Comparison of Tata and Mahindra

Page | 55AcknowledgementI take this opportunity with much pleasure to thank all the people who helped me through the course of final project report on Comparitive Analysis of two Automobile Companies. As I write this acknowledgement, I must mention that this is not just a formal acknowledgement but also a sincere note ofthanks and also regard from my side. I feel a deep sense of gratitude and affection for those who helped and guided me in this project.The successful completion of my project is all due to co-operation and encouragement extended to me. First of all I would avail this opportunity to thank Prof. Amrinder Sandhu with his guidance and encouragement; I am able to complete this project in depth. Sir gave me moral support and guided me in different matters regarding the topic. He had been very kind and patient while suggesting me the outline of this project and correcting my doubts. I thank him for his overall support.1I hereby acknowledge my sincere gratitude to all the faculty members of Amity Global Business School, who gave their valuable assistance and co-operation to complete my summer project report. Their support is valuable for me. It is warmth efforts of parents, friends and well wishers who had been source of strength and confidence to me in this endeavor.

Index

IndexPage No.

Introduction

Project Detail

Establishment of both the companies

History of both the companies

Types of vehicles by both companies (Products)

Annual Balance Sheet

Profit & Loss Account

Yearly Report

Sales Comparison of both companies

Tie ups with other automobile companies

Conclusion

Introduction:Tata Motors:Tata Motors Limited(formerlyTELCO) is an Indianmultinationalautomotivemanufacturing company headquartered inMumbai, Maharashtra, India and a subsidiary of theTata Group. Its products include passenger cars, trucks, vans, coaches, buses and military vehicles. It is theworld's eighteenth-largest motor vehiclemanufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume.

Mahindra and Mahindra Introduction:Mahindra & Mahindra Limited(M&M) is an Indianmultinationalautomobilemanufacturingcorporation headquartered inMumbai, Maharashtra,India. It is one of the largest vehicle manufacturers by production in theRepublic of India. It is a part ofMahindra Group, an Indianconglomerate. The company was founded in 1945 inLudhiana

Project DetailTitle of the Project:Comparitive Analysis of two Automobile Companies.Objective of the project:

To compare the ranking, status, sales, market and price value of two automobile companies Tata Motors and Mahindra & Mahindra.

Description of the project:

Establishment of both the companies Tata Motors and Mahindra & Mahindra. History of both the companies. Types of vehicles (Products) Annual Balance Sheet, Profit & Loss Account and comparative yearly sales of both the companies. Comparative sales of both companies. Tie ups with other automobile companies. Leading automobile company in 2012. Strategies for future. Conclusion.

Project implementation and detail:

Schedule:I used to spend one hour every day on this project.

Methodology:I had taken the help of internet and magazine of automobile companies.

I will submit the given report as per schedule given below:

Evaluation Component: (Date Planned)

Synopsis: 15th June, 2013

First Progress report: 30th June, 2013

Second Progress Report: 15th July, 2013

Submission of Final Report to Faculty 9th August, 2013

Faculty Guide Name: Amrinder Sandhu

Date: Signature June 15, 2013 Karan Kamboj

Establishment of both the companies Tata Motors and Mahindra & Mahindra:

Tata Motors - Tata Motors Limited(formerlyTELCO) is an Indianmultinationalautomotivemanufacturing company headquartered inMumbai, Maharashtra, India and a subsidiary of theTata Group. Its products include passenger cars, trucks, vans, coaches, buses and military vehicles. It is theworld's eighteenth-largest motor vehiclemanufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume.Tata Motors has auto manufacturing and assembly plants inJamshedpur,Pantnagar,Lucknow,Sanand,DharwadandPunein India, as well as in Argentina, South Africa, Thailand and the United Kingdom. It has research and development centres in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom. It has a bus manufacturing joint venture withMarcopolo S.A.,Tata Marcopolo, and a construction equipment manufacturing joint venture withHitachi,Telcon Construction Solutions.Founded in 1945 as a manufacturer oflocomotives, the company manufactured its first commercial vehicle in 1954 in a collaboration withDaimler-BenzAG, which ended in 1969. Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra and in 1998 launched the first fully indigenous Indian passenger car, the Indica. Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and the British premium car makerJaguar Land Roverin 2008.Tata Motors is listed on theBombay Stock Exchange, where it is a constituent of theBSE SENSEXindex, theNational Stock Exchange of Indiaand theNew York Stock Exchange. Tata Motors is ranked 314th in the 2012Fortune Global 500ranking of the world's biggest corporations.

Mahindra & Mahindra -

Mahindra & Mahindra Limited(M&M) is an Indianmultinationalautomobilemanufacturingcorporation headquartered inMumbai, Maharashtra,India. It is one of the largest vehicle manufacturers by production in theRepublic of India. It is a part ofMahindra Group, an Indianconglomerate. The company was founded in 1945 inLudhianaas Mahindra & Mohammed by brothers K.C. Mahindra andJ.C. MahindraandMalik Ghulam Mohammed.After India gainedindependenceandPakistanwas formed, Mohammed emigrated to Pakistan. The company changed its name to Mahindra & Mahindra in 1948.It is ranked #21 in the list of top companies of India inFortune India 500in 2011.

History of both the companies:

History of Tata Motors - Tata entered the commercial vehicle sector in 1954 after forming a joint venture withDaimler-Benzof Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching theTata Sierra, a multi utility vehicle. After the launch of three more vehicles,Tata Estate(1992; astation wagondesign based on the earlier 'TataMobile' (1989), a light commercial vehicle),Tata Sumo(1994; LCV) and Tata Safari (1998; India's first sports utility vehicle).Tata launched theIndicain 1998, the first fully indigenous Indian passenger car. Although initially criticised by auto-analysts, its excellent fuel economy, powerful engine and an aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favourite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica played a key role in the growth of Tata Motors.In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo Commercial Vehicles Company, later renamedTata Daewoo.In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach manufacturerHispano Carrocera. Tata Motors continued its market area expansion through the introduction of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo).In 2006, Tata formed a joint venture with the Brazil-basedMarcopolo,Tata Marcopolo Bus, to manufacture fully built buses and coaches.In 2008, Tata Motors acquired the British car makerJaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo.Debuting in South Korea, South Africa, theSAARCcountries and the Middle-East by the end of 2009.Tata acquired full ownership of Hispano Carrocera in 2009.[14]In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company Trilix for 1.85 million. The acquisition formed part of the company's plan to enhance its styling and design capabilities.[15]History of Mahindra and Mahindra - Mahindra & Mahindra was set up as a steel trading company in 1945. It eventually saw business opportunity in expanding into manufacturing and selling larger MUVs, starting with assembly under licence of theWillysJeepin India. Soon established as the Jeep manufacturers of India, the company later commenced upon the task of expanding itself, choosing to utillize the manufacturing industry oflight commercial vehicles(LCVs) and agriculturaltractors. Today, Mahindra & Mahindra is a key game player in the utility vehicle manufacturing and branding sectors in theIndian automobile industrywith its flagship UV Scorpio and swiftly exploits India's growing global market presence in both the automotive and farming industries to push its products in other countries.Over the past few years, the company has taken interest in new industries and in foreign markets. They entered thetwo-wheelerindustry by taking over Kinetic Motors in India.[6]M&M also has controlling stake inREVA Electric Car Company[7]and acquired South Korea'sSsangYong Motor Companyin 2011.[8]The US based Reputation Institute once ranked Mahindra amongst the top Ten Indian companies in its 'Global 200: The World's Best Corporate Reputations' list.

Types of vehicles (Products):

Types of Vehicles by Tata Motors -

Cars and Utility Vehicles Trucks and Buses Defense and Homeland Security Vehicles Jaguar Land Rover

Cars and Utility Vehicles:

Nano -

Vista -

IndicaeV2 -

Manza -

Indigo eCS -

Safari Storme -

Safari Dicor -

Sumo Gold -

Sumo Grande -

Venture -

Xenon XT -

Aria -

Trucks and Buses:

Pickups -

Prima -

Construck -

Ace -

Tata Venture -

Tata Magic Iris -

Buses -

Magic -

Winger -

Defence Mobility Vehicles:

LPTA 2038 6X6 7 KL Refueler - LPTA 3138 8X8 Pinaka Container - Anti Terrorist Vehicle - Xenon Recce 4x4 - Tata Light Armoured Vehicle -

Quick Development Mobile Communication Terminal on LSV Platform -

Mobile Bunker on LPA 713 -

Mine Protected Vehicle -

LPTA 3138 8X8 7KL Drinking Water Tanktainer -

LPTA 5252 12X12 Prahaar Missile System -

Jaguar

Land Rover

Types of Vehicles by Mahindra and Mahindra -

Commercial Vehicles. Personal Vehicles. Two Wheelers Scooters Motercycles Defense Vehicles.

Commercial Vehicles:

Alfa - Gio - Mahindra Trucks and Buses-

Bolero Maxi Truck-

Genio-

Loadking-

Maxximo - Tourister Buses -

Personal Vehicles:

Bolero -

e2o -

Scorpio-

Thar-

Verito-

Xylo-

Actyon-

Actyon Sports-

Chairman W-

Korando- Kyron-

Rexton-

Rodius-

XUV 500 -

Quanto-

Two Wheelers:

Scooters:

Rodeo RZ -

Duro DZ -

Duro -

Flyte - Kine -

Motercycles:

Pantero - Centuro - Military Defense:The company has built and assembled military vehicles, commencing in 1947 with the importation of theWillys Jeepfor use in World War II.Its line of military vehicles include theAxe. It also maintains a joint venture with BAE Systems, Defence Land Systems India.Conclusion: Tata Motors have more products then Mahindra and Mahindra. Tata is larger producer than Mahindra and MahindrAnnual Balance Sheet, Profit & Loss Account, Comparatively yearly sales of both the companies: Balance Sheet of Tata Motors:

------------------- in Rs. Cr. -------------------

Mar '12Mar '11Mar '10Mar '09Mar '08

12 mths12 mths12 mths12 mths12 mths

Sources Of Funds

Total Share Capital634.75634.65570.60514.05385.54

Equity Share Capital634.75634.65570.60514.05385.54

Share Application Money0.003.060.000.000.00

Preference Share Capital0.000.000.000.000.00

Reserves18,709.1619,351.4014,208.5511,855.157,428.45

Revaluation Reserves23.7524.1924.6325.0725.51

Networth19,367.6620,013.3014,803.7812,394.277,839.50

Secured Loans6,915.777,766.057,742.605,251.652,461.99

Unsecured Loans4,095.868,132.708,883.317,913.913,818.53

Total Debt11,011.6315,898.7516,625.9113,165.566,280.52

Total Liabilities30,379.2935,912.0531,429.6925,559.8314,120.02



Application Of Funds

Gross Block27,111.7621,883.3218,416.8113,905.1710,830.83

Less: Accum. Depreciation9,965.878,466.257,212.926,259.905,443.52

Net Block17,145.8913,417.0711,203.897,645.275,387.31

Capital Work in Progress2,073.964,058.565,232.156,954.045,064.96

Investments20,493.5522,624.2122,336.9012,968.134,910.27

Inventories4,588.233,891.392,935.592,229.812,421.83

Sundry Debtors2,708.322,602.882,391.921,555.201,130.73

Cash and Bank Balance1,115.08638.79612.16638.17750.14

Total Current Assets8,411.637,133.065,939.674,423.184,302.70

Loans and Advances6,400.655,852.425,248.715,909.754,831.36

Fixed Deposits725.881,790.131,141.10503.651,647.17

Total CA, Loans & Advances15,538.1614,775.6112,329.4810,836.5810,781.23

Deffered Credit0.000.000.000.000.00

Current Liabilities21,271.4515,740.6916,909.3010,968.9510,040.37

Provisions3,600.823,222.712,763.431,877.261,989.43

Total CL & Provisions24,872.2718,963.4019,672.7312,846.2112,029.80

Net Current Assets-9,334.11-4,187.79-7,343.25-2,009.63-1,248.57

Miscellaneous Expenses0.000.000.002.026.05

Total Assets30,379.2935,912.0531,429.6925,559.8314,120.02

Contingent Liabilities3,284.124,798.833,708.335,433.075,590.83

Book Value (Rs)60.95314.93259.03240.64202.70

Balance Sheet of Mahindra and Mahindra:------------------- in Rs. Cr. -------------------



Sources Of Funds

Total Share Capital295.16294.52293.62282.95272.62


Share Application Money0.000.0033.978.010.00

Preference Share Capital0.000.000.000.000.00

Reserves14,363.7611,799.269,974.627,527.604,959.26

Revaluation Reserves0.0010.9111.1811.6712.09

Networth14,658.9212,104.6910,313.397,830.235,243.97

Secured Loans266.67400.18407.23602.45981.00

Unsecured Loans2,960.402,774.041,998.062,277.703,071.76

Total Debt3,227.073,174.222,405.292,880.154,052.76

Total Liabilities17,885.9915,278.9112,718.6810,710.389,296.73



Application Of Funds

Gross Block9,373.728,063.185,849.274,866.184,653.66

Less: Accum. Depreciation4,047.923,552.362,841.732,537.772,326.29

Net Block5,325.804,510.823,007.542,328.412,327.37

Capital Work in Progress495.54922.261,364.311,374.31886.96

Investments11,833.4610,310.469,325.296,398.025,786.41

Inventories2,419.772,358.391,694.211,188.781,060.67

Sundry Debtors2,208.351,988.361,354.721,258.081,043.65

Cash and Bank Balance1,781.41630.57447.62475.17635.61

Total Current Assets6,409.534,977.323,496.552,922.032,739.93

Loans and Advances3,389.262,767.192,653.522,034.471,402.45

Fixed Deposits0.00557.86167.021,268.06938.82

Total CA, Loans & Advances9,798.798,302.376,317.096,224.565,081.20

Deffered Credit0.000.000.000.000.00

Current Liabilities7,662.136,921.735,289.673,822.503,520.20

Provisions1,905.471,845.272,005.881,796.541,277.56

Total CL & Provisions9,567.608,767.007,295.555,619.044,797.76

Net Current Assets231.19-464.63-978.46605.52283.44

Miscellaneous Expenses0.000.000.004.1212.55

Total Assets17,885.9915,278.9112,718.6810,710.389,296.73

Contingent Liabilities2,722.472,633.992,632.102,307.701,220.39

Book Value (Rs)248.32205.32174.85138.02191.91

Profit & Lose Account of Tata Motors: ------------------- in Rs. Cr. -------------------



Income

Sales Turnover59,220.9452,067.8738,173.3928,538.2033,123.54

Excise Duty5,003.724,110.632,800.102,877.534,355.63

Net Sales54,217.2247,957.2435,373.2925,660.6728,767.91

Other Income-11.16341.531,220.86921.29734.17

Stock Adjustments623.84354.22606.63-238.04-40.48

Total Income54,829.9048,652.9937,200.7826,343.9229,461.60

Expenditure

Raw Materials41,081.7935,047.0525,366.1218,801.3720,891.33

Power & Fuel Cost550.89471.28362.62304.94325.19

Employee Cost2,691.452,294.021,836.131,551.391,544.57

Other Manufacturing Expenses2,386.911,753.461,289.60866.65904.95

Selling and Admin Expenses3,248.912,790.192,126.101,652.312,197.49

Miscellaneous Expenses1,610.692,067.421,707.061,438.89964.78

Preoperative Exp Capitalised-907.13-817.68-740.54-916.02-1,131.40

Total Expenses50,663.5143,605.7431,947.0923,699.5325,696.91



Operating Profit4,177.554,705.724,032.831,723.103,030.52

PBDIT4,166.395,047.255,253.692,644.393,764.69

Interest1,218.621,383.791,246.25704.92471.56

PBDT2,947.773,663.464,007.441,939.473,293.13

Depreciation1,606.741,360.771,033.87874.54652.31

Other Written Off0.00106.17144.0351.1764.35

Profit Before Tax1,341.032,196.522,829.541,013.762,576.47

Extra-ordinary items0.000.000.0015.290.00

PBT (Post Extra-ord Items)1,341.032,196.522,829.541,029.052,576.47

Tax98.80384.70589.4612.50547.55

Reported Net Profit1,242.231,811.822,240.081,001.262,028.92

Total Value Addition9,581.728,558.696,580.974,898.164,805.58

Preference Dividend0.000.000.000.000.00

Equity Dividend1,280.701,274.23859.05311.61578.43

Corporate Dividend Tax181.54192.80132.8934.0981.25

Per share data (annualised)

Shares in issue (lakhs)31,735.476,346.145,705.585,140.083,855.04

Earning Per Share (Rs)3.9128.5539.2619.4852.63

Equity Dividend (%)200.00200.00150.0060.00150.00

Book Value (Rs)60.95314.93259.03240.64202.70

Profit & Lose Account of Mahindra and Mahindra:

------------------- in Rs. Cr. -------------------



Income

Sales Turnover43,412.6534,353.6325,569.5520,323.6314,668.13

Excise Duty2,971.492,518.432,092.021,807.301,587.05

Net Sales40,441.1631,835.2023,477.5318,516.3313,081.08

Other Income639.79574.99563.13285.09132.65

Stock Adjustments87.31597.33202.2323.69-156.29

Total Income41,168.2633,007.5224,242.8918,825.1113,057.44

Expenditure

Raw Materials30,675.2724,258.9416,604.8812,461.569,208.71

Power & Fuel Cost206.39175.78143.93120.9798.69

Employee Cost1,866.451,603.811,445.561,199.851,024.52

Other Manufacturing Expenses141.16125.8198.3396.9275.36

Selling and Admin Expenses0.001,811.881,735.631,439.261,109.96

Miscellaneous Expenses3,013.02760.05261.10264.21165.83

Preoperative Exp Capitalised-83.12-73.53-50.87-59.55-42.83

Total Expenses35,819.1728,662.7420,238.5615,523.2211,640.24



Operating Profit4,709.303,769.793,441.203,016.801,284.55

PBDIT5,349.094,344.784,004.333,301.891,417.20

Interest191.19162.7570.86156.85134.12

PBDT5,157.904,182.033,933.473,145.041,283.08

Depreciation710.81576.14413.86370.78291.51

Other Written Off0.000.000.000.000.00

Profit Before Tax4,447.093,605.893,519.612,774.26991.57

Extra-ordinary items0.000.000.0072.4948.97

PBT (Post Extra-ord Items)4,447.093,605.893,519.612,846.751,040.54

Tax1,094.27727.00857.51759.00199.69

Reported Net Profit3,352.822,878.892,662.102,087.75836.78

Total Value Addition5,143.904,403.803,633.683,061.662,431.53

Preference Dividend0.000.000.000.000.00

Equity Dividend798.17767.48706.08549.52278.83

Corporate Dividend Tax92.98101.1396.5674.2333.23

Per share data (annualised)

Shares in issue (lakhs)5,903.235,890.305,872.475,659.082,726.16

Earning Per Share (Rs)56.8048.8845.3336.8930.69

Equity Dividend (%)260.00250.00230.00190.00100.00

Book Value (Rs)248.32205.32174.85138.02191.91

Yearly Report of Tata Motors: ------------------- in Rs. Cr. -------------------


Net Sales/Income from operations44,373.0454,005.4047,807.4235,593.0525,660.79

Other Operating Income392.68301.16233.04----

Total Income From Operations44,765.7254,306.5648,040.46----

EXPENDITURE

Consumption of Raw Materials27,244.2833,894.8227,058.4720,392.6016,218.62

Purchase of Traded Goods5,864.456,433.957,363.13----

Increase/Decrease in Stocks-143.60-623.84-354.22-606.63238.04

Power & Fuel----------

Employees Cost2,837.002,691.452,294.021,836.131,551.39

Depreciation1,817.621,606.741,360.771,033.87874.54

Excise Duty----------

Admin. And Selling Expenses----------

R & D Expenses----------

Provisions And Contingencies----------

Exp. Capitalised-953.80-907.13-817.68-740.54-916.02

Other Expenses8,199.418,639.767,831.6010,677.246,867.49

P/L Before Other Inc. , Int., Excpt. Items & Tax-99.642,570.813,304.37----

Other Income2,088.20574.08183.261,853.45925.97

P/L Before Int., Excpt. Items & Tax1,988.563,144.893,487.63----

Interest1,387.761,218.621,143.991,103.84673.68

P/L Before Exceptional Items & Tax600.801,926.272,343.643,749.991,079.02

Exceptional Items-425.87-585.24-147.12----

P/L Before Tax174.931,341.032,196.52----

Tax-126.8898.80384.70589.4612.50

P/L After Tax from Ordinary Activities301.811,242.231,811.82----

Prior Year Adjustments----------

Extra Ordinary Items-------920.45-65.26

Net Profit/(Loss) For the Period301.811,242.231,811.822,240.081,001.26


Reserves Excluding Revaluation Reserves10,473.4618,967.5119,351.4014,370.2411,691.03

Equity Dividend Rate (%)----------

EPS Before Extra Ordinary

Basic EPS0.933.9030.28----

Diluted EPS0.933.7728.92----

EPS After Extra Ordinary

Basic EPS0.933.9030.28----

Diluted EPS0.933.7728.92----

Public Share Holding

No Of Shares (Crores)127.00131.9124.1125.8820.32

Share Holding (%)46.9049.0044.7851.1145.17

Promoters and Promoter Group Shareholding

a) Pledged/Encumbered

- Number of shares (Crores)7.107.854.40----

- Per. of shares (as a % of the total sh. of prom. and promoter group)7.558.3823.47----

- Per. of shares (as a % of the total Share Cap. of the company)2.622.928.17----

b) Non-encumbered




Yearly Report of Mahindra and Mahindra: Standalone Yearly Results------------------- in Rs. Cr. -------------------


Net Sales/Income from operations39,903.1231,392.0323,493.7218,602.1113,093.68

Other Operating Income538.04461.49------

Total Income From Operations40,441.1631,853.5223,493.72----

EXPENDITURE

Consumption of Raw Materials20,749.8718,804.5214,708.9411,695.568,771.79

Purchase of Traded Goods9,752.685,292.58------

Increase/Decrease in Stocks-87.31-597.33-202.23-23.69156.29

Power & Fuel----------

Employees Cost1,866.451,701.781,445.561,198.471,024.61

Depreciation710.81576.14413.86370.78291.51

Excise Duty----------

Admin. And Selling Expenses----------

R & D Expenses----------

Provisions And Contingencies----------

Exp. Capitalised----------

Other Expenses3,450.172,881.254,085.272,776.532,048.36

P/L Before Other Inc. , Int., Excpt. Items & Tax3,998.493,194.583,042.32----

Other Income549.17465.79309.52199.35270.34

P/L Before Int., Excpt. Items & Tax4,547.663,660.373,351.84----

Interest191.19162.75-50.2927.8145.26

P/L Before Exceptional Items & Tax4,356.473,497.623,402.132,756.001,026.20

Exceptional Items90.62108.27------

P/L Before Tax4,447.093,605.893,402.13----

Tax1,094.27727.00857.51759.00199.69

P/L After Tax from Ordinary Activities3,352.822,878.892,544.62----

Prior Year Adjustments----------

Extra Ordinary Items----117.4890.7510.27

Net Profit/(Loss) For the Period3,352.822,878.892,662.102,087.75836.78


Reserves Excluding Revaluation Reserves14,352.9211,865.6610,008.577,532.154,977.37

Equity Dividend Rate (%)----------

EPS Before Extra Ordinary

Basic EPS56.8548.9746.21----

Diluted EPS54.6146.8944.33----

EPS After Extra Ordinary

Basic EPS56.8548.9746.21----

Diluted EPS54.6146.8944.33----

Public Share Holding

No Of Shares (Crores)42.6442.4642.4639.6117.89

Share Holding (%)69.4569.1569.1668.4964.15

Promoters and Promoter Group Shareholding

a) Pledged/Encumbered




b) Non-encumbered




Conclusion: Tata Motors have more sales as compare to Mahindra and Mahindra. As, in year 2012 annual sales of Tata Motors is 54,005.40 ,where as the sale of Mahindra and Mahindra is 31,392.03. Tata Motors have more annual income then Mahindra and Mahindra.

Sales comparison of both companies per annum:

Sales table of Tata Motors -

Sales Table of Mahindra and Mahindra Motors -

Conclusion:

Sales of Mahindra and Mahindra is more as compare to Tata Motors. From last year Mahindra and Mahindra push up its sale and become larger producer then Tata Motors. Mahindra and Mahindra is leading in sales of private vehicles, Tata Motors is still leading in commercial vehicles.

Tie ups of Mahindra and Mahindra and Tata Motors with other automobile companies: Tata Motors tie up with other companies -

Tata Motors collaboration withDaimler-BenzAG((Mercedes Benz):The company manufactured its first commercial vehicle in 1954 in a collaboration withDaimler-BenzAG((Mercedes Benz), which ended in 1969.

Tata Motors with Daewoo Commercial Vehicles Company:

Indicas high success gave Tata Motors the financial power to take over Daewoo Motors. This gave the company an opportunity to give their brand international exposure. Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004, now known as Tata Daewoo Commercial Vehicle. Daewoos trucks are sold as Tata Daewoo Commercial Vehicle in South Korea. Tata Motors first acquired a 21% stake inHispano CarroceraSA in 2005,and acquired the remaining 79% for an undisclosed sum in 2009, making it a fully owned subsidiary, subsequently renamed Tata Hispano.

Tata Motors deals with British Jaguar Land Rover:

In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.

Tata Motors with Marcopolo of Brazil:Tata Motors formed 51:49 joint venture with Marcopolo of Brazil and came up with manufacturing and assembling fully-built buses and coaches targeting the developing mass rapid transportation systems. Tata and Marcopolo jointly have launched low-floor city buses that are widely used by Delhi, Mumbai, Lucknow and Bangalore transport corporations. Tata Motors has been continuously acquiring foreign brands to increase its global presence. Today, Tata Motors has its auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Ahmedabad and Pune in India, and in Argentina, South Africa, South Korea and Thailand. It is further planning to set up more plants in Turkey, Indonesia and Eastern Europe.

Tata Motors, which is countrys largest commercial vehicle maker, is all set to come up with a new series of buses along with partner Marcopolo that will supply to both inter and intra- city transport. Mahindra and Mahindra tie up with other companies -

Mahindra and Mahindra a joint venture with Ford Motor Company:In the year 1996, Mahindra Ford India Limited was established, a joint venture with Ford Motor Company, USA, to manufacture passenger cars.

Ford has entered the Indian market through a tie - up with Mahindra Motors to manufacture the Ford Escort. Sold to over 18 million owners worldwide, the models available in India are specially engineered for Indian conditions. Ford has sold over 260,000,000 vehicles around the world, and is all geared to make India a global player in automobiles.

With an investment of over Rs. 1700 crores, and in an area encompassing 350 acres, Ford has set up its own new, integrated manufacturing plant at Maraimalai Nagar near Chennai. It has been the endeavor at Mahindra Ford to manufacture India's top quality cars.Acknowledgement has come in the form of the J D power 1997 India Initial Quality and Customer Satisfaction Awards. These internationally acclaimed and recognized awards voted the Ford Escort as the Best Quality car and the Mahindra Ford and its dealerships were rated the highest in Customer Satisfaction. This is an honour as it its only the second time in automotive history that the same brand/manufacturer has received both the awards in the same year. WITH

Mahindra and Mahindra a joint venture with Navistar International:Mahindra Navistar Automotives Ltd, formerly calledMahindra International,is an Indiancommercial vehiclemanufacturer formed in 2005 from ajoint-venturebetweenNavistar International(49%) of the United States and Indianautomobile makerMahindra & Mahindra(51%).Mahindra Navistar has started its manufacturing activities for the production ofcommercial vehiclesranging from 3.5 49 tons GVW/GCW. The products of MNAL are currently sold under the trademark of Cabking, Loadking and Tourister.[5]In December 2012, Navistar announced that they were selling their stake to Mahindra and exiting both joint ventures,Mahindra NavistarandMahindra Navistar Engines.Mahindra & Mahindra (M&M) announced that it took over complete ownership to sell products of MNAL and MNEPL. Navistar however decided that it would source the components from India. M&M would forward its engineering services to Navistar, which in turn would facilitate support to it through the license agreements.

Mahindra and Mahindra commenced with Bavarian Auto Group:

In early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra Scorpio in Egypt,[21]in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities inBrazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well asSUVs. The Mahindra Scorpio is being exported to Europe, Africa, Asia, Middle East, South America and Australia.

This launch is a significant milestone for Mahindra as it not only expands our footprint in Africa but also marks the first time the Scorpio is being assembled from CKD kits outside India. With its unique combination of rugged utility and style, the Scorpio has carved a distinct niche for itself in markets across the globe and we are confident that it will createits own space in theEgyptmarket

Over the past year, the Scorpio has been successfully launched in markets including Morocco, Kenya, Ghana, Nigeria and Sudan

Mahindra and Mahindra a joint venture with Renault S.A.ofFrance:

Mahindra Renault Limitedwas aJVbetweenIndia's largestUtility vehiclemanufacturerMahindra & Mahindra Limited&Renault S.A.ofFrance(51% & 49% respectively). The joint venture was formed in 2007. On April 15. 2010 Mahindra & Mahindra and Renault together announced restructuring plans by which Mahindra would buy Renault's share in the joint ventureand Renault would continue to provide the support for M&M through license agreement and continue to be supplier of key components.

Mahindra Renault Limitedcurrently has a manufacturing plant inNashik,Maharashtrawith a capacity of 50,000 vehicles per annum.Renault-Nissan have invested Rs 4,500 Crores to build a manufacturing plant in Chennai which will have a capacity of 400,000 vehicles per annum divided equally between Mahindra Renault Limited andNissan Motor India Private Limited.

TheRenault Loganwas launched 2007 and became the Mahindra Verito after the ending of the join venture in 2010.

Mahindra and Mahindra joined with Ssangyong Motor Company:

The Ssangyong Motor Company joined Mahindra & Mahindra in 2011. Founded in 1954 as the Ha-dong-hwan Motor Workshop, Ssangyong is today a major player in the South Koreanutility vehiclespace and enjoys a market presence in more than 90 countries. Based in Pyeongtaek, South Korea, Ssangyong is more than 4,800 people who are passionate about cars. It is the fourth largest automobile manufacturer in South Korea. SsangYong, these two words mean double dragons.

Mahindra Ssangyong has 1 car models available in India. The available models are Mahindra Ssangyong Rexton,. The minimum priced model of Mahindra Ssangyong isMahindra Ssangyong Rextonpriced at Rs 18,77,092 and the maximum priced model of Mahindra Ssangyong isMahindra Ssangyong Rextonpriced at Rs 20,99,711.

Leading automobile company in 2012: Tata Motors Ranking -

3rd Rank in Indian automobile market.

One of the oldest car makers in India, Tata motors was founded in the year 1945. Headquartered at Mumbai with at headcount of about 60000 people Tata motors stands at 3rdrank with ashare of 13.3%. Mahindra and Mahindra Ranking -

4th Rank in Indian automobile market.

Always being known for its tractors and farm equipment Mahindra and Mahindra has made huge leaps in the Indian car market. This started happening with the launch of its iconic brand Scorpio. M&M utility vehicle segment grew by almost 60% in past couple of years taking it to 4thrank with a totalmarket share of 11.4%.

Conclusion: By year 2012 Tata Motors was leading over Mahindra and Mahindra. Tata Motors got 3rd rank in automobile companies where as Mahindra and Mahindra got 4th position. Mahindra and Mahindra had improved a lot in last few years and become a competitor of large automobile company Tata Motors. Mahindra and Mahindra segment grew by almost 60% in last few years.Strategies for future:

Strategies Tata Motors strategies for future -

Globalization:

Tata Motors produces vehicles both in the Light Commercial Vehicles (LCV) and the Medium and Heavy Commercial Vehicles (M and HCV) segments. It faces higher competition in the LCV segment, where its Tata ACE has been a huge success. Internationalization forms a key component of Tata Motor's strategy and it has successfully entered countries having a demand similar to India like South Africa, Thailand and Argentina, mainly through acquisitions and joint ventures. It needs to improve its product reliability, service network and channel reach in order to maintain and replicate this success in other markets. Some of the recommendations for Tata Motors are exploring mass customization options in the Small Commercial Vehicle (SCV) segment, improving brand reputation and technology appropriation to bring out a world class ultra-HCV segment.

8 new launches across 5 brands:The company, on Wednesday, announced eight new simultaneous launches across five brands. These include new enhanced versions of the Tata Indigo eCS, Tata Sumo Gold, Tata Nano, Tata Indica, Tata Safari Storme and CNG variants of the Indica, Indigo and the Nano. While some will be immediately available, all variants will be phased in over the next 90 days. Indigo eCS BS3 starts at Rs. 4.99 lakh (ex-showroom Delhi) while the eCS LS BS4 starts at Rs. 5.29 lakh. Tata Sumo Gold will be offered in five variants starting at Rs. 5.83 lakh while the new Tata Nano will be offered in three trims starting at Rs. 1.5 lakh. Tata Indica starts at Rs. 3.99 lakh.The Tata Motors chief said for the new journey, the four pillars would be enhanced product focus, world class manufacturing, enhanced sales experience and enhanced service experience. The company would roll out improved dealerships across 150 dealers in 100 cities in the current calendar year. It would also launch 11 new service programmes over the next month, he added.The markets are down, and we have been aligning production to market conditions, said Ranjit Yadav, President, Passenger Vehicles Business Units, Tata Motors.We are confident that the new introductions and new initiatives will see traction going forward. Thankfully now, our inventory levels have come down significantly and are at a healthy one month levels, he added.

Mahindra and Mahindra strategies for future -

Mahindra & Mahindra to expand businesses in Sri Lanka; to launch 2-wheelers:

COLOMBO: Diversified conglomerate Mahindra & Mahindra is embarking on a major expansion drive for its range of businesses in Sri Lanka, the largest vehicle export market for the group, by foraying into two-wheeler and aviation segments.The group is also keen on exploring possibilities in financing, hospitality, housing and IT sectors.The group, which has already sold its first aircraft inSri Lankaand will launch its scooters by the end of this year, is undergoing a brand building exercise in the country by joining hands with Sri Lanka Premier League (SLPL) as the title sponsor for the first edition of the tournament.

Shaping the FUTURE of Mobility (Clean, green & lowest cost of commuting):Pertinent issues like environmental degradation, pollution related health concerns, climate change, energy security and rising oil prices have come to the forefront in recent times. The depletion and distribution of non-renewable conventional fuel is pushing alternate energy and propulsion technologies centre stage on the global agenda.

Commenting upon the Mahindra Groups focus to shape the future of mobility,Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra Groupsaid, l firmly believe that Mahindra is on the threshold of shaping the way we will commute in the 21st century. Today, we usher in a new paradigm to bring in products and mobility solutions which will bear testimony to our commitment to a cleaner environment on planet Earth, and lay emphasis on the mobility needs of tomorrow's consumer. The sheer versatility of the product suite that the Mahindra Group has on display at the Auto Expo 2012 is representative of the direction our brands are taking to bring in positive change and to be regarded as game changers in the mobility space."

The Mahindra Group has for some time now worked on shaping the future of mobility with cutting edge product innovation to find new solutions for urban mobility needs that will provide clean, green and far more economical personal transportation to customers for their daily commutes. A first step in that direction has been the NeXt Generation concept of Electric Vehicles (EVs) from Mahindra Reva.Speaking on the occasion of the NeXt Generation Mahindra Reva Concept vehicle unveil at the Auto Expo,Dr. Pawan Goenka, President, Automotive and Farm Sectorssaid, Imagine travelling from Connaught Place to the Delhi International Airport for an energy cost of just Rs 10! Now imagine doing this in air conditioned climate controlled comfort and without emitting a single molecule of harmful gases. That is how we believe we could shape the future of mobility. To enable this, we are already working on integrating a comprehensive eco-system of sustainable mobility solutions, encompassing alternative technologies such as electric, hybrid and fuel cells into our research, development and commercialisation plans.

To support the intra city transportation, the country will need new infrastructure to source, distribute, and charge a range of electric vehicles. Integrated with public transportation, this infrastructure will provide seamless congestion-free urban mobility solutions. The Government of India has initiated an accelerated program to find new solutions that will harness the opportunities in using electrical energy from both conventional and renewable sources to power such mobility solutions.

Conclusion:

Tata Motors have more products then Mahindra and Mahindra.

Tata is larger producer than Mahindra and Mahindra.

Tata Motors have more sales as compare to Mahindra and Mahindra. As, in year 2012 annual sales of Tata Motors is 54,005.40 ,where as the sale of Mahindra and Mahindra is 31,392.03.

Tata Motors have more annual income then Mahindra and Mahindra.

Sales of Mahindra and Mahindra is more as compare to Tata Motors.

From last year Mahindra and Mahindra push up its sale and become larger producer then Tata Motors.

Mahindra and Mahindra is leading in sales of private vehicles, Tata Motors is still leading in commercial vehicles.

Made By: Submitted To: Karan Kamboj Amrinder Sandhu

Date post:	03-Oct-2015
Category:	Documents
Upload:	karan-chaudhary
View:	78 times
Download:	7 times

Comparison of Tata and Mahindra

Documents