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