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Tata strategy
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tata motors

  2. 2.  Soumya Mohapatra - Role of Operations in meeting Organizational Goals & Matching Supply to Demand       Soumen Kundu - Where? Facility Planning (Location & Layout Niranjan Nahak - How much is required? Demand Forecasting and inventory management Vinay Kumar Pandey - Capacity Planning Mukesh Kumar - Production Planning and Scheduling Aditya Choudhary - Managing Quality Sushant Sasmal - Planning for Maintenance
  3. 3. TATA MOTORS  Head Office address Tata Motors Limited One Indiabulls Centre, Tower 2A & B, 20th floor, 841, Senapati Bapat Marg, Jupiter Mills Compound, Elphinstone Road (West), Mumbai – 400 013.
  4. 4. NATURE OF BUSINESS AND BUSINESS SEGMENT  Sector : Automobile  Industry : Light, Medium and Heavy Vehicles
  5. 5. HISTORY • Founded : 1945 • Founder : JRD Tata • Headquarters : Mumbai,India • Key people : Ratan Tata,Ex-chairman; Cyrus P Mistry, Non Executive Director & Chairman • Parent : Tata Group
  6. 6. IMPORTANT EVENTS  Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany.  Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle.  Tata launched the Indica in 1998, the first fully indigenous Indian passenger car.
  7. 7. CONTD.  2004 Tata Motors acquired Daewoo's South Koreabased truck manufacturing unit.  2006, Tata formed a joint venture with the Brazilbased Marcopolo.  2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.
  8. 8. GLOBAL PRESENCE Tata Motors leverages a comprehensive global distribution network operating in 182 countries and over 6,600 sales and service touch points.  BRANCHES: • UK • SOUTH KOREA • RUSSIA • EUROPE • AFRICA • THE MIDDLE EAST • SOUTH EAST ASIA • SOUTH ASIA • SOUTH AMERICA 
  10. 10. PRODUCTS  Passenger Cars & Utility Vehicles  Commercial Vehicles
  11. 11. CONTD.  Military Vehicles
  12. 12. MARKET STRUCTURE Oligopoly Market  Few Sellers and Few Buyers  Differentiated/Undifferentiated Products  Restriction in entry and exit  Interdependence 
  13. 13. LEVELS OF STRATEGY Corporate level strategy (directional strategy) Growth Stability Retrenchment Business level strategy (competitive strategy) Cost leadership Differentiation (product) Functional level strategy Marketing strategy (4 p’s) Financial strategy (sources of finance) R&D strategy (technological leader, innovation) Operation strategy (production strategy)
  14. 14. CORPORATE LEVEL STRATEGY • •  •   Tata & Fait since 2006 Tata Motors (SA) Tata Motors' joint venture with Tata Africa Holdings, has an assembly plant in the Gauteng province of SA. Tata Automobile Corporation SA Tata Africa Holdings through a joint venture between Accordian Investments and the Imperial Group, to market and distribute Tata vehicles in SA. Jaguar Land Rover is a subsidiary of the Indian carmaker Tata Motors since
  15. 15. BUSINESS LEVEL STRATEGY       Tata nano, the cheapest car in the world Swach, the cheapest water filter from Tata Chemicals. less than Rs 1000. Tata Motors launched the Ace truck in May 2005 for just above Rs 200,000. Tata Motors new launches like Aria and the new 2011 Safari to regain its lost market share. Tata is looking at doubling SUV annual volumes to over 70,000 units in the next 12-18 months, including exports. Tata Motors is set to offer utility vehicles at every price point right from Rs. 6.5 lakh to Rs. 15 lakh.
  16. 16. OPERATION’S STRATEGY          Tata Group companies cumulatively spend Rs.12,500 crore on research & development. knowledge-based engineering application software from Tata Technologies that speeds up results. An engine ‘start-stop’ technology developed by Jaguar Land Rover that stops an engine when the vehicle isn't moving, thus saving on fuel; High standard steel for safer and fuel efficient vehicles from Tata Steel Europe The world's cheapest car, Nano, an innovation from Group company Tata Motors, launched in April 2009, has 37 patents, Swach, the cheapest water filter from Tata Chemicals, has 14. Tata Steel, which acquired British company Corus in 2007, meanwhile, files around 50 patents each year. Jaguar Land Rover has re-hauled its supply chain to secure cost savings as well as a sustainability equation that gives the company a green edge A re-designing of process equipment at Tata Chemicals' Haldia plant that cut process downtime by 40%.
  17. 17.  Plant Locations: Tata Motors’ presence cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads. The company has four major manufacturing bases in India.
  18. 18. 1.Jamshedpur(Jharkhand): Established in1945, the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. It consists of two major divisions - Truck Factory & Engine Factory. The Truck Division boasts of two assembly lines. The main assembly line, measuring 180m in length has 20 work stations with a vehicle rolling out every 8 mins. The other line is dedicated to special purpose vehicles and for meeting the requirements of the Indian Army. 2. Pune (Maharashtra): It was established in 1966 and has a Production Engineering Division.To cope with a diverse range of automobiles, four assembly lines have been established, one each for MCVs and HCVs, LCVs, Utility vehicles and one for Passenger Cars (Indica and Indigo).
  19. 19. 4. Pantnagar (Uttarakhand): The plant began commercial production in August 2007. The plant is spread over 953 acres, of which 337 acres is occupied by the vendor park. Tata Motors plans to shift the entire production of its mini truck Ace and the passenger carrier variant of the vehicle, Magic, to Uttarakhand. 3. Lucknow (Uttar Pradesh): This plant was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. The state of art plant is strongly backed by an Engineering Research Centre and Service set-up to support with latest technology and cater to the complexities of automobile manufacturing. This plant is specialized in the designing and manufacturing of a range of modern buses which includes Lowfloor, Ultra Low-floor & CNG Buses
  20. 20. Production capacity: The segment wise production is as follows : Location, Type of vehicle manufactured, Production Capacity (Lakh/PA) • Pune Passenger Cars (Indica, Indigo, Marina, Indica Vista) 2.7 L Pune Commercial Vehicles (MCVs and HCVs, LCVs, Utility vehicles) 2.5 L • Jamshedpur Trucks & Special Purpose Vehicles 1.08 L • Lucknow Buses 0.6 L • Pantnagar (Uttarakhand) Mini Truck (Ace), Passenger Carrier (Magic) 2.25 L
  21. 21. Inventory management Q) Why It Is Important to Understand the Cost Relationships in Production and Inventory Management. Ans: They affect the economic efficiency (profits) of the firm and an understanding of these relationships helps managers make more effective production decisions. Inventory Management • Reasons to hold inventory 1. Matching supply with demand 2. Prevent stockouts 3. Lower purchasing costs • Reasons not to hold inventory 1. High maintenance cost 2. High protection cost 3. Depreciation and obsolescence 4. Taxes
  22. 22. Procurement 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.
  23. 23. Facility Layout Layout planning is determining the best physical arrangement of resources within a facility.  It may be defined as a technique of locating machines, processes and plant services within the factory so as to achieve the right quantity and quality of output at the lowest possible cost of manufacturing. 
  24. 24. Objective of a good Layout        Provide enough production capacity. Reduce material handling costs. Reduce congestion that impedes the movement of people or material. Reduce hazards to personnel. Increase employee morale. Reduce accidents. Utilize available space effectively & efficiently.
  25. 25. Product Layout Involves the arrangement of machines in one line, depending upon the sequence of operations.  Materials are fed into the first machines and finished products come out of the last machine. 
  26. 26. Principles a) All the machine tools or other items of equipments must be placed at the point demanded by the sequence of operations b) There should no points where one line crossed another line. c) Materials may be fed where they are required for assembly but not necessarily at one point. d) All the operations including assembly, testing packing must be included in the line.
  27. 27. Advantages: a) Low cost of material handling, due to straight and short route and absence of backtracking b) Smooth and uninterrupted operations c) Continuous flow of work d) Lesser investment in inventory and work in progress e) Optimum use of floor space f) Shorter processing time or quicker output g) Less congestion of work in the process h) Simple and effective inspection of work and simplified production control i) Lower cost of manufacturing per unit
  28. 28. Disadvantages: a. High initial capital investment in special purpose machine b. Heavy overhead charges c. Breakdown of one machine will hamper the whole production process d. Lesser flexibility as specially laid out for particular product.
  29. 29. Capacity planning of Tata motors The TATA formed part of an overall plan to rejig production at Ranjangaon, Pune and Sanand Gujarat plants and comes at a time when the automaker posted its second-lowest wholesale dispatches of 948 trucks in April, in a clear under utilization of its 2.5 lakh units capacity.
  30. 30. Forecasting of TATA motors  Tata Motors, is now looking to set up a truck manufacturing plant in Myanmar.
  31. 31. technology  The Tata Technologies Manufacturing Automation and Control Systems group (MACS) provides solutions to consolidate and streamline manufacturers’ operations. MACS tightly integrates the supply chain and enables integration between enterprise and plant-floor systems. That’s better on the shop floor and better in the marketplace.
  32. 32. Cont.….  Over the years, this division has designed and manufactured automated dies, fixtures and welding equipment. Its large design group has some of the latest CAD facilities and manufacturing facilities consisting of light and heavy CNC machine shops, jig boring room, plastic template shop, wood pattern and model pattern shop, five axis precision machine tools and laser control machines. To cope with such a diverse range, four assembly lines have been established, three for commercial vehicles.
  33. 33. Capacity production  The Jamshedpur factory, which can produce as many as 11,000 commercial vehicles a month, is running at half its capacity, according to two plant officials who declined to be identified. “As the market is down, there has to be some adjustments made in promotion systems. So we have brought in a rotation system where a set of workers will work in the first month and the rest in the following month
  34. 34. Cont.… Tata Motors’ commercial vehicle sales rose 3% to 432,597 units, while overall industry sales fell 0.37% to 639,806 units. Tata Motors’ sales in the medium and heavy vehicle segment, however, contracted 29% to 117,682 units in the same period.  The Pune unit is spread over two geographical regions- Pimpri (800 acres) and Chinch wad (130 acres). It was established in 1966 and has a Production Engineering Division, which has one of the most versatile tool making facilities in the Indian sub-continent. 
  35. 35. Cont.…  It houses a vehicle manufacturing complex which is one of the most integrated automotive manufacturing centers in India; producing a large variety of individual items and aggregates. It is engaged in the design and manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as models for the development of new ranges of automobile products. Its capabilities have enabled Tata Motors to introduce new products and improve existing ones without resorting to imports of dies or fixtures.
  36. 36. Cont.… With a growth of 28% in 2006-07, Tata Motors recorded its highest ever sales of 580,280  (334,238 commercial; 246,042 passenger) vehicles. The Company’s exports witnessed a growth  of 6.5% to 53,474 numbers. The approximate indirect economic impact generated by the  company in 2006-07 is summarised below 
  37. 37. INDIRECT ECONOMIC IMPACT Worldwide, Transport sector has emerged as the biggest employer *  1 Commercial Vehicle - employment for 13.3 people  1 Car - employment for 5.3 people  1 Three Wheeler - employment for 3.9 people  1 Two Wheeler - employment for 0.5 people  * Source: Automotive Mission Plan 200616, Includes: Direct and Indirect Employment  
  38. 38.   The administrative process that takes place within a manufacturing business and which involves making sure that sufficient raw materials, staff and other necessary items are procured and ready to create finished products the schedule specified.
  39. 39. To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and  sought new design approaches from suppliers. Many components of the Nano are made in  Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other  technologies. 
  40. 40. The Nano was originally to have been manufactured at a new factory in:  Singur- but increasingly violent protests forced Tata to pull out  Tata Motors is  reportedly manufacturing Nano at its existing plant in:  Pantnagar 
  41. 41. Cost cutting features       · The Nano's trunk does not open. Instead, the rear seats can be folded down to access. · It has a single windscreen wiper instead of the usual pair. · It has no power steering. · It has no ABS. · In Base model it has three lug nuts on the wheels instead of four. · It has only one side view mirror.
  42. 42. Cotn…       introducing the car with an artificially low price through government subsidies and taxbreaks. · forgoing profit on the car. · using vertical-integration to artificially boost profits on cars at the expense of their materials industries. · partially using inexpensive polymers or biodegradable plastics instead of a full metalbody raising the price of the car.
  43. 43.   Tata motors makes it production planning in such a way that sufficient raw material , staff and other necessary items are available in proper way to produce and make a product in finished goods during a given time period without making any delay in production. Company makes aplann about its production in advance keeping in mind the availability of the resources and the ordered recived is ful filled
  44. 44. schedule  a plan of procedure, usually written, f or a proposed objective, especially wit h reference to thesequence of and tim e allotted for each item or operation n ecessary to its completion
  45. 45.  Tata motors used to do scheduling in such a way so that it minimize the production time and costs, by telling a production facility when to make, with which staff, and on which equipment. It aims to maximize the efficiency of the operation and reduce costs.
  46. 46.   Tata motors uses Production scheduling tools which greatly outperform older manual scheduling methods. These provide the production scheduler with powerful graphical interfaces which can be used to visually optimize realtime work loads in various stages of production, and pattern recognition allows the software to automatically create scheduling opportunities which might not be apparent without this view into the data.
  47. 47.  Tata motors uses backward and forward scheduling to allocate plant and machinery resources, plan human resources, plan production processes and purchase materials.
  48. 48.  Forward scheduling is done to plan the tasks from the date resources become available to determine the shipping date or the due date.  Backward scheduling is done to plan the tasks from the due date or required-by date to determine the start date and/or any changes in capacity required.
  49. 49. The benefits of scheduling to tata motors  Process change-over reduction  Inventory reduction, leveling  Reduced scheduling effort  Increased production efficiency  Labor load leveling  Accurate delivery date quotes 
  50. 50.      Webster’s dictionary defines quality as "a degree or grade of excellence or worth". For the best companies in today’s global business environment, the term means much, much more. They see quality as the cornerstone of their enterprise, and the ability to enhance it as the defining principle of profitability. Tata Engineering, which turned the corner recently, has come to understand this better than most. India’s top automotive manufacturer is now reaping the rewards of a comprehensive quality improvement initiative that it embarked upon in September 2000. The quality initiative has played an important role in the costcutting measures undertaken by Tata Engineering
  51. 51.       Six Sigma under TBEM:The quality improvement project at Tata Engineering operates under the umbrella of the Tata Business Excellence Model. But the main component of the quality undertaking is Six Sigma, a disciplined, precise and widely proven methodology that aims for near-flawless products and services. Developed by Motorola in 1986, Six Sigma employs a range of strategies and tools to eliminate defects in processes. Sigma, a letter in the Greek alphabet, is used by statisticians to denote the standard deviation of a process. To achieve Six Sigma quality, a process must produce no more than 3.4 defects per million opportunities (an opportunity is defined as a chance for non-conformance, or not meeting the required specifications).
  52. 52.      The higher the number of defects, the lower is your Sigma score. There were many Sigma defects that Tata Engineering had to eliminate to get back on track. The weight of competition, ever-increasing customer expectations and shifting market conditions made change an absolute imperative. The company’s older vehicles were getting obsolete, and its newer ones were lagging behind in terms of customer satisfaction. The focus of the Six Sigma programme at Tata Engineering was, and remains, the customer.
  53. 53.     Winning strategy "We realised that to succeed we had to completely reorient the company’s thinking and the thinking of our people," says Atam P Arya, Tata Engineering’s senior vice president overseeing the quality initiative. "We had to stop treating quality as a burden and start accepting it as the main purpose of our existence. Quality became, for us, the strategy for survival — and for winning." An important challenge for Tata Engineering was in changing the mindset of its people. "Initially our people were very skeptical; they thought this was some new fad that would soon go away.― To ensure it did not, the company conducted a blanket communication and training exercise across the organization.
  54. 54.     The company took its products and analysed what customers would want from them, and the critical-to-quality (CTQ) characteristics they would be looking for. For instance, a customer buying a truck will consider whether it measures up in terms of load, speed, fuel efficiency, operational smoothness, etc. These are his CTQ characteristics. As long as a CTQ attribute can be defined, it can be incorporated in the Six Sigma model. These attributes can then be linked to the manufacturing parameters that must be achieved under the Six Sigma process to meet a customer’s expectations.
  55. 55. Customer-desired service Tata Motors Service rests on three core customer-desired service promises: Responsive: Tata Motors Service will bring speedy assistance through five responsive service offerings. 1) Doorstep service, 2) Online service, 3) Speed-Oservice, 4) Quick repairs, 5) 24X7 on-road assistance programme  Reliable: Quality service is a key deliverable across all Tata Motors Service stations. Nearly 20,000 technicians and 20,000 staff members, which includes workshop supervisors and front office staff, have been trained and certified by Tata Motors. There are two service offerings under this promise. 
  56. 56.   Best value: Tata Motors is known for delivering best value products which give value for years. Service products are also designed on the same philosophy. This promise has four offerings. 1)Rapid Repair, 2)Value Care, 3)Tata Motors Original Parts, 4)Extended Warranty.
  57. 57. Other steps    To streamline its supply chain, Tata Motors Ltd plans to reduce the number of parts suppliers by one-third in three-four years as it gears up to introduce new cars. The auto maker, which has seen domestic market share fall in recent times, aims to have only one supplier for each part that goes into making a car to ensure consistent quality and reduce costs. ―It is a strategy,‖ Slym said. ―Instead of eight suppliers for one product, we will have one.‖
  58. 58. Maintenance Maintenance is all activities involved in keeping a system’s equipment in working order
  59. 59. Maintenance Management Systematic approach to planning the maintenance activities, using decision making tools to improve overall efficiency and effectiveness of the operating system.
  60. 60. Tata motors uses regular maintenance check up for its various machinery so that production can be done in a systematic and smooth way. Greecing , lubricating of its equipment is done at regular interval.  Company uses spare parts for its machines which is original and its quality is standard so that it runs for a longer period of time and the maintenance cost can be reduced. Some times company stopped its production for a few days so that proper maintenance of the equipment can be done and what ever replacement is required can be made 
  61. 61. Method        Engine oil Engine oil reduces friction & thus reduces wear in pistons, bearings & other moving parts. Engine oil also helps in better sealing during combustion of fuel. Engine oil also cools high temperature zones in engine through heat transfer to oil cooler & engine sump. Oil also helps in flushing & cleaning carbon & soot deposited during combustion within the engine. Some amount of oil is lost or consumed in process of all of the above. The oil consumption may vary from engine to engine & may also depend on driving condition & usage. It is thus necessary to periodically check & top up the engine oil level. Engine oil gradually loses its said properties with use & is to be periodically changed to restore its effectiveness & improve engine performance & life.
  62. 62.          Timing Belt Timing belt becomes worn, elongated & hardened with usage In case of any teeth damage / uprooting the valve timing would get disturbed with major damages to valve train, camshaft & pistons Thus timing belts are to be periodically checked & replaced as per TML recommendations Valve Clearance Valve contact with their seats should be air tight for optimum engine performance With use the contact surface of valve with seat & camshaft wears off increasing the clearance The increased clearance results in leakage of compression & thus inefficient engine operation Valve clearance thus is to be periodically adjusted as per TML recommendations
  63. 63.             Drive Belts Drive belts drive engine auxiliaries like alternator, AC compressor, Power steering pump & radiator fan (in some models). With usage, the drive belt wears out, elongates & hardens. This leads to belt slip which affects the performance of these auxiliaries viz. Battery draining, less AC cooling, engine overheating etc. The belt tension is thus to be periodically adjusted & belts to be replaced, if damaged. Snapping of belt during drive could be potentially dangerous due to sudden loss of brake & power steering efficiency. Cooling system The cooling system is sealed & pressurised to improve cooling. Coolant is used for prevention of rust & scaling, which reduces space in cooling water passages in engine & radiator The coolant loses its properties gradually due to heat & chemical changes. The coolant is thus to be periodically replaced as per TM recommendation for better efficiency. The rubber hoses in cooling system harden over a period of time, thereby losing flexibility in connections or develop cracks. This leads to water leakage, which can overheat & damage the engine. The hose clips are therefore to be tightened periodically & hoses replaced for crack & hardness complaints.
  64. 64.           Exhaust Pipe & Catalytic Converters Exhaust pipe & silencer can corrode due to moisture & sulphides in exhaust gases. Damage to exhaust pipe can also take place due to flying stones hitting the underside of the same. Leakage of exhaust gases lead to air & noise pollution. The noble metal present in Catalytic Converter has fine passages for chemical reaction to reduce emission. The passages can get choked gradually with carbon / soot, especially if fuel system is defective & fuel is adulterated. This reduces engine pickup, increases pollution & fuel consumption. The exhaust pipe & catalytic converter are to be periodically cleaned by blowing compressed air through them.. Catalytic Converter To reduce exhaust pollution, your car is fitted with Catalytic Converter, which removes harmful pollutants. For its proper functioning, we recommend the following fuels to be used: For diesel version it is mandatory to use diesel fuel with sulphur content less than 0.25%. For petrol car use only Unleaded Petrol with octane rating of atleast 87%.
  65. 65. Do’s       Always make sure that the tyres of your vehicle are filled with recommended air pressure. Both low and high pressure will hamper smooth driving and tyre life. Maintain correct tyre pressure to ensure better tyre life. 2Check and maintain electrolyte level in the battery. 3Daily maintenance is to be regularly performed especially on coolant level and engine oil level. 4Ensure periodic servicing as per maintenance schedule. 5For any adjustments or repairs please contact or go to Tata Motors dealership and authorised service stations only. 6Use only recommended oils and lubricants. Check and replace oil in engine, gear box, rear axles and brake master cylinder periodically as per schedule.
  66. 66. Don’t        Do not keep the engine at full throttle during engine cranking. Keep the engine idling till the oil pressure builds up. 2Don't allow the engine to be idle for long periods. 3Don't come down the gradient in top gear. Always change into a lower gear. 4Don't run the vehicle without a battery in its electrical circuit, as the life of alternator will be reduced. 5Do not mask head lamp lens (top 1/3 or top 1/2 portions) with black paint. If done, this will reduce head lamp light intensity. 6Don't use any other than approved brands/grades of fuels and lubricants. 7Don't tamper with any adjustment made by Tata Motors dealerships and workshops.
  67. 67. Driving Tips  While driving the vehicle, always use seat belt for your safety. Same is applicable for all passengers. 2 Avoid cranking of engine for more than 30 seconds. A gap of 2 minutes should be observed between successive attempts. 3Don't start the vehicle by pushing it.  4 Always start moving the vehicle in first gear.  5Don't adjust the seat belt while driving.  6 Always keep the vehicle in neutral gear while engaging and disengaging the reverse gear. 7 On bad surfaces reduce your driving speed and drive cautiously. 8 While travelling on inclines, change into a lower gear to get the required pick-up    
  68. 68. CONCLUSION        Tata Motors has been at the forefront of the Indian automobile industry’s anti-pollution efforts by introducing cleaner engines. Therefore Tata Motors Limited is always commited to understanding customers needs. The name of TATA itself says it all – Trust Acceptability Transparency Accountability
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