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    1. 1. 1DTGTata Motors:Jai DehadraiChris KahnDomingo De PrVeena RajesThe Nano and theWest BengalControversy
    2. 2. Spring 2006:Tata Motors, an operating subsidiary of the Tata Group, has announced plans tomanufacture the world’s cheapest car – The Nano, which it envisions to be India’sModel T, the “People’s Car”.It has finalized the design, but is running into difficulties procuring land to build anew factory in Singur, West Bengal.On Tata’s behalf, the West Bengal government has invoked eminent domain,compulsory purchase for public good, but some of the occupants are refusing toleave. The issue is becoming increasingly politicized.EXECUTIVE SUMMARY2
    3. 3. 3Strategic ProblemBackgroundConclusionTataNanoWestBengal
    4. 4. TATA GROUP AND TATA MOTORSFirm Background4
    5. 5. The Tata Group531%23%20%7%5%9%5%Engineering (Tata Motors)MaterialsIT and CommunicationsEnergyConsumer ProductsServicesChemicals020406080100120140160Tata Group GE Citigroup58%53%64%$101b$147b$78bGross Revenues(Exports %)Founded in 1868Over 100 Operating SubsidiariesLargest Indian Conglomerate as of 2011Background – Tata |
    6. 6. Corporate Structure6
    7. 7. Tata Motors70.0010.00mm20.00mm30.00mm40.00mm50.00mm60.00mm70.00mm80.00mm90.00mm100.00mm0.0050.00100.00150.00200.00250.00Tata Motors Limited (BSE:500570) - Volume Tata Motors Limited (BSE:500570) - Share PricingIndicaLaunchReturn toProfitabilityNYSEListingACE LaunchFirst Losssince 1945Established1945Market Leaderin CommercialVehicles1991 MarketReforms↓DiversificationLaunches Indica – FirstIndian designedpassenger carIndica in 200617% Market Share, 47%of Tata Vehicles Sold
    8. 8. 8Tata Motorscirca 200691%9%ExportsDomesticTata Groupcirca 2012
    9. 9. “Leadership with Trust”• Strong Nationalist Roots• Foremost Corporate Value is “Integrity”• Fills Institutional Voids– Competes for talent with foreign MNC– Brand trusted by Indian public9Background – Tata |Founder Jamsetji Tata
    10. 10. TATA NANO10The “People’s Car”
    11. 11. 11Background - NanoTata IndicaTata ACEUnder-Served Market
    12. 12. Tata ACEMost Recent Success(2005)2.25 Lakhs Rs ($5,100)“A Real Truck” and safer too12The Competition:3 Wheeled CargoRickshawsBackground – Nano |
    13. 13. Motorcycles in India13Background – Nano |Indonesia - 83 MotorcyclesIndonesia - 53 carsIndia - 31 MotorcyclesIndia - 15 carsVehicles per 1000 people (2006)A much larger market• 19 Million cars• 39 Million motorcyclesStill lagging in penetration• Vietnam – 122 per 1000• Philippines - 66 per 1000
    14. 14. The Tata Nano• Ratan Tata personally oversees project, involved in modifying design• Analysts expect car market to expand 65%, increase EV 11%• Passes European standard MIRA crash test, wins multiple awards abroad14Background – Nano |Radically InnovativeHigh ExpectationsRevolutionary1 Lakh Rs ($2,100)
    15. 15. Operational Requirements• 500,000+ Nano pre-orders• Tata plans 250,000 unit capacityexpansion in order to avoiddelays– 1500 crores Rs. investment• Due to the innovative nature ofproduct, Tata requires suppliersto co-locate to plannedproduction site to cut costs andmaintain quality• Launch set for early 2008• Starts bidding war amongIndian states to host factory15Background – Nano |

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