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CHAPTER

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Company Overview 1

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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.

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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

company is trying to modernise its range of commercial vehicles. Tata Motors


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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

far in commercial vehicles in each segment, and the second largest in the
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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,

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

joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce both

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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

Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering


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

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

Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger

car. Within two years of launch, Tata Indica became India's largest selling car

in its segment. The ERC in Pune, among whose facilities are India's only

certified crash-test facility and hemi-anechoic chamber for testing of noise and

vibration, has received several awards from the Government of India. Some of

the more prominent amongst them are the National Award for Research and

Development Efforts in Industry in the Mechanical Engineering Industries

sector in 1999, the National Award for Successful Commercialisation of

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

Diamond Jubilee Technology Award in 2004.

The company set up the Tata Motors European Technical Centre

(TMETC) in 2005 in the UK. TMETC is engaged in design engineering and

development of products, supporting Tata Motors' skill sets. Tata Daewoo

Commercial Vehicle Company and Hispano Carrocera also have R&D

establishments at Gunsan in South Korea and Zaragoza in Spain.

The pace of new product development has quickened through an

organisation-wide structured New Product Introduction (NPI) process. The

process with its formal structure for introducing new vehicles in the market,
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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.

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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


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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.
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 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

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Box Machine, making four cores per minute. It has elaborate sand and

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.

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HV Axles Ltd., a wholly owned subsidiary of Tata Motors, is currently

the market leader in medium and heavy commercial vehicles axles in India

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


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provides products and services of superior quality, matching with the current

economic and business trends in medium and heavy commercial vehicle

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

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Engineering Division, which has one of the most versatile tool making

facilities in the Indian sub-continent. It houses a Vehicle manufacturing

complex which is one of the most integrated automotive manufacturing centers

in the country producing a large variety of individual items and aggregates. It

is engaged in the design and manufacture of sophisticated press tools, jigs,

fixtures, gauges, metal pattern and special tools, as well as models for the

development of new ranges of automobile products. Its capabilities have

enabled Tata Motors to introduce new products and improve existing ones

without resorting to imports of dies or fixtures.

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

manufacture of automated dies, fixtures and welding equipment. Its large

design group is fully conversant with state-of-the-art CAD facilities and

manufacturing facilities comprising 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
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and body shops, paint shop and the trim and final assembly shop. The shops

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.

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Lucknow:

Tata Motors Lucknow is one of the youngest production facilities among

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

for Commercial Vehicles in the Indian market. The state of art plant is strongly

backed by an Engineering Research Centre and Service set-up to support with

latest technology and cater to the complexities of automobile manufacturing.

Fully Built Vehicle business, which is one of the fast growing areas of our

business, is also established in Lucknow.

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.

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Uttarakhand:

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

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research and development are key factors that contribute to the leadership of

the Company. Tata Motors believes in technology for tomorrow. Its products

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

__________________________________

Milestones of Tata 2
Motors

28
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.

1945 • Tata Engineering and Locomotive Co. Ltd. was established to

manufacture locomotives and other engineering products.

1948 • Steam road roller introduced in collaboration with Marshall Sons

(UK).

1954 • Collaboration with Daimler Benz AG, West Germany, for

manufacture of medium commercial vehicles. The first vehicle

rolled out within 6 months of the contract.

1959 • Research and Development Centre set up at Jamshedpur.

1961 • Exports begin with the first truck being shipped to Ceylon, now

Sri Lanka.

1966 • Setting up of the Engineering Research Centre at Pune to provide

impetus to automobile Research and Development.

1971 • Introduction of DI engines.

1977 • First commercial vehicle manufactured in Pune.

1983 • Manufacture of Heavy Commercial Vehicle commences.

1985 • First hydraulic excavator produced with Hitachi collaboration.

1986 • Production of first light commercial vehicle, Tata 407,


32
indigenously designed, followed by Tata 608.

1989 • Introduction of the Tatamobile 206 - 3rd LCV model.

1991 • Launch of the 1st indigenous passenger car Tata Sierra.

• TAC 20 crane produced.

• One millionth vehicle rolled out.

1992 • Launch of the Tata Estate.

1993 • Joint venture agreement signed with Cummins Engine Co. Inc. for

the manufacture of high horsepower and emission friendly diesel

engines.

1994 • 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.

1995 • Mercedes Benz car E220 launched.

1996 • Tata Sumo deluxe launched.

1997 • Tata Sierra Turbo launched.

33
• 100,000th Tata Sumo rolled out.

1998 • Tata Safari - India's first sports utility vehicle launched.

• 2 millionth vehicle rolled out.

• Indica, India's first fully indigenous passenger car launched.

1999 • 115,000 bookings for Indica registered against full payment within

a week.

• Commercial production of Indica commences in full swing.

2000 • 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.

2001 • Indica V2 launched - 2nd generation Indica.

• 100,000th Indica wheeled out.

• Launch of CNG Indica.

34
• Launch of the Tata Safari EX

• Indica V2 becomes India's number one car in its segment.

• Exits joint venture with Daimler Chrysler.

2002 • 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.

2003 • 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

becomes Tata Motors Limited.

• 3 millionth vehicle produced.

35
• First CityRover rolled out

• 135 PS Tata Safari EXi Petrol launched

• Tata SFC 407 EX Turbo launched

2004 • 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

2005 • 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

36
• 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)

2006 • Tata Motors vehicle sales in India cross four million mark

• 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


37
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

2007 • Tata Motors launches the longwheel base Indigo XL, India's first

stretch limousine

• Management System (DMS) initiative crosses the significant

milestone of covering 1000 locations in India and abroad.

• Tata Motors introduces Magic & Winger - creates new segments

in urban and rural passenger transportation.

2008 • 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,


38
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 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.

2009 • Tata Motors begins distribution of Prima World truck

• Tata Motors launches the next generation all-new Indigo MANZA

• FREELANDER 2 launched in India


39
• 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

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.

40
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

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

41
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,

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
42
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".

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.

43
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

• the need to transport higher volumes of agricultural and industrial goods

• Low interest rates

44
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.


45
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

46
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.

47
CHAPTER

__________________________________

Needs & Objective of 3


the Study

48
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.

49
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

50
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.

51
CHAPTER

__________________________________

Product Profile 4

52
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

53
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

54
• Tata 809 Ex and Ex2

• 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)


55
• Tata LPT 709 E

• 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.

56
Important new technology development programs at JLR include the

development of a hybrid powertrain which will be introduced in future cars

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.

57
Land Rover / Range Rover:-

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

58
engaged in emission development for Euro norms. Six test beds are equipped

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.

59
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.

60
CHAPTER

__________________________________

Structure & Social 5


Obligation

61
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.

62
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

63
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.

64
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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ACHIEVEMENTS & 6
AWARDS

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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 14th 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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CONCLUSION & 7
SUGGESTIONS

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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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