19742265 Project on TATA Motors

5/26/2018 19742265 Project on TATA Motors

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PROJECT REPORTON

COMPARE THE STANDING TATA MOTORSvis--vis THE INDUSTRY

&

CUSTOMER SATISFACTION SURVEY

TATA Motors Ltd

SU!MITTED TO"-

SUBMITTEDBY:-

LOVELY PROFESSIONAL UNIVERSITY

ARUN [email protected]


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LOVELY INSTITUTE OF MANAGEMENT #LIM$

DE!LARATI"N

IARUN %UMAR GULERIA#ere $y %eclare a& e 'r(ec& re'r&

en&i&le%COMPARE THE STANDING TATA MOTORS vis--vis THE INDUSTRY &

CUSTOMER SATISFACTION SURVEY' un%er gui%ance ) Miss S()*+i,dr

Aror. *u$mi&&e% )r e re+uiremen& ) a %egree 'rgramme )

LOVELY PROFESSIONAL UNIVERSITYi* my riginal ,r.

Any li&era&ure %a&a r ,r* %ne $y er* an% ci&e% ,iin

i* %i**er&a&in #a* $een gi/en %ue acn,le%gemen& an% li*&e% in

e re)erence *ec&in.

Si/,.t(r "

D.t "

P0.1 " J.0.,d*.r



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A!0N"1LEDGEMENT

In order to make my project I acknowledge a special thanks to all those people without

whose supports it would not be possible for me to complete for me to complete my report.

First of all I really thankful to my Lov02 Pro3ssio,.0 U,ivrsit2 because of them I

could achieve the target. I express my sincere thanks to my project guide Miss S()*+i,dr

Aror.who had guide to me throughout my project.

I would also thankful to the S.t0(4 Motors #TATA MOTORS D.0rs*i5$for giving methis opportunity to work on project in M.,di #HP$.I convey my heart full thanks to the

Mr !*o5.0 Si,/* J.6+.0 #Ad6i, M.,./r$ and the staff members of Satluj Motors, with

their help and corporation.

lso I would like to express my inner feeling for all the people for co!operating and

helping me throughout the project.

"ast but not the least I am thankful to my parents and friends who have provided me with

their constant support throughout this project.

Ar(,

%(6.r

G(0ri.



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2RE3A!E

The professional training is the internal part of a M.B.A program. It helps the studentunderstand practical aspects of Business Management in a better way as a part of my M.B.A.

program at Lov02 Pro3ssio,.0 U,ivrsit27 J.0.,d*.r. I was supposed to work the

organization.

Finance Management is the systematic and obecti!e identification" collection" analysis"

dissemination" and use of information for the purpose of impro!ing decision making related to

identification and solution of problems and opportunity#

$erception is the process" by which an indi!idual selects" organizes and interprets

information inputs to create a meaningful picture of the world around as#

To be a Master of Business Administration student is a matter of pride because we are in

a field" which help us to de!elop from a normal human being into a disciplined" and dedicated

professional. %ne has to be a good learner to sharper knowledge in the particular field to achie!e

and attain the desired goals and heights. I analysis the financial position of TATA Motors and

conducted a financial analysis of two of its competitors & Mahindra ' Mahindra and Maruti

(dyog. To 1o65.r t* st.,di,/ TATA Motors vis--vis t* i,d(str2 . I used Balance )heet"

$rofit ' *oss Account" +ash Flow and Fund Flow )tatement" and ,atio Analysis.

And I also conducted C(sto6r S.tis3.1tio, S(rv2 o3 TATA Motors in the Mandi

-istrict of imachal $radesh. I used research /uestionnaires as the research and data collection

tools. The responses were collected from 011 respondents from !arious areas of Mandi.

I had learned lot during my proect on compare the standing TATA Motors !is232!is the

industry ' customer satisfaction sur!ey of TATA Motors4 I hope this will be helpful to find out

financial standing of TATA Motors in automobile industry and satisfaction of consumer in Mandi

city.



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INDEX



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SNo PARTICULAR P./ No

8 D10.r.tio, 5i6

9 A1),o+0d/6,t 5ii6

: Pr3.1 5iii6

; E Litr.t(r Rvi+"

8.0 Tata Motors 9uly )ales At :;"1 First ?uarter )tand2Alone =et ,e!enue

,s.8:1< +rores" $at @rows 1

>0

>:

? Pro3i0 O3 T.t. Gro(5"

7.0 TATA @roup +ompanies

>7

>

@ Pro3i0 O3 T.t. Motors Li6itd"

;.0 Industry %!er!iew

;.> istory %f Tata Motors

;. Important -e!elopments

;.: @lobal %perations

;.< Future +hallenges

;.8 Milestones

;.7 Awards

.0 Financial %!er!iew

0>.> +apital )tructure

0>. Geighted A!erage +ost %f +apital

0>.: Balance Analysis

0>.< Financial Analysis %f Tata Motors

78

77

7;

7C

;0

;:8: G0o.0 A(to6oi0 I,d(str2 ;7


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E4E!UTI5E SUMMARY

The proect on COMPARE THE STANDING TATA MOTORS vis--vis THE

INDUSTRY & CUSTOMER SATISFACTION SURVEY based on financialperformance and on customer sur!ey. The main obecti!es of the proect areH

Financial performance in automobile industry Market performance Market position. Economic and the industry en!ironment

+ost sa!ing initiati!es Awareness regarding the facilities pro!ided by Tata Motors. %!erall opinion about Tata Motors. )atisfaction amongst the customers of Tata Motors

For this proect Financial )tatements was analysis and customer research was carried out at

!arious area of Mandi -istrict of imachal $radesh. I learnt analysis financial statement in to

find different aspects for compare the standing !is232!is industry and customers perception

about TATA Motors.

THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS"

8 Co65.,2 Ovrvi+"

This part describes the company profile. This part recognizes the achie!ements and

rewards the company has achie!ed" it also gi!es little insights into what company offers

to the +orporate and the +onsumers. This section also describes the kind of technology

used.

9 Co65.,2 Pro3i0"



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This section gi!es the information about the company. It includes the company history

which depicts the company from the period of foundation. This section also products of

the company producing by the company.

: A,.02sis o3 Fi,.,1i.0"

Financial statements of the company o!er last few years are analysis in this section and

financial performance is output.

; Co65titors o3 1o65.,2"

The companys competitors are finding and study the business during the financial years.

= Co65.riso, o3 1o65.,2s 3i,.,1i.0 st.t6,ts +it* 1o65titors"

+omparison of companys Balance )heet" $rofit ' *oss Account and Fund and +ash

Flow )tatement with their competitor to find the standing of company in automobile

industry.

FINDINGS"

A detailed analysis of the company shows that the company has had a strong fundamental

as well as a strong market performance o!er the years. @i!en the economic and the industry

en!ironment 5impro!ing outlook for the + industry6 TATA Motors would be a key beneficiary.

Ghile a pick2up in its + !olumes is e!ident" operating le!erage and cost sa!ing initiati!es will

impro!e margins.

%n an a!erage more than 7 people feel that the prices are affordable whereas 0> do

not agree" 7: belie!e that attracti!e discounts are offered whereas >8 are not satisfied with

the discounts offered. >1 said that the test dri!es are not offered and 0


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a!ailability of product" !ariety of merchandize" !ehicle in good condition" prices are affordable"

attracti!e discounts are offered" dJcor of the waiting area is pleasing" responds to complaints

/uickly" ser!ice at TATA Motors ser!ice station is eDcellent" careful with personal information

and is !alue for money . The o!erall opinion about TATA Motors is !ery good.

At the end it is submitted to Lov02 Pro3ssio,.0 U,ivrsit2'



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INTR"DU!TI"N



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India is an emerging country with huge potential. The domestic economy is now growing

at around -8Bper annum and Indias importance in global terms is being reinforced by

rapidly rising eDports and domestic consumption. At a time when numbers of a slowdown and

o!erheating in the Indian economy ha!e started gaining momentum" the Indian rupee sprang asurprise by pushing the @-$ figure past the trillion2dollar 5:>"11"111 crore6 mark.

The automoti!e industry is at the center of Indias new global dynamic. The domestic

market eDpanding rapidly as incomes rise and consumer credit becomes more widely a!ailable.

Manufacturers product lines are being continually eDpanded" as is the local automoti!e

manufacturing base. EDpectation are high that India can de!elop as a global hub for !ehicle

manufacturers and as an outsourcing center that offers the global automoti!e industry solution

high up the automoti!e !alue chain.

I,di. 2s 9= 6i00io, .(to6otiv 4os

I,di.s GDP is st to do(0ovr t* ,


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The implications" market dri!ers and scope of a future massi!e Indian !ehicle market

are co!ered in the India )trategic Market $rofile" a brand2new forecast of Indian automoti!e and

related acti!ity to >1>1. Based on MaD $embertonLs uni/ue relational long2term forecasting

model" it forecasts car and + sales" demographics" materials usage" auto industry employment"and eDplains their inter2 year of healthy growth in auto industry.

INDUSTRY GROTH"

F(t(r o3 t* A(to6oi0i, t* E1o,o62"



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US .sd 1o,s(0t.,127 )2sto, 5rdi1ts t*.t I,di. +i00 1o6 +or0ds t*ird 0.r/st

.(to6oi0 6.r)t 2 9B:B Ovr.00 si


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LITERATURE

RE5IE1



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#eleased on$ %rd ugust, &''(

T.t. Motors J(02 s.0s .t ;@7B=; ,os7 /ro+t* o3 8@

M&HCV s.0s r1ord 2.r-o,-2.r /ro+t* .3tr .06ost . 2.r- As*is* G.r/

Tata Motors total sales 5including eDports6of Tata commercial and passenger !ehiclesin 9uly >11C were :;"1C !ehicles sold in 9uly>11;. The companys domestic sales of Tatacommercial and passenger !ehicles for 9uly>11C were : growth o!er7"1 nos. sold in 9uly last year.

+umulati!e sales 5including eDports6 for thecompany for the fiscal at 070"08; nos." waslower by 0" compared to 07>":8> nos. soldlast year.

Co66r1i.0 V*i10s

T* 1o65.,2s s.0s o3 1o66r1i.0

v*i10s i, J(02 9BB i, t* do6sti1

6.r)t +r 9@7;B@ ,os7 . 9? /ro+t*

1o65.rd to 997:@8 v*i10s so0d i, J(02

0.st 2.r

*+ sales were 07"7 o!er last year" while

M'+ sales stood at 7">;: nos. waslower by 0C o!er last year.

P.ss,/r V*i10s

The passenger !ehicle business reported atotal sale and distribution offtake of 0C";;0nos. 507"0C0 Tata >"8C1 Fiat6 in thedomestic market in 9uly >11C" a >

increase compared to 0 Fiat6 in 9uly last year. )ales ofTata cars" at 0:"":7< nos. The Indica range sales were;"C. +umulati!e sales of the)umoN)afari range were 01"8C1 nos." lowerby >C.

E":11C were lower by :compared to "8C8 !ehicles in 9uly last year.The cumulati!e sales from eDports for thefiscal at 7"878 nos. were lower by :1 o!er0>";


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#eleased on$ &)th *uly, &''(

T.t. Motors First K(.rtr St.,d-.0o, ,t rv,( Rs>;B= Crors7

PAT /ro+s =@ to Rs=8; 1rors- R S S.rd*.

Tata Motors today reported re!enues 5netof eDcise6 of ,s.8:1:.8 crores on a stand2alone basis for the /uarter ended 9une 1">11C" of the financial year >11C201" adecline of 7.8 compared to ,s.8C>;.::crores in the corresponding /uarter pre!iousyear.

The companys continued focus on costefficiencies" coupled with reduction of rawmaterial prices" in!entory reduction andimpro!ement in sales realisation" yieldedconsiderable benefits resulting in theoperating margin to 00.: 5from 7.0 inthe pre!ious year6" with operating profits at,s.7>;.11 crores" an increase of :7.C ascompared to the corresponding period of thepre!ious year.

$rofit before TaD for the /uarter grew by>C.0>crores was higher by >8.7 reflecting theincreased in!estments in new products andsupporting capabilities. For the /uarterended 9une 1" >11C" there was aneDceptional notional foreign eDchange!aluation loss of ,s.1 !ehicles recorded a marginaldecrease of 0.: o!er the corresponding/uarter of the pre!ious year" whilst theeDports at >1 !ehicles continued to bese!erely impacted 5negati!e :6 in thewake of continuing tumultuous global

en!ironment resulting in total sales !olumeat 0>7":1 !ehicles" a decline of :. ascompared to the corresponding /uarter ofthe pre!ious year. The company gainedmarket share in commercial !ehicles to87.: during the /uarter compared with80 in the corresponding /uarter ofpre!ious year on the back of a marginal0.0 growth in domestic sales to 7>">08units. Tata passenger !ehicles declined by01 in the domestic market to :


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in the industry.

The company continues to upgrade itsresources to le!erage emergingopportunities. In commercial !ehicles" the

company un!eiled its new range of worldstandard trucks in May >11C" comprisingmulti2aDle trucks" tractor2trailers" tippers"miDers and special purpose !ehicles whichare being gradually launched in India andalso in select international markets o!er aperiod of time. An all2new )tarbus range ofbuses has also been introduced. A newmileage enhancing automatic stop2starttechnology" de!eloped in2house" has beenintroduced in the Ace mini truck. Tata

Motors has recei!ed a maority of the ordersfor buses released by different )tate@o!ernments under the 9==(,M.

In passenger !ehicles" the company hascompleted the process of allotment of Tata=anos" following the cars launch in March>11C. -eli!eries to the allottees ha!e since

begun. The company also opened the first9aguar *and ,o!er showroom in India atMumbai. Along with the Fiat *inea" Fiat 11C" areenclosed. The consolidated financial resultsfor the 0st /uarter of Financial Oear would

be !oluntarily disclosed separately in duecourse.

PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

#eleased on$ +)th *uly, &''(

TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUM!AI- Ro4.r R %.r6

Tata Motors is pleased to announce thatMr. Ashok ,aghunath ichare of Mumbaihas become the first customer in India of theTata =ano. Mr. ichare recei!ed his choice"the Tata =ano *Q 5*unar )il!er6" at thehands of the +hairman of Tata )ons and TataMotors" Mr. ,atan =. Tata" at the companysdealership" +oncorde Motors" today.

)peaking on the occasion" Mr. Tata said" RIhope the Tata =ano will bring motoringpleasure to those who will be buying theirfirst car as also those who currently owncars but want a modern" contemporary"

emission2friendly city car.#

Along with Mr. ichare" two othercustomers" Mr. Ashish Balakrishnan 5Tata=ano *Q & )unshine Oellow6 and SoresIndia *imited 5Tata =ano *Q & *unar)il!er6" also recei!ed their cars today.

As planned" Tata Motors has commenceddeli!eries of the Tata =ano this month todifferent towns and cities of the country.-ispatches to dealerships ha!e begun fromthe $antnagar plant" where the car is beingproduced" in accordance with schedulesinformed to customers.



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#eleased on$ +st *uly, &''(

TATA Motorss J(, 9BB DOMESTIC SALES .t ;:79;; ,os- G L.t. S(r

Tata Motors total sales 5includingeDports6 of Tata commercial and passenger!ehicles were ::: nos." a 0

decline o!er :";0: nos. sold in 9une lastyear.

+umulati!e sales 5including eDports6 for thecompany for the /uarter at 0>"00 nos."declined by 7" compared to 00"7 nos.sold last year.

Co66r1i.0 V*i10s

The +ompanys sales of commercial!ehicles in 9une >11C in the domestic

market were >8">1< nos." a > declinecompared to >8"7C7 !ehicles sold in 9unelast year. *+ sales were 08">8"8>8 nos." a decline of >8 o!erlast year" while *+ sales for the /uarterwere :7 o!er lastyear.

P.ss,/r V*i10s

The passenger !ehicle business reported a

total sale and distribution offtake of 0C"11C" an 00increase compared to 07"01 nos. 22 a growth of 0Co!er 9une >11;. The Indigo family recordedsales of "> nos." a >8 decline o!er 9une>11;" but a growth of >:.: o!er >";> nos.of May >11C. The )umoN)afari rangeaccounted for sales of "17 nos." a declineof 00 compared to 9une >11;" but a growthof >C.7 o!er >" nos." a >

decline o!er the same period last year.+umulati!e sales of the )umoN)afari rangewere ;"18< nos." a decline of 11;.



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The cumulati!e sales from eDports for the fiscal at 11C and >101.

Mr. ,atan =. Tata" +hairman of Tata )ons and TataMotors" saidH Ge are eDtremely pleased and proud tointroduce the 9aguar *and ,o!er brands in the Indianmarket and gi!e the discerning Indian customer direct

access to these prestigious brands" accompanied by aparts and ser!ice network. Ge hope that they will delightcustomers in India ust as they ha!e done in markets the

world o!er.

Mr. -a!id )mith" +E% of 9aguar *and ,o!er" saidH 9aguar *and ,o!er is delighted to ha!eofficially opened our first showroom in India. It is an eDciting time to be entering the Indianmarket" a country with increasing affluence and an economy which is still growing. Ge belie!e

http://www.jaguar.in/http://www.landrover.in/http://www.landrover.in/http://www.jaguar.in/


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that the Indian market holds significant growth potential in the long term" and we hope to tap thedemand for premium !ehicles from discerning customers.

#eleased on$ *uly ), &''(

TATA MOTORS TO INTRODUCE AIR CAR !, M.Gro+

Tata Motors is taking giant strides andmaking history for itself. First the*andro!er29aguar deal" then the worldLs

cheapest car and now it is also set tointroduce the car that runs on air"compressed air to be specific.

Gith fuel prices touching nearly K06. Tata motors also plans to launch theworldLs cheapest car" Tata =ano pricedfamously at %ne lakh rupees5W0>116 by%ctober.

The Mini+AT which is a simple" light urbancar" with a tubular chassis that is glued notwelded and a body of fiberglass powered bycompressed air. Microcontrollers are used ine!ery de!ice in the car" so one tiny radiotransmitter sends instructions to the lights"indicators etc. There are no keys 2 ust anaccess card which can be read by the carfrom your pocket.

According to the designers" it costs less than11 to11 km or 01 hoursof dri!ing6" a factor which makes a perfectchoice in cities where the ;1 of motoristsdri!e at less than 81Sm. The car has a topspeed of 01< kmph. ,efilling the car will"once the market de!elops" take place atadapted petrol stations to administercompressed air. In two or three minutes" andat a cost of approDimately 011 rupees" thecar will be ready to go another >11211kilometers.

As a !iable alternati!e" the car carries asmall compressor which can be connected tothe mains 5>>1 or ;16 and refill the tankin 2: hours. -ue to the absence ofcombustion and" conse/uently" of residues"changing the oil 50 litre of !egetable oil6 isnecessary only e!ery


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eDhaust pipe is between 120< degrees belowzero" which makes it suitable for use by the

internal air conditioning system with noneed for gases or loss of power.

#eleased on$ &-th *une, &''(

Co,so0id.td Rv,( i, 9BB@-B Rs ?B:@@= 1rors7

Loss .3tr T.< Rs 9=B=9= 1rors

Tata Motors today reported consolidatedgross re!enue of ,s.7:00 crores in>11;21C. The consolidated financialperformance of the company is notcomparable to >11721; on account of theac/uisition of 9aguar *and ,o!er in 9une>11;. In >11721;" the consolidated grossre!enue was ,s.:1:1.7C crores.

The consolidated re!enues 5net of eDcise6 in

>11;21C amounted to ,s.71C;.;< +rores5>11721;H ,s. 087.71crores.

Tata Motors has reported a Basic Earnings$er )hare 5E$)6 loss of ,s.511721;H $rofit of ,s. :6 for its consolidated

operations.

Tata Motors has already reported on May>C" >11C" that its own stand2alone re!enues5net of eDcise6 for >11;21C amounted to,s.>


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strongly grew eDports. The company isfocusing on aggressi!e growth in both homeand international markets harnessingstimulus packages announced by differentgo!ernments" as also product de!elopment

initiati!es.

T01o,"

The company has launched se!eral newproducts" but was impacted by the credits/ueeze in the third /uarter of the year. IteDpects demand re!i!al supported byinfrastructure spend in the country.

HVAL & HVTL"Though impacted by lower !olumes on the

back of decline in medium and hea!y trucks"the two companies significantly reduced!ariable costs to counter the slowdown.Their plans include strengthening in2housedesign and !alidation capabilities andeDpanding customer base in India and broad.TMFL"In line with Tata Motors sales in >11;21C"there was a decline in disbursals. It isfocused on incremental capti!e !ehiclefinancing of Tata Motors through increased

securitisation and borrowings on its ownbooks with higher ability to le!erage.

T.t. T1*,o0o/is"

The company has consolidated positionamong the top three solutions and software

pro!ider of leading Engineering and $*Mproducts in all maor geographies winningse!eral proects" and has eDpanded presence

in aerospace design and aero structures.Ghile the year ahead is challenging" it hasde!eloped appropriate business structuresand processes to strengthen relationship withstrategic clients.



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#eleased on$ &(th May, &''(

T.t. Motors Nt Rv,( i, 9BB@-B 0o+r .t Rs9=>>B? 1rors7.,d Nt Pro3it 0o+r .t Rs8BB89> 1rors7 d( to 6.r)t (5*.v.0

Tata Motors today reported gross re!enue5stand2alone6 of ,s.>;7 crores 5>11721;H ,s.1C.C crores6 in >11;21C" a yearmarked by se!ere demand contraction in theautomobile industry.

,e!enues 5net of eDcise6 for the year were

,s. >;7C.:0 crores in >11721;" a decline of01.7. The $rofit before TaD was,s.010.78 crores compared to ,s.>11721;" a decline of 81.7. The$rofit after TaD for the year was ,s.0110.>8crores compared to ,s.>1>;.C> crores" adecline of 0 units" compared to811721;H 8>.>6" aidedby its wide product offering. -omestic



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passenger !ehicles sales amounted to>17" units 5>11721;H >0;"111721;H 0:6 and a March eDit share of0:."

>11;" and the launch of the Tata =ano onMarch >" >11C. %!er >.1 lakh fully paidbookings were recei!ed for the Tata =ano"the deli!eries of which will begin from 9uly>11C. The $antnagar plant began producing

the Tata =ano during the year" while the)anand plant is rapidly progressing towardscompletion.

DIVIDEND

The Board of -irectors has recommended adi!idend of ,s.8N2 per %rdinary share and,s.8.11;21C 5>11721;H ,s.0


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The effect of inflation has affected not onlythe production and sales of Indian cars butalso has significantly affected the car dealer"officials and car financers. ,esearch andobser!ations ha!e led to the conclusion that

in the year >11;" the car market and the carindustry is eDpected to witness ;2C fall.

The effect of inflation on the carmanufacturers ha!e in turn affected thedealers in a way where they are beingpressurized to push the sales graph higherand keep a high profit margin. The financersin the cycle are pressurized by both carmanufacturers and dealers to pay theconsumers a cent percent financial

assistance by reducing on the loan interestrate.

%!erall it has been noticed that theautomobile market in India and specially thecar market in India ha!e eDperienced adowntrend with the inflation affectingalmost e!ery industry to which the carmarket is essentially related.



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THEORETICAL RELEVANCE OF TATA MOTORSS LONG TERM FINANCIAL !EHAVIOR

- Fi,.,1i.0 I,stit(t

RAs per the Trade off theory" the marginal cost and benefit of debt in determining the best financial

structure of a company is considered" at most considerate liability percentage" a companies market

!alue is brought up and the companies whose liability percentage di!erge from the best possible can

increase their price by bringing their liability percentage towards the target#. 5European 9ournal of

Economics6

RThe pecking order theory is based on the idea of asymmetric information between managers and

in!estors. A company increases its debits by issuing new e/uities to finance new proects because if

not done the same way then and new in!estors are brought into consideration then the new In!estors

will make most of the profit which is #the net present !alue 5=$6# of that particular proect which

will cause lose to the present share holders. To a!oid this most of the firms tend to finance their new

proects using a security that is not under!alued in the market" which can be internal funds or some

other less dangerous debt securities. Therefore" this is what affects the choice between internal and

eDternal financing. 5European 9ournal of Economics6.

RThe M'M theory is a theory of capital structure which eDplains that a companys market price

is definite by its earning power and by the basic risk of its resources" the three most important

ways of funding" they are issuing shares" borrowing and retaining profits

RAs opposed to dispersing them to shareholders in di!idends# 5Modigliani2Miller Theorem 2

M'M6

This theory also says that if there are no taDes" bankruptcy costs" and asymmetric information" in

an efficient market then a companys !alue becomes solid for finance by its sources. It makes no

difference how the companys funds are increased either by issuing stock or by selling debt and

neither matters the di!idend policy of the company#. 5Modigliani2Miller Theorem 2 M'M6

Therefore" According to the abo!e composed data the Tata motors raised funds from =O)E in

>11:" and then from Bombay stock EDchange" $ri!ate E/uity Funds" )ale of )takes" Inter2@roup

)ales and Bridge loans" so" this is in accordance to Rthe pecking order theory which says that a

company increases its debits by issuing new e/uities to finance new proects because if not done

the same way then and new in!estors are brought into consideration then the new In!estors will


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make most of the profit which is #the net present !alue 5=$6# of that particular proect which

will cause lose to the present share holders. To keep away from this situation most of the firms

tend to finance their new proects using a security that is not under!alued in the market" which

can be internal funds or some other less dangerous debt securities. Therefore" this is what affectsthe choice between internal and eDternal financing#.

ence" the pecking order theory eDplains the need of the firms to rely on the internal sources of

the company for finances and also eDplains why the companies prefer debt to e/uity if eDternal

financing is re/uired.


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!"M2ANY

2R"3ILE


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TATA GROUPTata is a rapidly growing business group based in India with significant international

operations. ,e!enues in >11721; are estimated at K8>.< billion 5around ,s>7 publicly listed enterprises ha!e a combined market

capitalization of some K81 billion" among the highest among Indian business houses" and a

shareholder base of .> million. The maor companies in the @roup include Tata )teel" Tata

Motors" Tata +onsultancy )er!ices 5T+)6" Tata $ower" Tata +hemicals" Tata Tea" Indian otels

and Tata +ommunications.

The @roups maor companies are beginning to be counted globally. Tata )teel became

the siDth largest steel maker in the world after it ac/uired +orus. Tata Motors is among the top

fi!e commercial !ehicle manufacturers in the world and has recently ac/uired 9aguar and *and

,o!er. T+) is a leading global software company" with deli!ery centres in the ()" (S" ungary"

Brazil" (ruguay and +hina" besides India. Tata Tea is the second largest branded tea company in

the world" through its (S2based subsidiary Tetley. Tata +hemicals is the worlds second largest

manufacturer of soda ash. Tata +ommunications is one of the worlds largest wholesale !oice

carriers.

In tandem with the increasing international footprint of its companies" the @roup is also

gaining international recognition. Brand Finance" a (S2based consultancy firm" recently !alued

the Tata brand at K00.: billion and ranked it


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usinessweek ranked the @roup siDth amongst the Gorlds Most Inno!ati!e +ompanies. And the

,eputation Institute" ()A" recently rated it as the Gorlds )iDth Most ,eputed Firm.

Founded by 9amseti Tata in 0;8;" the Tata @roups early years were inspired by the spiritof nationalism. The @roup pioneered se!eral industries of national importance in IndiaH steel"

power" hospitality and airlines. In more recent times" the Tata @roups pioneering spirit has been

showcased by companies like Tata +onsultancy )er!ices" Indias first software company" which

pioneered the international deli!ery model" and Tata Motors" which made Indias first

indigenously de!eloped car" the Indica" in 0CC; and recently un!eiled the worlds lowest2cost

car" the Tata =ano" for commercial launch by end of >11;.

The Tata @roup has always belie!ed in returning wealth to the society it ser!es.

Twothirds of the e/uity of Tata )ons" the Tata @roup.s promoter company" is held by

philanthropic trusts which ha!e created national institutions in science and technology" medical

research" social studies and the performing arts. The trusts also pro!ide aid and assistance to

=@%s in the areas of education" healthcare and li!elihoods. Tata companies also eDtend social

welfare acti!ities to communities around their industrial units. The combined de!elopment2

related eDpenditure of the Trusts and the companies amounts to around : per cent of the @roups

net profits.

@oing forward" the @roup is focusing on new technologies and inno!ation to dri!e its

business in India and internationally. The =ano car is one eDample" as is the Eka supercomputer

5de!eloped by another Tata company6" which in >11; is ranked the worlds fourth fastest. The

@roup aims to build a series of world class" world scale businesses in select sectors. Anchored in

India and wedded to its traditional !alues and strong ethics" the @roup is building a multinational

business which will achie!e growth through eDcellence and inno!ation" while balancing theinterests of its shareholders" its employees and wider society.


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CORE VALUES OF TATA

At the Tata @roup our purpose is to impro!e the /uality of life of the communities we

ser!e. Ge do this through leadership in sectors of national economic significance" to which the

@roup brings a uni/ue set of capabilities.

This re/uires us to grow aggressi!ely in focused areas of business. %ur heritage of

returning to society what we earn e!okes trust among consumers" employees" shareholders and

the community.

This heritage is being continuously enriched by the formalization of the high standards of

beha!ior eDpected from employees and companies. The Tata name is a uni/ue asset representing

leadership with trust. *e!eraging this asset to enhance @roup synergy and becoming globally

competiti!e is the route to sustained growth and long2term success.

FIVE CORE VALUES

The Tata @roup has always sought to be a !alue2dri!en organization. These !alues continue to

direct the @roups growth and businesses. The fi!e core Tata !alues underpinning the way we do

business areH

I,t/rit2" Ge must conduct our business fairly" with honesty and transparency. E!erything

we do must stand the test of public scrutiny.

U,drst.,di,/" Ge must be caring" show respect" compassion and humanity for our

colleagues and customers around the world" and always work for

the benefit of the communities we ser!e.

E


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U,it2" Ge must work cohesi!ely with our colleagues across the @roup and with our

customers and partners around the world" building strong relationships

based on tolerance" understanding and mutual cooperation.

Rs5o,sii0it2" Ge must continue to be responsible" sensiti!e to the countries"

communities and en!ironments in which we work" always ensuring

that what comes from the people goes back to the people many times

o!er.


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TATA Gro(5 Co65.,isF.6i02 5rid

The TATA family of enterprises comprises C; companies in se!en business sectors. This section

lists all these companies under the sectors in which they operate" besides the two promotercompanies of the @roup.

T* Sv, !(si,ss S1tors .r"

E,/i,ri,/ #AUTOMOTIVE$"

T.t. A(to 1o65 s2st6s"

Subsidiaries/ssociates/*oint 0entures$International Automoti!e" Snorr Bremse )ystems

for commercial ehicles" Tata Auto +omp @O Batteries" TA+% Engineering" TA+%

Faurecia -esign +entre" TA+% endrickson )uspension )ystems" TA+% Interiors and

$lastics -i!ision" Taco Sunstofftechnik" TA+% MobiApps Telemaics" TA+% )upply+hain Management" TA+% Tooling" TA+% isteon Engineering +enter" Tata Ficosa

Automoti!e )ystems" Tata 9ohnson +ontrols Automoti!e" Tata Toyo ,adiator" Tata Oazaki

Auto +omp" T+ )prings" Technical )tampings Automoti!e.

T.t. Motors"

Subsidiaries /ssociates/ *oint 0entures$ +oncorde Motors" ADels"

Transmissions" =ita +ompany" TA* Manufacturing )olutions" Tata +ummins" Tata

-aewoo +ommercial ehicles +ompany" Tata Engineering )er!ices" Tata $recision

Industries" Tata Technologies" Telco construction E/uipment.

E,/i,ri,/ Srvi1s

Tata $roects" T+E +onsulting Engineers" oltas

E,/i,ri,/ Prod(1ts

TA* Manufacturing )olutions" Telco +onstruction E/uipment +ompany" T,F

METALS"

TATA STEELSubsidiaries /ssociates/ *oint 0entures$ ooghly Met +oke and $ower +ompany"

9amshedpur Inection $owder 59amipol6" 9amshedpur (tility and )er!ice +ompany

*imited 59()+%6" *anka )pecial )teel" Munction )er!es" =at)teel" )ila Eastern

+ompany" Tata Blue )cope )teel" Tata Metallic" Tata $igments" Tata ,efractories" Tata

,yerson" Tata )ponge Iron" Tata steel 5Thailand6" Tata )teel SY=" Tayo ,olls" The

-hamra $ort +ompany" The Indian )teel and Gire $roducts" The Tinplate +ompany of

India" Tm International *ogistics" T,F.


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ENERGY"

POER

Tata B$ )olar India

Tata $ower

Subsidiaries /ssociates/ *oint 0entures$Tata +eramics" Tata $ower Trading" =orth

-elhi $ower *imited

OIL AND GAS

Tata $etrodyne

CHEMICALS"

,allis India

Tata $igments

Tata $igments

PHARMA

Ad!inus Therapeutics

SERIVES"

HOTELS AND REALTY

Indian otels 5Ta @roup6

)ubsidiaries NAssociatesN 9oint enturesH Ta Air" ,oots +orporation 5@inger otels6

THDC

Tata ,ealty and Infrastructure

FINANCIAL SERVICES

Tata AI@ @eneral Insurance" Tata AI@ *ife Insurance" Tata Asset Management" Tata

+apital" Tata Financial )er!ices" Tata In!estment +orporation

OTHER SERVICES

Tata ?uality Management )er!ices" Tata )er!ices" Tata )trategic Management

@roup


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CONSUMER PRODUCTS"

Infiniti ,etail

Tata Tea

Subsidiaries /ssociates/ *oint 0entures$Tata +offee" Tata Tetley" Tata Tea Inc

Tata +eramics

Tata Mc@raw ill $ublishing +ompany

Titan Industries

Trent

INFORMATION SYSTEMS AND COMMUNICATIONS"

N0ito S2st6s

T.t. Co,s(0t.,12 Srvi1s

Subsidiaries /ssociates/ *oint 0entures$ A$%=*I=E" Airline Financial )upport

)er!ices" A!iation )oftware -e!elopment +onsultancy" +M+" +M+ Americas Inc"

+onscripti" %T" Tata America International +orporation" GTI Ad!ance Technology.

T.t. E0


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TATA MOTORS LIMITED

The largest passenger automobile and commercial !ehicle manufacturing company of

India Tata Motors *imited" was formerly called TE*+% 5TATA Engineering and *ocomoti!e

+ompany6" has its head/uarters in Bombay" now Mumbai" India. Established in 0C:>111 employees working in

three plants as well as other regional and zonal offices across the length and breadth of India.

Tata motors passenger cars still need to reach acceptable international re/uirements. The

company commands an imposing 8118" where it recorded a strong financial performance during the

last < year period. From year >112>117" the profits of the company went up at a +A@, of

8.:" to attain ,s. 0" < million in >117 from ,s. C


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The +ompany aims to monetize a part of its funds through a phased di!estment of

certain in!estments preferably as inter2group sales where!er possible at current market prices in

the coming siD to eight months" the money that will be released from these in!estments will

become a part of the capital to be lifted for repayment of the bridging loan taken for the 9aguar2*and ,o!er ac/uisition. Taken in March >11; 5Tata Motors $rofile6

It took a 0< month bridge loan of billion in March from a consortium of banks to

finance the 9*, accusation and its eDpansion plans

)ince the rights issue was announced on >;th may its share !alue has fallen more than 1 and

fell by 0.;> to ,s. :>C.;< on B)E" e!en though the bench mark indeD gained .; to end at

0


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INDUSTRY OUTLOO%The Indian Automobile Industry enoys the ad!antage of low cost base" high skilled

labour" strong ancillary network coupled with @o!ernments support by way of concessionaleDcise duty of 08 for small cars" ban on o!erloading and also significant in!estments proposed

for remo!ing infrastructure bottlenecks. The + industry is directly related to the economic

growth and de!elopment. The growth in demand for +s is directly related to the II$ indeD and

any upsurge in economic acti!ities will call for more cargo mo!ement in the economy.

The domestic + market grew at a +A@, of >8.7 during the last 8 years. In FO17" the

+ segment registered a growth of >.> due to )upreme +ourts ban on o!er loading trucks.

owe!er" we belie!e that this is a one2time demand and the + segment may not witness such

kind of growth repeatedly. There is a regulation that restricts the mo!ement of !ehicles abo!e

certain age 50< years in =ational +apital ,egion and ; years in Mumbai6. Though the rule is not

being followed strictly at present" in future if this rule is implemented strictly it will result in

huge replacement demand.

Gith the Indian economy eDpected to grow at ;. tonnes segment and 08.> to >< tonnes segment is booming at the cost

of demand in 0> to 08.> tonnes segment. -emand for trailers of \ tonnes is witnessing a

surge while demand for semi2trailers in >8.: to tonnes segment is suffering. This structuralshift in demand dynamics is due to the e!olution of ub ' )poke model of distribution" which is

now adopted by transportation players because of impro!ed road infrastructure and also the ban

on trucks in many cities by the authorities to tackle the traffic congestion issues. According to the

ub ' )poke model" +s plying o!er the highways to transport goods to different states and

districts" while M+s are used in distributing goods to different cities and the last leg of

distribution in intra city is done by using Z[.< tonner !ehicles.


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Histor2 o3 TATA Motors

8

Tata Motors launches its first truck in collaboration with Mercedes2Benz.

Tata Motors is a part of the Tata and )ons @roup" founded by 9amshedi =ussarwani Tata and 9.

Baker. The company was established in 0C:< as a locomoti!e manufacturing unit and later

eDpanded its operations to commercial !ehicle sector in 0C


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launch of three more !ehicles" Tata Estate 50CC>" a stationwagondesign based on the earlier

LTataMobileL 50C;C6" a light commercial !ehicle6" Tata )umo5*+" 0CC:6 and Tata )afari 50CC;"

IndiaLs first sports utility !ehicle6. Tata launched the Indicain 0CC;" the first fully indigenous

passenger car of India. Though the car was initially panned by auto2analysts" the carLs eDcellentfuel economy" powerful engine and aggressi!e marketing strategy made it one of the best selling

cars in the history of the Indian automobile industry. A newer !ersion of the car" named Indica

>" was a maor impro!ement o!er the pre!ious !ersion and /uickly became a mass2fa!ourite. A

badge engineered!ersion of the car was sold in the (nited Singdom as the ,o!er +ity,o!er.

Tata Motors also successfully eDported large /uantities of the car to )outh Africa.The success of

Indica in many ways marked the rise of Tata Motors.

: TATA !r.ds

DAEOO ACKUISITION

Tata =o!us is one of the best selling commercial trucks in )outh Sorea.

Gith the success of Tata Indica" Tata Motors aimed to increase its presence worldwide. In >11:"

it ac/uired the -aewoo +ommercial ehicle +ompany of )outh Sorea. The reasons behind the

ac/uisition wereH

+ompanys global plans to reduce domestic eDposure. The domestic commercial !ehicle

market is highly cyclical in nature and prone to fluctuations in the domestic economy.

Tata Motors has a high domestic eDposure of ]C: in the M+ segment and ];: in
http://en.wikipedia.org/wiki/Tata_Estatehttp://en.wikipedia.org/wiki/Tata_Estatehttp://en.wikipedia.org/wiki/Tata_Estatehttp://en.wikipedia.org/wiki/Stationwagonhttp://en.wikipedia.org/wiki/Tata_Sumohttp://en.wikipedia.org/wiki/Indicahttp://en.wikipedia.org/wiki/Badge_engineeredhttp://en.wikipedia.org/wiki/Rover_CityRoverhttp://en.wikipedia.org/wiki/Rover_CityRoverhttp://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPGhttp://en.wikipedia.org/wiki/File:Tata_novus_ra06.JPGhttp://en.wikipedia.org/wiki/Tata_Estatehttp://en.wikipedia.org/wiki/Stationwagonhttp://en.wikipedia.org/wiki/Tata_Sumohttp://en.wikipedia.org/wiki/Indicahttp://en.wikipedia.org/wiki/Badge_engineeredhttp://en.wikipedia.org/wiki/Rover_CityRover


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the light commercial !ehicle 5*+6 segment. )ince the domestic commercial !ehicle

sales of the company are at the mercy of the structural economic factors" it is increasingly

looking at the international markets. The company plans to di!ersify into !arious markets

across the world in both M+ as well as *+ segments.

To eDpand the product portfolio Tata Motors recently introduced the >nd largest hea!y commercial !ehicle manufacturer in )outh Sorea. Tata Motors has

ointly worked with Tata -aewoo to de!elop trucks such as =o!us and Gorld Truck and

buses namely" @loBus and )tarBus.

HISPANO CARROCERA

ispano -i!o at the >11; FIAA in Madrid

In >110 stake inispano +arrocera)A"Aragonesebusmanufacturing company gi!ing it

controlling rights of the company.
http://en.wikipedia.org/wiki/Madridhttp://en.wikipedia.org/wiki/Hispano_Carrocerahttp://en.wikipedia.org/wiki/Hispano_Carrocerahttp://en.wikipedia.org/wiki/Arag?nhttp://en.wikipedia.org/wiki/Arag?nhttp://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPGhttp://en.wikipedia.org/wiki/File:Hispano_Divo_01.JPGhttp://en.wikipedia.org/wiki/Madridhttp://en.wikipedia.org/wiki/Hispano_Carrocerahttp://en.wikipedia.org/wiki/Arag?nhttp://en.wikipedia.org/wiki/Bus


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JAGUAR CARS AND LAND ROVERAfter the ac/uisition of British 9aguar *and ,o!er 59*,6 business" which also includes the

,o!er" -aimler and *anchesterbrand names Tata Motors became a maor player in the

international automobile market.

9aguar QF *and ,o!erLs ,ange ,o!er

%n >7 March >11;" Tata Motors reached an agreement with Ford to purchase their 9aguar and

*and ,o!er operations for()K> billion. The sale was completed on > 9une >11; Tata has gained

the rights to the -aimler"*anchester" and ,o!erbrand names.

In addition to the brands" Tata Motors has also gained access to > design centers and plants in

(S. The key ac/uisition would be of the intellectual property rights related to the technologies.
http://en.wikipedia.org/wiki/Jaguar_Carshttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Rover_Companyhttp://en.wikipedia.org/wiki/Daimler_Motor_Companyhttp://en.wikipedia.org/wiki/Lanchester_Motor_Companyhttp://en.wikipedia.org/wiki/Lanchester_Motor_Companyhttp://en.wikipedia.org/wiki/Lanchester_Motor_Companyhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Daimler_Motor_Companyhttp://en.wikipedia.org/wiki/Daimler_Motor_Companyhttp://en.wikipedia.org/wiki/Lanchester_Motor_Companyhttp://en.wikipedia.org/wiki/Rover_Companyhttp://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPGhttp://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPGhttp://en.wikipedia.org/wiki/File:Land_Rover_Ranger_Rover.jpghttp://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPGhttp://en.wikipedia.org/wiki/Jaguar_Carshttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Rover_Companyhttp://en.wikipedia.org/wiki/Daimler_Motor_Companyhttp://en.wikipedia.org/wiki/Lanchester_Motor_Companyhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Daimler_Motor_Companyhttp://en.wikipedia.org/wiki/Lanchester_Motor_Companyhttp://en.wikipedia.org/wiki/Rover_Company


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JOINT VENTURES

Tata Marco$olo released this low2floor bus in India and now it is widely used as public transport

In >110 stake in ispano +arrocera )A" Aragonese bus manufacturing company

and introduced its highend inter2city buses in the country.

Tata Motors has also formed a


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IMPORTANT DEVELOPMENTS

I, 9BB= & B>

Tata Ace was IndiaLs first mini truck

Tata Ace" IndiaLs first indigenously de!eloped sub2one ton mini2truck" was launched in

May >1111


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)how Bologna which would be assembled in Thailand and Argentina. A pick2up !ariant of Tata

)umo was also launched under the program L@lobal $ick2(pL. The company plans to launch the

new pick2up model in India" )outheast Asia" Europe" )outh Africa" Turkey and )audi Arabia.

Tata Motors also un!eiled newer model of Tata Indigo and Tata Elegante concept2car during the@ene!a Auto )how.

Tata Motors also formed a oint !enture with Fiat and gained access to Fiats diesel

engine technology. Tata Motors is looking to eDtend its relationship with Fiat and I!eco to other

segments like the L@lobal $ick2(pL program. The launch of the L@lobal $ick2(pL will mark the

entry of the company into de!eloped markets like Europe and the (nited )tates. The proect was

initially collaboration between Tata Motors and its subsidiary Tata -aewoo +ommercial

ehicles" but later Tata Motors decided to work with I!eco as -aewoos design was not in sync

with the needs of sophisticated European customers. The company has formed a oint !enture

with Thailands Thonburi +ompany" an independent auto assembler" in which Tata Motors will

hold a 71 stake.

I, 9BB@COMPRESSED AIR CAR

Tata %ne+AT

Motor -e!elopment International of *uDembourg has de!eloped the worldLs first prototype of a

compressed air car" named %ne+AT. In >117" M-I owner @uy =egre was reported to ha!e the backing

of Tata.
http://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPGhttp://en.wikipedia.org/wiki/Motor_Development_Internationalhttp://en.wikipedia.org/wiki/Motor_Development_Internationalhttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Compressed_air_carhttp://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPGhttp://en.wikipedia.org/wiki/Motor_Development_Internationalhttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Compressed_air_car


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It has air tanks that can be filled in : hours by plugging the car into a standard electrical

plug. In >11; M-I planned to also design a gas station compressor" which would fill the tanks in

minutes. There are no gasoline costs and no fossil fuel emissions from the !ehicle when run in

town" but the compressed air dri!ing the pistons can be boosted by a fuel burner.

%ne+AT is a fi!e seat !ehicle with a >112litre 57.0 cu ft6 trunk. Gith full tanks it will run

at 011 kmNh 58> mph6 for C1 kilometers 5101" without disclosing the price. The

!ehicle would be launched in =orway in >11C.

Tata MotorsL (S subsidiary" Tata Motors European Technical +entre" has bought a


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GLO!AL OPERATIONS

Tata Motors has been aggressi!ely ac/uiring foreign brands to increase its global

presence. Tata Motors has operations in the (S" )outh Sorea" Thailand and )pain. Among them

is 9aguar *and ,o!er" a business comprising the two iconic British brands that was ac/uired in

>11;. Tata Motors has also ac/uired from Ford the rights to three other brand namesH -aimler"

*anchesterand ,o!er. In >11:" it ac/uired the -aewoo +ommercial ehicles +ompany" )outh

Soreas second largest truck maker. The rechristened Tata -aewoo +ommercial ehicles

+ompany has launched se!eral new products in the Sorean market" while also eDporting these

products to se!eral international markets. Today two2thirds of hea!y commercial !ehicle eDports

out of )outh Sorea are from Tata -aewoo.

In >11


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The @o!ernment of India announced an automobile policy in -ecember 0CC7. The policy

re/uired maority2owned subsidiaries of foreign car firms to in!est at least ()K11< and ()K>.7 billion by >101.

The policies adopted by @o!ernment will increase competition in domestic market"

moti!ate many foreign commercial !ehicle manufactures to set up shops in India" whom will

make India as a production hub and eDport to nearest market. Thus Tata Motors + will ha!e to

face tough competition in near future" which might affect its growth negati!ely.


51/140

The purchase of 9aguar +ars is eDpected

to help gi!e Tata Motors a foothold in

European and American markets.

Gith the un!eiling of Tata Eleganteduring @ene!a Motor )how" TataMotors re!ealed its intention to

enter the sedan and sports car markets.

Tata Indica assembled in Thailandand Argentina.

Tata $rima

The *uDury )edan was designed by $ininfrina and has marked the entry of Tata into the

international sedan market. The car is to be sold in India by >10 and around the world by >10:"111 units per

annum and at an in!estment of ,s7bn. The 9 plans to sell nearly half of its production in

the domestic market" while the rest is to be eDported to the Middle East" Turkey" ,ussia"

Asia and Africa. Further" the two companies ha!e formed another 9 to manufacture

buses in India from end2>117.

As*o) L20.,d" Ac/uisition of +zech ,epublic2based A!ia. Ashok *eyland 5A**6

recently ac/uired the truck unit of +zech ,epublic2based A!ia for ()K1"111 units per annum. The

ac/uisition has gi!en A** direct access to an entire range of A!ia trucks" A!ias press

shop with dies and tools" welding lines" state2of2the2art paint shop and ,'- facilities.

A** has also entered into technology agreements with ino Motors of 9apan and YF of

@ermany to complement its in2house ,'- efforts and de!eloping complementary

components and aggregates.

S(()i")uzuki through its subsidiary" Maruti )uzuki in the Indian market may also be

alarming. Maruti has aggressi!ely launched family cars to undermine the Tata models.


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MILESTONES

8;= Tata Engineering and *ocomoti!e +o. *td. was established to manufacture

locomoti!es and other engineering products.

8;@ )team road roller introduced in collaboration with Marshall )ons 5(S6.

8=; +ollaboration with -aimler Benz A@" Gest @ermany" for manufacture of

medium commercial !ehicles. The first !ehicle rolled out within 8 months of the

contract.

8= ,esearch and -e!elopment +entre set up at 9amshedpur.

8?? First commercial !ehicle manufacturedin $une.

8@: Manufacture of ea!y +ommercial ehiclecommences.

8@= First hydraulic eDca!atorproduced with itachi collaboration.

8@> $roduction of first light commercial !ehicle" Tata :17"indigenously designed"

followed by Tata 81;.

88 *aunch of the 0st indigenous passenger car Tata )ierra.

%ne millionth!ehicle rolled out.

8; *aunch of Tata )umo2 the multi utility !ehicle.

8= Mercedes Benz car E>>1launched.

8> Tata )umo deluDelaunched.

8? Tata )ierra Turbolaunched.

8@ Tata )afari 2 IndiaLs first sports utility !ehiclelaunched.

> millionth !ehiclesrolled out.

Indica"IndiaLs first fully indigenous passenger car launched.


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9BB8 Indica >launched 2 >nd generation Indica.

011"111th Indicawheeled out.

*aunch of the Tata )afari EQ

9BB9 >"11"111th Indicarolled out.

*aunch of the Tata )umoLL )eries

*aunch of the Tata Indigo.

Tata Engineering signed a product agreementwith M@ ,o!er of the (S.

9BB: %n >Cth 9uly" 9. ,. -. TataLs birth anni!ersary" Tata Engineering becomes Tata

Motors *imited.

millionth !ehicleproduced.

First +ity,o!errolled out

9BB; Tata Motors and -aewoo +ommercial ehicle +o. *td. sign in!estment

agreement and completes ac/uisition of -aewoo +ommercial ehicle +ompany

Tata -aewoo +ommercial ehicle +o. *td. 5T-+6 launches the hea!y duty

truck L=%()L " in Sorea

)umo ictalaunched

Indigo Marinalaunched

Tata Motors lists on the =O)E

9BB= Tata Motors rolls out the Turbo -iesel.

%ne millionth passenger carproduced and sold

Inauguration of new factory at 9amshedpur for =o!us

*aunch of Tata =o!us


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*aunch of =o!us range of medium trucks in Sorea" by Tata -aewoo +ommercial

ehicle +o. 5T-+6

9BB> Tata Motors !ehicle sales in India cross four million mark

Indica > Qetalaunched

$assenger ehicle sales in India cross one2million mark

Tata Motors first plant for small car to come up in Gest Bengal

Tata Motors and Fiat @roup announce three additional cooperation agreements

9BB? +onstruction of )mall +ar plant at )ingur" Gest Bengal" begins on 9anuary >0

=ew >117 Indica >range is launched

Tata Motors and Thonburi Automoti!e Assembly $lant +o. 5Thonburi6" announce

formation of aoint !enture companyin Thailand to manufacture" assemble and

market pickup trucks.

,oll out of 011"111th Ace

Tata2Fiat plantat ,anangaon inaugurated

*aunch of a new (pgraded range of its entry le!el utility !ehicle offering" the

Tata )pacio.

*aunch of Magic" a comfortable" safe" four2wheeler public transportation mode"

de!eloped on the Ace platform

*aunch ofGinger" Indias only maDi2!an

Fiat @roup and Tata Motors announce establishment of 9oint enture in India

*aunch of the )umo icta Turbo -I" the new upgraded range of its entry2le!el

utility !ehicle" the )umo )pacio

Tata Motors launches Indica > Turbo with dual airbags and AB)

*aunch of new )afari -I+%, >.> TT range" powered by a new >.> * -irectInection +ommon ,ail 5-I+%,6 engine.

,ollout of the one millionth passenger car off the Indica platform.

9BB@ *atest common rail diesel offering2 the Indica > -I+%," launched.

Indigo +) 5+ompact )edan6" worlds first sub four2metre sedan" launched.

*aunch of the new )umo 22 )umo @rande" which combines the looks of an )(


56/140

with the comforts of a family car.

Tata Motors un!eils its $eopleLs +ar" =ano" at the ninth Auto EDpo.

Qenon" 02tonne pick2up truck" launched in Thailand.

Tata Motors signs definiti!e agreement with Ford Motor +ompany to purchase

9aguar and *and ,o!er.

Tata Motors completes ac/uisition of 9aguar *and ,o!er.

Tata Motors introduces new )uper Milo range of buses.

Tata Motors is %fficial ehicle $ro!ider to Oouth Baton ,elay for The III

+ommonwealth Oouth @ames $une >11;.

Indica ista & the second generation Indica" is launched.

Tata Motors launches passenger cars and the new pick2up in -.,. +ongo.

9BB Tata =ano is launched.


57/140

MANAGEMENT

!o.rd o3 Dir1tors"

Mr R.t., N T.t. #C*.i6.,$

Mr. =. A. )oonawala

-r. 9.9. Irani

Mr. .,. Mehta

Mr. =usli = Gadia

Mr. ). M $alia

-r. ,. A. Mashelkar

Mr. ,a!i Sant

Mr. $. M. Telang

S,ior M.,./6,t

Mr. ,a!i Sant H EDecuti!e -irector

Mr. $. M Telang H EDecuti!e -irector

Mr. ,ai!e -ube H $resident 5$assenger +ars6

Mr. + ,amkrishnan H +hief Financial %fficer

Mr. $.O. @ur! H ice $resident 5+orporate Finance2 Accounts and TaDation6

-r. ). 9. Tambe H ice $resident 5uman ,esource6

Mr. Yackria )ait H ice $resident 5Technical )er!ices6

Mr. A. M Mankad H ead 5+ar $lant6

Mr. ). B. Borwankar H ead 59amshedpur $lant6

Mr. ). Srishnan H ice $resident 5+ommercial2$+B(6

Mr. ,a!i $isharody H ice $resident 5)ales ' Marketing6

Mr. . S. )ethna H +ompany )ecretary


58/140

AARDS

$+B( bags anda @olden Sey Award_.

Tata Motors recei!es (ptime +hampion Award >117.

Aggregates Business" +B(" bags Best )upplier Award from E+E*.

=-T $rofit Business *eadership Award.

Tata Motors bags =ational Award for EDcellence in +ost Management_

Tata Motors T,ASIT bags sil!er award for EDcellence in +ost Management_

Tata Motors $une & +B( has bagged the R@olden $eacock =ational ?uality Award.

Tata Motors was awarded four prestigious honors" at the +=B+ T0;2Auto +ar.

Tata Motors chosen as Indias Most Trusted Brand in +ars_

Business Today selects Mr. $.$ Sadle as Indias Best +F% in >1111: awarded to Mr. $ra!een $ Sadle" EDecuti!e -irector.

Tata Motors wins @olden $eacock Award for +orporate )ocial ,esponsibility.

Tata Motors & 9amshedpur wins Energy Efficient (nit Award.

Tata Motors wins the first +)I, -iamond 9ubilee Technology Award.

Tata Motors 9amshedpur ' *ucknow win awards_


59/140

Prod(1ts o3 TATA Motors

8 P.ss,/r 1.rs .,d (ti0it2 v*i10s

TATA

SUMO GRANDE

TATA SAFARI


60/140

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61/140

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TATA MARCOPOLO !USES

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62/140

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63/140


64/140

MAR%ETING STRATEGIES

8

LAUNCH OF TATAnano

TATA un!eiled its long awaited 0 *akh rupee car5actually a little o!er 0 lakh after taD6 for the

masses and they call it T* Po50s C.r'. Its a sweet looking small car" ust enough to take

four people around the city. 0 *akh rupees roughly translate to >


65/140

+ritics of the car ha!e /uestioned its safety in India5where reportedly C1"111 people are

killed in road2accidents e!ery year6" and ha!e also criticised the pollution that it would cause

5including criticism by =obel $eace $rize winner ,aendra $achauri6. owe!er" Tata Motorshas

promised that it would definitely release =anoLs eco2friendly models alongside the gasoline2model.

The =ano was originally to ha!e been manufactured at a new factory in )ingur" Gest

Bengal" but increasingly !iolent protests forced Tata to pull out %ctober >11;. +urrently" Tata

Motors is reportedly manufacturing =ano at its eDisting $antnagar 5(ttarakhand6 plant and a

mother plant has been proposed for )anand@uarat. The company will bank on eDisting dealer

network for =ano initially. The new =ano $lant could ha!e a capacity of


66/140

The T.t. N.,o is a rear2engined"four2passengercity carbuilt by Tata Motors" aimed

primarily at the Indian market.The car is !ery fuel efficient" achie!ing around >8.11kmNlon the

highway and around >>.11kmNlin the city. It was first presented at the Cth annual Auto EDpoon

9anuary 01" >11;" at $ragati Maidanin=ew -elhi.=ano had a commercial launch on March >"

>11C and a booking period from April C to April >11C" with a starting price of ,s 0011


67/140

the elimination of one of two windscreen wipers. )ome components of the =ano are made in

@ermanyby Bosch"such asFuel Inection"brake system" alue Motronic E+(" AB) and other

technologies.

The =ano has >0 more interior space 5albeit mostly as headroom" due to its tall stance6 and an

; smaller eDterior compared to its closest ri!al" the Maruti ;11.Tata offered the car in three

!ersionsH the basic Tata =ano )td4 the +D4 and the *D. The +D and *D !ersions each ha!e air

conditioning" power windows" and central locking. Tata has set its initial production target at

>11C" material costs had risen from 0C to >C o!er the cars de!elopment" and

Tata faced the choice ofH

introducing the car with an artificially low price through go!ernment subsidies and taD2breaks

forgoing profit on the car

using !ertical2integration to artificially boost profits on cars at the eDpense of their

materials industries

partially using ineDpensi!e polymers or biodegradable plastics instead of a full metal2

body
http://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Boschhttp://en.wikipedia.org/wiki/Boschhttp://en.wikipedia.org/wiki/Fuel_Injectionhttp://en.wikipedia.org/wiki/Fuel_Injectionhttp://en.wikipedia.org/wiki/Fuel_Injectionhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Production_carhttp://en.wikipedia.org/wiki/Biodegradable_plastichttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Boschhttp://en.wikipedia.org/wiki/Fuel_Injectionhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Production_carhttp://en.wikipedia.org/wiki/Biodegradable_plastic


68/140

raising the price of the car

N.,o is .v.i0.0 i, t*r tri6 0v0s"

The basic Tata =ano )td priced at 0>"111 ,upeeshas no eDtras4

The deluDe Tata =ano +Q at 0: kG6 car

with a 8> cc rear engine and rear wheel dri!e" and has a fuel economy of :.0.C7 kmN*"


69/140

include a re!olutionary compressed2air fuel system and an eco2friendly electric2!ersion"

technologies on which Tatais reportedly already working" though no official incorporation2date

for these technologies in the new car has been released.

According to Tata" the =ano complies with Bharat )tage2III and Euro2I emission

standards. ,atan Tata also said" LThe car has passed the full2frontal crash and the side impact

crashL. Tata =ano passed the re/uired Lhomologation tests with $une2based Automoti!e ,esearch

Association of India 5A,AI6.This means that the car has met all the specified criteria for

roadworthiness laid out by the go!ernment including emissions or noise ' !ibration and can now

ply on Indian roads. Tata =ano managed to score around >: km per litre during its

homologation tests with A,AI. This makes Tata =ano the most fuel efficient car in India. =ano

will be the first car in India to display the actual fuel mileage figures it recorded at A,AIs tests

on its windshield. According to A,AI it conforms to Euro I emission standards which will

come into effect in India in >101.

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maDimize interior space makes the =ano similar

to the originalFiat


70/140

nanos TECHNICAL SPECIFICATIONS

E,/i," >cylinderpetrolwith Boschmulti2point fuel inection5single inector6 allaluminium horsepower 5>< kG6 8>:cc5; cu in6

alueMotronicengine management platformfrom Bosch> !al!esper cylinder o!erheadcamshaft+ompression ratioH C..C in6 7.< mm 5>.C in6$owerH $) 5 hpN>: kG6 < mm 5.> in6,ear trackH 0"0< mm 52inch wheels
http://en.wikipedia.org/wiki/Straight-twohttp://en.wikipedia.org/wiki/Straight-twohttp://en.wikipedia.org/wiki/Cylinder_(engine)http://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/Fuel_injection#Multi-point_fuel_injectionhttp://en.wikipedia.org/wiki/Fuel_injectionhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Cubic_centimetrehttp://en.wikipedia.org/wiki/Cubic_centimetrehttp://en.wikipedia.org/wiki/Cubic_inchhttp://en.wikipedia.org/wiki/Motronichttp://en.wikipedia.org/wiki/Motronichttp://en.wikipedia.org/wiki/Engine_control_unithttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/Four-stroke_cycle_engine_valveshttp://en.wikipedia.org/wiki/Camshafthttp://en.wikipedia.org/wiki/Camshafthttp://en.wikipedia.org/wiki/Compression_ratiohttp://en.wikipedia.org/wiki/Bore_(engines)http://en.wikipedia.org/wiki/Stroke_(engine)http://en.wikipedia.org/wiki/Power_(physics)http://en.wikipedia.org/wiki/Rpmhttp://en.wikipedia.org/wiki/Torquehttp://en.wikipedia.org/wiki/Rpmhttp://en.wikipedia.org/wiki/Rear_wheel_drivehttp://en.wikipedia.org/wiki/Manual_transmissionhttp://en.wikipedia.org/wiki/Manual_transmissionhttp://en.wikipedia.org/wiki/Steering#Rack_and_pinion.2C_recirculating_ball.2C_worm_and_sectorhttp://en.wikipedia.org/wiki/Turning_radiushttp://en.wikipedia.org/wiki/Metrehttp://en.wikipedia.org/wiki/Accelerationhttp://en.wikipedia.org/wiki/Fuel_efficiencyhttp://en.wikipedia.org/wiki/Fuel_efficiencyhttp://en.wikipedia.org/wiki/Seat_belthttp://en.wikipedia.org/wiki/Trunk_(automobile)http://en.wikipedia.org/wiki/Drum_brakehttp://en.wikipedia.org/wiki/Drum_brakehttp://en.wikipedia.org/wiki/Ground_clearancehttp://en.wikipedia.org/wiki/Suspension_(vehicle)http://en.wikipedia.org/wiki/McPherson_struthttp://en.wikipedia.org/wiki/McPherson_struthttp://en.wikipedia.org/wiki/Coil_springhttp://en.wikipedia.org/wiki/Straight-twohttp://en.wikipedia.org/wiki/Cylinder_(engine)http://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/Fuel_injection#Multi-point_fuel_injectionhttp://en.wikipedia.org/wiki/Fuel_injectionhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Cubic_centimetrehttp://en.wikipedia.org/wiki/Cubic_inchhttp://en.wikipedia.org/wiki/Motronichttp://en.wikipedia.org/wiki/Engine_control_unithttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/Four-stroke_cycle_engine_valveshttp://en.wikipedia.org/wiki/Camshafthttp://en.wikipedia.org/wiki/Compression_ratiohttp://en.wikipedia.org/wiki/Bore_(engines)http://en.wikipedia.org/wiki/Stroke_(engine)http://en.wikipedia.org/wiki/Power_(physics)http://en.wikipedia.org/wiki/Rpmhttp://en.wikipedia.org/wiki/Torquehttp://en.wikipedia.org/wiki/Rpmhttp://en.wikipedia.org/wiki/Rear_wheel_drivehttp://en.wikipedia.org/wiki/Manual_transmissionhttp://en.wikipedia.org/wiki/Steering#Rack_and_pinion.2C_recirculating_ball.2C_worm_and_sectorhttp://en.wikipedia.org/wiki/Turning_radiushttp://en.wikipedia.org/wiki/Metrehttp://en.wikipedia.org/wiki/Accelerationhttp://en.wikipedia.org/wiki/Fuel_efficiencyhttp://en.wikipedia.org/wiki/Seat_belthttp://en.wikipedia.org/wiki/Trunk_(automobile)http://en.wikipedia.org/wiki/Drum_brakehttp://en.wikipedia.org/wiki/Drum_brakehttp://en.wikipedia.org/wiki/Ground_clearancehttp://en.wikipedia.org/wiki/Suspension_(vehicle)http://en.wikipedia.org/wiki/McPherson_struthttp://en.wikipedia.org/wiki/Coil_spring


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9 Modi3i1.tio, i, TATA S(6o

The Toyota ?ualis and now competes with +he!rolet Ta!era. The discontinuation of

?ualis to launch the Toyota Inno!a pro!ed ad!antageous to Tata )umo. The )umo has seen a

series of changes in terms of refinement in this decade. It has been the fa!orite choice for cab

owners" as it is rugged and affordable.

The Tata )umo has been enoying its position in the M( market since 0CC:. It had stiff

competition with new )umo icta has been portrayed as a family lifestyle !ehicle" but in fact is a

carryo!er of the old )umo" with some cosmetic changes. The )umo comes in nine icta !ariantsH

+Q 01N7 )tr" -I +Q 7NCN01 )tr" -I EQ 7NC )tr" -I @Q 7NC )tr" -I *Q 7NC )tr" EQ 01N7)tr" @Q 7

)tr" @Q T+ 7 )tr" and *Q 01N7 )tr. All !ariants" eDcept the icta -I !ariants" are powered by a >2

litre Inline2: diesel engine. The @Q and @Q T+ !ariants get a >2litre turbocharged diesel engine

that generates ;C bhp. The icta -I !ariants get a 2litre turbocharged diesel engine. ,efinement"

both internal and eDternal" is e!ident across the !ariants. TataLs latest three !ariants under the

L)umo @randeL category are *Q" EQ and @Q a!ailable in >2seater" 72 seater and ;2seater

configurations. )umo @rande boasts of a powerful >.>2* -irect Inection +ommon ,ail

5-I+%,6 engine

SUMO SPACIOA no2frills !ersion called the Tata )pacio is also a!ailable. It is e/uipped with a 111 cc

-I diesel engine sourced from the popular *+ Tata :17. The prominent !isual difference was

the presence of round headlamps instead of the rectangular lamps. A soft top !ersion of the

)pacio called the )pacio )T was also introduced for the rural markets. After the facelift" the

)pacio inherited the styling elements of the older Tata )umo. In >117" the icta became a!ailable

with the )pacioLs 111 cc engine. And in terms of styling" the positioning of the spare wheel was

changed from the rear tailgate to the underbody of the !ehicle. This model comes in ; and 01seater !ariants and is !ery much popular with pri!ate transporters ' contract taDi !endors

because of its lower cost.

SUMO VICTA

The new )umo icta released in >11: featuredpower windows"power steering" dual A+"

central locking" clear lens multi reflector head lamps" crystal finish tail lamp cluster" anti glare
http://en.wikipedia.org/wiki/Power_windowshttp://en.wikipedia.org/wiki/Power_steeringhttp://en.wikipedia.org/wiki/Central_lockinghttp://en.wikipedia.org/wiki/Power_windowshttp://en.wikipedia.org/wiki/Power_steeringhttp://en.wikipedia.org/wiki/Central_locking


72/140

%,M) with electronic control" remote keyless entry" tachometers" *+- monitors" !oice

warnings" multiple trip odometers are all either standard or a!ailable options.

N+ TATA S(6o #SUMO GRANDE$Tata launched the S(6o Gr.,don 9anuary 01" >11;powered with a new generation

>>11 cc 0>1 bhp 5;C kG4 0>> $)6 -I+%,5Direct Inection Common Rail6 engine. It is the most

up market !ersion of the )umo a!ailable and features completely different body work. It lies

below the Tata )afariin TataLs product portfolio.

SUMO GRANDE S51i3i1.tio,s

To5 s5d 0:; kmNh 5C> mph6B to 8BB )6Q* #>9 65*$ 07.8 s

E,/i, T25 >.>* -I+%," > Bit E+( and ariable @eometry TurbochargerDis50.16,t #C.5.1it2$ >07C ccTr.,s6issio, 1 $) 500; hpN;; kG6 :111 rpmTor( >


73/140

: NE VERSION OF INDIGO 7INDIGO DICOR

Di1or V.ri.,tsThe -I+%, 5common rail diesel6 !ersion of Tata Indigo is a!ailable in two !ariants which has

already hit the bullLs eyes. The beefy ' bony structured sedan has the capacity to deli!er

maDimum tor/ue of 0:1=m 0;11 2 111 rpm. The Indigo -icor from Tata Motors has been

made apt for Indian roads especially with its dri!er ' co passengers oriented positi!e attributes

such asH

Anti2submarine front seats

=ew electronic instrument cluster with engine ,$M meter

,ear )eat with double folding backrest

ideo player with M$H with headrest mounted *+- screens

0.:2litre as rail diesel engine

I,di/o L Di1or

Tata Indigo *Q -icor on the other hand features manually operated with chrome strip outer rear

!iew window" black dials with chrome rings ' star check as the new pattern for its console '

A+ fascia.

I,di/o LS Di1or

Tata Indigo *) -icor features manually operated outer rear !iew mirror" black dials" ' Benz

sil!er as the new pattern for console ' A+ fascia. It has no mounted *+- screens.


74/140

Mileage =!i&y> : 14.75 kmplMileage = : 18.35 kmpl

ENGINESPtro0 0C8 cc M$FI $etrol Engine with >2Bit Microprocessor

MaD. $ower 2 ;< $) trillion in >11721;. The share of non2farm income will

be about two2thirds of the rural economy by >10>20.

=oticing this huge potential Tata motors now plans to tap the rural market" 81 per cent of

which runs on cash. Tata motors ltd. is working on strategies to make inroads into these markets.


75/140

SOT A,.02sis - T.t. Motors Li6itd

SOT Str,/t*s7 .),sss7 O55ort(,itis7 T*r.t

STRENGTHS

The internationalization strategy so far has been to keep local managers in new

ac/uisitions" and to only transplant a couple of senior managers from India into the new

market. The benefit is that Tata has been able to eDchange eDpertise. For eDample after

the -aewoo ac/uisition the Indian company leaned work discipline and how to get the

final product Lright first time.L

The company has a strategy in place for the neDt stage of its eDpansion. =ot only is it

focusing upon new products and ac/uisitions" but it also has a programme of intensi!e

management de!elopment in place in order to establish its leaders for tomorrow.

The company has had a successful alliance with Italian mass producer Fiat since >118.

This has enhanced the product portfolio for Tata and Fiat in terms of production and

knowledge eDchange. For eDample" the Fiat $alio )tyle was launched by Tata in >117"

and the companies ha!e an agreement to build a pick2up targeted at +entral and )outh

America.

EA%NESSES

The companyLs passenger car products are based upon rd and :th generation platforms" which

put Tata Motors *imited at a disad!antage with competing car manufacturers.

-espite buying the 9aguar and *and ,o!er brands 5see opportunities below64 Tat has not

got a foothold in the luDury car segment in its domestic" Indian market. Is the brand

associated with commercial !ehicles and low2cost passenger cars to the eDtent that it has

isolated itself from lucrati!e segments in a more aspiring India


76/140

%ne weakness which is often not recognised is that in English the word LtatL means

rubbish. Gould the brand sensiti!e British consumer e!er buy into such a brand Maybe

not" but they would buy into Fiat" 9aguar and *and ,o!er.

OPPORTUNITIES

In the summer of >11; Tata MotorLs announced that it had successfully purchased the

*and ,o!er and 9aguar brands from Ford Motors for (S W>. million. Two of the

GorldLs luDury car brand ha!e been added to its portfolio of brands" and will undoubtedly

off the company the chance to market !ehicles in the luDury segments.

Tata Motors *imited ac/uired -aewoo MotorLs +ommercial !ehicle business in >11: for

around ()- K08 million.

=ano is the cheapest car in the Gorld 2 retailing at little more than a motorbike. Ghilst

the Gorld is getting ready for greener alternati!es to gas2guzzlers" is the =ano the answer

in terms of concept or brand Incidentally" the new *and ,o!er and 9aguar models will

cost up to ;< times more than a standard =anoU

The new global track platform is about to be launched from its Sorean 5pre!iously

-aewoo6 plant. Again" at a time when the Gorld is looking for en!ironmentally friendly

transport alternati!es" is now the right time to mo!e into this segment The answer to this

/uestion 5and the one abo!e6 is that new and emerging industrial nations such as India"

)outh Sorea and +hina will ha!e a thirst for low2cost passenger and commercial

!ehicles. These are the opportunities. owe!er the company has put in place a !ery

proacti!e +orporate )ocial ,esponsibility 5+),6 committee to address potential

strategies that will make is operations more sustainable.

The range of )uper Milo fuel efficient buses are powered by super2efficient" eco2friendly

engines. The bus has optional organic clutch with booster assist and better air intakes that

will reduce fuel consumption by up to 01.


77/140

THREATS

%ther competing car manufacturers ha!e been in the passenger car business for :1"


78/140

3INAN!IAL

ANALYSIS


79/140

FINANCIAL OVERVIE

Y.r 9BB@-

B:

9BB?-B: 9BB>-B: 9BB=-

B:

9BB;-B:

E(it2 P.id U5 ;;:;;.C> >7.7>C1.C< 07::7.;1 0:80:.:< 01:8.;7 0;8C.70 0:C:.;>P!T >1.:PAT >1>;.C> 0C0.:8 0;.;; 0>8.C< ;01.:CP >8;0.> >:CC.7< >1:C.;> 08;7.00 00C>.C:Rv,( .r,i,/s i, 3or< >;::.0> >70:.8; >;:.;0 0:C7.;< 0108.8:

Rv,( >!oo) V.0( #U,it C(rr$ >1>.8; 077.:17.00 >;1:;.C: CEPS #.,,(.0isd$7 #U,it C(rr$ 87.:: 8>.0 .77EPS #.,,(.0isd$7 #U,it C(rr$ 0.CDivid,d #.,,(.0id $ 0

in R*.

2003-04 8.00

2004-05 12.50

2005-06 13.00

2006-07 15.00


80/140

2007-08 15.00

FORMULAE AT GLANCE

Cost o3 E(it27 %

-i!idend $er Oield [ -i!idend $er )hare N Book alue

@rowth rate 5@6 [ ,etention ,atio D ,%E

[ 502 $ayout ,atio6 D ,%E

,%E [ 5$AT & $reference -i!idend6 N E/uity )hareholder Funds

E/uity )hareholder Funds [ E/uity )hare +apital ,eser!es & $' * AN+ 5-r. Balance6

Cost o3 Dt %d

ROI

!A2ITAL STRU!TURE5,s in +r.6

Year

;;8

;; ;

; ;;

;;?

D!"#s$ 15 15 13 12.5 8

%ook &alue"#s.$ 202.68 177.57 143.'3 113.64 101.6'

a(ou) "*$ 2'.7 31.85 34.6 38.66 36.44

#e)en)+on #a)+o 0.703 0.6815 0.654 0.6134 0.6356

%, 2576.47 2573.18 2053.38 1651.' 12'2.34

,a 13'.01 476 363.35 363.82 '6

, 2437.46 20'7.18 16'0.03 1288.08 11'6.34

referen/e D++dend 0 0 1'.'4 0 0

Eu+)( 385.54 385.41 382.87 361.7' 353

#eseres 7453.'6 6484.34 5154.2 374'.6 3236.77 //oun)"Dr%alan/e$ 0 0 0 0 0

Eu+)( !areolder und 783'.5 686'.75 5537.07 4111.3' 358'.77

#E 0.31 0.31 0.30 0.31 0.33

ro) #a)e "*$ 21.86 20.80 1'.73 1'.22 21.18

9os) of Eu+)( "*$ 2'.26 2'.25 28.76 30.22 2'.05

In)eres) 425.61 368.51 2'3.4' 217.81 202.48

,o)al Deb) 6280.52 400'.14 2'36.84 24'5.42 125'.77


81/140

9os) of Deb) "*$ 6.78 '.1' '.'' 8.73 16.07

%I, 3002.08 2'41.6' 2346.87 186'.71 14'4.82

9ap+)al Emplo(ed 140'4.51 10852.'4 8447.52 6606.81 484'.54

#I "*$ 21.30 27.11 27.78 28.30 30.82

EIGHTED AVERAGE COST OF CAPITALYear ;;8

Surce Amun&2r'r&in

=C>!*&=C>

1eig#&e%!*& =C>

Eu+)( 385.54 6.14 2'.26 1.80

Deb) 6280.52 '4.22 6.78 6.38

6666.06 100.36 8.18

Year ;;

Surce Amun&

2r'r&in=C>

!*&=C>

1eig#&e%!*& =C>

Eu+)( 385.41 '.61 2'.25 2.81

Deb) 400'.14 '1.23 '.1' 8.3'

43'4.55 100.84 11.20

Year ;;

Surce Amun&

2r'r&in=C>

!*&=C>

1eig#&e%!*& =C>

Eu+)( 382.87 13.04 28.76 3.75

Deb) 2'36.84 88.47 '.'' 8.84

331'.71 101.50 12.5'

Year ;;

Surce Amun&2r'r&in =C>

!*&=C>

1eig#&e%!*& =C>

Eu+)( 361.7' 14.50 30.22 4.38

Deb) 24'5.42 87.34 8.73 7.62

2857.21 101.84 12.00

Year ;;?

Surce Amun&2r'r&in =C>

!*&=C>

1eig#&e%!*& =C>


82/140

Eu+)( 353.00 28.02 2'.05 8.14

Deb) 125'.77 78.11 16.07 12.55

1612.77 106.13 20.6'


83/140

EIGHTED AVERAGE COST OF CAPITAL #ACC$

Vs

ROI

Y.r ACC

#$

ROI

#$

Di33r,1

9BB@ ;.0; >0.1 0.0>

9BB? 00.>1 >7.00 0 0>.7.7; 0.11 >;.1 08.1

9BB; >1.8C 1.;> 01.0

REASONSFiscal >11;21C" the second year of 00th Fi!e Oear $lan saw a marginal fall in @-$ growth rate of

C.

The slowdown in economy.

Increase in inflation.

$oor credit a!ailability.

ardening of interest rate

,ise in price of input material

$roposed increase in fuel price and !olatility in foreign eDchange rates.

Manufacturing eDpenses" employee cost increase.


84/140

=et raw material consumption inclusi!e of processing charges increased" with pressure

on !olumes and margins.

!ALANCE SHEET ANALYSIS

From the abo!e statement it is seems that the company has become highly geared year

after year. To substantiate this" the net current asset which is a representation of their long term

debit is on the increase 5,s. >7">1.1 million In >118" ,s. :1">117" and ,s.

118" ,s.

8"

19742265 Project on TATA Motors

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Transcript of 19742265 Project on TATA Motors