Case Study

Tata’s Dream Car Plant Location

Team Members

• Shreyas Godse – 13

• Amit kanade – 19

• Gaurang Medhekar – 27

• Ashish Raut – 45

• Saurabh Sangle – 48

Introduction

•Low Cost assembly operation

•Use of plastic in body of the car

•Use of Adhesives instead of welding

•Small satellite units

•Encourage local entrepreneurs

Tata Nano

Q. Why did Tatas prefer to locate their ‘dream car’ plant Singur, West Bengal despite other equally good options such as Dharwad and Uttaranchal ?

• TATA Group want to produce Nano in larger volumes with all the high-volume parts manufactured in one plant

• The West Bengal government was ready to provide required area (around1000 acres) to TATA by doing land acquisition

• They have offered various subsidies to TATA group

• Singur is about 50 kilometers north west of Kolkata to be the most suitable place

• Singur is very close to National Highway No. 2 connecting Kolkata with Delhi

• Fulfilled the different aspects such as logistics, easily available of resources, skilled labor, social infrastructure such as educational institute for the children of its employees

Q. Tata should have considered Pune and Jamshedpur where they already have multiple facilities and several ancillary units for locating this new plant. Do you agree with this statement?

• Cost of the car was important

• Operating cost should be low

• Cost of setting up of new plant

• West Bengal government was interested to bring TATA to their state

Q. Tata’s have often chosen wrong location for their plants, such as the one at Lucknow, which is also marred with controversies. Discuss.

• Lucknow as location for Tata Motors was not appropriate

• Did not get incentives as stated in the Industrial Investment Promotion Policy by UP government

• Uttarakhand government is providing excise duty exemption

• Shifted production to Pantnagar

Q. How do you think the problems at Singur can be amicably resolved by Tatas for earliest construction of their plant?

• Creating awareness of employment

• Provide training to locals

• Conducting weekly meetings

• Training programs for women

• Introducing technical subjects in secondary schools