Tata Nano
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Transcript of Tata Nano
GROUP : 6 SHELZA GUPTA SONIA WALIA SURBHI SHARMA SIDDHARTH GUPTA VIKAS HOODA SAMEER NARANG
TATA NANO DREAM LAND
INTRODUCTION
Chairman of TATA group- Mr. Ratan Tata. In 2005-2006,total revenues of company-
US$21.9 billion. Country’s total GDP in 2005-2006 is $782.14 billion Company’s revenue in 2005-06 2.8% of country’s GDP.
(ie. $21.9 billion) Market Capitalization- US $46.9 billion
TATA’S DREAM
• IDEA GENERATION-I saw families riding around on
scooters with kids standing up and themother carrying a baby and sittingpillion and decided to do somethingabout it. It started as a quest for anaffordable transportation solution”.RATAN TATA
• source:- Business standard
TATA’S DREAM
• Providing a car of Rs 1,00,000 in
Indian Market.• Target segment-middle class families.• He wants to introduce affordable
car in India.• "Nano" derives from the Greek root 'nanos', meaning
dwarf — as with nanometre. • INDICA’S success gave confidence
to Ratan Tata to go with his Dream Car.
FEATURES OF TATA NANO STATED BEFORE ITS INTRODUCTION
Dimensions:
- 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6metres high.
- Can seat four to five people
Engine: A two cylinder 700 cc, 35 horsepower rear mounted, all
aluminium, multi-point fuel injection petrol engine can power the car to top speeds of 105 kilometres per hour (65 miles per hour).
Fuel Efficiency: - 20 kilometres per litre, or 50 miles per gallon is claimed.
Pollution: - Exceeds Indian regulatory requirements and can meet strict
Euro IV emission standards.
- In terms of overall pollutants, Tata says the car is better than two-wheelers manufactured in India currently
INTRODUCTION TO NEW PRODUCT TATA NANO
Low cost car Large sales volumes targeted Large scale production
STRATEGY ADOPTED BY TATA GROUP
LOW COST ASSEMBLY
OPERATION
WHAT MAKES TATA NANO SO CHEAP
NO AIR CONDITIONING ON STANDARD MODEL WINDOWS WIND
DOWN BY HAND
MANUAL STEERING, NO AIR BAG
PLASTICS AND ADHESIVES REPLACES WELDING
BODYWORK MADE OF SHEET METAL AND
PLASTIC
HOW TATA HAS PLANNED TO REDUCE COST
• Production of high volume parts in 1 plant.• The car was designed at Italy's Institute of
Development in Automotive Engineering which is cost effective.
• ASSEMBLY -CUM- RETAIL OPERATION APPROACH - encouraging local entrepreneurs to invest in satellite
units.
- to assemble all components
- sell and service the assembled vehicles
- Low cost service facilitity
- Eliminating Dealer’s margin
TATA’S SEARCH FOR LOCATION
• Search for best Location is very challenging task because of following reasons-o PROFIT MARGINS are very less, so PRICE FACTOR is so important
in this project.
• Company has to take into consideration - logistics
- social infrastructure such as proximity of educational institutions for employee’s children.
- skilled labor, proper infrastructure
• 3 Locations which seems to be lucrative were KARNATAKA
WEST BENGAL
UTTRANCHAL
WHY A NEW PLANT??
• Volume Requirement • Strategic decision:
Nearness to raw materials Connectivity Proximity to ancillary units
WHY TATA HAD CHOSEN WEST BENGAL??
Nearness to source of raw material Availability of required Size/Area of land. Government Subsidies Connectivity via Road, Sea Cheap labour
NEARNESS TO SOURCE OF RAW MATERIAL
Singur close to Tata’s traditional base andnursery for newenterprises, the Tata’snetwork of iron andsteel industries in theregion of Jamshedpur, in Jharkhand.
Singur - Jamshedpur 280 Kms. (approx)
AVAILABILITY OF REQUIRED SIZE/AREA OF LAND
997 acres of land assured by West Bengal
Government 645.67 acres of land for mother plantPlans to have ancillary units in the same area Schools, hospitals, training facilities etc
also to be built.Land at very concessional rate payable within next 20
years.
GOVERNMENT SUBSIDIES
100% exemption from Excise Duty for 10 years 100% exemption from Corporate Income Tax for first
5 years and 30% exemption for next 5 years 650 acres of land on lease for 90 years @ Rs.8,000
per year per acre for first 45 years, Rs.16,000 per year per acre thereafter Power Subsidy
CONNECTIVITY
Connected by NH-2 New Delhi Kolkata National Highway
Connected to Gujarat, Maharashtra, Chhattisgarh, Orissa and Jharkhand by NH-6
Haldia Port for overseas exports
CHEAP LABOUR
47.3% Unemployment prevailing in state 17.9% employed work for less than Rs.1000/month Poor working conditions
ROLE OF WEST BENGAL GOVERNMENT IN ACQUIRING LAND
Govt. of west Bengal came forward in acquiring land because LAND WAS FRAGMENTED.
Justifications given by govt in land acquisitions are as follow:- It is for public purposeEmployment Generation Development of SocietyCompensation to farmers which is 150% more than current
market price.
Owners of single crop land in singur got Rs. 8,40,000 per acre
Owners of double-cropping land will get Rs.1.2 billion per acre.
Important factor in convincing 9000 land owners was COMPENSATION PACKAGE by West Bengal government.
JUSTIFICATIONS GIVEN BY COMPANY TO FARMERS IN ACQUIRING LAND
cited eg. of Uttaranchal where company set up a plant and the farmers of Uttaranchal have gained profit.
Approached NGO’s and Panchayats to provide trainings to locals.
Promised to give technical training in areas such as carpentary ,plumbing,electrician , simple fitting.
• Proposed weekly forum meeting.• Special training programmes for women• Plan to introduce technical subjects in local secondary
schools
WHY ACQUISITION OF LAND IN SINGUR WAS FAILURE
• ACC. to govt acquisition process was completed and land is handed over to WBIDC , but still 3000 farmers yet to receive payment.
• Another allegation was acquisition of land is for private purpose.
• Acc to opposition, aqcuisition has not followed well estblished procedure of company making advance payments
• Land is being given to company at very concessional rate.• Other allegation is that Tata has acquired land far in
excess of what it actually requires to set up factory of that capacity.
• Major allegation on Tata is that they had forcibly acquired FERTILE LAND.
• Acc to Mamta Bennerge ,Out of 1000 acres,450 acres were FARMING LAND,and should be given back to farmers.
• Now Mamta Benerjee was troubling and disturbing their work schedule and their supporters is trying to every possible activity for exit their plant from singur.
• As a result , Tata's move out from singur.
Why do you think Tata’s had gone for Singur instead of Sanand? Did they made a right decision in doing so?
Justify your answer.
• Sanand was never an option by the TATAS. Sanand was offered by Gujarat CM Narendra Singh Modi after seeing the opportunity in the ongoing fight related to Singur in West Bengal.
Benefits of TATA in moving Gujarat
PROXIMITY TO AHMEDABAD(30
KM)
Tata Nano project location in Sanand
boasts of close connectivity to
National Highway-8 connecting Rajkot and
Ahmedabad.The Nano site is also close to the proposed
Dholera port. This could mean that if the Tatas need to export
the Nano, they wouldn’t have to go
far.
The Sanand plant will also have the convenience of
being close to Rajkot where a slew of Nano components would be made at different
ancillary units
The benefits offered by the Gujarat government to Tata Motors are slightly better that what the West Bengal government offered to Tata Motors, he added.
• NO,TATA didn’t make right decision ….Because of the following reasons-lack of political wiliness- Agricultural land
Why did Tatas prefer to locate their ‘dream car’ plant at Singur, West Bengal at first place despite other equally good option such as Dharwad and
Uttaranchal?
VendorsTransportation costTerrainSize of parent plant
THANK YOU