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1. Industry Overview

The automobile industry in India is the eleventh largest in the world with an annual

production of approximately 2 million units. India is expected to overtake China as the

world's fastest growing car market in terms of the number of units sold and the automotive

industry is one of the fastest growing manufacturing sectors in India. Because of its large

market (India has a population of 1.1 billion; the second largest in the world), a low base

of car ownership (7 per 1,000 people) and a surging economy, India has become a huge

attraction for car manufacturers around the world.

The automotive industry directly and indirectly employs 13 million individuals in

India. The industry is valued at about US$ 35 billion contributing about 3.1% of India's

GDP (nominal). India's cost-competitive auto components industry is the second largest in

the world. In addition, India's motorcycle market is also the second largest in the world

with annual sales of about 5 million units.

Among the two-wheeler segment, motorcycles have major share in the market.

Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in

scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40%

of the market share. Among the passenger transport, Bajaj is the leader by making 68% of

the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share

in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles

Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60%

share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle

manufacturer.

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Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the

Automobile Industry of India has come a long way. During its early stages the auto

industry was overlooked by the then Government and the policies were also not favorable.

The liberalization policy and various tax reliefs by the Govt. of India in recent years has

made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is

currently growing at the pace of around 18 % per annum, has become a hot destination for

global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an

economy, and India is no exception to it. With the growth of transportation system the

Automotive Industry of India is also growing at rapid speed, occupying an important place

on the 'canvas' of Indian economy.

1.1 Snippets

The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto industry.

Within two-wheelers, motorcycles contribute 80% of the segment size.

Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).

Tata Motors dominates over 60% of the Indian commercial vehicle market.

2/3rd of auto component production is consumed directly by OEMs.

India is the largest three-wheeler market in the world.

India is the largest two-wheeler manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

The number one global motorcycle manufacturer is in India.

India is the fourth largest car market in Asia - recently crossed the 1 million mark.

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1.2 Segment Know How

Among the two-wheeler segment, motorcycles have major share in the market.

Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in

scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40%

of the market share. Among the passenger transport, Bajaj is the leader by making 68% of

the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share

in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles

Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60%

share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle

manufacturer.

1.3 Industry Growth Drivers

The passenger car penetration in India is at 8.5 vehicles per thousand people absolute

terms. It is among the lowest in the world. As per capita GDP of a society grows,

mobility needs for its population rapidly increase.

The proportion of young people, who are economically active, is rising in the overall

population. This has led to increasing urbanization and the need for mobility which

translates into a higher demand for two and four wheelers in India.

Relatively good availability of money and a favorable interest rate regime has also

been a strong contributor to sustained demand.

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The Indian auto industry is expected to get a boost from the road development

programs that the country has undertaken especially the Golden Quadrilateral program

and the NSEW corridors with feeder roads.

India's competitiveness has enabled it to make a steady foray in International markets

with passenger car exports crossing the 100,000 mark in 2004. Multinationals use India

as a manufacturing hub for small cars in addition to growing exports from indigenous

makers such as Tata Motors and furthermore, India's two-wheeler manufacturers have

also stepped up their export plans and apart from export, have also announced CKD

operations in many new markets outside India.

As India forges free trade agreements (FTA) with Thailand, MERCOSUR and other

trading blocs, the industry has the potential to emerge even stronger. However, against

this optimism, the industry has felt the effects of cost pressure.

The global movement of oil prices has dealt a setback to the country's economic

policy. While the threat of inflation seems to have been temporarily brought under

control, sustained fuel price hikes and the consequent hike in operating costs for

vehicle owners can cause a depression in demand.

The past two years have also seen considerable pressure for the industry from input

costs. Prices of steel, which is a primary input for the industry, have doubled over the

last three years. The situation has forced players to resort to innovative ways to control

costs whilst meeting rising customer expectations

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1.4 Industry Statistics (Source: Society of Indian Automobile Manufacturers, SIAM)

1.4.1 Automobile Production Trend in India

Automobile Production Trends (Number of Vehicles)

Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Passenger Cars 500301 557410 782562 960487 1046133 1238032

Utility Vehicles 105667 114479 146325 182018 196506 222111

MPVs 63751 51441 60673 67371 66661 84707

Total Passenger Vehicels

669719 723330 989560 1209876 1309300 1544850

M&HCVs 96752 120502 166123 214807 219295 294266

LCVs 65756 83195 108917 138896 171788 225734

Total Commercial Vehicles

162508 203697 275040 353703 391083 520000

Three Wheelers 212748 276719 356223 374445 434423 556124

Scooters 937506 848434 935279 987498 1021013 943974

Motorcycles 2906323 3876175 4355168 5193894 6207690 7112225

Mopeds 427498 351612 332294 348437 379994 379987

Electrict Two Wheelers - - - - - 7982

Total Two Wheelers 4271327 5076221 5622741 6529829 7608697 8444168

Grand Total 5316302 6279967 7243564 8467853 9743503 11065142

1.4.2 Automobile Domestic Sales in India

Automobile Domestic Sales Trends (Number of Vehicles)

Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Passenger Cars 509088 541491 696153 820179 882208 1076408

Utility Vehicles 104253 113620 146388 176360 194502 220199

MPVs 61775 52087 59555 65033 66366 83091

Total Passenger Vehicles

675116 707198 902096 1061572 1143076 1379698

M&HCVs 89999 115711 161395 198506 207472 275600

LCVs 56672 74971 98719 119924 143569 192282

Total Commercial Vehicles

146671 190682 260114 318430 351041 467882

Three Wheelers 200276 231529 284078 307862 359920 403909

Scooters 908268 825648 886295 922428 909051 940673

Motorcycles 2887194 3647493 4170445 4964753 5810599 6553664

Mopeds 408263 338985 307509 322584 332741 355870

Electrict Two Wheelers - - - - - 7341

Total Two Wheelers 4203725 4812126 5364249 6209765 7052391 7857548

Grand Total 5225788 5941535 6810537 7897629 8906428 10109037

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1.4.3 Automobile Export Trend

Automobile Exports Trends (Number of

Vehicles)

Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Passenger Cars 49273 70263 125320 160670 169990 192745

Utility Vehicles 3077 1177 3049 4505 4489 4403

MPVs 815 565 922 1227 1093 1330

Total Passenger Vehicles

53165 72005 129291 166402 175572 198478

M&HCVs 4824 5638 8188 13474 14078 18838

LCVs 7046 6617 9244 16466 26522 30928

Total Commercial Vehicles

11870 12255 17432 29940 40600 49766

Three Wheelers 15462 43366 68144 66795 76881 143896

Scooters 28332 32566 53687 60699 83934 35685

Motorcycles 56880 123725 187287 277123 386054 545887

Mopeds 18971 23391 24078 28585 43181 37566

Electrict Two Wheelers

- - - - - -

Total Two Wheelers

104183 179682 265052 366407 513169 619138

Grand Total 184680 307308 479919 629544 806222 1011278

1.4.4 Installed Capacities in the Indian Automobile Industry

Installed Capacities in the Indian Automobile Industry 2003-04

2003-2004 2004-2005

Installed Capacity (In Million) Installed Capacity (In Million)

a) Four Wheelers 1.51 a) Four Wheelers 1.72

b) Two &Three Wheelers 7.83 b) Two &Three Wheelers 9.13

c) Engines 0.18 c) Engines 0.18

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Domestic Market Share in 2006-07

CVs

5%

Passenger

Vehicles

14%

Two

Wheelers

77%

Three

Wheelers

4%

1.4.5 Gross Turnover of Indian Automobile Manufacturers

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Rs

(In

Mil

lio

ns

)

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Years

Turnover of Automobile Manufacturers 1999-00 to 2004-05

1.4.6 Domestic Market Share for 2006 - 07

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1.5 History of Indian Automobile Industry

While automobiles were introduced to India in the late 1890's, the manufacturing

industry only took off after independence in 1947. The protectionist economic policies of

the government gave rise in the 1950's to the Hindustan Motors Ambassador, based on a

1950's Morris Oxford, and, is still ubiquitous in the roads and highways of India.

Hindustan Motors and a few smaller manufacturers such as Premier Automobiles, Tata

Motors, Bajaj Auto, Ashok and Standard Motors held an

oligopoly until India's initial economic opening in the

1980's. The maverick Indian politician Sanjay Gandhi

championed the need for a "people's car"; the project was

realized after his death with the launch of a state-owned

firm Maruti Udyog Suzuki which quickly gained over 50%

market share. The Maruti 800 became popular because of

its low price, high fuel efficiency, reliability and modern features relative to its

competition at the time. Tata Motors exported buses and trucks to niche markets in the

developing world.

The liberalization of 1991 opened the flood gates of competition and growth which

have continued up to today. The high growth in the Indian economy has resulted in all

major international car manufacturers entering the Indian market. General Motors, Ford,

Toyota, Honda, Hyundai and others set up manufacturing plants. Rolls Royce, Bentley and

Maybach are examples of the few high end automobile manufacturers which entered India

in the recent years. The Tata Nano is at the lower end of the price range costing approx

US$ 2,500 and Bugatti Veyron at the other with a price tag of over US$ 2 million.

India's love affair with the automobile is famously embodied in the 1920's Rolls

Royce collections of the erstwhile maharajas. The growing middle class aspires for the

automobile for its convenience and as a status symbol. Upper middle class and wealthy car

owners employ full-time chauffeurs to navigate the aggressive and seemingly lawless

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traffic patterns of most cities. The construction of expressways such as the Mumbai-Pune

expressway have opened up new touring opportunities. The expected launch of a Formula

One circuit in New Delhi is expected to spark public enthusiasm for a motor sporting

industry.

1.6 Classification of Automobile Industry

1.6.1 Two Wheelers

India is the second largest producer and

manufacturer of two-wheelers in the world.

Indian two-wheeler industry has got

spectacular growth in the last few years.

Indian two-wheeler industry had a small

beginning in the early 50's. The Automobile

Products of India, started manufacturing

scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being

scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers

in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list

of world companies manufacturing two-wheelers.Easy availability of loans from the

banks, relatively low rate of interest and the discount of prices offered by the dealers and

manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead

to the strong growth of Indian automobile industry.

Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML),

Honda Motorcycle & Scooter India (P) Ltd (HMSI), Bajaj Auto Ltd (Bajaj Auto) and TVS

Motor Company Ltd (TVS)

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1.6.2 Three Wheelers

Global automobile manufacturers have found huge potential markets in a number

of developing countries. It is not only the cars, consumer vehicles and two wheelers that

are sold in these various countries in large numbers, but the three wheeler market is also

quite big in these nations.

There are a number of reasons that have resulted into the proliferation of the three

wheelers in umpteen countries. Three wheelers are quite

economical in terms of manufacturing and maintenance.

They have also earned huge popularity due to their easy

maneuvering capabilities through the narrow lanes that

are prevalent in most of the developing countries. It is not

that three wheelers are used only in the developing

nations. You will also get to see various brands of three

wheeler in different parts of US, UK and some of the European nations.

Bajaj Auto, Piaggio is the leading players in the three wheeler industry in most of

the Southeast Asian nations. The vehicles have also given rise to the three wheeler

accessory industry in many countries. It is believed that numerous people have got

employed in various countries due to these three wheelers. Apart from serving the daily

need of the commuters the three wheelers also play commendable role in the

transportation of several commodities. Seeking the increasing demand of three wheelers,

more automobile companies are considering manufacturing these vehicles.

1.6.3 Cars

Cars charm one and all be it a new or a used one. They are in many colors, many

varieties and models of cars on sale. The craze for cars never seems to end. In fact the car

market is swamped with all segment of cars viz. sports cars, big cars, small cars and many

others. Even in developing countries like India, the car market has witnessed tremendous

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growth in the recent years. As a result the

competition among the car manufacturer is also

increasing and they are finding innovative ways

of capturing the market. While Maruti Suzuki

India Ltd. has been selling the largest volume of

private cars in India for quite some time now,

Tata motors has bedazzled the world with the

launch of Nano the cheapest car. Various

multinational car companies are also selling diverse models of cars in India.

Used car market is also growing at a parallel speed. Even big car companies

themselves are now buying the used cars and reselling them. Another notable development

is the rising popularity of the rental cars in India. This is due mainly to the influx of

population from smaller towns to the big cities and expansion of the business community.

Car rental agencies have also emerged in large numbers to

target the car crazy generation.

The easy availability of car loans, financiers have also contributed a lot in the boom

of the automobile industry in India. Go for the car of your choice without worrying much

for the maintenance tips of cars, insurance, financiers and other car related issues.

Automobile India would take care of that

1.6.4 Sports Utility Vehicles

The origin of the sports utility vehicles

(SUVs) can be traced back to the usage of

military jeeps in the aftermath of the World

War II period. On account of their off-road

capabilities, the SUVs gradually became

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popular especially in the rural areas of US and Europe and big automobile majors sensed a

growing business opportunity. Starting off with the Toyota Land Cruiser , Land Rover

made their mark on the global automobile market as the sports utility vehicles.

In terms of design and aesthetics, the sports utility vehicles do vary but broadly

could be described as non-commercial passenger vehicles built with a body on frame

chassis as is seen in many trucks. Known popularly as the "off road vehicle" or "four

wheel drive", the SUVs progressively have undergone transformation in design and

components for light weight and fuel efficiency have been incorporated into the

contemporary sports utility vehicles. No wonder thus that SUVs are increasingly being

used for recreational and sporting purposes too.

The Indian automobile market in the last few years too has undergone significant

transformation. From a few outdated passenger car and truck models to boast of, the car

market has grown big and offers a range of choices today. While the country is witness to

all kinds of car, the sports utility vehicles too have made a mark in the Indian automobile

scene. While Tata Motors and Mahindra & Mahindra are the major domestic car makers

with a range of sports utility vehicles, Maruti as the leading Indian car maker was the one

to start off with its Maruti Gypsy. Soon Tata Motors came up with its variants of Tata

Sumo and Tata Safari while Mahindra & Mahindra launched Voyager, Bolero and

Scorpio.

Toyota the global auto major from Japan came hard with its own SUVs like Prado,

Qualis and Innova. Hindustan Motors in association with its foreign partners launched

Pajero while the Korean auto giant Hyundai launched Terracan and Tuscon. In the context

of continuously increasing demand for the SUVs in India, both the domestic and foreign

car makers are putting their efforts in launching newer and varied form of SUVs.

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1.6.5 Commercial Vehicles

The rapid growth that marked the commercial automobiles' sector after

independence can be, to a great degree, seen as a fruition of Nehru's far sighted vision of

an industrialized nation and the subsequent exodus of masses to the cities. Today, India's

commercial vehicles sector is one of the rapidly growing industries in the country.

The output of commercial vehicles in India has shot up to 2.8 times between the

years 1998 to 2004; the figure is significant in the light of the fact that the growth in

passenger cars has been only 2.2 times between the same period. Some of the automobile

companies that are operating in the commercial vehicles sector in India are-

Ashok Leyland - One of the first automobile companies in India, Ashok Leyland

was born when Mr. Raghunandan Saran responded affirmatively to Nehru overtures to

enter the vacant automobile sector in 1948. Since then the company has seen many tie-ups

with reputed international companies and built up a formidable reputation in the country.

Ashok Leyland dominates the commercial vehicles sector in India with as many as

375,000 vehicles battling on the Indian roads.

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Force Motors - Force Motors Ltd founded in 1958 as Bajaj Tempo Ltd. is a

manufacturer of three wheelers, multi utility and cross country vehicles, light commercial

vehicles, tractors and now heavy commercial vehicles.

Eicher - Eicher takes great pride in its commercial vehicles that are touted as low

priced as well strong. Eicher has a range of Buses, Truck and Chassis.

Tata Motors - The first Indian company to come up with an indigenous car, Tata

Motors' credentials goes further. In the commercial vehicles sector, Tata Motors

manufactures Luxury Buses, Trucks and Tractors.

Volvo - One of the latest entrant into the commercial vehicles sector in India,

Volvo is the largest producers of heavy trucks in the world.

Mahindra and Mahindra - manufactures extremely durable buses, trucks, and three

wheelers. Mahindra and Mahindra gives a clear priority to vehicles that are meant to

survive rugged use.

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2. Company Overview

Tata Motors Limited is India's largest automobile company, with revenues of Rs.

32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles

in each segment, and the second largest in the passenger vehicles market with winning

products in the compact, midsize car and utility vehicle segments. The company is the

world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's

second largest medium and heavy bus manufacturer.

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 first rolled out

in 1954. The company's manufacturing base is spread across India - Jamshedpur

(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow

(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close

to Kolkata in West Bengal) to manufacture the company's small car. The nation-wide

dealership, sales, services and spare parts network comprises over 2,000 touch points. The

company also has a strong auto finance operation, TML Financial Services Limited,

supporting customers to purchase Tata Motors vehicles.

Tata Motors, the first company from India's engineering sector to be listed in the

New York Stock Exchange (September 2004), has also emerged as an international

automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company,

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Korea's 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 as well. Hispano's presence is being expanded in

other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a

global leader in body-building for buses and coaches to manufacture fully-built buses and

coaches for India and select international markets. Tata Motors also entered into a joint

venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to

manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata Motors

and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra,

India) to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseas

markets; Tata Motors already distributes and markets Fiat branded cars in India. In 2007,

Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up

vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba,

Argentina. The pick-up will be sold in South and Central America and select European

markets.

These linkages will further extend Tata Motors' international footprint, established

through exports since 1961. While currently about 18% of its revenues are from

international business, the company's objective is to expand its international business, both

through organic and inorganic growth routes. The company's commercial and passenger

vehicles are already being marketed in several countries in Europe, Africa, the Middle

East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia,

Kenya, Bangladesh, Ukraine, Russia and Senegal.

The foundation of the company‟s growth is a deep understanding of economic

stimuli and customer needs, and the ability to translate them into customer-desired

offerings through leading edge R&D. The R&D establishment includes a team of 1400

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scientists and engineers. The company's Engineering Research Centre was established in

1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled

pioneering technologies and products. It was Tata Motors, which developed the first

indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle

and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years

of launch, Tata Indica became India's largest selling car in its segment. The ERC in Pune,

among whose facilities are India's only certified crash-test facility and hemi-anechoic

chamber for testing of noise and vibration, has received several awards from the

Government of India. Some of the more prominent amongst them are the National Award

for Research and Development Efforts in Industry in the Mechanical Engineering

Industries sector in 1999, the National Award for Successful Commercialisation of

Indigenous Technology by an Industrial Concern in 2000, and the CSIR Diamond Jubilee

Technology Award in 2004.

The company set up the Tata Motors European Technical Centre (TMETC) in 2005

in the UK. TMETC is engaged in design engineering and development of products,

supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company and

Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza

in Spain.

The pace of new product development has quickened through an organisation-wide

structured New Product Introduction (NPI) process. The process with its formal structure

for introducing new vehicles in the market, brings in greater discipline in project

execution. The NPI process helped Tata Motors create a new segment, in 2005, by

launching the Tata Ace, India‟s first indigenously developed mini-truck. 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.

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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

solutions, 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 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 adjacent

to its manufacturing locations.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent

future.

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2.1 Brief History of Manickbag Automobiles Pvt Ltd

In 1920 Manickbag was established by two families headed by visionaries Mr.

Manickchand Shah and Mr.Dharmappa Mirji with business of Rice Mill and Soap

factory in Belgaum.Then diversified into the manufacturing and exporting of

groundnut oil

In 1950 entered into automobile field by opening of a workshop under the firm name

of Manickbag Engineers. With an advent of Diesel engines in Indian market

conversion of petrol engine vehicles with diesel engines was pioneered successfully

In 1951 Manickbag Engineers with the success of workshop was awarded with the

dealership of Simpsons

In 1956 MICO dealership was commenced under the name of Manickag Diesels.

Manickag Automobiles was formed with commencing of Ashok Leyland sub

dealership under Sundaram Motors

In 1965 a machine shop was setup for rebuilding of engine under the name of

Manickbag Garage

In 1979 Sundaram Clayton TVS Moped dealership was taken up in Belgaum

In 1984 the first branch outside Belgaum was setup in Hubli

In 1992 TELCO main dealership was taken for the North Karnataka area

In 1993 Manickbag Automobiles branches were opened at Bijapur and Ankola

In 1999 Tata Motors passenger car dealership was taken up & was awarded all India

best SSI & CSI by our honorable chairman Shri Ratan Tata in the very first year of

operation

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In 2003 Manickbag Automobiles was transformed into Manickbag Automobiles Pvt

Ltd

in 2004 Manickbag Automobiles Pvt Ltd branch was opened in Gulbarga followed by

sales office in Basavakalyan

By the end of the year 2005 Manickbag Automobiles Pvt Ltd became the largest

networked dealership with 15 sales outlet s across North Karnataka

In 2006 Manickbag was appointed as exclusive dealers for Tata Novus a premium

product from Tata Daewoo commercial vehicle for North Karnataka

Again in the same year Manickbag was appointed as the passenger car dealers for

Belgaum district

Manickbag started of 2007 with the receipt of LOI for selling Fiat products from their

passenger car dealership

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2.1 Manufacturing

Tata Motors owes its leading position in the Indian automobile industry to its

strong focus on indigenisation. This focus has driven the Company to set up world-class

manufacturing units with state-of-the-art technology. Every stage of product evolution-

design, development, manufacturing, assembly and quality control, is carried out

meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in the

West and Lucknow in the North.

2.1.1 Jamshedpur

Established in1945, the Jamshedpur unit was the company's first unit and is spread

over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory,

Cab & Cowl Factories, and the Novus. The Truck Division boasts of two assembly lines.

The main assembly line, measuring 180m in length has 20 work stations with a vehicle

rolling out every 8 mins. The other line is dedicated to special purpose vehicles and for

meeting the requirements of the Indian Army. The Cab, Cowl & Novus Factory is

equipped with state- of- art facilities like Centralized Paint Shop and Automated painting

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set up, Robot painting, BIW Fabrication of day & sleeper cabs for trucks, Articulates (

Tractor/ Trailer), BIW Fabrication of Cowls for buses, and other miscellaneous

applications.

As one of the most modern forging set-ups in the country, the Forge Division is

equipped with a semi-automated forging line with 40,000 mkg Beche Hammer and state-

of-the-art presses from Kurimoto of Japan. It produces critical forgings like crankshafts,

front axle beams and steering parts for the automobile plant. The new forging line,

installed in April 1984, has the capacity to forge front axle beams at 90 sec per piece and

crankshafts at 120 sec per piece. Mechanical presses help produce a variety of heavy

forgings. The sophisticated FIDIA digit 165 CC Graphite Milling Machine links shop

floor machines to the design workstation. The Forge has been certified as ISO 9002 and

QS 9000 by the BVQI.

2.1.2 Pune

The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and

Chinchwad (130 acres). It was established in 1966 and has a Production Engineering

Division, which has one of the most versatile tool making facilities in the Indian sub-

continent. It houses a Vehicle manufacturing complex which is one of the most

integrated automotive manufacturing centers in the country producing a large variety of

individual items and aggregates. It is engaged in the design and manufacture of

sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as

models for the development of new ranges of automobile products. Its capabilities have

enabled Tata Motors to introduce new products and improve existing ones without

resorting to imports of dies or fixtures.

Over the years, this division has developed expertise in design and manufacture of

automated dies, fixtures and welding equipment. Its large design group is fully

conversant with state-of-the-art CAD facilities and manufacturing facilities comprising

Babasabpatilfreepptmba.com 23

of light and heavy CNC machine shops, jigs boring room, plastic template shop, wood

pattern and model pattern shop, five axis precision machine tools and laser control

machines. To cope with such a diverse range, four assembly lines have been established,

one each for MCVs and HCVs, LCVs, Utility vehicles and one for Passenger Cars

(Indica and Indigo).

2.1.3 Lucknow:

Tata Motors Lucknow is one of the youngest production facilities among all the

Tata Motors locations and was established in 1992 to meet the demand for Commercial

Vehicles in the Indian market. The state of art plant is strongly backed by an Engineering

Research Centre and Service set-up to support with latest technology and cater to the

complexities of automobile manufacturing. Fully Built Vehicle business, which is one of

the fast growing areas of our business, is also established in Lucknow

Lucknow plant, rolls out commercial vehicles and is specialized in the designing

and manufacturing of a range of modern buses which includes Low-floor, Ultra Low-

floor, CNG & RE Buses. The Lucknow facility also specializes in manufacturing HCBS

(High capacity Bus System) buses.

2.1.4 Uttarakhand

The company has set up a plant for its mini-truck, Ace, at Pant Nagar in

Uttarakhand. The plant will begin commercial production during the course of the year.

This is the company's fourth plant, after Jamshedpur (commercial vehicles), Pune

(commercial vehicles and passenger vehicles) and Lucknow (commercial vehicles).

The company is investing about Rs.1000 crores in the plant. Vendors for the

vehicle will make additional investments to set up their plants in the vendor park

adjoining the plant. The operation will generate about 7500 direct and indirect jobs in the

plant, among vendors and service providers in the area

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2.2 Research and Development

Research provides the much-needed inspiration for the birth of new ideas, which in

turn breathes new life into products. World-class automotive research and development

are key factors that contribute to the leadership of the Company.

2.2.1 Engineering Research Centre (ERC)

The Research Centre at Jamshedpur regularly upgrades components and

aggregates. A well-equipped torture track enables rigorous and exhaustive testing of

modifications before they are used as regular fitments.

The Engineering Research Centre in Pune was setup in 1966 and is among the

finest in the country. It has been honored with two prestigious awards - 'The DSIR

National Award for R&D Effort in Industry - 1999' and 'National Award for Successful

Commercialization of Indigenous Technology by an Industrial Concern - 2000.

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2.2.2 Facilities

Test Beds

Tata Motors has 24 engine test beds for engine development. These are fully

automated with computerized data acquisition and logging. They are used to test

performance, endurance, and durability. They are also used in development of

components and other engine aggregates.

Chassis Dynamometer Emission Lab

The ERC has a specialized AVL Zollner Chassis Dynamometer with a 508mm-twin

roller for checking the emission levels of chassis. It is certified by UTAC, TUV,

INTA and ARAI. With a 125 kw generator, it can cater to the maximum vehicle speed

of 210 km/h. Inertia simulation ranges from 567kg to 3000 kg.

Instrumentation Laboratory

The 'Instrumentation Laboratory' at ERC Engines is equipped with a range of

instruments to assist engine development. These include data acquisition systems, air

flow meters, blow-by meters, smoke meters, oil consumption meters, incometer &

topometer, piston profile tester, FIP test rig, Swirl test rig, and many other support

equipments to cater to routine engine development activities.

Reducing Emissions

A specialized laboratory has been set up to measure levels of emission of vehicles

using petrol, diesel or CNG. This laboratory helps Tata Motors achieve fuel

consumption efficiencies that would conform to international standards, under varying

driving cycles. It stands testimony to Tata Motors commitment to help bring down

levels of atmospheric pollution caused by vehicular exhaust

Test Tracks:

High-speed tracks are specialized tracks for testing endurance of cars and commercial

vehicles. The Tata Motors torture tracks and high-speed tracks in Jamshedpur and

Babasabpatilfreepptmba.com 26

Pune are the only one of their kind in the country. The torture track has 4 segments.

Each segment affords a different type and level of stress testing for the vehicle chassis

and aggregates. The tracks subject the chassis to shock, twisting, and bending loads.

1000 cycles on this torture track are equivalent to approximately one and a half lakh

kms of running on regular roads. It thus provides a valid test of chassis and vehicle

durability.

Safety (Crash test facility)

Tata Motors ERC is the only high-tech facility in India to evaluate the degree of

passenger safety in the event of any high-speed impact. Through a special crash test

facility. Different types of accidents are simulated; the results analyzed, and put to use

in the development of a vehicle that satisfies stringent international safety norms.

Minimizing Noise

Anechoic chamber is a highly sophisticated noise and vibration laboratory, the nerve

centre of which is a vast chamber lined with 88,000 cones projecting at various angles

from the walls and ceiling. It is one of its kind in India and is developed completely

with in-house facilities.

Designing and Styling

The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest

software. The CAD centre is a vital organ of ERC's Cab Design Section.

CAD designing involves development of vehicle specifications, styling interiors and

exteriors, reviewing the styling from the engineering and aesthetic points of view,

virtual prototyping to check for design acceptability and feasibility of manufacture.

Babasabpatilfreepptmba.com 27

2.3 Corporate Social Responsibility

Tata Motors believes in technology for tomorrow. Its products stand testimony to

this. Company‟s annual expenditure on R&D is approximately 2% of our turnover. It has

also set up two in-house Engineering Research Centers that house India's only Certified

Crash Test Facility. It ensures that its products are environmentally sound in a variety of

ways. These include reducing hazardous materials in vehicle components, developing

extended life lubricants, fluids and using ozone-friendly refrigerants. Tata Motors has

been making conscious effort in the implementation of several environmentally sensitive

technologies in manufacturing processes. The Company uses some of the world's most

advanced equipment for emission check and control.

Tata Motors concern is manifested by a dual approach

Reduction of environmental pollution and regular pollution control drives

Restoration of ecological balance.

Tata Motors has been at the forefront of the Indian automobile industry's anti-

pollution efforts by introducing cleaner engines. It is the first Indian Company to introduce

vehicles with Euro norms well ahead of the mandated dates. Tata Motors‟ joint venture

with Cummins Engine Company, USA, in 1992, was a pioneering effort to introduce

emission control technology for India.

Tata Motors has set up effluent treatment facilities in its plants, to avoid release of

polluted water into the ecosystem. In Pune, the treated water is conserved in lakes

attracting various species of birds from around the world thus turning the space into a

green belt. Tree plantation programs involving villagers and Tata Motors employees, have

turned acres of barren village green. Tata Motors has planted as many as 80,000 trees in

the works and the township and more than 2.4 million trees have been planted in

Jamshedpur region. Over half a million trees have been planted in the Poona region. Tata

Motors has directed all its suppliers to package their products in alternate materials

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2.3.1 Corporate Sustainability

Integrated Rural Development

The company has adopted several villages around its manufacturing units at Pune,

Jamshedpur and Lucknow. Integrated Rural Development aims at meeting basic needs in

five broad areas - Health, Education, Water, Environment and Livelihoods.

Employability

The company is establishing the small car plant at Singur in West Bengal. CS at

Singur focuses on enhancing the employability of the youth and women in the region

through training and skill development. Skills being imparted are attuned to the immediate

requirements and future demands that would be generated with the coming of the

ancillaries

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3. Collaborations

8th

January, 2001

Tata Engineering discusses Co-operative Venture with PSA Peugeot Citroen

Tata Engineering and PSA Peugeot Citroen agreed to work together to examine the

feasibility of jointly developing a car on a PSA Peugeot Citroen platform for manufacture

by Tata Engineering for the Indian market as part of its passenger car business. Subject to

the feasibility being established, the car may also be considered for overseas markets.

PSA Peugeot Citroen is Europe's second largest carmaker and would contribute one

of its existing platforms for the development of a newer generation car and its expertise in

designing world class passenger cars. Tata Engineering, as India's largest commercial

vehicle manufacturer and a recent entrant in the passenger car market, will contribute its

competitive development technology and production processes as well as its

understanding of the local market.

12th

September, 2002

Tata Group to acquire Jardine Motors' equity in Concorde Motors

The Tata Group has reached an agreement with Jardine Motors to acquire its 50%

stake in Concorde Motors Limited (CML). CML is currently a joint venture of the Tata

Group and Jardine Motors, in which each of the partners holds 50% of the equity and

represents Tata Engineering's passenger vehicles

20th

December, 2002

Tata Engineering signs a product agreement with MG Rover of the UK

Under the agreement, the Tata Indica, incorporating certain Rover-specific

modifications, will be manufactured at Tata Engineering's Pune factory. These Rover-

branded vehicles will be marketed through Rover's own dealer network in the UK and in

Babasabpatilfreepptmba.com 30

continental Europe. Their choice of the Indica to fill a gap in their model range in order to

address the high volume small car segment is an affirmation of Tata Engineering's product

development and manufacturing expertise. This agreement should see a substantial

addition to the lifecycle volume of the Tata platform.

11th

March, 2003

Tata and Phoenix agree a new distribution arrangement in the UK and Ireland

Phoenix Venture Holdings Ltd (PVH), owners of MG Rover Group, signed an

agreement with Tata Engineering to distribute the company's Safari off-roader and

Loadbeta pick-up trucks in the UK and Irish markets. Given the specialist nature of both

utility products, the franchises will be managed by Phoenix Distribution Ltd., a newly

created subsidiary of PVH.

This agreement will significantly enhance the Tata brand presence in the UK and

Ireland. Tata utility vehicles have established a niche presence in the market. New

upgraded versions of these vehicles, with contemporary features, will further enhance the

value proposition. The vehicles will be distributed through a selection of both MG Rover

and former Tata dealerships. The new distribution arrangements will be implemented in

the next few months.

29th

March, 2004

Tata Motors completes acquisition of Daewoo Commercial Vehicle Company

Mr Ratan N Tata said, "This is a historic occasion for Tata Motors and the Tata

Group. I am happy to note that this is the largest acquisition by any Indian company in

Korea and I look forward to increasing the TATA Group's presence in this country. Korea

is a shining example of what can be achieved with diligence and dedication, and I am sure

we will learn a lot from operating in South Korea".

Babasabpatilfreepptmba.com 31

Both Tata Motors and DWCV believe that the combined strengths in technology,

customer orientation and product development will provide a cutting edge for competing

in international markets and create a new powerhouse in the commercial vehicles industry.

3rd

November, 2004

Tata Motors signs MoU with Andhra Bank for Passenger Vehicle Financing

Andhra Bank will offer financing facilities to eligible customers of Tata Passenger

Vehicles at certain identified branches of the Bank and select Dealer points of Tata

Motors. It will offer competitive and innovative schemes and packages for Tata Motor

passenger vehicles on an ongoing basis. Further, the customer needs will be evaluated and

appropriate financing packages, including product structuring, down payment, tenure of

the loan, effective rate of interest will be developed for customers on the best possible

terms. The customer's request will be processed by the Bank within three working days,

with the necessary supporting documents.

6th

December, 2004

Tata Motors nominates State Bank of India as its Preferred Financier for

Commercial Vehicles

As a Preferred Financier, State Bank of India will work together with Tata Motors

to promote and make available organized finance facility at competitive interest rates and

concessions to Tata Motors customers all over the country, including those in semi urban

and rural areas.

As part of the MoU, State Bank of India will offer financing facilities to Tata

Motors customers at identified branches of State Bank of India (SBI) and select Tata

Motors dealer locations across all states of India. Customer requests will be processed by

SBI on best effort basis. It will evaluate the finance needs of the customers and develop

Babasabpatilfreepptmba.com 32

appropriate financing packages, including product structuring, down payment, tenure of

loan and effective rate of interest on best effort basis.

10th

January, 2005

Tata Finance Ltd. to be merged with Tata Motors Ltd.

The merger is expected to enable the vehicle financing business of Tata Finance to

grow stronger by leveraging its synergies of the direct business model with the dealer

driven business of Bureau of Hire Purchase and Credits (BHPC), a division of the

Company. This merger will also allow the TFL shareholders to participate in the growth of

the Company, a leading automobile company in the country and thereby significantly gain

with an upside of dividend and shareholder value creation.

The proposed merger will enable the Company to grow its auto financing business

and offer complete solutions in line with the global best practices in the auto industry. This

will also enable the Company to provide a hedge against the cyclicality of the automotive

business and a significant value creation for its shareholders.

25th

February, 2005

Tata Motors to acquire 21% stake in Hispano Carrocera

The Board of Tata Motors, India's largest automobile manufacturing Company,

today approved a proposal to acquire 21% stake in Hispano Carrocera S.A (HC), a well

known Spanish bus manufacturing Company, with an option to acquire 100% holding.

Tata Motors will have the license for technology and brand rights from HC. The total deal

consisting of Equity, Debt & Technology Licensing will add up to Euro 12 million (about

Rs.70 crores).

HC which currently enjoys a market share of 25% in the bus market in Spain, sells

its buses in Europe and several other countries outside Europe. It has its own in house

Babasabpatilfreepptmba.com 33

product development facility for buses and coaches. "This strategic alliance with Hispano

Carrocera will give Tata Motors access to its design and technological capabilities to fully

tap the growing potential of this segment in India and other export markets, besides

providing us with a foothold in developed European markets".

9th

December, 2005

Tata Motors, Hitachi, Telcon sign new agreement, enhanced scope of cooperation;

Hitachi increases stake to 40%

Tata Motors, Hitachi Construction Machinery Co. Ltd. (HCM) and Telco

Construction Equipment Company Limited (Telcon), an 80:20 joint venture company

between Tata Motors and HCM, signed an agreement, expanding their scope of

cooperation and partnership with HCM increasing its stake in Telcon from 20% to 40%.

It includes sourcing, by Hitachi, of components and machines from Telcon,

introducing newer products of construction equipment in India, setting up a product

development facility in India and making Telcon a part of HCM's global network. The

new arrangement will help Telcon to significantly improve its product offerings to its

customers and make it evolve as a global manufacturing and design hub.

13th

January, 2006

Fiat cars to be available in India through Tata dealers from March 2006

Fiat Group and Tata Motors signed an agreement to co-operate on dealer network

sharing, which encompasses the sale of Fiat branded cars through selected Tata outlets

throughout India. Tata Motors will manage the marketing and distribution of the Fiat

branded cars in India.

Following this agreement, a targeted selection of Fiat cars and the Tata product

range along with service and sale of spare parts will be available from March 2006

through the Tata dealership network. Dealers will display the new Fiat logo alongside the

Tata logo at their outlets.

Babasabpatilfreepptmba.com 34

9th

March, 2006

Tata Motors & ATFCAN of Canada join hands to demonstrate advanced CNG

Technology for Buses

Tata Motors has been manufacturing and marketing CNG buses since 2000, a

significant step in Indian road transportation to improve emission standards and to offer

better fuel economy. More than 60% of buses plying in Delhi are Tata Motors CNG buses.

The replacement of current CNG and diesel engines with new lean-burn CNG

engines will translate into substantially lower emissions, higher fuel efficiency and reliable

performance. The new roof-mounted cylinders are more than 60% lighter than those

currently in use and will provide bus operators with extended driving range, as well as

improved vehicle fuel economy.

5th

May, 2006

Tata Motors, India, and Marcopolo, Brazil, announce joint venture

The joint venture, in which Tata Motors will hold 51% of the equity and Marcopolo

will hold 49%, will set up a new manufacturing facility. It will go on stream in a year's

time, and produce a variety of buses including 16 to 54-seater standard buses, 18 and 45-

seater luxury buses, luxury coaches, and low-floor city buses. The joint venture will also

explore emerging opportunities in Bus Rapid Transit System.

The joint venture will take help with technology and expertise in chassis and

aggregates from Tata Motors, and expertise and know-how in processes and systems for

bodybuilding and bus body design from Marcopolo. Both companies will actively

participate in the management. The buses will conform to international standards in

quality and safety, and will be marketed not only in India but also in all Tata Motors

focused markets globally.

Babasabpatilfreepptmba.com 35

14th

December, 2006

Fiat Auto and Tata Motors announce forming a joint venture in India

The agreement calls mainly for the creation and establishment of an industrial joint

venture in India, located at the Fiat plant at Ranjangaon, in the State of Maharashtra.

With capacities to produce in excess of 100,000 cars and 200,000 engines and

transmissions yearly, at steady state, the Ranjangaon plant will manufacture vehicles for

the Indian and overseas markets. Both Fiat and Tata vehicles will be manufactured at the

same facility, which will be managed equally by the two Shareholder Partners.

Fiat Auto will introduce its premium cars for the B and C segments, namely the

Fiat Grande Punto, and the Fiat Linea whose worldwide premiere occurred at the Istanbul

Motorshow in early November.

Fiat branded cars will be distributed by Tata through the Tata-Fiat dealer network

as per the arrangement already in place since March 2006. The Tata-Fiat dealer network

will progressively increase to 100 outlets for the launch of the new models to cover the

entire length and breadth of the country. Currently, 42 Tata-Fiat dealerships are already

operational. Manufacturing of Tata cars in the joint venture will supplement the

production capacities of the Tata Motors Car Plant in Pune to meet growing demand and

to prepare for new Tata car models.

18th December, 2006

Tata Motors & Thonburi of Thailand set up joint venture in Thailand for pickup

trucks

The joint venture, in which Tata Motors will hold 70% of the equity and Thonburi

30%, will get vehicles manufactured in Thonburi‟s manufacturing facility. It will go on

stream in a year‟s time.

Babasabpatilfreepptmba.com 36

The joint venture will facilitate Tata Motors address the Thailand market, the

second largest pickup market in the world after the US. Both partners will jointly manage

the operation. The pickup trucks will conform to international standards in quality and

safety, and will be marketed in Thailand and exported to other potential markets in the

region.

14th February, 2007

Fiat and Tata announce agreement for pick-up production in Argentina

Fiat and Tata Motors are expanding their strategic co-operation with the start of an

industrial project outside India. This is a further significant step towards an integrated

strategy of targeting specific markets and segments.

The pick-up, based on the new generation Tata pick-up truck, will be sold in South

and Central America and select European markets through Fiat Automobiles‟ distribution

and importer network. This will permit the Fiat brand to aggressively enter the medium

pick-up sector, thanks to Tata Motors‟ specific know-how.

26th March, 2008

Tata Motors enters into Definitive Agreement with Ford for purchase of Jaguar

Land Rover

Tata Motors today announced that it has entered into a definitive agreement with

the Ford Motor Company for the purchase of Jaguar Land Rover, comprising brands,

plants and Intellectual Property Rights.

The transfer of ownership to Tata Motors is expected to close by the end of the next

quarter, subject to applicable regulatory approvals.

Babasabpatilfreepptmba.com 37

The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon

closing will be approximately US $2.3 billion. At closing, Ford will then contribute up to

approximately US $600 million to the Jaguar Land Rover pension plans

Commenting on the agreement, Chairman of Tata Sons and Tata Motors, Mr. Ratan

N. Tata, said, "We are very pleased at the prospect of Jaguar and Land Rover being a

significant part of our automotive business. We have enormous respect for the two brands

and will endeavour to preserve and build on their heritage and competitiveness, keeping

their identities intact. We aim to support their growth, while holding true to our principles

of allowing the management and employees to bring their experience and expertise to bear

on the growth of the business."

Mr. Alan Mulally, President and CEO of the Ford Motor Company, said, "Jaguar

and Land Rover are terrific brands. We are confident that they are leaving our fold with

the products, plan and team to continue to thrive under Tata's stewardship. Now, it is time

for Ford to concentrate on integrating the Ford brand globally, as we implement our plan

to create a strong Ford Motor Company that delivers profitable growth for all."

As part of the transaction, Ford will continue to supply Jaguar Land Rover for

differing periods with powertrains, stampings and other vehicle components, in addition to

a variety of technologies, such as environmental and platform technologies. Ford also has

committed to provide engineering support, including research and development, plus

information technology, accounting and other services.

Babasabpatilfreepptmba.com 38

4. Product Range

Tata

Motors

Defence

Vehicles

Medium &

Heavy

Light &

Small

Tata

Novus

Utility

Vehicles

Passenger

Cars

Fiat

Cars

Safari

Dicor

Sumo

Grande

Indica

Xeta

Indigo

Marina

Intermediate

Trucks

Tata

Ace

TL 4X4

Sumo

Indigo

Indica

Dicor Indica V2

Starbus &

Globus

Other

Buses

Buses

Babasabpatilfreepptmba.com 39

5. Quality Policy

Tata Motors is committed to maximizing customer satisfaction and strives to

achieve the goal of excellence, by continual improvement, through ongoing design and

development, manufacture and sale of reliable, safe, cost-effective, quality products and

services of international standards, using environmentally sustainable technologies, for

improving levels of efficiency and productivity within its plants and ancillaries.

Tata Motors also has commitment towards improving the quality of life of its

employees, both within and outside its plants and offices, through improved work

practices and social welfare schemes.

Our „Quality Policy‟ underlines our commitment to the manufacture of quality

products using “environmentally sustainable technologies”. The „Environmental Policy‟

makes specific commitment to prevention of pollution and management review of the

environment management system.

5.1 Environmental Policy

TATA Motors reaffirms its commitment to minimize the adverse impacts of its products,

operations and services on the environment.

Towards this end, it shall strive to:

Establish sound environment objectives and targets & a process of reviewing them.

Comply with all applications legal / regulatory & other Environment requirement.

Reduce the emission levels of vehicles in full compliance of the regulatory norms &

proactively work with the industry, Government, other related industries & agencies to

bring in international practices.

Babasabpatilfreepptmba.com 40

Use of environmentally sustainable technologies & practices for prevention of

pollution and the continual improvement in environment performance.

Conserve natural resources and energy by minimizing their consumption & “wastage.

Minimize wastage generation, enhance recovery & recycling of material and develop

Eco-friendly wastage disposal practices.

Building awareness of our work force, customers and vendors on Environment issues.

6. Management Levels

Babasabpatilfreepptmba.com 41

To focus effectively on the issues and ensure expedient resolution of diverse

matters, the Board has constituted a set of Committees with specific terms of

reference/scope. The Committees operate as empowered agents of the Board as per their

Charter/ terms of reference. Targets set by them as agreed with the management are

reviewed periodically and mid-course corrections are also carried out. The minutes of the

meetings of all Committees of the Board are placed before the Board for discussions /

noting. The relationship between the Board, the Committees and the senior management

functions is illustrated alongside.

Babasabpatilfreepptmba.com 42

6.1 Management of Tata Motors

6.1.1 Board of Directors

Mr. Ratan N Tata (Chairman)

Mr. N A Soonawala

Dr. J J Irani

Mr. V R Mehta

Mr. R Gopalakrishnan

Mr. Nusli N Wadia

Mr. S M Palia

Dr. R A Mashelkar

Mr. Ravi Kant

Mr. P M Telang

6.1.2 Senior Management

Mr. Ravi Kant Managing Director

Mr. P M Telang Executive Director (Commercial Vehicles)

Mr. Rajiv Dube President (Passenger Cars)

Mr. C Ramakrishnan Chief Financial Officer

Mr. P Y Gurav Vice President (Corporate Finance-Accounts and Taxation)

Dr. S J Tambe Vice President (Human Resource)

Mr. Zackria Sait Vice President (Technical Services)

Mr. A M Mankad Head (Car Plant)

Mr. S B Borwankar Head (Jamshedpur Plant)

Mr. S Krishnan Vice President (Commercial-PCBU)

Mr Ravi Pisharody Vice President (Sales & Marketing)

Mr. H K Sethna Company Secretary

6.1.3 Corporate Communications

Mr. Debasis Ray (Head - Corporate Communications)

Babasabpatilfreepptmba.com 43

6.2 Organization Structure of Manickbag Automobiles Pvt Ltd

Managing

Partner

Manager

Sales

Manager

Spares

Manager

Accounts Manager

Service

Manager

Accidents

Event

Manager

Sales

Representative

Assistant

Manager

Store

Keeper

Assistants

Admin

Staff

Service

Staff

Assistants

Supervisor

Biller

Cashier

Service

Advisor

Works

Incharge

Service

Supervisor

Mechanics

Babasabpatilfreepptmba.com 44

7. Competitors for Tata Motors (LCV Segment)

7.1 Piaggio

It all began in 1884, when Rinaldo Piaggio constituted the Genoese

company Piaggio & Co. which concentrated initially on carpentry for

naval outfitting. The rapid growth of both the company and Italian

industry on the whole at the beginning of the twentieth century

spurred Rinaldo to diversify production, and in 1918, Piaggio & Co.

began constructing railway carriages. In 1924, Piaggio was manufacturing funiculars,

trams, buses, trains and, above all, aircraft.

After the 2nd World War, Enrico Piaggio, having taken over from his father

Rinaldo, converted production to meet growing market needs for the means of

transportation which could overcome the problems of the mobility of the individual and

gave the engineer Corradino D‟Ascanio the job of designing what was to become the most

famous and most sold two-wheeler in the world: the Vespa - one of the best known

symbols of Italian style.

In the April of 1946, the first 15 Vespas left the Pontadera factory. Since then, over

16 million have been produced. A few years later, in 1948, Piaggio launched three-wheel

vehicle - Ape. Having created a joint venture between Piaggio and Daihatsu in 1993, the

company started producing microvans under the brand of Daihatsu Hijet (in the UK and

Benelux countries) and Porter (in the rest of Europe). The success and brand recognition

was enormous.

In 2001, having refreshed the arrangement twice, both companies agreed to

terminate the contract, staying still in co-operation - Daihatsu would now supply drive

trains and technical development to Piaggio, who would market the vehicle.

Babasabpatilfreepptmba.com 45

The Group currently operates within the following brands:

Piaggio (scooters, light commercial vehicles and vehicles for individual mobility)

Gilera (scooters and motorcycles)

Vespa (scooters)

Derbi (scooters and motorcycles)

Aprilia (scooters)

MOTO Guzzi (scooters)

7.2 Force Motors

Force Motors Ltd founded in 1958 as Bajaj Tempo Ltd. is a

manufacturer of three wheelers, multi utility and cross country

vehicles, light commercial vehicles, tractors and now heavy

commercial vehicles. A company that has reinvented itself. A

fully vertically integrated automobile company, with expertise in Design, Development

and Manufacture of the full spectrum of Automotive Components, Aggregates and

Vehicles.

Four decades ago, Force Motors started production of the HANSEAT 3-Wheelers

in collaboration with Vidal & Sohn Tempo Werke Germany and went on to establish a

strong presence in the “Light Commercial Vehicles” (LCV) field with the MATADOR.

The proverbial LCV in India. Through the 80s and 90s, especially in the last 5 years with a

major product development effort, Force Motors has introduced new Light Commercial

Vehicles, a new family of Utility Vehicles, new state-of-the-art Tractors, and a new range

of Three-Wheelers.

The word 'Force' is not just the product of 'mass' and 'acceleration'. It reflects values

of ethical business, strength in technology, in manufacturing and energy in product

development. It is also the binding force in close and mutually beneficial relations with

customers, dealers, suppliers and business associates.

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Force is the dynamism with which we venture into our future supported by the

array of Technical Collaborations and Business Alliances with world leaders like MAN,

Daimler Chrysler and ZF.

7.2.1 Five areas of excellence support the five market segments:

Research and Development - Using a 150 terminal CAD installation, and modern

testing facilities, staffed by 400 young engineers and technicians.

Production Engineering - Backed by a modern CAM Tool Room and run by 450

young and skilled engineers and staff.

Power Pack Manufacturing - State of the art facilities, for in house manufacturing of

engines and transmission components.

Vehicle Manufacturing - Complete, with in-house foundry, press shops, robotised

body welding, electrophoretic dip painting and high quality assembly facilities.

Marketing Excellence - Strengthen organizational commitment to deliver superior

customer value through better quality products and higher responsiveness to customer

needs and aspirations.

7.2.2 Products Offered

1. Three Wheelers

2. Light Commercial Vehicles

3. Multi Utility Vehicles

4. Tractors

5. Heavy Commercial Vehicles

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7.3 Mahindra & Mahindra

Mahindra & Mahindra Limited (M&M) is a major automaker in

India. It is the flagship strategic business unit of the Mahindra

Group. The company was set up in 1945. The company first

traded steel with suppliers in England and the United States.

Real business activity of M&M began by assembling complete knock down (CKD) Jeeps

in 1949. The company expanded to indigenous manufacture of Jeep vehicles with a high

level of local content under license from Kaiser Jeep and later American Motors (AMC).

M&M soon branched out into manufacturing agricultural tractors and light

commercial vehicles (LCV‟s). It later expanded its operations to secure a significant

presence in many more important sectors. The Mahindra Group‟s Automotive Sector is in

the business of manufacturing and marketing utility vehicles and light commercial

vehicles, including three-wheelers. It is the market leader in utility vehicles in India since

inception, and currently accounts for about half of India‟s market for utility vehicles

The company has now transformed itself into a group of business units that caters

to the Indian and overseas markets with a presence in vehicles, farm equipment,

information technology, trade and finance related services, as well as infrastructure

development.

By 2005, M&M had become the largest producer of SUVs in India. The company

has recently started a separate sector, the Mahindra Systems and Automotive Technologies

(MSAT), to focus on developing components and offering engineering services.

Over the years, the Group has developed a large product portfolio catering to a

diverse customer base spanning rural and semi-urban customers, defence requirements and

luxurious urban utility vehicles. In 2002, it launched the indigenously engineered world-

class sports utility vehicle-Scorpio, which bridges the gap between style and adventure,

luxury and ruggedness, and performance and economy.

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The Group exports its products to several countries in Europe, Africa, South

America, South Asia and the Middle East.The International Operations of the Automotive

Sector focuses on the international business. Mahindra International, a joint venture

between Mahindra & Mahindra Limited and International Truck and Engine Corporation,

will manufacture trucks and buses for India and export markets. It will also provide

component sourcing and engineering services to International Truck and Engine

Corporation.

AutomartIndia is India‟s largest multi-brand used car company. The Company‟s

mission is to create India‟s largest automobile and automobile-related products

distribution network by providing dealers and customers with the largest choice of unique

world-class products and services.

7.3.1 Products Offered

1. 4/3 Wheelers

2. Pik – Ups

3. Light Commercial Vehicles (LCV‟s)

4. Sport Utility Vehicles (SUV‟s)

5. Used cars - Purchase, Sale and Finance

6. Utility Vehicles

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7.4 Bajaj

Bajaj Auto is a major Indian automobile manufacturer. It is

India's largest and the world's 4th largest two- and three-

wheeler maker. It is based in Pune, Maharashtra, with plants

in Akurdi and Chakan (near Pune),Waluj (near Aurangabad)

and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcycles

and the three wheelers.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading

Corporation Private Limited. It started off by selling imported two- and three-wheelers in

India. In 1959, it obtained license from the Government of India to manufacture two- and

three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In

1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985,

it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell

500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle

and produced and sold 1 million vehicles in a year.

Over the last decade, the company has successfully changed its image from a

scooter manufacturer to a two wheeler manufacturer. Its real growth in numbers has come

in the last four years after successful introduction of a few models in the motorcycle

segment.It has been reported that Bajaj is headed for a de-merger into two separate

companies: Bajaj Auto and Bajaj Finance. It is expected that the sum of the parts created

will be worth more that the current whole, as was the case in the de-merger of Reliance

Industries.

In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG

(holding company of KTM Sportmotocycles AG). The two companies have signed a

cooperation deal, by which KTM will provide the know-how for joint development of the

water-cooled 4 stroke 125 and 250 cc engines, and Bajaj will take over the distribution of

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KTM products in India and some other Southeast Asian nations. Bajaj Auto said it is open

to take a majority stake in KTM and is also looking at other takeover opportunities. On the

8th of January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and

announced Bajaj Auto's intention to gradually increase their stake in KTM to 25%.

The sub-1 ton cargo segment also has shown a robust growth at 15 per cent, and

Bajaj Auto has grown in line with the industry, with its market share remaining at a little

over 26 per cent. Like the Mega, the Company has launched the CNG version of its cargo

vehicle in cities where diesel vehicles are now banned.

7.4.1 Products Offered

1. Motorcycles

2. Scooters

3. Three Wheelers (Goods Carrier)

4. Three Wheeler (Passenger Carrier)