Tata Motors-Fundamentals of International Management

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Tata Motors Group 7 Aayush Agarwal (1A) Arani Das (10A) Lekha Kamath (23A) Raghav Pandey (34A) Shadab Khan (46A)

description

The international perspective to doing business

Transcript of Tata Motors-Fundamentals of International Management

Page 1: Tata Motors-Fundamentals of International Management

Tata Motors

Group 7Aayush Agarwal (1A)Arani Das (10A)Lekha Kamath (23A)Raghav Pandey (34A)Shadab Khan (46A)

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Table of Contents

Tata Motors ranks 5th in India in terms of volumes

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1. Group & Company Profile2. Products & Key trends3. Presence across markets – domestic and international4. Employee Base5. Organization Structure6. Organization Control7. Competitors8. SWOT Analysis of the organization for development and

competitiveness9. Problems faced in different countries10.Future Outlook11.Summary and Conclusion

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Group & Company Profile

Tata Motors ranks 5th in India in terms of volumes

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Tata Motors was established in 1945

Bought Jaguar Land Rover from Ford Motor for 2.3 Billion $ in June 2008

Manufacturing plants are situated at Jamshedpur in the East, Pune and Sanand in the West and Lucknow and Pantnagar in the North

Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954

Consolidated revenues of INR 2,32,834 Crores (USD 38.9 billion) in 2013-14

Developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle , India's first fully indigenous passenger car, people’s car

First company from India's engineering sector to be listed in the New York Stock Exchange (September 2004)

• Tata group was founded by Jamsetji Tata in 1868• Presence in more than 150 countries• Group revenue in FY 13-14 : $103.27 billion• No. of employees worldwide: 581,470• Operates in seven business sectors: communications

and information technology, engineering, materials, services, energy, consumer products and chemicals

• Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels

• 32 publicly-listed Tata enterprises having a combined market capitalisation of about $132.35 billion (as on August 1, 2014), and a shareholder base of 3.9 million

• Tata Group Companies are guided by TCOC. This comprehensive document serves as the ethical road map for Tata employees and companies, and provides the guidelines by which the group conducts its businesses

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Products and Key trends

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The company’s main product lines are:• Passenger Cars: the compact car, Indica,

launched in 1998, the mid size, Indigo, launched in 2002, and the Indigo Marina, launched in 2004 in both petrol and diesel versions.

• Utility Vehicles: the Tata Sumo launched in 1994, the Tata Safari launched in 1998 and their variants

• Small Commercial Vehicles: the company created a new segment in 2005 by launching the Tata Ace, India’s first indigenously developed mini-truck.

• Light Commercial Vehicles: which include pickups, trucks and buses ranging from 2T GVW to 7.5T GVW

• Medium and Heavy Commercial Vehicles: which include trucks, buses, dumpers and multi- axled vehicles from 9T GVW to 40T GVW.

• Commercial Vehicle: A range of high horsepower trucks ranging from 220 HP to 400 HP in dump truck, tractor-trailers, mixers and cargo applications.

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Presence across markets

Tata Motors ranks 5th in India in terms of volumes

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Total number of locations where business activity is undertaken by the Company• Number of International Locations: Through subsidiaries and associate companies,

Tata Motors operates in over 175 markets and has over 6,600 sales and service touch points. The Company has manufacturing facilities in the UK, South Korea, Thailand, South Africa and Indonesia.

• Number of National Locations – Tata Motors manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).

Tata Motors had 70 (direct and indirect) subsidiaries (10 in India and 60 abroad) as on 31.03.2014.

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International Presence

• Substantial global footprint with operations spread across Asia, Europe, Africa and South America

• World's fifth largest truck manufacturer

• World’s fourth largest bus manufacturer

• International footprint established initially through exports since 1961

• Listed in the New York Stock Exchange in September 2004

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Employee Base1 2 3 4 5 6 7 8 9 10 11

Total number of employees

29,566 as at 31st March, 2014

Total number of employees hired on temporary/ contractual/ casual basis.

33,934 as at 31st March, 2014

Number of permanent women employees.

941 as at 31st March, 2014

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Organization Structure1 2 3 4 5 6 7 8 9 10 11

Board of Directors:Mr. Cyrus P. Mistry Non-Executive Director and Chairman

Mr. Nusli N. Wadia Non-Executive, Independent Director

Mr. Nasser Munjee Non-Executive, Independent Director

Mr. Subodh Bhargava Non-Executive, Independent Director

Mr. Vinesh K. Jairath Non-Executive, Independent Director

Dr. Ralf Speth Non-Executive Director

Ms. Falguni S. Nayar Non-Executive, Independent Director

Mr. Ravindra Pisharody Executive Director (Comm. Vehicles)

Mr. Satish B. Borwankar Executive Director (Quality)

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Organization Control1 2 3 4 5 6 7 8 9 10 11

Executive Director

Mr. Ravindra Pisharody

Executive Director

Mr. Satish Borwankar

President and CFO

Mr. C Ramakrishna

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President and Head Engineering

Dr. Timothy Leverton

President, PVBU

Mr. Ranjit Yadav

Chief HR Officer

Mr. Gajendra Chandel

Senior Vice-President, PVBU, Product Planning

Senior Vice-President, Business Planning

Mr. Abhijeet Gajendregadkar

Vice-President, (Internal Audit)

Mr. Nagesh Pinge

Senior Vice-President, CVBU

Mr. R Ramakrishna

Senior Vice-President, CVBU, Mfg.

Mr. Prasann Chobe Mr. Girish Wagh

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Domestic Competitors (Commercial vehicles)

44.17%

15.42%

10.99%

5.97%

5.63%3.84%

13.98%

Market Share in India (Jan - Jun'14)

Maruti SuzukiHyundaiMahindra and MahindraToyotaTata MotorsHondaOthers

Tata Motors ranks 5th in India in terms of volumes

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Domestic Competitors (Heavy Trucks)

Tata Motors is the market Leader by a huge margin

Tata Motors Ashok Leyland Eicher motors Swaraj Mazda Asia Motor Works

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Global Competitors (Heavy Vehicles)

Tata Motors ranks 5th in the world in terms of market shares

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SWOT Analysis

WEAKNESSES1. Lagging in the passenger car

segment compared to competitors2. Has faced quality and durability

complaints3. Limited presence in luxury car

segment in domestic market4. Limited international presence

THREATS1. Competitors much ahead in

passenger car segment2. Rising prices of raw materials

and fuel can pose a threat3. Increasing competition in

domestic luxury segment4. Sustainability and environmental

regulations could impact production cost

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Jaguar Land Rover(2008)

• PAT of £693m in Q1 FY15

Daewoo Commercial Vehicles Company (2004)

• rechristened Tata Daewoo Commercial Vehicles Company • two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo

Acquisitions

Jaguar Land Rover(2008)

• PAT of £693m in Q1 FY15

Daewoo Commercial Vehicles Company (2004)

• rechristened Tata Daewoo Commercial Vehicles Company • two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo

Joint Ventures

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International Expansion

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International SalesSales in Q1 FY15

• Consolidated revenue rose 38.2 percent to Rs.646,830 crores

• Revenue from the company's British unit, Jaguar Land Rover went up by 53.89 per cent to Rs 54,425.97 crore in Q1, as against Rs 35,364.97 crore in the year-ago period

• China sales were the highest, which also emerged as the most profitable region. China now contributes 28 percent of total sales versus 24 percent in Q4FY14

• UK, North America and EU witnessed 13-15 percent volume growth

• Slippages were only in Russia

New market winning product launches in FY2012-13

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Problems in International Markets

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Future Outlook and Conclusion1 2 3 4 5 6 7 8 9 10 11

•The global economy is on the path of recovery with improvement in consumer sentiment•The auto industry is showing signs of recovery with a stable government at the centre and renewed customer confidence•Government is also expected to come out with auto friendly policies which will boost the industry even further•Tata Motors seeks to expand its businesses both in domestic and international markets•In domestic markets Tata Motors seeks to establish strong footing in passenger car segment through new innovation and technology changes towards sustainable development and also retain its market share as the leading heavy vehicle manufacturer•Tata Motor is also looking towards international expansion in partnership with collaborating brands to positively affect its bottom line•Tata Motors is on the path of transforming the organization into a more competitive and profitable business in the coming years

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Thank You!