jaguar – Land Rover
Reputation and recognition – Tata brand.
Adaptability to the changing business dynamics.
Stable cash flows for the past five years
Cash rich corporate parent – Tata Sons
Strong reputation – access to capital markets
Value Chain & Value System Suppliers , Contractors Strategic Alliances Transporters, Convoy Drivers Association Dealer Network, Marketing Research Firms, Vehicle Financing Regional Warehouses, Dealer Workshops, Distributors, TASS Inbound Logistics Operations Marketing Service Outbound Logistics SAP , VCM SAP , CRM - DMS
Long term contract with service provider’s – transporters and agents.
Personnel at regional offices for over seeing the smooth transit of goods.
Transparency and monitoring through deployment of IT – all transactions through SAP.
DTL supplies for critical high value items.
Efficient storage facilities – easy storage and retrieval.
Capital Equipment Manufacturing division – tooling development capabilities of global standard.
Apprentice Trainee Course – ensuring stable source of skilled manpower.
Kaizen & TPM team – continuous drive to improve efficiencies.
Automated manufacturing processes.
Distributed manufacturing – Assembly units at South Africa, Thailand, Bangladesh, Brazil etc.
Maintenance – technical competence.
Capacity Utilization – Mercedes Benz cars make use of Tata Motors paint shop facilities.
Stockyards, all across the country.
Long term contracts with transporter’s – higher volume of business to transporters ensures competitive price.
Regional Sales Office and Vehicle Dispatch Section linked through SAP.
Efficient security system for prevention of any kind of pilferage.
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.
Easy availability of spare parts.
Efficient collection of data from field and communication to the respective plants.
Pan India presence, as well as global presence.
Large network of workshops – Dealer workshops and TASS.
Training facilities – for dealer end and TASS personnel.
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.
Approximately 2% of the annual profits of the company invested in research and development.
Knowledge portal – helps employees keep abreast with the latest technologies.
Extensive prototype building and testing facilities.
Strategic partnerships – MDI (France), Fiat etc.
Formal benchmarking process.
“ Technology Day” organized across all plant locations.
Vast pool of technically competent engineers and managers.
Focus on development of technical capabilities – Technical Training Center’s, Alliance with technical Institutes
Focus on development of managerial capabilities – MTC’s , TMTC, executive training programs at premier business schools
Career advancement schemes – ESS, FTSS
Multi – Location facilities
Strong leadership – under the aegis of Tata Sons
Best in class prototype building facilities
Technology – SAP
Large product portfolio
NPI Process – reduced time to market
Leveraging the resources How did TATA create initial resource complement to overcome the disadvantage of being newcomers in passenger car business? STRATEGY INSTITUTIONS Government support (10Year Plan) New institutions for trade promotion, technology up-gradation, quality enhancement ( ACMA : Automotive Component Manufacturers Association , SIAM : Society of Indian Automobile Manufacturers ) R&D Acquisitions Strategic partnerships Joint ventures Intensive management development
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
Optimize the value chain using distributed Manufacturing
The power of IT has been extensively leveraged
State-of-the-art CAD and CAM services integrated design across multiple disciplines
IT helped the company shrink the design cycle time
BSM tools from BMC Software played a key role
TML decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library® (ITIL®) Version 3
service-oriented management architecture that treated services as assets and managed them on a life cycle basis.
In-house manufacturing capability with CNC manufacturing operations
have implemented Six-sigma, Kaizen & TPM .
Objective: Innovation across the value chain leading to affordable products that can grow the market
Product innovation needs to be complemented with innovation in other parts of the value chain
Co- location of suppliers
On- line bidding by suppliers
Reduction in the number of suppliers
Partnerships with vendors
Dedicated “Suvidha” service network in small towns
The sole winner of the JRD QV Award 2005 was the commercial vehicle business unit, or CVBU, of Tata Motors
PCBU's business excellence initiative has come into its own.
Serious Adoption Award in 2004
Active Promotion Award in 2005
Tata Motors have crossed the level of 60% to win the JRD-QV award in 2001, 2004 & 2005 respectively
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..
Tata – Nano: The innovative small car for the urban middle class
Fulfill the requirements of its customer value proposition
Deliberately created a young team with good leadership capabilities who think differently
Excellence in outsourcing
Reconceived its supplier strategy - 85% of the Nano’s components
Fewer supplier (<60%)
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..
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
Innovation around cost
“ globally recognized” technological capabilities
'50s and '60s technical collaboration with Mercedes Benz to design and manufacture its chosen line of projects
Strong R&D at ERC
Possess capability to develop and test durability, engine performance, emission, safety, design and style, noise, hydraulics, tracks, and instrumentation.
Opportunity to experiment and learn from mistake
Technology Capability Hierarchy
The company has the only world-class crash facility in Asia outside Korea and Japan
Developed an A-ECU (Electronic Control Unit) and low-cost accessories that would effectively manage critical engine and vehicle systems without calling for a full-fledged and expensive conventional ECU
Striding towards new emission standards
Equipping vehicles of the future with technologies for improving communication, navigation and entertainment- OneCat conceptual car with fiber glass powered by air and emission free.
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.
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
But, the war is on… Maruti Vs Tata Motors
Proper utilization of assets
Motivating people to work hard
Better working environment
Caring, show respect, compassion and humanity for colleagues
Work cohesively with colleagues across the group
Employees' relatives at Pune have been encouraged to form various industrial co-operatives
The Tata Motors Grihini Social Welfare Society caters to employees' women dependents'
Executive Selection Scheme (ESS) - fast track programme for accelerated growth
In-house vocational training and apprenticeship programme trains the technicians
Rotational assignments and cross-functional mobility allow employees to grow
All said and done…a new strategy is required… The Blue Ocean Strategy
Blue Ocean Strategy Red Ocean Blue Ocean Compete in the existing market place Create unconsolidated market space Beat the competition Make the competition irrelevant Exploit existing demand Create and capture new demand Make the value cost trade off Break the value-cost trade off Differentiation or Low cast Differentiation and Low Cost
Focus on the non-customers
Corporate strategy, 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
Corporate strategy, parenting and synergies contd..
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
Strong corporate governance based on “rich legacy of fair, ethical, and transparent governance practices” to ensure that its employees act ethically and the business continues to run smoothly