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Company Overview
Chapter-1
Introduction
“A promise is promise and I kept my promise”- this is the historical statement
which Mr. RATAN TATA said when he launched his ambitious TATA
NANO; the people’s car in India on 23 rd march 2009. Tata has always given
value products in the Indian Car Market whether it is path breaking recently
launched TATA NANO or TATA INDICA (which created great brand into the
car industry in the diesel segment).
Not only is the passenger car, even into the heavy vehicle segment TATA is the
only sole leader in India. TATA has created its brand value not only in India but
even outside India it has created its brand by acquiring Jaguar-Land Rover,
Corus Steel during 2007-08. TATA has been named among top 10 brand
companies by Fortune Magazine in the year 2008. It has got into top 100
companies in the survey of Standard & Poor Mody’s research in the year 2008.
Being into most valued brand in world the consumer satisfaction to its
customers is very important for TATAS and thus they are continuously working
into this area where their objective is to provide best products with full value of
the money of their customers. The TATA INDICA VISTA has been one of
those products you just cannot ignore. While it got media coverage around the
world, the reactions, though mixed, flowed easily. On the one hand there has
been pride in the “World’s mid size small car” tag, as a great achievement for
Indian industry. The “World’s mid size small Car” tag has been well received
with the hope that a whole new category of people can look to buy a car now.
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STUDY OF THE INDUSTRY
a) Historical Background
“In India there are 100 people per vehicle, while this figure is 82 in China.
It is expected that Indian automobile industry will achieve mass motorization
status by 2014”.
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.
• 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.
• Unlike the USA, the Indian passenger vehicle market is dominated by
cars (79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle
market.
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b) Current Scenario
The growth of the Indian middle class along with the growth of the economy
over the past few years has attracted global auto majors to the Indian market.
Moreover, India provides trained manpower at competitive costs making India a
favoured global manufacturing hub. The attractiveness of the Indian markets on
one hand and the stagnation of the auto sector in markets such as Europe, US
and Japan on the other have resulted in shifting of new capacities and flow of
capital to the Indian automobile industry. According to the International
Yearbook of Industrial Statistics 2008 released by United Nations Industrial
Development Organisation (UNIDO), India ranks 12th in the list of the world’s
top 15 automakers.
Indian OEMs Come of Age
Indian original equipment manufacturers (OEMs) are making their mark today
with Tata and Mahindra & Mahindra as leading Indian OEMs emerging on the
global scene. With increasing competition from the global players, Indian
OEMs have upgraded their technology and are manufacturing superior-designed
vehicles.
'Frugal Engineering' has become the hallmark of the Indian automotive industry,
with Indian OEMs leveraging the Indian lead in cost-effectiveness and a highly-
skilled human resource pool to bring down the product development cost.
Additionally, competencies of their suppliers have also helped to lessen costs
and manufacturing time. In fact, global OEMs are now looking at benefiting
from the India advantage by using India-based design and development centres.
Tata Ace, Indica and Nano, and Mahindra's Scorpio are examples of products
developed by Indian OEMs after painstaking market research about the specific
needs of the Indian consumer.
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History of Tata Motors:-
Tata Motors Limited, formerly known as TELCO (TATA Engineering
and Locomotive Company), is India's largest passenger automobile and
commercial vehicle manufacturing company. It is a part of the Tata Group, and
has its headquarters in Mumbai, Maharashtra. One of the world's largest
manufacturers of commercial vehicles and known for its hatchback passenger
vehicle Tata Indica, Tata Motors has its manufacturing base in Jamshedpur,
Lucknow, Pune and Singur. The OICA ranked it as the world's 21st largest
vehicle manufacturer, based on figures for 2006.
Tata Motors was established in 1945, when the company began making
trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors gained
Rs. 320 billion during 2001-2006 which was among the top 10 corporate profits
in India. In 2004 it also bought Daewoo's truck manufacturing unit, now known
as Tata Daewoo Commercial Vehicle, in South Korea. In March 2005, it
acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in
the company. On 10 January 2008, Tata Motors launched their much awaited
Tata Nano, noted for its Rs 100,000 price-tag, at Auto Expo 2008 in Pragati
Maidan, Delhi.
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Purpose
At the Tata Group our purpose is to improve the quality of life of the
communities we serve. We do this through leadership in sectors of national
economic significance, to which the Group brings a unique set of capabilities.
This requires us to grow aggressively in focused areas of business.
Our heritage of returning to society what we earn evokes trust among
consumers, employees, shareholders and the community. This heritage is being
continuously enriched by the formalisation of the high standards of behaviour
expected from employees and companies.
The Tata name is a unique asset representing leadership with trust.
Leveraging this asset to enhance Group synergy and becoming globally
competitive is the route to sustained growth and long-term success.
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Five core values:-
The Tata Group has always sought to be a value-driven organisation.
These values continue to direct the Group's growth and businesses. The five
core Tata values underpinning the way we do business are:
Integrity: We must conduct our business fairly, with honesty and
transparency. Everything we do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and
humanity for our colleagues and customers around the world, and always
work for the benefit of the communities we serve.
Excellence: We must constantly strive to achieve the highest possible
standards in our day-to-day work and in the quality of the goods and
services we provide.
Unity: We must work cohesively with our colleagues across the Group
and with our customers and partners around the world, building strong
relationships based on tolerance, understanding and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the
countries, communities and environments in which we work, always
ensuring that what comes from the people goes back to the people many
times over.
Our Brand Ambassadors:-
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The Tata Group has some of India's most famous personalities from
the sports and entertainment fields endorsing its products and services, and
the Tata brand.
1. Narain Karthikeyan :- The 'fastest Indian in the world' has been a brand
ambassador for the Tata Group since 2002. The Group was instrumental
in helping Karthikeyan break into the charmed Formula One racing circle
in 2005.
2. Sourav Ganguly and Irfan Pathan :- The old warhorse and the young
tearaway have been supporting the Tata Indicom brand. Ganguly has also
been associated with Tata Steel.
3. Sania Mirza : The new kid on the tennis block has been making waves in
the women's game with her power and ebullience. Mirza, who broke into
the ATP top 100 in 2005, is a brand ambassador for Tata Tea.
4. Yuvraj Singh :- This cricket star, among the most prominent of the young
brigade that has been transforming the way India plays the game, is a
prominent feature of the many promotions run by Westside, the retail
chain of lifestyle stores.
5. Naseeruddin Shah : Arguably the best actor of his generation, Shah has
been endorsing a range of insurance products from the Tata AIG stable.8
6. Aamir Khan : To promote its watches, Titan has cast this extremely
popular and versatile Bollywood star in the role of an "iconic, style-
conscious [brand ambassador] who cuts across both sex and age groups in
urban and rural India".
7. Karun Chandhok : Tata Group brand ambassador Karun Chandhok is
the brightest young star in the brigade of Indian racing car drivers looking
to follow in the footsteps of Narain Karthikeyan. The 21-year-old racer is
currently honing his skills in the Formula 3 World Series for RC
Motorsport, for whom he has made a positive start in the 2005-2006
racing season.
Background:-
Tata Motors is a company of the Tata and Sons Group, founded by
Jamshetji Tata. It is currently headed by Ratan Tata.
The company has the workforce of 22000 employees working in its three
plants and other regional and zonal offices across the country.
Tata Motors' range of passenger cars is still not comprehensive by
international standards. In commercial vehicles, Tata Motors commands an
imposing 65% market share in the domestic heavy commercial market. The
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company is trying to modernise its range of commercial vehicles. Tata Motors
hived off its vehicle finance business into a separate subsidiary, TML Financial
Services (TMLFS), in September 2006.
International Profile:-
Tata motors are not only at the forefront of the Indian automobile
industry. It is also one of India’s best known brands in international
markets. Today, Tata branded cars, trucks and buses are seen in most
parts of South Asia, Africa, Middle East and Europe. Tata Motors recently
entered into an agreement with MG Rover U.K. for manufacture of Rover
branded Tata Indicas in U.K. and continental Europe. Tata Motors’
vehicles meet international norms like Euro III emission for Passenger
cars, Euro II for Light Commercial Vehicles including pick up vans and
European standards for frontal and side safety impact for passenger cars.
It has a series of quality systems in place including ISO accreditation from
Bureau Veritas Quality International (BVQI). The company’s vehicles are
known for their reliability, durability, safety, comfort and value for money.
Profile:-
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 10
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.
The company's 22,000 employees are guided by the vision to be "best in
the manner in which we operate, best in the products we deliver, and best in
our value system and ethics." Tata Motors helps its employees realise their
potential through innovative HR practices. The company's goal is to empower
and provide employees with dynamic career paths in congruence with
corporate objectives. All-round potential development and performance
improvement is ensured by regular in-house and external training. The
company has won several awards recognising its training programmes.
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, 11
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, 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
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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 scientists and engineers. The company's
Engineering Research Centre was established in 1966, and has facilities in 13
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 14
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.
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. 15
With the foundation of its rich heritage, Tata Motors today is etching a
refulgent future.
Tata Motors subsidiaries:-
Telco Construction Equipment is a joint venture between Tata Motors
and Hitachi, which focuses on excavators and other construction equipment.
HV Transmission (HVTL) and HV Axles (HVAL):- HVAL and HVTL
are 100% subsidiary companies of Tata Motors engaged in the business of
manufacture of gear boxes and axles for heavy and medium commercial
vehicles, with production facilities and infrastructure based at Jamshedpur. The
combined revenue of the two companies rose 38.7% yoy for 9MFY07 while the
combined PAT rose 50.9%. Tata Motors plans a capex of Rs2bn each for
HVAL & HVTL and plans to raise funds for the same, most probably by way of
a strategic sale to a technical collaborator. The strategic sale of either HVAL or
HVTL or both is likely to be completed in the next one or two quarters.
Tata Technologies Limited (TTL):- TTL provides Engineering and
Design (E&D) solutions to the Automotive Industry. Tata Motors holds 86.91%
of TTL’s share capital. TTL is based in Pune (Hinjawadi) and operates in the
US and Europe through its wholly owned subsidiaries in Detroit and London
respectively. It also has a presence in Thailand. Tata Technologies is a software 16
service provider in the IT services and BPO space. Its global client list includes
Ford, General Motors, Toyota and Honda, to name a few. It bought over the
British engineering and design services company, Incat International Plc for
Rs4b in August 2005. Incat specializes in engineering & design services and
product lifecycle management in the international automotive, aerospace and
engineering markets. With this acquisition, Tata Motors will have closer
proximity to its global customers and be able to provide a wider range of
services.
Tata Daewoo CV Ltd(TDCV):- TDCV is a 100% subsidiary of the Tata
Motors based in South Korea, which was acquired in March 2004. TDCV is in
the business of manufacture and sale of heavy commercial vehicles.Tata
Daewoo is Tata Motors’ 100% subsidiary in Korea, with a market share of
30%.Tata Motors will use the Daewoo technology to introduce higher tonnage
trucks in the Indian market and use Tata Daewoo for exports globally. In line
with this strategy, it has already introduced the Novus, a high-end tipper
developed by Tata Daewoo for the Indian market.
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
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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.
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
divestments in March 2000 hived off the Axle and Engine plants into
independent subsidiaries viz. HVAL &HVTL, respectively.
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 uniqueness of the Factory
lies in its possession of
Advanced facilities for manufacturing long members comprising of a
set-up of 5000 Tones Hydraulic press line, cut-to-length line for strip
preparation purchased from M/s Kohler of Germany and a Camber
Correction line. 18
Facility for hot forming of axle halves with a 3000 tone press and
heating furnace.
Flexibility in manufacturing frames with an off line Proto-typing facility.
The Cab, Cowl & Novus Factory is equipped with state- of- art facilities
like Centralized Paint Shop and Automated painting 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.
The fully equipped Foundry, that the unit is supported by, supplies high-
grade SG Iron castings for automobile components and excavators, and is
rated as one of the cleaner, better and highly automated foundries in the world.
It has an annual capacity of 42,000 MT of Good castings and makes, both, Gey
and SG cast Iron casting. It manufactures all critical automobile castings e.g.
Cylinder Block, Cylinder Head etc. It has a sophisticated Kunkel Wagner High
Pressure Moulding line of a rated production capacity of 90 moulds/ hour. This
is supported by a sand cooler and sand mixer from Kunkel Wagner. Its melting
shop has Medium Frequency Induction Furnaces for melting and Channel
Furnaces for holding. The pouring is done by a Channel Press Pour coupled
with a Steam Inoculation Dispenser. The core shop has a state- of-the- art Cold
Box Machine, making four cores per minute. It has elaborate sand and 19
metallurgical laboratories. In 1993 the foundry was ISO 9002 certified by the
Bureau Veritas Quality International, which was later followed by the more
stringent QS 9000 certification from the BVQI in the year 2000. Currently it is
certified as TS: 16949 by BVC.
The Engine Factory is responsible for the in-house manufacture of Tata
697/497 Naturally Aspirated and Turbo Charged engines, and the 6B series
engines manufactured at Tata Cummins.
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.
HV Axles Ltd., a wholly owned subsidiary of Tata Motors, is currently
the market leader in medium and heavy commercial vehicles axles in India
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with an installed capacity of over two lakh axles per annum. The company's
product range includes Front Steer axles- both live and normal, Rear Drive
axles and dummy/ trailer axles. It is currently the sole suppliers of M&HCV
axles to the Jamshedpur and Lucknow plants of Tata Motors.
HVAL has state-of-the-art manufacturing facilities for making all major
Axles components such as Front Axle Beam, Stub Axles, Front & Rear Wheel
Hubs, Differential, Axle Gears (Crown Wheel, Pinion, Bevel Gear & Shaft
Gear), Banjo Axle Beam, Swivel Heads, Constant Velocity Shafts etc. For
being in the forefront of cutting edge technology, HVAL has proven skills in
manufacturing axles from component level to assembly & testing. As a TS
16949 company, HVAL encourages and continuously supports its vendor base
to upgrade their Quality Management System to TS 16949.
HVTL was established on 13th March 2000 as a major subsidiary of Tata
Motors by taking over operations of Tata Motors' erstwhile Gearbox Division.
It is a leading manufacturer of automotive transmissions, components &
engineering applications for a wide range of medium & heavy commercial
vehicles. The company has a capacity of producing 94,000 gearboxes per year
which is being enhanced to a capacity of 120,000 Gearboxes per year. It
provides products and services of superior quality, matching with the current
economic and business trends in medium and heavy commercial vehicle 21
markets. The Quality System of HVTL is certified under ISO/ TS-16949. In
the environmental and safety front, it was ISO14001 certified in 2004 and
OHSAAS-18001 certified in 1999.
While making technological advancements, the social responsibilities are
also taken up seriously. Tata Motors, Jamshedpur, plays an active role in
serving rural communities surrounding its Works through various community
centres. While striving to create a culture for self-help amongst the local
populace, it has made significant progress in community and social forestry,
sustainable development of wastelands, road construction, rural health and
education, development of rural industries, water supply and family planning.
A signatory to the UN Global Pact, it also takes various initiatives in human
rights protection, labour standards, environmental issues, modern effluent
treatment facilities, sanitation drives, soil and water conservation programmes,
tree plantation drives, etc.
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
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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 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).
The Passenger Car Division in 'K' block executes the entire process of
car manufacture over five shops - the engine shop, the transmission shop, press
and body shops, paint shop and the trim and final assembly shop. The shops
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are fully automated ensuring that there is minimal chance for error in the
manufacturing processes.
After the car is completely assembled, it goes through several checks like
wheel alignment, sideslip test, brake test, shower test, and a short test run
before it is ready for dispatch. All systems such as materials management,
maintenance and other activities are computerized, enabling smooth operations
and minimum inventory needs.
The Electronics Division is engaged in the production of a wide variety
of Machine Tool Controllers, PLCs, Test rig instrumentation, Servomotors,
Proximity Switches. In addition, it has developed a number of components
such as flashers, horns, timers that are used in Tata Motors' vehicles.
Industry experts rate the fully automated Foundries at Chinchwad and
Maval among the best, worldwide. The Iron Foundry at Chinchwad produced
37,000 Tons of high precision castings in 2006-07 while the Iron Foundry at
Maval produced 14000 Tons of spheroidal Iron castings in 2006-07. These
include Cylinder Blocks, Cylinder Heads, Gear Box Housing, etc. To dispense
with the need for outsourcing, an Aluminium Foundry with an annual capacity
of 3,300 Tonnes has been established.
Lucknow:24
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.
Our 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. In light of Company’s aggressive growth plans,
we are currently in expansion phase and production at Lucknow would grow
many-fold in near future. The expansion shall be in the areas of painting,
welding, vehicle assembly & testing and utility services, driven by latest
technology. To achieve these plans we invite people who have good Technical
Knowledge, seek Challenging Opportunities and have a Drive for Engineering
Excellence to come and partner us in our journey.
Uttarakhand:
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The company has set up a plant for its mini-truck Ace and the passenger
carrier Magic (based on the Ace platform) at Pantnagar in Uttarakhand. The
plant began commercial production in August 2007. This is the company's
fourth plant, after Jamshedpur (commercial vehicles), Pune (commercial
vehicles and passenger vehicles) and Lucknow (commercial vehicles). The
plant is spread over 953 acres, of which 337 acres is occupied by the vendor
park.
State-of-the-art facilities include weld shops, paint shops, engine and
gear box shops and assembly lines. The company has invested over Rs.1000
crores in the plant. Vendors for the vehicle have made additional investments
to set up their plants in the vendor park adjoining the plant. The operation has
generated about 7500 direct and indirect jobs in the plant, among vendors and
service providers in the area.
Research:-
Research & 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. Tata Motors believes in technology for tomorrow. Its products 26
stand testimony to this. The annual expenditure on R&D is approximately 1.3%
of annual turnover. They have also set up two in-house Engineering Research
Centres that house India’s only Certified Crash Test Facility.
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 honoured with two prestigious
awards - 'The DSIR National Award for R&D Effort in Industry - 1999' and
'National Award for Successful Commercialisation of Indigenous Technology
by an Industrial Concern - 2000.'
27
CHAPTER
__________________________________
2
28
Milestones of Tata Motors
Time line and Milestones:-
Tata Motors launches its first truck in collaboration with Mercedes-Benz.
1960-1986
Tata Motors is the 2nd largest commercial vehicle maker in India. World
over it is the world's fifth largest medium and heavy commercial vehicle
manufacturer. It started its journey in 1960 with the manufacturing of first
commercial vehicle (a copy of a Daimler Benz model) in Pune. It took five
years for the company to begin the commercial production of heavy commercial
Vehicles. Considering the road infrastructure of the country which does not
support heavy vehicles the company adopted a route for light commercial
vehicles (LCV). It came out with its first LCV, Tata 407, in 1986.
1987-1996
Tatamobile introduced in 1999. Post liberalization, in order to expand
rapidly, the company adopted the route to joint ventures. In 1993 it signed with
Cummins Engine Co., Inc., for the manufacture of high horsepower and
emission friendly diesel engines. It was an effort made to reduce the pollution in
the existing Tata engines and to produce more environmentally friendly
engines. Furthering the trail of JVs it signed a joint venture agreement with Tata
29
Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins
engines.
1997-2006
In 2000, it launched compressed natural gas (CNG) buses and also filled
the product line gap through the introduction of the 1109 vehicle which is an
intermediate commercial vehicle and is useful for medium tonnage loads. Post
2000, the company introduced a variety of new models. It introduced the Ex-
series vehicles with high tonnage capacity and high pick up and also came out
with the entirely new LCV (207 DI) with direct ignition technology to cater to
the customers' requiring one and same vehicle for commercial as well as
personal use.
2006-2009
Daewoo acquisition
Tata Novus
In 2004, it acquired the Daewoo Commercial Vehicle Company of South
Korea. The reasons behind the acquisition were:
Company’s global plans to reduce domestic exposure The domestic
commercial vehicle market is highly cyclical in nature and prone to
30
fluctuations in the domestic economy. Tata Motors has a high domestic
exposure of ~94% in the MHCV segment and ~84% in the light
commercial vehicle (LCV) segment. Since the domestic commercial
vehicle sales of the company are at the mercy of the structural economic
factors, it is increasingly looking at the international markets. The
company plans to diversify into various markets across the world in both
MHCV as well as LCV segments.
To expand the product portfolio Tata Motors recently introduced the
25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV)
platform. Tata plans to leverage on the strong presence of TDCV in the
heavy-tonnage range and introduce products in India at an appropriate
time. This was mainly to cater to the international market and also to
cater to the domestic market where a major improvement in the Road
infrastructure was done through the National Highway Development
Project
On its journey to make an international foot print, it continued its expansion
through the introduction of new products into the market range of buses
(Starbus & Globus).
31
Milestone
It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards excellence
and leadership.
194
5
Tata Engineering and Locomotive Co. Ltd. was established to
manufacture locomotives and other engineering products.
194
8
Steam road roller introduced in collaboration with Marshall
Sons (UK).
195
4
Collaboration with Daimler Benz AG, West Germany, for
manufacture of medium commercial vehicles. The first vehicle
rolled out within 6 months of the contract.
195
9
Research and Development Centre set up at Jamshedpur.
196
1
Exports begin with the first truck being shipped to Ceylon, now
Sri Lanka.
196
6
Setting up of the Engineering Research Centre at Pune to
provide impetus to automobile Research and Development.
32
197
1
Introduction of DI engines.
197
7
First commercial vehicle manufactured in Pune.
198
3
Manufacture of Heavy Commercial Vehicle commences.
198
5
First hydraulic excavator produced with Hitachi collaboration.
198
6
Production of first light commercial vehicle, Tata 407,
indigenously designed, followed by Tata 608.
198
9
Introduction of the Tatamobile 206 - 3rd LCV model.
199
1
Launch of the 1st indigenous passenger car Tata Sierra.
TAC 20 crane produced.
One millionth vehicle rolled out.
199
2
Launch of the Tata Estate.
33
199
3
Joint venture agreement signed with Cummins Engine Co. Inc.
for the manufacture of high horsepower and emission friendly
diesel engines.
199
4
Launch of Tata Sumo – the multi utility vehicle.
Launch of LPT 709 - a full forward control, light commercial
vehicle.
Joint venture agreement signed with M/s Daimler - Benz /
Mercedes - Benz for manufacture of Mercedes Benz passenger
cars in India.
Joint venture agreement signed with Tata Holset Ltd., UK for
manufacturing turbochargers to be used on Cummins engines.
199
5
Mercedes Benz car E220 launched.
199
6
Tata Sumo deluxe launched.
199
7
Tata Sierra Turbo launched.
100,000th Tata Sumo rolled out.
34
199
8
Tata Safari - India's first sports utility vehicle launched.
2 millionth vehicle rolled out.
Indica, India's first fully indigenous passenger car launched.
199
9
115,000 bookings for Indica registered against full payment
within a week.
Commercial production of Indica commences in full swing.
200
0
First consignment of 160 Indicas shipped to Malta.
Indica with Bharat Stage 2 (Euro II) compliant diesel engine
launched.
Utility vehicles with Bharat 2 (Euro II) compliant engine
launched.
Indica 2000 (Euro II) with multi point fuel injection petrol
engine launched.
Launch of CNG buses.
Launch of 1109 vehicle - Intermediate commercial vehicle.
200
1
Indica V2 launched - 2nd generation Indica.
100,000th Indica wheeled out.
35
Launch of CNG Indica.
Launch of the Tata Safari EX
Indica V2 becomes India's number one car in its segment.
Exits joint venture with Daimler Chrysler.
200
2
Unveiling of the Tata Sedan at Auto Expo 2002.
Petrol version of Indica V2 launched.
Launch of the EX series in Commercial vehicles.
Launch of the Tata 207 DI.
2,00,000th Indica rolled out.
5,00,000th passenger vehicle rolled out.
Launch of the Tata Sumo'+' Series
Launch of the Tata Indigo.
Tata Engineering signed a product agreement with MG Rover of
the UK.
200
3
Launch of the Tata Safari Limited Edition.
The Tata Indigo Station Wagon unveiled at the Geneva Motor
Show.
On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering
36
becomes Tata Motors Limited.
3 millionth vehicle produced.
First CityRover rolled out
135 PS Tata Safari EXi Petrol launched
Tata SFC 407 EX Turbo launched
200
4
Tata Motors unveils new product range at Auto Expo '04.
New Tata Indica V2 launched
Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign
investment agreement
Indigo Advent unveiled at Geneva Motor Show
Tata Motors completes acquisition of Daewoo Commercial
Vehicle Company
Tata LPT 909 EX launched
Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches
the heavy duty truck 'NOVUS' , in Korea
Sumo Victa launched
Indigo Marina launched
Tata Motors lists on the NYSE
37
200
5
Tata Motors rolls out its 500,000 th Passenger Vehicle
The Tata Xover unveiled at the 75th Geneva Motor Show
Branded buses and coaches - Starbus and Globus - launched
Tata Motors acquires 21% stake in Hispano Carrocera SA,
Spanish bus manufacturing Company
Tata Ace, India's first mini truck launched
Tata Motors wins JRD QV award for business excellence.
The power packed Safari Dicor is launched
Introduction of Indigo SX series - luxury variant of Tata Indigo
Tata Motors launches Indica V2 Turbo Diesel.
One millionth passenger car produced and sold
Inauguration of new factory at Jamshedpur for Novus
Tata TL 4X4, India's first Sports Utility Truck (SUT) is
launched
Launch of Tata Novus
Launch of Novus range of medium trucks in Korea, by Tata
Daewoo Commercial
Vehicle Co. (TDCV)
200 Tata Motors vehicle sales in India cross four million mark
38
6 Tata Motors unveils new long wheel base premium Indigo & X-
over concept at Auto Expo 2006
Indica V2 Xeta launched
Passenger Vehicle sales in India cross one-million mark
Tata Motors and Marcopolo, Brazil, announce joint venture to
manufacture fully built buses & coaches for India & markets
abroad
Tata Motors first plant for small car to come up in West Bengal
Tata Motors extends CNG options on its hatchback and estate
range
TDCV develops South Korea's first LNG-Powered Tractor-
Trailer
Tata Motors and Fiat Group announce three additional
cooperation agreements
Tata Motors introduces a new Indigo range
200
7
Tata Motors launches the longwheel base Indigo XL, India's first
stretch limousine
Management System (DMS) initiative crosses the significant
39
milestone of covering 1000 locations in India and abroad.
Tata Motors introduces Magic & Winger - creates new segments
in urban and rural passenger transportation.
200
8
Ace plant at Pantnagar (Uttarakhand) begins production.
Indica Vista – the new generation Indica, is launched.
Tata Motors' new plant for Nano to come up in Gujarat.
Latest common rail diesel offering- the Indica V2 DICOR,
launched.
Indigo CS (Compact Sedan), world’s first sub four-metre sedan,
launched.
Launch of the new Sumo -- Sumo Grande, which combines the
looks of an SUV with the comforts of a family car.
Tata Motors unveils its People's Car, Nano, at the ninth Auto
Expo.
Xenon, 1-tonne pick-up truck, launched in Thailand.
Tata Motors signs definitive agreement with Ford Motor
Company to purchase Jaguar and Land Rover.
Tata Motors completes acquisition of Jaguar Land Rover.
Tata Motors introduces new Super Milo range of buses.
Tata Motors is Official Vehicle Provider to Youth Baton Relay
40
for The III Commonwealth Youth Games Pune 2008.
Indica Vista – the second generation Indica, is launched.
Tata Motors launches passenger cars and the new pick-up in
D.R. Congo.
200
9
Tata Motors begins distribution of Prima World truck
Tata Motors launches the next generation all-new Indigo
MANZA
FREELANDER 2 launched in India
Tata Marcopolo Motors' Dharwad plant begins production.
Tata Motors launches Nano - The People's Car
Introduction of new world standard truck range.
Launch of premium luxury vehicles - Jaguar XF, XFR and XKR
and Land Rover Discovery 3, Range Rover Sport and Range
Rover from Jaguar and Land Rover in India.
Joint ventures
In 2005, sensing the huge opportunity in the fully built bus segment, Tata
Motors acquired 21% stake in Hispano Carrocera SA, Spanish bus
41
manufacturing company and introduced its high-end inter-city buses in the
country.
Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A.,
a Brazil-based global leader in bus body building. This joint venture is to
manufacture and assemble fully-built buses and coaches targeted at developing
mass rapid transportation systems. The joint venture will absorb technology and
expertise in chassis and aggregates from Tata Motors, and Marcopolo will
provide know-how in processes and systems for bodybuilding and bus body
design.
A venture with British carmaker MG Rover saw the launch of the
CityRover in 2003. This car was based on the Tata Indica and built alongside it
in India, but sales were not strong and production finished in April 2005 when
MG Rover went bankrupt. MG Rover was purchased by Nanjing Automobile of
China three months later, but when car production resumed in 2007, the
CityRover was not part of the production plans.
Tata Ace
The latest hit of Tata Motors is its mini truck Ace. Ace, India's first
indigenously developed sub-one ton mini-truck, was launched in May 2005. It
was an instant hit. Analysts opined that Ace had changed the dynamics of the 42
light commercial vehicle (LCV) market in India by creating a new market
segment termed the SCV segment. Ace rapidly emerged as the first choice for
transporters and single truck owners for city and rural transport. By October
2005, since the launch of Ace, LCV sales of Tata Motors had grown by 36.6
percent to 28,537 units due to the rising demand for Ace. The Ace was built
with a load body produced by Autoline Industries. By 2005, Autoline was
producing 300 load bodies per day for Tata Motors. Autoline.
In 2005, Tata Motors became the only major engine manufacturer in the
world (aside from a Briggs & Stratton emissions test) to express any formal
interest in the turbulence-boosting cylinder head grooves invented by Somender
Singh (Mysore).
2007 Tata Indigo:-
Tata Motors, through its joint venture with Fiat, gained access to Fiat’s
diesel engine technology and is likely to gain access to the latter’s strong
overseas distribution network for its passenger cars. Tata Motors is looking to
extend this relationship to other segments like pick-ups and MHCVs. The
company also plans to expand its global footprint with the launch of ‘Global
Truck’ and ‘Global Pick-up’ in domestic and international markets by 2007-08.
Tata Motors plans to launch the new pick-up in India, Southeast Asia, Europe,
43
South Africa, Turkey and Saudi Arabia. The launch of the global truck will
mark the entry of the company into developed markets like Europe and the
United States. The project was initially a collaboration between Tata Motors
and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors
decided to work with Iveco as Daewoo’s design was not in sync with the needs
of sophisticated European customers. The company has formed a joint venture
with Thailand’s Thonburi,( Exhibit-1) an independent auto assembler, in which
Tata Motors will hold a 70% stake. The joint venture will set up a plant with
capacity to manufacture pick-ups a year and will sell them in Thailand, the
second largest pick-up market in the world, and in other regional markets. The
joint venture product is likely to be a part of Tata Motors’ ‘Global pick-up’
plans.
2008:-
On January 3rd, 2008, The Hindu Business Line reported that Ford Motor
Company (US) named Tata Motors the "preferred bidder for Ford's British
marquees Jaguar and Land Rover ... but a final decision for the sale was yet to
be taken".
44
On March 18, 2008, Tata Motors Ltd. (TTM) has signed a US$3 billion
bridging loan with Citigroup Inc. and JPMorgan Chase & Co. (JPM) for its
purchase of Ford Motor Co.'s (F) Jaguar and Land Rover brands.
A compressed air car is going to be produced by Tata Motors in 2008.
Auto policy of Government of India (GOI) envisions to establish a
globally competitive automotive industry in India and to double its contribution
to the economy by 2010. GOI policy has rightly recognized the need for
modernizing of vehicles to arrest degradation of air quality. The terminal life
policy for commercial vehicles and move toward international taxing policies
linked to age of vehicles, are steps in the right direction which will lead to
increased sales for Tata motors Commercial vehicle division.
Effect of Government Policy on Tata Motors CV Division Commercial
Vehicles segment sector has been at the forefront of the strong showing by the
automotive industry over the past few years. Following factors have led to
growth in sales:
The cut in excise duty that enabled manufacturers like Tata Motors to
reduce prices
The attractive financing offers and freebies enabled by low interest rate
policies by Government 45
the need to transport higher volumes of agricultural and industrial goods
Low interest rates
46
Tata Xover
New auto policy considered by Government of India last announced an
automobile policy in December 1997. The policy required majority-owned
subsidiaries of foreign car firms to invest at least $50 million in equity if they
wished to set up manufacturing projects in India. It also forced them to take on
export obligations to fund their auto part imports and required them to submit to
a schedule for increasing the share of locally made parts in their cars. Mere car
assembling operations were not welcomed.
An Indian cabinet panel will soon consider a new automobile policy that
aims to set fresh investment guidelines for foreign firms wishing to manufacture
vehicles in the country. Investments in making auto parts by a foreign vehicle
maker will also be considered a part of the minimum foreign investment made
by it in an auto-making subsidiary in India. The move is aimed at helping India
emerge as a hub for global manufacturing and sourcing for auto parts. The
policy sets an export target of $1 billion by 2005 and $2.7 billion by 2010. The
policies adopted by Government will increase competition in domestic market,
motivate many foreign commercial vehicle manufactures to set up shops in
India, whom will make India as a production hub and export to nearest market.
Thus Tata Motors CV will have to face tough competition in near future, which
might affect its growth negatively.47
Chrysler collaborates with Tata: Tata's all-electric Ace mini truck will be
sold through Chrysler's Global Electric Motorcars division.
2009 Tata Nano:-
Tata Nano is a rear-engined, four-passenger city car built by Tata
Motors, aimed primarily at the Indian market. The car has a fuel efficiency of
around 26 kilometres per litre (73 mpg-; 61 mpg-) on the highway and around
22 kilometres per litre (62 mpg-; 52 mpg-) in the city. It debuted at the 9th
annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi, India.
The Nano had its commercial launch on March 23, 2009 and a booking period
from April 9 to April 25, generating more than 200,000 bookings for the car.
The cars started to be delivered to customers after July 17, 2009, with a starting
price of Rs 100,000, which is approximately equal to UK£1,360 or US$2,160 as
of December 2009. This is cheaper than the Maruti 800, its main competitor and
next cheapest Indian car priced at Rs 184,641 ($3,988 U.S.). Tata had sought to
produce the least expensive production car in the world — aiming for a starting
price of Rs 100,000 (approximately US$2,000 as of June 2009).
In early 2008 the news magazine Newsweek identified the Nano as a part
of a "new breed of 21st-century cars" that embody "a contrarian philosophy of
smaller, lighter, cheaper" and portend a new era in inexpensive personal
48
transportation — and potentially, "global gridlock". The Wall Street Journal
confirmed a global trend toward small cars, which includes the Nano.
"Nano" means "small" in Gujarati, the language of the founders of the
Tata Group. "Nano" from the SI prefix for one-billionth is derived from the
Greek νᾶνος, meaning dwarf, and is sometimes used to mean "small" in
colloquial English.
Tata has faced controversy over developing the Nano as some
environmentalists are concerned that the launch of such a low-priced car could
lead to mass motorization in India with adverse effects on pollution as global
warming. Tata has setup a factory in SANAND, GUJARAT and the first Nanos
are to roll put summer 2009. A battery version is also planned.
49
CHAPTER
__________________________________
3
50
Needs & Objective of the Study
Chapter-2
Research Design
Fundamental to the success of any formal research is a good research
project design. A good research design has the characteristics, viz., and problem
definition, specific methods of data collection & analysis, time required for
research project, and estimate of expenses to be incurred. The function of a
research design is to ensure that the required data are collected and they are
collected accurately and economically.
A research design is purely and simply the framework or plan for the
study that guides the collection and analysis of data. It is a blue print that is
followed in completing a study.
Scope of Study:-
The present scope of study is based upon the Secondary Data Collected
from Tata Motors, Kangra. A detailed analysis of Product profile, a various
model of Tata has been done.
51
Sources of data collection to be:-
Data may be collected either from primary sources or secondary sources.
The primary sources is one that itself collected the data and secondary is one
that makes available data which were collected by some another institutes.
Primary data:-
It is advisable to make use of primary data whenever possible. Because
primary data are original in character and these are obtained by a specifically
design to fulfill the data needs of problems at hand. There are number of ways
by which primary data had been collected:-
1. Direct personal interview
2. Indirect oral interview
3. Information from local sources or correspondents
4. Video conferences
5. Observation
52
The present study of product profile towards the brands of Tata and their
buying motives. Hence the questionnaire method of field survey techniques was
adopted to collect the primary data because of its following advantages:-
Versatility
High Speed
Low cost
Relevance and flexibility
Format of report:-
The presentation of the research findings is done in a systematic manner
in a report called research report. It is integrated part of research work.
Before presenting the final research report a proposal is written the research
proposal is in the first step in the preparation of the research report of the
project. Research proposal deals in brief with what be done, low and why it will
be done.
53
CHAPTER
__________________________________
4
54
Product Profile
Chapter-3
Products:-
1. Passenger cars and utility vehicles
Tata Indica
Tata Sierra
Tata Estate
Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Indigo
Tata Indigo Marina
Tata Xenon XT
Tata Winger
Tata Magic
Tata Nano
Tata Aria
55
Concept vehicles
2000 Aria Roadster
2001 Aria Coupe
2002 Tata Indica
2004 Tata Indigo Advent
2005 Tata Xover
2006 Tata Cliffrider
2007 Tata Elegante
2008 Tata Prima
2010 Tata Versa
2010 Tata Essota
Commercial vehicles
Tata 909 high deck covered rear load area truck
Tata 1109 low deck open load area truck
Tata 1613 low body open load area truck
Tata Ace
Tata TL/Telcoline/207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809 Ex and Ex2
56
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus)
Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata 3015 (Heavy truck)
Tata 3516 (Heavy truck)
Tata Novus (Heavy truck designed by Tata Daewoo)
Tata Star Bus (Medium Bus)
Tata Globus (Low Floor Bus)
Tata Marcopolo Bus (Low Floor Bus)
Tata Prima (The World Truck designed by Tata Motors and Tata
Daewoo)
Military vehicles
Tata LSV (Light Specialist Vehicle)
Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2
versions
Tata LPTA 713 TC (4x4)
Tata LPT 709 E
57
Tata SD 1015 TC (4x4)
Tata LPTA 1615 TC (4x4)
Tata LPTA 1621 TC (6x6)
Tata LPTA 1615 TC (4x2)
Tata Winger Passenger Mini Bus
Jaguar Land Rover (JLR)
This has been first year since the acquisition of the company by Tata
Motors and the working relationship has been evolving continuously. Tata
Motors recognized that these two global brands, namely, Jaguar and Land
Rover, needed to retain their identity, design and technical independence as also
their image in the marketplace, while at the same time integrate with the
management of Tata Motors and find synergies in the capabilities and facilities
between the two companies. Considerable progress has been made in
identifying sources of components from India recognizing engineering and
Computer Aided Design capabilities within Tata Motors and marketing
synergies in various geographies. Tata Motors on the other hand has recognized
the high level of technology and skills embedded in JLR which could be of
great value to both companies.
Important new technology development programs at JLR include the
development of a hybrid powertrain which will be introduced in future cars
58
constructed with light weight aluminum bodies resulting in considerable savings
in weight, and reduction in CO2 emissions.
Jaguar:-
Jaguar has a history of producing “beautiful fast cars”. All the new cars
meet that goal in terms of high performance, great road handling and reliability.
Jaguar also has a sporting heritage and has produced winning racing cars at
major sports car endurance races for some time. This heritage transcended in to
road cars and the last iconic roadster made was the XK E-type, which many
people still consider unbeatable. Our collective aim is to create the next iconic
sports car in Jaguar to rekindle the glory of this venerable brand.
During the year Jaguar began deliveries on its new XE-sedan, which
received rave reviews in the marketplace and which has tremendously bolstered
the Company’s image. This has been followed by the introduction of new petrol
and diesel engines which have also been extremely well received in the
marketplace. In early July, the company launched the new XJ, which will be the
premier passenger sedan in the Jaguar range. The response to the first showing
of this model has been very encouraging.
Land Rover / Range Rover:-
59
Land Rover / Range Rover vehicles are, without doubt, the gold standard
in off-road vehicles. They have been the mainstay of army and police vehicles
in many countries, and have successfully merged luxury with ruggedness to
produce a formidable, powerful vehicle, whether it be on the highway or over
rough terrain. Several new models are under development and will be released
in the market in the coming years. These will widen the project range and re-
energise the range. The main challenge in JLR will be to sustain operations
through this difficult period arising from the global financial meltdown.
Facilities:
Test Beds:
Tata Motors has 24 engine test beds for engine development. These are
fully automated with computerised 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.
The dynamometers ranging from 200 Hp to 500 Hp are capable of
looking after all the existing and future petrol, diesel, and CNG engines of
Tata Motors. Three test beds are equipped with emission analysers. They are
engaged in emission development for Euro norms. Six test beds are equipped
60
with 'Intake Air Conditioning Systems' to feed combustion air at ref. temp,
pressure and humidity to the engine.
The latest addition is a contemporary "High Dynamic Transient
Dynamometer" (HDTD) installed in December 2000 which permits all
'chassis dynamometer' drive cycles to be run on it. It has an Emission
System, Dynamometer and Software. The powerful software simulates the
driver and all vehicle aggregates like gearbox and drivetrain, other than the
engine
Chassis Dynamometer Emission Lab:
The ERC has a specialised 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. The Horiba 9000 emission system has separate CVS units for petrol
and diesel.
61
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.
62
CHAPTER
__________________________________
5
63
Structure & Social Obligation
Organizational Structure
The Board: No separate office is maintained for the Non-Executive Chairman.
Being the Group Chairman, the Company does not reimburse expenses incurred
by the Non-Executive Chairman for maintenance of a separate Chairman’s
office.
64
No specific tenure has been specified for the Independent Directors. Mr Setna
and Mr S A Naik, Independent directors, have tenures, in the aggregate,
exceeding a period of nine years.
Remuneration Committee: Details are given under the heading ‘Remuneration
Committee’.
Shareholder Rights: A half yearly declaration of financial performance,
including summary of significant events in the last six months, is sent to all the
shareholders. The Financial Results are also put up on the Company’s website,
besides being available on the SEBI’s website www.sebiedifar.nic
Audit Qualifications: During the year under review, there was no audit
qualification in the Company’s financial statements. The Company continues to
adopt best practices to ensure a regime of unqualified financial statements.
Training of Board Members: The Directors interact with the management in a
very free and open manner on information that may be required by them on
orientation and factory visits. The independent Directors are encouraged to
attend training programmes that may be of relevance and interest to the
65
Directors in discharging their responsibilities to the Company’s stakeholders
under the emerging business environment.
Mechanism for evaluation of non-executive Board members: The
performance evaluation of non-executive members is done by the Board
annually based on criteria of attendance and contributions at Board/ Committee
Meetings as also role played/ contributions other than at Meetings.
Whistle Blower Mechanism: The Audit Committee had, at its Meeting held on
August 9, 2004, framed a Whistle-Blower Policy and the same was reviewed
and amended by the Audit Committee on January 19,2009. The Policy provides
a formal mechanism for all employees of the Company to approach the
Management of the Company (Audit Committee in case where the concern
involves the Senior Management) and make protective disclosures to the
Management about unethical
behaviour, actual or suspected fraud or violation of the Company’s Code of
Conduct or ethics policy. The Whistle Blower Policy is an extension of the Tata
Code of Conduct, which requires every employee to promptly report to the
Management any actual or possible violation of the Code or an event he
becomes aware of that could affect the business or reputation of the Company.
66
Social Obligations:-
1. Green Matters:-
Tata Motors, a Company that cares about the future...
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.
Tata Motors believes in technology for tomorrow. Our products stand
testimony to this.Our annual expenditure on R&D is approximately 2% of our
turnover. We have also set up two in-house Engineering Research Centres that
house India's only Certified Crash Test Facility. We ensure that our 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
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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 –
1) Reduction of environmental pollution and regular pollution control drives
2) Restoration of ecological balance.
Our endeavors towards environment protection are soil and water
conservation programmes and extensive tree plantation drives. Tata Motors is
committed to restoring and preserving environmental balance, by reducing
waste and pollutants, conserving resources and recycling materials.
2. Reducing Pollution:-
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. Over the years, Tata Motors has also made investments in setting up of
an advanced emission-testing laboratory.
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With the intention of protecting the environment, Tata Motors has
upgraded the performance of its entire range of four and six cylinder engines
to meet international emission standards. This has been accomplished with the
help of world-renowned engine consultants like Ricardo and AVL. These
engines are used in Tata Motors vehicles in the Indian market, as well as in
over 70 export markets.
3. Restoring Ecological Balance:
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 programmes 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 material instead of wood.
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4. End of Life Vehicle Treatment and Recycling:
India is a recycling society with many people making value out the
recovery of waste materials discarded from products at the end of their useful
life.
However, Europe, and some other export markets, have recognised that
they have become a 'throwaway' society in recent decades, and are now
introducing waste prevention regimes in different industry sectors to collect
and recycle valuable resource rather than it ending up in landfill.
In the Automotive sector, the European End of Life Vehicle (ELV)
Directive, points responsibility for this issue to vehicle manufacturers, and the
scrap car recovery industry. Similar regulations are being introduced in Japan
and Korea.
Naturally, Tata Motors has already met the 'producer responsibility'
aspects of the ELV Directive, such as compliance to Heavy metals and other
hazardous substance restrictions. Also, material code marking of plastic parts
has been introduced to aid achievement of demanding European recycling
targets.
5. Community Development:
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The Company's Community Service Division works through various
societies to improve the conditions of neighbouring villages - encouraging
economic independence through self-initiated cottage industries and
contributing to community and social forestry, road construction, rural health,
education, water supply and family planning.
Tata Motors has been making numerous well-planned efforts in the area
of rural development, with specific focus on the following:
6. Health & Sanitation:
Mobile health service staff provide preventive and curative health
services under the "Health For All" programme. They train village health
workers in conducting the same. Safe drinking water facilities are
provided to ensure health of the villagers.
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THE CODE OF ETHICS IN TATA MOTORS
Commitment to ethical professional conduct is a MUST for every employee at
TATA- in all of its businesses/ units/ subsidiaries. The code is intended to serve
as a basis for ethical decision-making in the conduct of professional work.
Contribute to society and human well-being
This principle concerning the quality of life of all people affirms an obligation
to protect fundamental human rights and to respect the diversity of all cultures.
So employee in TATA attempts to ensure that the products of their efforts will
be used in socially responsible ways, will meet social needs and will avoid
harmful effects to health and welfare of others.
In addition to a safe social environment, human well-being includes a safe
natural environment.
Therefore, all who are accountable for the design, development, manufacture
and promotion of TATA products, must be alert to, and make others aware of,
any potential damage to the local or global environment.
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Avoid harm to others
"Harm" means injury or negative consequences, such as loss of property,
property damage or unwanted health and environmental impacts. This principle
prohibits use of men, material and technology in ways that result in harm to our
consumers, employees and the general public.
Well-intended actions, including those that accomplish assigned duties, may
lead to harm unexpectedly. In such an event, the responsible person or persons
are obligated to undo or mitigate the negative consequences as much as
possible.
Be honest and trustworthy:
Honesty is an essential component of trust. Without trust an organization cannot
function effectively.
So they are expected not to make deliberately false or deceptive claims about
their products/ systems, but instead provide full disclosure of all pertinent
limitations and problems.
Be fair and take action not to discriminate
The values of equality, tolerance, respect for others, and the principles of equal
justice govern this imperative. Discrimination on the basis of race, sex, religion,
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age, disability, national origin, or other such factors is an explicit violation of
this code.
Practice integrity in our inter-personal relationships
In their relationships with colleagues, all should treat them with respect and in
good faith; in the same way we ourselves would expect them to treat us. The
principle to be adopted to guard against loose talk or in its worst form- character
assassination- is not to say anything behind one’s back and never utter
something, which cannot be put in writing.
Honor confidentiality
The principle of honesty extends to issues of confidentiality of information. The
ethical concern is to respect all obligations of confidentiality to all stakeholders
unless discharged from such obligations by requirements of the law or other
principles of this code.
SPECIFIC PROFESSTIONAL RESPONSIBILITY
Ownership
This is our company. We accept personal responsibility and accountability to
meet business needs.
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Passion for winning
We all are leaders in our area of responsibility with a deep commitment to
deliver results. We are determined to be the best at doing what matters most.
People development
People are our most important asset. We add value through result driven
training and we encourage & reward excellence.
Consumer focus
We have superior understanding of consumer needs and develop products to
fulfill them better.
Teamwork
We work together on the principle of mutual trust and transparency in a
boundary less organization.
We are intellectually honest in advocating proposals, including recognizing
risks.
Innovation
Continuous innovation in products and processes is the basis of our success.
Integrity
We are committed to the achievement of business success with integrity. We are
honest with consumers, with business partners and with each.
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CHAPTER
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6
76
ACHIEVEMENTS &
AWARDS
Awards & Achievements:-
Awards:-
Tata motors won the Wall Street Journal Technology innovation Award
in the ‘Transportation’ category for the year Nano which for being
credited as ‘a very impressive design accomplishment’.
CVBU won ‘Sustained Excellence’ trophy at the 14 th JRD QV awards, in
2008 for sustained excellence for past 3 consecutive years.
Tata Motors has been honoured with the NDTV Profit Business
Leadership Awards 2008 in the ‘Automobiles-4 wheelers’ category.
Indica Vista won the ‘Jury Award’ at the Business Standard Motoring
Car of the Year.
Tata Motors Lucknow won the Gold Award in ‘automotive’ category at
the India Manufacturing Excellence Awards (IMEA) during the Frost &
Sullivan Manufacturing Summit 2008.
Tata Motors CVBU – Pune won CII – National Award for Excellence in
Energy Management 2008 and also declared as ‘Excellent Energy
Efficient Unit’.
Tata Motors CVBU – Pune has won the Rajiv Gandhi National Quality
Award for 2007 in the large scale manufacturing organization category.
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Tata Motors Training Division – CVBU Pune won the prestigious Golden
Peacock National Training Award for 2008 and the ‘Best Establishment’
Award by DGET, Ministry of Labour and Employment, Govt. of India,
New Delhi.
Jaguar & Land Rover:-
Land Rover has been honoured with two Queen’s Awards for enterprise
(One for International Trade and Second for innovation).
Jaguar has been ranked number 1 in J.D. Power and Associates 2008
Sales Satisfaction Index (SSI) Study S.M.
Jaguar XF sports saloon has been named the ‘What Diesel Car’ of the
year and also topped the ‘Executive Car’ category in the What Diesel
Magazine’s prestigious annual awards. Land Rover won an award for the
best diesel 4x4 with the Freelander 2.
Jaguar’s lan Callum has won ‘The Walpole Award for British Luxury
Design Talent’ at Walpole Awards 2008.
Tata Daewoo:-
TATA Daewoo has won 200 Million Dollar Export Tower Award, having
won the 100 Million Dollar Export Tower Award in 2006.
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Recognitions:-
Sumo – (ranked no.5), Indica – (ranked no.9), Safari – (ranked no. 13)
and Indigo – (ranked no. 16) were among ‘Most Trusted Brands’ of India.
Engineering Export Promotion Council (EEPC) awarded Tata Motors
with the ‘Top Exporter Gold Trophy’ in the “Large Enterprise” category.
Tata Motors has been ranked first in India in investor Relations in the
Thomson Reuters Extel Asia (ex-Japan) Survey 2008.
Tata Motors was recornised as “Top Knowledge Contributor” in the
Western Regional Network Forum, Tata Group.
Tata brand has been ranked 51st most valuable brand in a global league
chart compiled by Brand Finance (BF) PLc., a UK-based consultancy and
the Tata brand was valued at $ 11.85 billion as of August 2008.
Remarkable Achievements:
Mr. Ratan Tata, Chairman was conferred with ‘NDTV Automotive Man
of the Year 2008’ award.
Mr. Ravi Kant, Vice Chairman was conferred with an Honorary D.Sc by
the Aston University in Birmingham, the U.K.
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Mr. S.N. Ambardekar, Plant Head was conferred with the Performance
Excellence Award (Individual) at 11th CEO’s conference, by Indian Industrial
Engineering (IIE).
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CHAPTER
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81
CONCLUSION &
SUGGESTIONS
Chapter-7
CONCLUSION & SUGGESTIONS
CONCLUSION:-
The case study shows that Tata motors is the flag bearer of the Indian
manufacturing industry, being the first Indian manufacturing company to have
its own indigenously manufactured passenger car and being the first to make
forays in to the global market. It is a showcase for the whole industry with
world class process management techniques being incorporated. But inspite of
all this Tata motors have not been able to make a dent in the global market,
neither in the passenger car market and nor in the heavy commercial vehicles
market.
Although it holds the 2nd position in the passenger car market in India, its
increasingly feeling the heat from global competitiors like Hyundai, Suzuki etc
in the domestic market too.
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SUGGESTIONS:-
Based on the findings from the analysis the following suggestions could be
made:
1. Demo of the product should be made available to Customers, since most
of the purchase decisions are based on it.
2. Technical details should be made available to the customers in the most
accurate numerical form.
3. The Indica has remained a bestseller throughout in the industry figuring
in the top 3 selling list of cars for most of the years.
4. The distribution channel should be more efficient to cater the demand
during peak seasons like during dassraa, diwali etc .
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