35515477 Project Report on Tata Motors

8/6/2019 35515477 Project Report on Tata Motors

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INDUSTRIAL REPORTONTATA MOTORS LTD

Submitted for partial fulfillment of the requirement for the awards of Degree ofBachelor of Business Administration.

(BBA)

Submitted By: Under the Guidance of:Vineet gupta Prof. Rachna Chawla

Bharati Vidyapeeth University Institute of Management and ResearchAn ISO 90001:2000 Certified institute NAAC Accredited grades AUniversity.

STUDENT DECLARATION

I Vineet Gupta hereby declare that the work presented in this project entitled Tata Motors Limited submitted towards completion of project in B.B.A at Bharatiya Vidyapeeth University Institute of Management and Research, New Delhi, is an authentic record of my original work carried out under the guidance of Ms. Rachna, Professors, BVUIMR, New Delhi.

I have not submitted the matter embodied in this project for the award of any other degree.

Vineet Gupta

ACKNOWLEDGEMENT

The successful completion of the project would have been far from reality without mentioning the people who made an indelible impression while making the project.All the very outset thanks to Ms. Rachna Chawla for instructing me and providingme the opportunity to participate in the project and sharing her invaluable knowledge and experience with me. Her innovative ideas provided me clarity of thoughts, which helped me to think in the right way.

Without her help and guidance completion of the project report would have been very difficult. I would also like to give gratitude to all the other faculties who helped me in making the project worth wile and successful.


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I would also like to express my gratitude to Dr. S.S Vernekar [Director], BVIMR,New Delhi for providing all needful facilities in the campus and the best faculty for the students.Their thoughtful ideas, comments and conceptual insight into the subject kept mefrom floundering in my quest. Despite their busy schedule they spared valuablemoments for reviewing and rectifying this project work.Due to the proper guidance the making of project report became an enjoyable expe

rience and easy to workout.

Vineet Gupta

Certificate

This is to certify that the project titled TATA MOTORS Is a benefice work carriedout by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & Research, University of Pune. It is submitted in partial fulfillment of the requirement for the award of the Degree of BBA under our guidance and direction.

To the best of our Knowledge, it is an original piece of work.

Ms. Rachna Chawla

Certificate

This is to certify that the project titled TATA MOTORs Is a bonafide work carriedout by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & Research, University of Pune. It is submitted in partial fulfillment of the requirement for the award of the Degree of BBA under our guidance and direction.

To the best of our Knowledge, it is an original piece of work.

Director of BVIMRDr.S.S.Vernekar

INDEX

CURRENT INDUSRTRIAL SCENARIO..9CHAPTER: 1 COMPANY INTRODUCTION11


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1.1 GROUP INTRODUCTION....121.2: HISTORY OF GROUP...131.3: COMPANY PROFILE151.4: NATURE OF BUSINESS171.5 TYPE AND OWNERSHIP PATTERN...181.6: VISION..1917: MISSION....20

1.8: BOARD OF DIRECTORS..211.9: REGISTERED OFFICE.....211.10: SUBSIDIARIES.....22

CHAPTER 2: PRODUCTS & MARKETING STRATEGY....242.1: BRAND....252.2: PRODUCT MIX.252.3: PRODUCTS....272.4: PRODUCT LINE...302.5: TARGET CUSTOMER.312.6: PRESENCE OF THE COMPANY...322.7: NUMBER OF BRANCHES...33

2.8: DISTRIBUTIONAL CHANNEL COMPETITORS.......332.9: MARKET SHARE..342.10: POSITIONING.362.11: MARKETING STRATEGIES372.12: ADVERTISEMENT EXPENSES...39

CHAPTER 3: FINANCIAL ANALYSIS403.1: STOCK EXCHANGE ON WHICH THE COMPANY IS LISTED.413.2: WEIGHT AGE IN INDEX413.3: AUTHORIZED CAPITAL STRUCTURE..423.4: AUDITORS REPORT423.5: AUDITING COMPANY443.6: BALANCE SHEET ....44

3.7: PROFIT AND LOSS ACCOUNT.....453.8: BALANCE SHEET FOR THREE Years47

CHAPTER 4: ORGANIZATION STRUCTURE..484.1: ORGANIZATION STRUCTURE.....494.2: EMPLOYEES RECRUITMENT AND SELECTION PROCEDURES..514.3: TRAINING & DEVELOPMENT POLICIES.524.4: CONFLICT RESOLUTION MECHANISM...55

CHAPTER 5: FACTORY LOCATION.....565.1: FACTORY LOCATION...57

CHAPTER 6: SWOT ANALYSIS OF TATA MOTORS

...586.1: STRENGTHS...596.2: WEAKNESSES...606.3: OPPORTUNITY.....606.4: THREAT.61MY LEARNINGS FROM THIS PROJECT..62BIBLIOGRAPHY..63

CURRENT INDUSRTRIAL SCENARIO

In a matter of few months, things have begun to appear gloomy for the auto components sector. Rapid escalation in steel and iron prices, a key raw material, hasliterally pushed the players to the wall.


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Though OEM customers have been dithering on the issue of price increase, in thecurrent scenario manufacturers and suppliers would have to share the burden of this price escalation in pig iron and steel, said DGM, Engineering and Business Development, AM Divekar. Component suppliers point out that scrap steel, which was available on spot at around Rs 20-22 per kg till about three months back, is not available currently even at Rs 30 per kg, either on spot or cash basis. Scraptraders or dealers have been refusing to commit on any medium or long-term comm

itment of supplying scrap metals even to their regular customers in anticipationof higher price realisations at a future date.

The anticipation of higher price realisation is driving the prices more than anyfundamental reasons and even pig iron suppliers are getting on to the bandwagonto take advantage of the situation, said Divekar. In current scenario, he addedthat players would have to be selective in their supply contracts with OEM customers, as it would not make much sense to continue with production and selling at cost price or even loss.

Smaller size foundries with castings and forging capacity of around 10,000 to 40,000 metric tonnes are the ones that are particularly badly hit by the metal pri

ce increase. The problem is further compounded by the fact that most of these smaller foundries supply non critical components to OEMs and getting a price hikefrom customers has been particularly difficult.

Though critical component suppliers may not have a major problem in getting thenecessary price increase from customers, the situation is clearly tenable and could lead to foundries going slow on their production rather than sell at a lossto OEMs, said Senior Manager, Projects at Precision Camshafts, AJ Jain. Precision Camshafts manufactures camshafts for passenger cars and tractors and counts Tata Motors, Hyundai and M&M among its key customers, in addition to having a major presence in the export market.

Foundries have no choice but to be selective in terms of customers as they would

continue to supply to OEMs willing to give price increase in tune with currentmarket realities and stop supplies to ones that are not responding to the situation, said President, Rajkot Engineering Association, Bhaveshbhai Patel who alsoruns his own foundry Vijay Engineering. Rajkot has an estimated 500 foundries and most are reeling under the rapid price escalation of steel and scrap/pig iron.Raw material forms around 40 to 60 percent of the total cost for a foundry. Foundries vary the percentage of scrap steel and pig iron used for manufacturing castings depending on the cost and availability of these inputs.

The raw material price escalation has come at a time when foundries dependent onthe automotive sector have seen a marked slowdown in all industry segments. Automotive sales have registered around seven percent fall in the period April 2007to March 2008, according to data from the Society of Indian Automobile Manufacturers (SIAM). The unfolding credit crisis also has players on edge of their seats in terms of continued demand for components from their global customers.


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CHAPTER - 1

COMPANYINTRODUCTION

1.1 Group introduction Jamsetji Nusserwanji Tata (1839 - 1904) was a pioneer of Indian industrialism as

well as the founder of the Tata Group.TATAs first step in the business came in December 1859 when his father sends himto hongkong to open a branch with a sum of Rs. 21000. There he makes connections& buyers by the time he started a trading company & established it to the Japan, China, Europe, and the United States. IN 1969 he acquired a bankrupt oil millinQueen Victoria was proclaimed Empress of India.In year 1868 Jamsetji Tata, started business with name as TATA since than company hasnt stop and became a global enterprise. Jamsetji were inspired by the spiritof nationalism which led the foot for the group. The group pioneeredseveral industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata groups pioneering spirit has been showcased by companies like Tata Consultancy Services, Indias first software company, with the

international delivery model, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano, for commercial launch by end of the financial year 2008-09.Tata has a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimatedat $62.5 billion (around Rs251,543crore), of which 61 per cent is from business outside India. The group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. They have n number of companies in India and in collaboration with other foreign companiesIndian Companies:4. TATA AIRLINE-CIVIL AVIATION well known as the chota nawab.

5. TATA CNSULTANCY SOFTWARE one of the leading consultancy in the worldThey also work for the welfare of the workers as they introduce;EIGHT-HOUR WORKING DAY in 1912.FREE MEDICAL AID in 1915SCHOOLING FACILITY FOR CHILDREN in 1917LEAVE WITH PAY WORKERS PF SCHEME in 1920

1.3: COMPANY PROFILETata Motors Limited is Indias largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehic

les in each segment, and among the top three in passenger vehicles with winningproducts in the compact, midsize car and utility vehicle segments. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus


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manufacturer. The companys 23,000 employees are guided by the vision to be best inthe manner in which we operate best in the products we deliver and best in ourvalue system and ethics.Established in 1945, Tata Motors presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the firstrolled out in 1954. Tata Motors, the first company from Indias engineering sectorto be listed in the New York Stock Exchange (September 2004), has also emerged

as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial VehiclesCompany, South Koreas second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo.In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake aswell. Hispanos presence is being expanded in other markets. In 2006, it formed a

joint venture with the Brazil-based Marcopolo, a global leader in body-buildingfor buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venturewith Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand at the Bangkok Motor Show 2008.Tata Motors is also expanding its international footprint, established through exports since 1961. The companys commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South EastAsia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal.The foundation of the companys growth over the last 50 years is a deep understand

ing of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 2,500 engineers and scientists, the companys Engineering Research Centre, established in 1966,and has enabled pioneering technologies and products. The company today has R&Dcentres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in 1998, the TataIndica, Indias first fully indigenous passenger car. Within two years of launch,Tata Indica became Indias largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, Indias first indigenously developed mini-truckIn January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which Indiaand the world have been looking forward to. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. When launched in India laterin 2008, the car will be available in both standard and deluxe versions. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost).The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels.Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation so

lutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.True to the tradition of the Tata Group, Tata Motors is committed in letter and


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spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labourand environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations.

1.4 NATURE OF BUSINESS

As it was established in 1945 its main business is to manufacture locomotive. The company manufactured its first commercial vehicle in 1954 in collaboration with "Benz AG. It is a global firms & one of the largest producer of CV & PV in competitive world. As it has the heavy raw material consumption in heavy quantity for producing heavy vehicles such as cars , trucks , mini trucks , railway coachesetc. It is Indias top & leading manufactures of the vehicles. It is listed in the top four commercial vehicle producer in the world. Its numerous joint venturesare going with different organizations across the world with DAEWOO & FORD so on.

There after they have produced numerous products in both commercial as well as in the passenger section. the company is also engaged in engineering and automotive solutions, construction equipment manufa

cturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.In 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and the world have been awaiting. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. In India, the car will be available in both standard and deluxe versions. The standard version has been priced at Rs.100, 000.Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an a

ctive role in community development, serving rural communities adjacent to its manufacturing locations. As all the Tata group companies are.

1.5 TYPE AND OWNERSHIP PATTERN

TYPE OF THE COMPANY:Tata motor is a public limited company. As 69% c

ompany holding is in the hands of the financial institutions and around 31% stake is with the Tata sons.

OWNERSHIP PATTERN:Tata Companies 33.42 % Daimler Chrysler 6.64 % Indian Financial Institutions /MFs / Banks 15.97 % ADR/GDR Holders / Foreign holdersDR status 12.72 % ForeignInstitutional Investors 16.96 % Other 14.08 % Total 100.00 % 1.6 VISION

This year we will also be focusing on expanding our business internationally. Thiswill demand that our products and services are globally competitive and that our enterprises operate to international standards in terms of quality and customer service. We will need to be extremely aggressive in the marketplace and much more proactive than we have been in the past in order to be leaders in our fieldsof business. We need a change of mindsets that break with past tradition in welcoming rather than resisting change.

Become a globally networked enterprise seizing opportunities worldwide to generate USD 25 million annual profits by 2008.Description of Vision


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Achieved aggressive and profitable growth of business.Become a cohesive, integrated and synergized global entity providing horizontaland vertical reach and infrastructure to all our partners worldwide.Consistently achieved customer delight by focusing on value adding activities throughout our value chain.Achieved best partner status with Group Companies in international business on asustained basis.

A strong global supply base for world class VEHICLES.Become a learning and knowledge rich organization acknowledged as thought leaders in international business.Institutionalized Tata Business Excellence Model and achieved best in class status.Become an exciting organization, which attracts and retains best talent worldwide for global competitiveness.Become a proactive, integral and responsible member of our environment and communities.

MISSION

To be a competitive value provider in international business for Group companiesand all our partners.Improve the quality of life of the communities.We serve through leaders ship in the sector of national economic significance.Tata Motors constantly looks for ways to offer the customer the best value for money. Beginning with a single truck model way back in the 1950s, today we have over 150 models and variants of vehicles, designed to transport goods and passengers. Our commercial vehicles can haul loads ranging from 2 tonnes to 40 tonnes. Likewise we have mini buses that can seat 12 people and buses that can accommodate as many as 60. Tippers, Tractor-trailers, 4x4 off road vehicles, multi-utilityvehicles-our range are vast. A significant breakthrough has been the development and commercialization of the truly Indian cars- Tata Indica and Tata Indigo.Our vehicles are capable of meeting stringent Euro norms. And we have been able

to do so by using technology, which is environmentally sustainable.

1.8 BOARD OF DIRECTORS

1. Mr.Ratan N Tata (Chairman)2. MR. N A Soonawala3. Dr. J J Irani4. Mr. V R Mehta5. Mr. Gopalakrishnan6. Mr. Nusli N Wadia7. Mr. S M Palia8. Dr. R A Mashelkar9. Mr. Nasser Munjee10. Mr. Subodh Bhargava11. Mr. Ravi Kant (Managing Director)12. Mr. P M Telang (Executive Director (Commercial Vehicles)

1.9 REGISTERED OFFICETata Motors has its registered offices in Mumbai, India. Its address is:Is Bombay House, 24Homi mody Street,Maharashtra,Mumbai 400001

1.10 SUBSIDIARIES

Telco Construction Equipment (TCE)ltd-adr" \t "_top" Hitachi, which focuses on excavators and other construction equipment.


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Telcon currently ranks among the top 40 Global Construction Equipment OEMs at the 38th position. It was at the 47th position last year.Telcon volume sales registered 44% growth; from 5,360 units in FY07 to 7,698 units in FY08.Telcon continues to be the market leader in excavator segment with a share of 53%.Market share in wheel loaders and backhoe loaders improved from 10% to 11.5%.

Several new products were launched by Telcon during the year such as Hitachis ZAXIS 50U, a 5 Tonne Mini Excavator which is Indias first zero tail swing Excavator,Hitachi ZW 220 Wheel Loader, which has many path breaking features that are setto redefine customer expectations from wheel loaders.TELCON is setting up a new State-of-the-Art Manufacturing Facility, Research andDevelopment Centre.a Training School at Kharagpur in India .Tata Technologies Limited (TTL)TTL provides Engineering and Design (E&D) solutions to the Automotive Industry.Tata Motors holds 86.91% of TTLs share capital. TTL is based in Pune (Hinjawadi)and operates in the US and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has a presence in Thailand. Tata Technologie

s is a software service provider in the IT services and BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a few. It bought over the British engineering and design services company, Incat International Plc for Rs4b in August 2005. Incat specializes in engineering & design services and product lifecycle management in the international automotive, aerospace and engineering markets. With this acquisition, Tata Motors will have closer proximity to its global customers and be able to provide a wider range of services.Tata Daewoo CV (TDCV)TDCV is a 100% subsidiary of the Tata Motors based in South Korea, which was acquired in March 2004. TDCV is in the business of manufacture and sale of heavy commercial vehicles. Tata Daewoo is Tata Motors 100% subsidiary in Korea, with a market share of 30%.Tata Motors will use the Daewoo technology to introduce highertonnage trucks in the Indian market and use Tata Daewoo for exports globally. I

n line with this strategy, it has already introduced the Novus, a high-end tipper developed by Tata Daewoo for the Indian market.

CHAPTER - 2

PRODUCTS&


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MARKETING STRATEGIES

2.1 BRANDTata Motors is the brand which concentrates on every kind of customer.Its the brand of every one. It is best in compact as well as sedan and SUV cars.Its a brand due to its superior quality, low running cost, high comfort, low maintenance cost. Its commercial vehicle is the best among the other entire brand present in the market. Some of the brands are the leading market capturer and wonmany awards for their distinct feature and quality. As the Tata Indica is the se

cond largest selling car in India for successive years and in CV sector there isno matching in India of it. Some of the other brands are INDICA VISTA, INDIGO X, FIAT CAR

2.2: PRODUCT MIX

PRODUCT MIX mainly comprises of how many types of product a company producesBreadth - the number of product lines carried.Depth - the variety of sizes, colors, and models offered within each product line.Tata motors has wide range of products in Indian and overseas market. In India Tata is the largest seller of both commercial sectors as well as in passenger one. As the company produces vehicles mainly in three segments they are;

Passenger segmentCommercial segmentMilitary segment.

First we highlighted the PV sector or Passenger vehicle.

Passenger sectorTata Motors has N number of PV cars in the automobile market both in INDIA and ABROAD. They have designed the cars with the view of NEED, PREFRENCES, and how much their pocket allow them to spend on cars, SO Tatas have every type of customerfrom lower middle to upper middle class which comprises half of Indian market.Tata has also purchased LAND ROVER and JAGUAR as to step in the luxury car market.

Although the sales of cars has decreasedcontinuously, due to economic slow down in the financial year 2008 but the sales level is increasing at a decreased rate from last year results. Company also working on number of concept cars and NANO is one of them. It is the cheapest carever made in the world at this level of production. It is stylish, good in performance, has all the effective features and more over its price is ONE LAKH RUPEE in Indian currency.

Next on the commercial sector;Commercial sector

Tata motor is 4th largest producer of commercial vehicle in the world and it is

the top most producers in Indian market. It has over 60% market share among theentire competitor. But its market share in abroad is less than 8% as it is on ethe new or emerging brand. Though the economic slow down has affected the sales


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volumes but hasnt a dramatic effect on is. Its condition is better than the PV sales volumes.

About product Tata motors changes theirproduct with the change in the need of the customer, they are now emphasizing onthe small trucks or the medium size trucks that can be used on daily bases andeasy to drive, park and wont require to much space. In bus segment Tata has introduce luxury buses for long tour purposes and for business uses. Some of them are

,

Last one military sector;Military vehicles

Tata motors also manufacture military vehicles in India for Indian armed forces.Such as military trucks, jeeps, etc

2.3 PRODUCTSTata motors has wide range of products in Indian and overseas market. In India Tata is the largest seller of commercial sectors & in passenger one has a marketshare of around 13%. As the company produces vehicles mainly in,

Passenger Segment,Commercial Segment &Military Segment

PASSENGER SEGMENT (PV)

Some the brand names are here,

PASSENGER CARSINDICA VISTAINDIGO XLNANOFIAT CAR

UTILITY VEHICALESSAFARI DICORSUMO GRANDESUMOXEMON XT

COMMERCIAL SEGMENT(CV)

Tata Motors currently has Trucks and Buses in the automobile market.

Tata 407Tata 709


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Tata 809Tata 11091510/1512Tata 1610/1616Tata 1613/1615Tata 2515/2516Tata Starbus

Tata GlobusTata 3118MILLITARY SEGMENT

Tata Motors currently has 8 Military Vehicles in the military segment.

Tata LSVTata 407 Troop CarrierTata LPTA 713 TCTata LPT 709 ETata SD 1015 TCTata LPTA 1615 TC

Tata LPTA 1621 TCTata LPTA 1615

2.4: PRODUCT LINE

In product mix there are different products but in product line there is classif

ication of one product on basis of color, accessories etc.A product line is a broad group of products, intended for similar uses and having similar characteristics.As Tata Motors deals in cars, trucks, Buses but here we are talking about Tata Motors which produces cars so its product line will be differentiated on the basis of the size or class of the car, as a compact car, sedan, Muv, Suv. Because there are no other type of products so its product mix and product line will be almost same.The most recent inclusion in Tata is the world famous car NANO. It is included in the list because of its price as it is the cheapest car in the world and provides all the facilities which a car needed. Tata has launched NANO in India in 2008, with its four models. The standard model is the cheapest one of one lakh (exclusion of all taxes).In case of cars the Product Line will include different colors of a car, facility provided, accessories of the car.

Like, in case of Tata,It comes in various colors. Like white, blue, red, black, etc.It has variance on basis of accessories provided like

1. Power steering,2. Stereo,3. Leather Seats etc.

It has deviation on basis of engine. Like diesel, petrol, etc.

2.5: TARGET CUSTOMER

Tata Motors has every kind of customer from lower middle to upper middle class which comprises of more than half of Indian automobile market.Tata Motors focuses on every customer as it is customer loyal brand it has produ


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cts like,Tata Indica, Tata Marina which are cars simple but trendy cars for lower incomegroup people.Tata Indigo is big size cars which are high performance, luxury cars.Tata safari, sumo, Vista is some Muv which is trendy, stylish and powerful.

Tata Motors has a future planning to capture whole rural market, because they sa

y no other brand focuses on that huge part of market and it will be an opportunity on our part to satisfy their emerging needs of automotive products.So its very difficult to classify target customer for Tata Motor because they aremodifying their products and company and are inventing new products to capturewhole automobile market and each and every customer.

PRESENCE OF THE COMPANY

Tata motors established in 1945 and thereafter it has developed in different countries like Japan, China, Europe, the United States, UK, Britain, Middle East Asia and south east. SHAPE \* MERGEFORMAT

NUMBER OF BRANCHES

It will not be false to say that Tata Motors is present in INDIA because it hasits29 regional sales centre,1450 dealers,500 independent dealer outlets,2000authorized service centersAt those place where other competitors dont have.

2.8 Distributional Channel CompetitorsTATA MOTORS has about 19 distributors and over 1000 authorized retailer outlet b

ut it is continuously trying to develop a better or correcting by making it better to cut down the complaint about the none availability of auto parts easily, service centers, Original spare parts and so. Therefore they take some steps to correct out the deficiencies of its distributional channel in comparison its competitors.

Strengthening the Distribution Channel They are constantly trying to make their distribution channel as widespread as possible andensure that Tata Genuine Spare Parts are easily available.

Distributors and authorized retailers: To identifyauthorized retailers, look for:

Tata Motors Glow Sign Boards displayed outsideRetailer authorization certificate with customer code and name of authorized distributor.

Retailer Authorization Certificate: Look for Tata Motors glow sign boards prominently displayed outside the authorized retail outlets

Retailer Authorization Certificate: Displayed by everyAuthorized Retailer in his shop bearing his customer code and name of Authorized Distributor.

Retailers Directory: To assist their customers in locating authorized retail outlets, they have published the retailers directory, a first of its kind by any vehicle manufacturer in India.2.9: MARKET SHARE

Tata motors have a wide variety of products in different ranges for each sectionof society. There fore it is difficult to maintain the same share of each secto


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r or for each product. But in case of Tata motors they are maintaining the progressive rate with large variety in each section of its products in CV as well asPV sector.

They have over 60% marketshare in CV sector and 12.66% in PV sector. The market share of Tata in recent past is shown in graphical form with the comparison with its competitive firms inlast few financial years.

The tabular formation shows the competitive ratios of Tata with its competitors in PV SECTOR

Indian Passenger Vehicle Market Competitive Scenario MARUTI TATA HYUNDAI MAHINDRA TOYOTA HONDA Passenger Cars 52% 17% 19%- 1% 5% Utility Vehicles 2% 18% 1% 42% 21% 1%4TH LARGEST VEHICALE IN ASIA

The tabular formation shows the competitive ratios of Tata with its competitors in CV SECTOR.

TATA ASHOK LEYLAND MAHINDRA EICHER FORCE SWARAZ MAZADA Medium & HeavyCV - Trucks 64% 24% - 8% - 3% Buses L, M & HCV 40% 30% 7%5% 10% 6% Light & Small Comm Veh Trucks 59%


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BUID STRONG RELATIONS WITH PARTNERS AND CUSTOMERS

RESPONSIBILITYWHAT COMES FROM THE PEOPLE GOES BACK TO THE PEOPLE MANY.

These policies help or become a path for the market stratergies & led a solid foundation for introduction of their products and services, which can be easily vi

sible at the time of launching of TATA NANO. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities around itsmanufacturing locations.

Some other issues they work on are;Green Matters,Restoring Ecological Balance,End of Life Vehicle Treatment and Recycling,Reducing Pollution.

The recent of the process is employed in RUSSIATHEY have decided to enter Russia not just to sell their vehicles but also to bepart of the Russian economy and grow with our customers by offering the best value proposition through products and services Russian market with a range of products, as part of its global growth strategy.2.12 ADVERTISEMENT EXPENSESAs we can see that {Q1-Quarter 1, Q2-Quarter 2} in all on an average Tata Motorssexpenses on advertisement are increasing. Due to the rise in competition and entrance of new players into the market the company now has to spend a huge amounton the advertisement of its products.

CHAPTER - 3

FINANCIALANALYSIS


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3.1 Stock Exchange on which the company is listed

Tata Motors is listed inNew York Stock Exchange [NYST] (September 200

4)

National Stock Exchange [NSE] and

Bombay Stock Exchange [BSE]

India &South Asia

3.2 Weight age in Index

NAME TATA MOTORSPERCENT WEIGHT IN INDEX 63 SHARES

IN INDEX 0.385.66LAST PRICE 459

3.3 Authorized Capital Structure

From year 2007 to 2008,

Class of share Equity share

Authorized capital Rs 450

Issued capital Rs385.50

Paid up share (nos) 385503954

Paid up face value 10

Paid up capitalRs 385.50

3.4: AUDITORS REPORT

1. We have audited the attached Balance Sheet of TATA MOTORS LIMITED as at March 31, 2008, and also the Profit and Loss Account and the Cash Flow Statement forthe year ended on that date both annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express

an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accep


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ted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made bythe Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specifiedin paragraphs 4 and 5 of the saidOrder.4. Further to our comments in the Annexure referred to in paragraph 3 above, wereport that:

(i) We have obtained all the information and explanations, which to the best ofour knowledge and belief were necessary for the purposes of our audit;

(ii) in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(iii) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(iv) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referredto in sub-section (3C) of Section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on March 31, 2008, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2008 from being appointed as

a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; and

(vi) in our opinion and to the best of our information and according to the explanations given to us, they said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues applicable to the Company were in arrears, as at March 31, 2008 for a period of more than six months from the date they became payable.3.5: AUDITING COMPANY

For DELOITTE HASKINS & SELLS

Chartered AccountantsM.S. DharmadhikariPartnerMembership No.: 30802

Mumbai: May 28, 2008


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3.6: Balance sheet and Ratio Analysis

[Rs in crores]

Mar ' 08 Equity share capital 385.54 Share application money - Preferenceshare capital - Reserves & surplus 7,428.45 Secured loans 2,461.99 Unsecured loans 3,818.53 Total 14,094.51 Gross block 10,830.83 Less : revaluation

reserve 25.51 Less : accumulated depreciation 5,443.52 Net block 5,361.80Capital work-in-progress 5,064.96 Investments 4,910.27 Current assets, loans & advances 10,781.23 Less : current liabilities & provisions 12,029.80 Total net current assets -1,248.57 Miscellaneous expenses not written 6.05 Total 14,094.51 Book value of unquoted investments 4,145.82 Market value of quoted investments 2,530.55 Contingent liabilities 5,590.83 Number of equity sharesoutstanding (Lacs) 3855.043.7: PROFIT AND LOSS ACCOUNT[Rs in crores] Mar ' 08 Operating income 28,738.30 Material consumed 20,931.81 Manufacturing expenses 1,230.14 Personnel expenses 1,544.57 Selling expenses 1,179.48Administrative expenses 1,982.79 Expenses capitalized -1,131.40 Cost of sales

25,737.39 Operating profit 3,000.91 Other recurring income 389.03 Adjusted PBDIT 3,389.94 Financial expenses 471.56 Depreciation 652.31 Other write offs64.35 Adjusted PBT 2,201.72 Tax charges 547.55 Adjusted PAT 1,654.17 Nonrecurring items 374.75 Other non cash adjustments - Reported net profit 2,028.92 Earnings before appropriation 3,042.75 Equity dividend 578.43 Preferencedividend - Dividend tax 81.25 Retained earnings 2,383.07

PERIOD ENDING 31-Mar-08 31-Mar-07 31-Mar-06 Assets Current Assets Cash And Cash Equivalents 373,800 246,100 252,500 Short Term Investments 19,30060,100 70,800 Net Receivables 1,640,600 1,406,100 830,100 Inventory 858,100 787,100 591,400 Other Current Assets 219,700 144,100 280,500 Total Current Assets 3,111,500 2,643,500 2,025,300 Long Term Invest

ments 2,563,100 1,799,700 1,185,600 Property Plant and Equipment 2,489,700 1,476,800 1,023,100 Goodwill 174,100 167,900 158,100 IntangibleAssets 77,800 69,400 53,000 Accumulated Amortization - - - Other Assets 811,100 130,800 99,800 Deferred Long Term Asset Charges - - - Total Assets 9,227,300 6,288,100 4,544,900 Liabilities Current Liabili

ties Accounts Payable 1,482,600 1,184,700 943,000 Short/Current Long Term Debt 1,724,500 902,600 212,200 Other Current Liabilities 1,390,500715,100 663,300 Total Current Liabilities 4,597,600 2,802,400 1,818,500 Long Term Debt 1,469,100 933,500 611,600 Other Liabilities 236,600199,400 81,100 Deferred Long Term Liability Charges 152,900 138,800 137,900 Minority Interest 140,800 94,100 74,300 Negative Goodwill - - - Total Liabilities 6,597,000 4,168,200 2,723,400 Stockholders' Equity Redeemable Preferred Stock - - - Preferred Stock - - - CommonStock 96,300 89,400 86,100 Retained Earnings 977,600 746,800 458,700 Capital Surplus 994,000 921,400 871,700 Other Stockholder Equity 562,400 362,300 405,000 Total Stockholder Equity 2,630,300 2,119,900 1,821,500 3.8: BALANCE SHEET FOR THREE YEARs

[Rs in crores]

CHAPTER - 4


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ORGANIZATIONALSTRUCTURE

4.1 ORGANIZATION STRUCTURE

Tata Motors has a Flat organizational Structure.

REASONS FOR CHOOSING FLAT ORGANIZATIONAL STRUCTUREEmployees are free to make suggestions.Team workQuality is basic ingredients.Information sharing,Team work,Participative management.

In more elaborated form it is like this,

4.2 EMPLOYEES RECRUITMENT AND SELECTION PROCEDURES

EMPLOYEE SELECTION PROCEDURE

I. Policy

The purpose of this policy is to provide uniform guidelines for the recruitmentand selection of employees at Tata Motors.

II. Process

The recruitment and selection process includes

Creating a new position.

Filling an existing vacancy.

Hiring a person.


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Reclassification of a position.

Transferring an employee from one position to another.

All requests should be submitted at least 30 days prior to the effective date ofthe requested action.

This will require proper planning.

Once a person is identified for a position, the following steps should be completed:

1. The Office of Human Resources will assist the hiring manager/supervisor in completing the Hiring Recommendation form.

2. The Hiring Recommendation form will be routed for the necessary signatures and returned to the Office of Human Resources after completion.

3. Once the candidate returns the signed offer letter, the Office of Human Resources will distribute copies to the Office of the Manager, the appropriate Manager, payroll, the appropriate collective bargaining unit and any other office thathas a need to know.

III. Responsibilities

The purpose of the search committee is to evaluate candidates for vacant positions on campus and make recommendations for hire. The Office of Human Resources will oversee each search committee and monitor the committees progress to ensure that positions are being filled expeditiously. In addition, the Office of Human Resources must ensure that the process remains fair.

SELECTION

Decision to Appoint

In selecting the successful candidate, the panel must make a decision based on the merit and eligibility of the candidates as judged by:

Content of application

Qualifications (if required for the post)

Performance at Interview

Outcome of any selection tests

Right to work in the UK.

The panel must seek to ensure that candidates appointed will actively promote the IPCCs Core Values.

4.3 Training & Development Policies

Tata motors are following a technique known as Big-scale cost reduction (BSCR) for its training and development of the employees of the company. They have adopt

ed this technique as most of the TATA GROUP companies have implementing the technique. Due to its main focus is on the cost reduction on a sustainable basis. With this technique alone Tata motors have saved over 2000crores in three years.


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BSCR major agenda is for all firms is, as competition demands elimination of allvarieties of slack and inefficiencies. Companies have to strive to reduce coston a continuous basis. The cost-reduction initiative has to be focused on majorcost elements and broad-based across all functions.ObjectiveThe programme will present a framework that could be used by Companies for reducing cost through a process-driven approach. The programmed will attempt to learn

from the best practices that the Tata motors have adopted and used.The Programme will also build practical linkages with the workplace through integration with the TBEM.ContentsThe following will be the contents of each half-day session :1. Open your eyes!

4. Application! INCLUDEPICTURE "http://www.tmtctata.com/images/bullet_arrow02_red.gif" \* MERGEFORMATINET Brainstorming specific cases for approach, based on results of initial diagnosis (to be carried out with the invitation) INCLUDEPICTURE -management skills Methodology

Combination ofcase studies andinteractive discussions along withlectures,Backed by reading material.4.4 Conflict Resolution MechanismOur relationship with the Future Group is essential to our business model, and we believe that it will operate to benefit of shareholders of our Company. This relationship may also create conflicts of interest with respect to potential opportunities between our Company and other entities within the Future Group.

See Risk Factors Conflicts of interest may arise and our failure to deal with them appropriately could damage our reputation and adversely affect our business. on

page of this Draft Red Herring Prospectus.

In respect of opportunities of strategic importance where operational control isintended, a right of first offer will be granted to the Future Group entity operating in the specific industry or sector in which those opportunities have arisen.

CHAPTER-5

FACTORY&

PLANT LOCATION


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5.1: FACTORY LOCATION

Tata motors have number of branches in India as well as in other countries. Someof productions branches which are located in India with the range of product they produce and some are under construction are as follows;

Plant location RANGE OF PRODUCTS PRODUCED PIMPLI AND CHIKALI, PUNECHINCHWAD, PUNE ( M&HCVS), ( LCVS), (UCVS) JAMSHAEDPUR TOWN POST OFFICEJAMSHEDPUR M&HCVS CHINHAT DEVA ROAD, LUCKNOW M&HCVS AND LCVS KIADB BLOCK 2, BELURE INDUSTRIAL AREA, DHARWAD PROJECT UNDER FORMULATION PLOT NO 1, SECTION 11INTEGRATED INDUSTRIAL ESTATE PANTNAGAR, RUDRAPUR, DISTRICT UTTAMSINGH NAGAR, UTTARAKHAND TRIAL PRODUTION COMMENCED PS SINGUR, HOOGLY DISTRICT, WEST BENGAL PROJECT UNDER IMPLEMANTATION

CHAPTER - 6

SWOT ANALYSISOF

TATA MOTORS

SWOT ANALYSIS

SWOT Analysis means Strength, Weakness, Opportunity, and Threat.These are the factors and the conditions prevailing in the company, industry andout side its environment. Those factors which prevail inside the company are known as Internal Factors and other which affect decision making and strategies ofthe business from outside are known as External Factors.

6.1: STRENGTHS

1. Name RecognitionThe name Tata Motors is the most recognizable auto manufacturer in India2. Company ImageTata Motors image is that of tough, dependable, long lasting vehicles. Its "Likea Rock solid vehicles".3. Product Diversity

Tata Motors features many different products for many different target groups. It has four divisions of vehicles: Compact Cars, Sport Utility Vehicles, Vans, Sedan.


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4. Racing SponsorTata Motors organizes racing events in India.Other

6.2: WEAKNESSES

1. No Luxury VehicleTata Motors does not feature, and has no intent to feature any type of luxury vehicle. Without this they cannot compete with foreign manufacturers. Even Ford and Chrysler have developed a luxury vehicle for their fleets.2. Weak In Horse PowerBesides the Grand Vitara, all Tata Motors vehicles are substandard to their foreign competition when comparing horse power. The Tata Motorss all vehicles features less than 160 bhp engine, while the Honda, Ford, Tata its direct competitor, boasts a 180 bhp engine.

3. Dull Product DesignOnce again, Tata Motors vehicles have a very conventional and boring design.This hurts the company drastically because people want power, reliability and style.Limited product portfolio in the passenger segmentOperations mainly restricted to India6.3: OPPORTUNITYIncreasing Plant CapacityTata Motors is increasing its production capacity by creating two more plants innear 2011.Result in mass production and will help in reducing per unit costCompany will be able to capture more shares in market due to Increasing demand

for cars in India.6.4: THREAT

Foreign CompetitorIntense competition from global players

Tata Motors has a threat from foreign players asTheir technology is much more newProducts are more upgradedThey have much more funds to invest in research and development.Increase in price of raw material.

MY LEARNINGS FROM THIS PROJECT:

I have learned lot of things through this industrial report. It is a great experience of making industrial report on TATA MOTORS PUBLIC LTD. TATA MOTORS Companyis one of the worlds largest automobile companies. The Tata motors Company was found by the Tata group in the year 1945 in INDIA. The Company operates world wide. The Company has produced numerous products.

I have learned two things from the industrial report. First is the about the company and second thing about the ms office & ms word. First in this project I lea


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rn that how a company perform it operations. How they are marketing their products? Which type of distribution network they have used? How to search data on internet? How to arrange the data in systematic manner in MS - Word?

Following are the learning about the company from this industrial project:History of the company.Vision and mission of the company.

Board of the directors of the company.Products of the company.How the company target the market.Distribution network of the company.Regional presence of the company in all over the world.Competitors of the company.Marketing strategy of the company.Financial position of the company.Market share of the company.Organization structure of in India.SWOT Analysis.

BIBLIOGRAPHY

Presence of TATA MOTORs in the global world

35515477 Project Report on Tata Motors

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Transcript of 35515477 Project Report on Tata Motors