Tata Motors is India's largest automobile company. It has operations in India, the UK, and other countries. One of its most important subsidiaries is Jaguar Land Rover. The document discusses Tata Motors' financial performance, markets, competition, and prospects. It notes that while Tata has underperformed recently, Jaguar Land Rover has provided a cushion. Over the medium term, new product launches and economic growth could make Tata Motors a value creator for investors. However, risks include high debt levels, increased competition, and potential new taxes on diesel vehicles.
Interesting group project assessing whether Tata Motors should build a manufacturing plant in Vietnam or Malaysia, written after we spent some time in and around Ho Chi Minh City talking to business owners.
This is an analysis of the news "TATA Motors may struggle to rev up hedging a drag" which appeared on 15th Feb, 2017 following the release of the financial statement for Q3 by TATA Motors.
Fortune favours the brave, but not anymore. Since global recession has hit stock exchanges across the world, now, fortune favours the cautious. Be astro-smart and ask GaneshaSpeaks for the best day and time to invest in the market.
International Marketing Business Recommendation by Scott FarwellScott Farwell
International Marketing Business Recommendation, includes as SWOT analysis, business evaluation and expansion plans into Thailand (developing country) in this example focusing on Aisin Co. Ltd (a tier one Japanese automotive part supplier).
Interesting group project assessing whether Tata Motors should build a manufacturing plant in Vietnam or Malaysia, written after we spent some time in and around Ho Chi Minh City talking to business owners.
This is an analysis of the news "TATA Motors may struggle to rev up hedging a drag" which appeared on 15th Feb, 2017 following the release of the financial statement for Q3 by TATA Motors.
Fortune favours the brave, but not anymore. Since global recession has hit stock exchanges across the world, now, fortune favours the cautious. Be astro-smart and ask GaneshaSpeaks for the best day and time to invest in the market.
International Marketing Business Recommendation by Scott FarwellScott Farwell
International Marketing Business Recommendation, includes as SWOT analysis, business evaluation and expansion plans into Thailand (developing country) in this example focusing on Aisin Co. Ltd (a tier one Japanese automotive part supplier).
Century Plyboards is India’s leading wood-panel Company. It operates mainly in two segments: plywood and laminates. Plywood brings in ~76% of its revenues, laminates about 18%. Container Freight Stations (CFS) account for the remaining.
The company has six plywood manufacturing plants spread across the length and breadth of India and one in Myanmar. It is among the top-three laminate manufacturers with capacity of 4.8m sheets and it also has two container-freight stations at the Kolkata port.
Over the last 30 years the company has emerged as a dominant player in the decorative plywood industry with more than 25% share of the organised market worth 4,500 crores. Against the plyboard industry growth rate of 12% for the last 6 years, Century Plyboard has recorded 18% CAGR led by market share gains from the unorganised segment.
Century Ply has also established itself as one of the leading laminate brands in India (third-largest manufacturer in India after Greenply and Merino) and its laminate revenue recorded a 15% CAGR over FY09-14.
It’s important to note here that of the total plywood industry (15,000 crores +), the share of organized players is still 30%, though it has increased from 10% a decade back. As is being witnessed in other industries, the share of organized players is expected to inch up further from 30% and if GST is implemented then the gain in market share will be much faster. With strong entry barriers (Govt. licensing as a hedge against de-forestations and difficulty in sourcing raw material) the incumbent organized players like Century will be the key beneficiaries of the shift towards branded products.
In order to sustain the growth momentum, the company recently doubled its laminates capacity to 4.8m sheets and increased the plywood capacity to 210,000 CBM. It has also increased its dealer’s base from 1,106 in FY12 to 1,424 in FY14.
As per the management, they are experiencing good demand for their products and expect to sustain 25% + CAGR for the next few years and have in-fact set an ambitious target of 5000 crores revenue by 2020 (1,284 crores in FY 14).
The Thailand AutoBook helps you to identify new customers in the Automotive industry and provides key contact information.
Automotive Intelligence for Professionals: The Thailand AutoBook includes company profiles of OEM car makers, multinational and local automotive parts suppliers as well as organizations, media and exhibitions.
It also includes detailed statistics about Automotive sales, market share and OEM capacities.
The integrated assignment focuses on the three modules I read during semester two of my second year at Coventry University:
- Decision Analysis Techniques (63% = 2:1)
- Global Supply Chain Management (60% = 2:1)
- Management of E-commerce (87% = 1st)
The coursework looks at Jaguar Land Rover and the potential opportunities and threats that the company would be facing if they choose to expand into a foreign market (Russia, Brazil or Canada)
Automotive Intelligence for Professionals: The Thailand AutoBook includes company profiles of OEM car makers, multinational and local automotive parts suppliers as well as organizations, media and exhibitions.
It also includes detailed statistics about Automotive sales, market share and OEM capacities.
The Thailand AutoBook helps you to identify new customers in the Automotive industry and provides key contact information.
Century Plyboards is India’s leading wood-panel Company. It operates mainly in two segments: plywood and laminates. Plywood brings in ~76% of its revenues, laminates about 18%. Container Freight Stations (CFS) account for the remaining.
The company has six plywood manufacturing plants spread across the length and breadth of India and one in Myanmar. It is among the top-three laminate manufacturers with capacity of 4.8m sheets and it also has two container-freight stations at the Kolkata port.
Over the last 30 years the company has emerged as a dominant player in the decorative plywood industry with more than 25% share of the organised market worth 4,500 crores. Against the plyboard industry growth rate of 12% for the last 6 years, Century Plyboard has recorded 18% CAGR led by market share gains from the unorganised segment.
Century Ply has also established itself as one of the leading laminate brands in India (third-largest manufacturer in India after Greenply and Merino) and its laminate revenue recorded a 15% CAGR over FY09-14.
It’s important to note here that of the total plywood industry (15,000 crores +), the share of organized players is still 30%, though it has increased from 10% a decade back. As is being witnessed in other industries, the share of organized players is expected to inch up further from 30% and if GST is implemented then the gain in market share will be much faster. With strong entry barriers (Govt. licensing as a hedge against de-forestations and difficulty in sourcing raw material) the incumbent organized players like Century will be the key beneficiaries of the shift towards branded products.
In order to sustain the growth momentum, the company recently doubled its laminates capacity to 4.8m sheets and increased the plywood capacity to 210,000 CBM. It has also increased its dealer’s base from 1,106 in FY12 to 1,424 in FY14.
As per the management, they are experiencing good demand for their products and expect to sustain 25% + CAGR for the next few years and have in-fact set an ambitious target of 5000 crores revenue by 2020 (1,284 crores in FY 14).
The Thailand AutoBook helps you to identify new customers in the Automotive industry and provides key contact information.
Automotive Intelligence for Professionals: The Thailand AutoBook includes company profiles of OEM car makers, multinational and local automotive parts suppliers as well as organizations, media and exhibitions.
It also includes detailed statistics about Automotive sales, market share and OEM capacities.
The integrated assignment focuses on the three modules I read during semester two of my second year at Coventry University:
- Decision Analysis Techniques (63% = 2:1)
- Global Supply Chain Management (60% = 2:1)
- Management of E-commerce (87% = 1st)
The coursework looks at Jaguar Land Rover and the potential opportunities and threats that the company would be facing if they choose to expand into a foreign market (Russia, Brazil or Canada)
Automotive Intelligence for Professionals: The Thailand AutoBook includes company profiles of OEM car makers, multinational and local automotive parts suppliers as well as organizations, media and exhibitions.
It also includes detailed statistics about Automotive sales, market share and OEM capacities.
The Thailand AutoBook helps you to identify new customers in the Automotive industry and provides key contact information.
June 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
Our Team
INDUSTRY ANALYSIS : Automobile Industry
COMPANY ANALYSIS : Tata Motors
BRAND ANALYSIS : Gillette
Concept of the month: Experience Curve
Resurrecting indian automobile industryVivek Yadav
India is one of the largest markets of automotive industry in the world. It had previously been one of the fastest growing industries globally, but is currently experiencing flat or negative growth rates. The automotive industry comprises of the automobile and the auto component sectors. It includes passenger cars, utility vehicles, vans; light, medium and heavy commercial vehicles; passenger carriers and goods carrier three wheelers; scooters, motor‐ cycles, mopeds; jeeps, tractors etc; and auto components like engine parts, suspension and braking parts, drive and transmission parts, electrical, body and chassis parts; etc.
The financial figures of Indian automotive segments show that there was a substantial growth rate till FY 2010-11. But these margins have declined in FY 2011-12 and further dipped in FY 2012-13. And these margins have declined for the entire industry and not only for a single segment or player.
21 Buddha Dynamic Multi Manager Balanced FundSaurabh Kumar
(Note: This is a dummy model)
This is an investment pitch for our new Multi Manager Fund of fund. The objective of this scheme is to seek capital appreciation by managing the asset allocation between specified underlying Equity, Fixed income & Gold funds of different asset managers.
Though the product has been designed to produce superior risk adjusted performance however the downside risk is very much inherent in the product and that principal losses can't be completely ruled out.
“Massive savings”, “reduced turnaround”, “automation” and “new insights” is what the middle office business has reaped from their offshoring strategy. Presenting a short summary of last ten years’ journey in the Performance Measurement & Attribution offshoring space in India.
𝘼𝙣𝙩𝙞𝙦𝙪𝙚 𝙋𝙡𝙖𝙨𝙩𝙞𝙘 𝙏𝙧𝙖𝙙𝙚𝙧𝙨 𝙞𝙨 𝙫𝙚𝙧𝙮 𝙛𝙖𝙢𝙤𝙪𝙨 𝙛𝙤𝙧 𝙢𝙖𝙣𝙪𝙛𝙖𝙘𝙩𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚𝙞𝙧 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙨. 𝙒𝙚 𝙝𝙖𝙫𝙚 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙥𝙡𝙖𝙨𝙩𝙞𝙘 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙪𝙨𝙚𝙙 𝙞𝙣 𝙖𝙪𝙩𝙤𝙢𝙤𝙩𝙞𝙫𝙚 𝙖𝙣𝙙 𝙖𝙪𝙩𝙤 𝙥𝙖𝙧𝙩𝙨 𝙖𝙣𝙙 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙛𝙖𝙢𝙤𝙪𝙨 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙗𝙪𝙮 𝙩𝙝𝙚 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙛𝙧𝙤𝙢 𝙪𝙨.
Over the 10 years, we have gained a strong foothold in the market due to our range's high quality, competitive prices, and time-lined delivery schedules.
In this presentation, we have discussed a very important feature of BMW X5 cars… the Comfort Access. Things that can significantly limit its functionality. And things that you can try to restore the functionality of such a convenient feature of your vehicle.
Symptoms like intermittent starting and key recognition errors signal potential problems with your Mercedes’ EIS. Use diagnostic steps like error code checks and spare key tests. Professional diagnosis and solutions like EIS replacement ensure safe driving. Consult a qualified technician for accurate diagnosis and repair.
Why Is Your BMW X3 Hood Not Responding To Release CommandsDart Auto
Experiencing difficulty opening your BMW X3's hood? This guide explores potential issues like mechanical obstruction, hood release mechanism failure, electrical problems, and emergency release malfunctions. Troubleshooting tips include basic checks, clearing obstructions, applying pressure, and using the emergency release.
Core technology of Hyundai Motor Group's EV platform 'E-GMP'Hyundai Motor Group
What’s the force behind Hyundai Motor Group's EV performance and quality?
Maximized driving performance and quick charging time through high-density battery pack and fast charging technology and applicable to various vehicle types!
Discover more about Hyundai Motor Group’s EV platform ‘E-GMP’!
Things to remember while upgrading the brakes of your carjennifermiller8137
Upgrading the brakes of your car? Keep these things in mind before doing so. Additionally, start using an OBD 2 GPS tracker so that you never miss a vehicle maintenance appointment. On top of this, a car GPS tracker will also let you master good driving habits that will let you increase the operational life of your car’s brakes.
"Trans Failsafe Prog" on your BMW X5 indicates potential transmission issues requiring immediate action. This safety feature activates in response to abnormalities like low fluid levels, leaks, faulty sensors, electrical or mechanical failures, and overheating.
What Exactly Is The Common Rail Direct Injection System & How Does It WorkMotor Cars International
Learn about Common Rail Direct Injection (CRDi) - the revolutionary technology that has made diesel engines more efficient. Explore its workings, advantages like enhanced fuel efficiency and increased power output, along with drawbacks such as complexity and higher initial cost. Compare CRDi with traditional diesel engines and discover why it's the preferred choice for modern engines.
5 Warning Signs Your BMW's Intelligent Battery Sensor Needs AttentionBertini's German Motors
IBS monitors and manages your BMW’s battery performance. If it malfunctions, you will have to deal with an array of electrical issues in your vehicle. Recognize warning signs like dimming headlights, frequent battery replacements, and electrical malfunctions to address potential IBS issues promptly.
What Does the PARKTRONIC Inoperative, See Owner's Manual Message Mean for You...Autohaus Service and Sales
Learn what "PARKTRONIC Inoperative, See Owner's Manual" means for your Mercedes-Benz. This message indicates a malfunction in the parking assistance system, potentially due to sensor issues or electrical faults. Prompt attention is crucial to ensure safety and functionality. Follow steps outlined for diagnosis and repair in the owner's manual.
Comprehensive program for Agricultural Finance, the Automotive Sector, and Empowerment . We will define the full scope and provide a detailed two-week plan for identifying strategic partners in each area within Limpopo, including target areas.:
1. Agricultural : Supporting Primary and Secondary Agriculture
• Scope: Provide support solutions to enhance agricultural productivity and sustainability.
• Target Areas: Polokwane, Tzaneen, Thohoyandou, Makhado, and Giyani.
2. Automotive Sector: Partnerships with Mechanics and Panel Beater Shops
• Scope: Develop collaborations with automotive service providers to improve service quality and business operations.
• Target Areas: Polokwane, Lephalale, Mokopane, Phalaborwa, and Bela-Bela.
3. Empowerment : Focusing on Women Empowerment
• Scope: Provide business support support and training to women-owned businesses, promoting economic inclusion.
• Target Areas: Polokwane, Thohoyandou, Musina, Burgersfort, and Louis Trichardt.
We will also prioritize Industrial Economic Zone areas and their priorities.
Sign up on https://profilesmes.online/welcome/
To be eligible:
1. You must have a registered business and operate in Limpopo
2. Generate revenue
3. Sectors : Agriculture ( primary and secondary) and Automative
Women and Youth are encouraged to apply even if you don't fall in those sectors.
Ever been troubled by the blinking sign and didn’t know what to do?
Here’s a handy guide to dashboard symbols so that you’ll never be confused again!
Save them for later and save the trouble!
Fleet management these days is next to impossible without connected vehicle solutions. Why? Well, fleet trackers and accompanying connected vehicle management solutions tend to offer quite a few hard-to-ignore benefits to fleet managers and businesses alike. Let’s check them out!
Digital Fleet Management - Why Your Business Need It?
Tata Motos Limited
1. Large Cap Universe- An Equity Research Initiative by SaurabhAn Equity Research Initiative by SaurabhAn Equity Research Initiative by SaurabhAn Equity Research Initiative by Saurabh
Company in Focus:Company in Focus:Company in Focus:Company in Focus: Tata Motors
26,214Employees
7.30%
Long Term Growth
Rate
204.14Target Price
2.30%Dividend Yield
68.90%Free float
3,173Shares Out (mn)
507.7Market Cap (bn)
172.75CMP
137.65-274.4052 week range
Num Snapshot
As at 15-Dec-2011
Business Description
Tata Motors is India's largest automobile company, with
consolidated revenues of Rs. 1, 23, 133 crore ($ 27 billion) in
2010-11. Through subsidiaries and associate companies, Tata
Motors has operations in the UK, South Korea, Thailand, Spain
and South Africa. Among them is Jaguar Land Rover, the
business comprising the two iconic British brands. It also
distributes Fiat cars in India, and has an industrial joint venture
with Fiat in India. With over 6.5 million Tata vehicles plying in
India, Tata Motors is the country's market leader in commercial
vehicles and among the top three in passenger vehicles. It is
also the world's fourth largest truck manufacturer and the third
largest bus manufacturer. Tata cars, buses and trucks are being
marketed in several countries in Europe, Africa, the Middle East,
South Asia, South East Asia and South America. The company
was founded on September 1, 1945 and is headquartered in
Mumbai, India. (www.tatamotors.com)
Price Performance (%) 1 M 3M 1Y
Absolute -4.7 14.2 -34.7
Rel. to BSE Sensex 1.5 21.7 -19.0
JLR providing the much needed cushion
JLR surprises again. Volumes rose by 27% YOY, owing to new
product launches & luxury car market recovery in US & China.
Evoque has been received well by the consumers though XF2.2
failed to cheer up the sales volume of Jaguar in a similar way.
US luxury car segment has rebounded well in the last couple of
months though Europe still remains vulnerable. In China the
overall automobile market has remained weak but the luxury
segment has been immune to the slowdown so far and has
posted strong growth.
Domestic Circuit Update
Though demand has remained stagnant but December MoM
sales picked momentum on the back of higher discounts.
Discount ranges between Rs. 15,000 20,000. An exchange‐
bonus ranging between Rs. 20,000 to Rs. 40,000 and a couple of
freebies are being offered. Tata Motors has extended the
2. warranty period to two years from 18 months earlier from
Dec’11. Whatever scheme comes up, 25% of that cost is borne
by the dealer, the rest is borne by Tata Motors. In addition to
that the dealer may give Rs. 1,000 2,000 discount more of his‐
own. Dealer margin has been around 3%. In CVs it gained 20
bps market share while Ashok Leyland lost 210 bps. Tata Motors
is unlikely to hike prices in Jan’12. However, a leading Business
Channel had recently reported that some dealers are falsely
communicating to customers that the price hike will take place in
Jan’12 in order to pre pone buying and push up sales in Dec’11.‐
Post BS III compliance, they received complaints for 1109 and‐
407 on the emission norms front. The Company is holding a
meeting in Jan’12 to discuss these problems. In LCV space, the
demand for Tata Ace has been good however, post Diwali it is
witnessing a slight slowdown with the intense competition from
Mahindra Maxximo. But, the dealers maintain that though
Maximmo is picking up, M&M is not able to eat the share of Tata
Motors due to un availability of their‐ spare parts and poor after
sales service.
Market Share trends
Source: SIAM
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
M
S
ILH
yundai
Tata
M
otors
Ford
G
M
VW
H
ondaToyotaO
thers
Passenger Cars
Passenger Car category is expected to grow by 4-6% in
2011-12.
Commercial Vehicles
Tata Motors,
59%Ashok
Leyland,
10.30%
M&M, 18%
Others,
12.80%
The overall Indian CV segment is poised to grow by 13-
15% in 2011-12.
Peer Comparison
Field
Tata
Motors
Bajaj
Auto M&M
Hero
MotoCorp
Maruti
Suzuki
Revenue
Growth 33.09 38.86 28.06 22.13 24.40
EBITDA
Margin 13.66 20.37 20.53 13.51 9.45
Net Income
(in billion
INR) 92.74 34.55 30.80 19.28 23.82
1 Year EPS
Growth 218.90 116.66 18.59 -13.62 -9.23
P/E 5.91 13.50 12.96 19.17 11.71
Price/Book
Value 4.13 8.81 2.88 10.74 2.55
RoE 67.75 91.83 25.20 60.05 17.99
Dividend
Yield 2.30 2.48 1.51 5.67 0.78
EV/EBITDA 8.73 13.35 11.78 11.13 13.79
Beta 1.40 0.84 1.07 0.68 0.82
Wealth destroyer in short run
Rs 100 invested last year is worth
65.25
82.73
80.60
0.00 20.00 40.00 60.00 80.00 100.00
TataMotor s
BSE AutoIndex
BSE Sensex
But a promising value creator in the medium term
Rs 100 invested 3 years back is worth
545.84
339.84
161.40
0.00 200.00 400.00 600.00
Tata
Motors
BSE Auto
Index
BSE
Sensex
3. Volume Growth Status
Tata Motors, country’s largest auto maker, reported 35% jump
in its global vehicle sales in November, with its luxury Jaguar
Land Rover unit reporting a 27% rise in sales at 29,183 over the
same period. In November period, it sold 108,028 vehicles.
The auto major has witnessed an increase of 40.64% in its total
vehicle sales during November, 2011, at 76,823 units against
54,622 units in the same month last year. However, domestic
sales of passenger vehicles stood at 27,737 units in November,
up 80.81% from 15,340 units in the same month last year.
TTM Volatility on bourses
Courtesy: Bloomberg
Possible Upside Movement-Factors
• Land Rover volume run-rate has increased to a large extent
post launch of Evoque. Strong performance of Evoque in US,
European & Chinese market is expected to continue in 2012.
• Positive Currency movement for JLR- A rising USD
against GBP & EUR is in the favour for JLR. That’s because a
major portion of JLR’s revenue is denominated in USD while
a big chunk of its costs are denominated in GBP & EUR. That
said, Forex movement often acts like a see-saw, contra
movements in currencies can turn the table against JLR,
though it’s not expected in the near term.
• Top line in Indian markets to grow on the back of new
product launches in 2012 across several segments. Two new
bus models are expected in the next couple of months.
Existing Nano Upgrade & a new diesel variant has been
proposed for the next year. Many SUV buffs have been
eagerly waiting for the upcoming Auto Expo when the
company will unveil the new Safari model. Even in MHCV
category, a couple of products have been in the pipeline for
a long time. In recent years, this segment has turned out to
be a Cash cow for Tata Motors.
• Limited Insulation from Input corner- Aluminum &
Steel prices have corrected by 18% & 17% Year to date
respectively. Together both form a major portion of raw
material consumption in the manufacturing process.
• Improved brand image in the Passenger Car
segment- Tata Motors have come a long way since the
launch of their first Indica model. Their alliance with Fiat for
new Diesel technology has paid off well. Product
performance has improved significantly. Though they still
remain the preferred choice for Fleet owners (Cab industry)
but retail customers have also started showing interest in
their offerings especially post Indica Vista & Manza launch.
Both products have been received well in the market.
Key Concern/Risk
• Proposed Tax on Diesel Vehicles- A leading English daily
had recently reported that the Indian Govt. is considering an
additional excise tax on Diesel cars. If it really happens, it
could adversely impact Tata Motors sales across all
segments as historically Diesel powered models have been
it’s strength area.
• Increased competition in Passenger & Utility Vehicles
business- In the last 5-6 years, almost all Global Auto
majors have entered the Indian Small car & UV space with
various offerings as the Total pie has grown to a mammoth
size. As a result of this, Indian consumers have been
pampered with too many choices. This customer delight has
now become a nightmare for Automobile firms. The market
is very demanding, Product & Service expectations have
increased manifolds due to rise in competition. Adding value
to firm’s offerings without impacting costs is the new
challenge which is only going to get worse in the future.
These factors can impact future margins. Even its Nano bet
didn’t deliver on market expectations.
• Rise in Interest rates- In the last one year RBI has
increased key interest rates on more than five occasions.
High consumer interest rates impact revenues especially in
the CV space because a major portion of sales are routed via
Auto loans.
• High Debt- Since the acquisition of JLR, it’s debt has
remained quite high compared to its peers.
Debt to Equity Ratio
0.95
1.33
5.89
4.28
1.71
0
1
2
3
4
5
6
7
2007 2008 2009 2010 2011
Year
No.oftimes
Valuation
Over the last 6 years, Tata Motors has paid out only 20% of its
net profit as dividend to its shareholders. The balance of 80%, it
has invested back in its business, on which it has earned a very
high 25% average return every year. The company is currently
struggling with the problems of stagnant domestic demand,
increasing interest rates and high debt. Looking at its historical
performance and future prospects I expect Tata Motors to grow
its EPS by 16% CAGR in the next 5 years on the back of
economic revival, new product launches, diesel technology edge,
increasing per capita income and geographical diversification.