Case TATA Motors
-
Upload
soumita-ghosh -
Category
Documents
-
view
237 -
download
0
Transcript of Case TATA Motors
-
7/31/2019 Case TATA Motors
1/21
1
Strategic Sourcing
India Sourcing Summit 2008
-
7/31/2019 Case TATA Motors
2/21
2
Strategic Sourcing
Tata Motors Overview
Global Aspiration of Tata Motors
China Sourcing
-
7/31/2019 Case TATA Motors
3/21
3
Strategic Sourcing
Indias largest automobile company
Revenue $ 7.2 Billion (2006-07)
Market leader in Commercial Vehicles & 2nd largest in
Passenger Vehicles in India
2nd largest medium and heavy bus manufacturer & 5th largest in
medium & heavy trucks in the world
1st company from the Indian engineering sector to be listed on
the New York Stock Exchange
Over 4 million vehicles on Indian Roads
Employee strength of around 22,000 employees
Tata Motors
-
7/31/2019 Case TATA Motors
4/21
4
Strategic Sourcing
1945 : Tata Engineering and Locomotive Co. Ltd., was established to manufacture
locomotive and other engineering products
1954 : Collaboration with Daimler Benz, West Germany
1954 : Launch of the first Tata Mercedes Benz Truck
1969 : First Tata branded trucks
1986 : First indigenously designed light commercial vehicle, Tata 407
1991 : Launch of Tata Sierra
1992 : Launch of Tata Estate
1994 : Launch of Tata Sumo
Milestones
-
7/31/2019 Case TATA Motors
5/21
5
Strategic Sourcing
1998 : Launch of Tata Safari
1998 : Launch of first indigenous passenger car - Tata Indica
2002 : Launch of Tata Indigo
2003 : Announcement of plan for small car
2004 : Launch of Indigo Marina: Acquisition of TDCV
2005 : Launch of Globus & Starbus
: Launch of ACE: 21% stake in Hispano Carocera
: MOU with Fiat
Milestones
-
7/31/2019 Case TATA Motors
6/21
6
Strategic Sourcing
2006 : JV with Marcopolo (Brazil)
: JV with Thonburi (Thailand)
: Distribution of Fiat branded cars in India
2007 : Small car plant construction in West BengaL
: JV plant at Ranjangaon with Fiat
: Magic and Winger launched
2008 :Unveiling of TATA Nano, New Indica , Sumo Grande
Milestones
-
7/31/2019 Case TATA Motors
7/217Strategic Sourcing
Tata Daewoo Commercial Vehicle Company Limited (TDCV) : Manufacture and sale of heavycommercial vehicles
Telco Construction Equipment Company Limited (Telcon) : Construction equipment and allied
services
Tata Technologies Limited (TTL) :Specialised Engineering & Design Services (E&D),ProductLifecycle Management (PLM) and productcentric IT services
TAL Manufacturing Solutions Limited (TAL) : Factory automation solutions and machine tools
HV Transmission Limited (HVTL)and HV Axles Limited (HVAL) : Gear Boxes and axles for heavy
& medium commercial vehicles
Tata Motors European Technical Centre plc (TMETC ) :Design engineering and development of
products for the automobile industry
TML Financial Services Limited (TMLFSL) : Preferred financier for customers of Tata Motors
Key Subsidiaries
-
7/31/2019 Case TATA Motors
8/218Strategic Sourcing
Tata Cummins Limited (TCL) : High horse power engines
for medium and heavy commercial vehicles
Tata AutoComp Systems Limited (TACO) : Domestic andforeign Joint Ventures in auto components and systems
Hispano Carrocera S.A (HC) : Bus manufacturing
Associate Companies
-
7/31/2019 Case TATA Motors
9/219Strategic Sourcing
Manufacturing Base
JamshedpurCommercial Vehicles
PuneCommercial as well as Passenger Vehicles
LucknowCommercial Vehicles
PantnagarCommercial Vehicles
South KoreaHeavy and Medium Trucks
SpainHigh Capacity Buses
MoroccoHigh Capacity Buses
-
7/31/2019 Case TATA Motors
10/2110Strategic Sourcing
Tata Motors Overview
Global Aspiration of Tata Motors
China Sourcing
-
7/31/2019 Case TATA Motors
11/2111Strategic Sourcing
Across Europe, Africa , Middle East, South East Asia,
South Asia, South America
Focus on select geographies - South Africa, Italy,Spain, Turkey etc.
Franchisee/joint venture assembly operations in
Malaysia, Kenya, Bangladesh, Ukraine, Russia andSenegal.
International Business
-
7/31/2019 Case TATA Motors
12/2112Strategic Sourcing
Acquisition of Daewoo Commercial Vehicles, S Korea
21% stake in Hispano Carrocera, Spain for buses &
coaches
JV with Thonburi in Thailand for pick-up trucks
JV with Brazil-based Marcopolo for buses& coaches
International footprint
-
7/31/2019 Case TATA Motors
13/2113Strategic Sourcing
Broad Memorandum of Understanding in 2005
Tata Motors distributes Fiat branded cars in India
JV factory in Ranjangaon to produce bothcompanies cars & Fiat powertrains
Fiat to manufacture Tata licensed pick-up in
Argentina
MOU with Iveco for feasibility study
Strategic Alliance with Fiat
-
7/31/2019 Case TATA Motors
14/2114Strategic Sourcing
Tata Motors will manage product development programsusing all our synergies to meet timelines with thoroughproduct validation
Engg Research CentrePune, Jsr, Lko
TATA TechnologiesINCAT, UK
Aggregate Suppliers
TATA Daewoo
Korea
Outsourcing Partners
Hispano-Spain &Marcopolo JV
Bus Body Building
ACGL - GoaTML-European Tech
Centre, UK
Managing
ProductDevelopmentneeds
ofTata Motors
-
7/31/2019 Case TATA Motors
15/2115Strategic Sourcing
Tata Motors Overview
Global Aspiration of Tata Motors
China Sourcing
-
7/31/2019 Case TATA Motors
16/2116Strategic Sourcing
Low
High
Focus Geography: U.S. Japan, Europe
Components: In Vehicle Networking,Navigation System, Body Control
Module, Automatic Lighting Controls,
Power Antenna etc.
Competitive Advantage: AdvancedTechnology
Focus Geography: India
Components: Forgings, Castings,Fasteners, rubber parts etc.
Competitive Advantage:Lower cost ofproduction and low transportation cost.
Focus Geography: US & Europe
Components:Airbag, ABS, Power Train,Automatic transmission, Vehicle
Architecture, EMS, etc.
Competitive Advantage: DevelopedAdvanced Technology
Focus Geography: China, Thailand,Taiwan, South Korea, India
Components: Power Steering, WheelRims, Clutch Boosters, Batteries, etc.
Competitive Advantage: Economies ofScale & updated technology
Technology
Value of Component
Low High
Sourcing Strategy
-
7/31/2019 Case TATA Motors
17/21
17Strategic Sourcing
Global Sourcing
Support Global manufacturing footprints by establishing world class
vendor base in territories of interest
Exploit FTAs by identifying sourcing opportunities in different
geographies which enjoy cost competitiveness due to unique local factors
Explore global market place to identify of the shelf / library contact tominimize development / tooling investments as also use proven products .
Overcome scale disadvantage faced by local suppliers by identifying
sources abroad who release much larger scale economies due to high
volume of production for the parts in those geographies.
Identify sources abroad to counter capacity shortage with domestic
supply base.
-
7/31/2019 Case TATA Motors
18/21
18Strategic Sourcing
3
16
3
1
100
4
2 5
66
-
20
40
60
80
100
120
Ind
ianRetail
Price
Indire
ctTaxes
Costof
Capital
Capital
Productivity
Labourcosts
Labour
Productivity
Manu
facturing
M
argins
Retailing
Margin
ChineseRetail
Price
Manufacturing Cost In India Supplier is Higher by 34 % wrt China
-
7/31/2019 Case TATA Motors
19/21
19Strategic Sourcing
0 10 20 30 40 50 60
Others
Metal parts
Plastic & rubber parts
Electronic & electrical parts
Mechanical Parts
Capital expenditures
Goodyear
Cummins
China offers substantial cost benefits and as a result, many of our Indian competitors arlooking for sourcing from China
SAVING POTENTIAL AND PLANS OF OTHER INDIAN COMPANIES
Average 35%
Primaryresearch
Secondaryresearch
Source: Tata Strategic analysis, BCG study
-
7/31/2019 Case TATA Motors
20/21
20Strategic Sourcing
Components Sources From China
Steering System Wheel RimClutch Booster
Front & Rear Axle Parts
Tyres
Glasses
Bearings
-
7/31/2019 Case TATA Motors
21/21
21S i S i
Thank You