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RELOCATION OF TATA

NANO & THE PROBLEMS




FACED BY NANO…..
SUBMITTED TO:-
PROF.NEERJA ARORA

SUBMITTED BY:-

SHRUTI GUPTA

SMITU GUPTA

PRATEEK GUPTA

Introduction
 TATA NANO-PEOPLE’S
CAR
• The tale of the creation and design of the Nano is one of innovation and
ingenuity, both inside and outside Tata's own organization.
• IT Offshoring South of the Border
• Top 10 'Greensourcers
• The introduction of the Nano received media attention due to its targeted
low price. The Financial Times reported
• ." The car is expected to boost the Indian economy create entrepreneurial-
opportunities across India ,as well as expand the Indian car market by
65%.
• The car was envisioned by Ratan Tata Chairman of the Tata Group and
Tata Motors who has described it as an eco-friendly "people's car".
• Nano has been greatly appreciated by many sources and the media for its
low-cost.
Location of tata nano
• The Nano was originally to have been manufactured at a new
factory in Singur ,West Bengal.





• Singur is present in the states of west bengal and about 997 acres
had been alloted to Tata Motors for buiding the Nano.
• The construction for this factory on which the Nano was supposed
to be coming up started in the month of july 07, but soon faced
opposition from a political party.
Tata’s tale of two cities….
• After months of voilent opposition ,Tata Motors
has abondoned the Indian site in Singur where
it had worked for two years to build a new
plant.
• Instead the automaker is relocating to sanand,
where it will construct a $417 million facility to
make the Nano mini car.
• October 7th ,only four days after the withdrawal
from West Bengal the company announced that
it would relocate and rebuild the plant in
Sanand a city in Gujrat state in West Central
India.
• It was an extraordinary turnof events inside one
of the world’s most rapidly industralizing
Relocation of Tata Nano
• With the continued agitation led by Mamatha
Banerjee against the Nano car project, Tata
finally decided to leave West Bengal.
• The project will be relocated in Gujarat.
• Sanand, on the outskirts of Ahmedabad, will be
Nano’s new home.
• The Trinamool Congress and its partners were, in the
beginning, opposed to the entire acquisition.
• On Aug. 22, Tata Chairman Ratan Tata suggested the company
may move Nano production to another factory in India.
• "I've made a major investment here.…To move will be at a great
cost to Tata Motors and to shareholders," Tata told reporters in
Kolkata.

• Ratan Tata has two options if he moves out of West
Bengal: He will either retain the selling price and delay
the project by six [or] seven months, or he might sell
the Nano at a higher price," he says.
• Tata has closed shop because, as chairman Ratan Tata
told journalists in Kolkata.. "I can't bring our managers
and their families to West Bengal if they're going to be
beaten, if there is going to be violence constantly, if
their children are afraid to go to school."

Problems faced by Tata
Nano
• Tata has faced trouble ever since it got the go-
ahead for the plant on May 18, 2006.
• Indeed, even before the current troubles, rising
costs and delays already have had many
industry watchers wondering how long it will
take Tata to turn the Nano into a profitable
venture.
1. Rising Costs-Rising materials prices have also

disproportionately affected the Nano.


2. Tata's share price, also depressed by a $2.3

billion .
3. Paying a Price-If Tata Motors does pull out of

Singur, it could cause the project cost to increase


and therefore impact the company's ability to
produce a low-cost car
4. Tata’s share price also depressed by a $2.3
billion acquisition of Land Rover and Jaguar.
5. The main problem faced by the Tata Nano was

delayed in production because of relocation of


plant,as it is natural that setting the plant is a
harder task.

Conclusion -Tata nano
controversy
• The delay in the launch of Tata Nano was caused largely due
to the Singur controversy.
• The construction for this factory on which the Nano was
supposed to be coming up started in the month of July
2007 but soon faced opposition from a political party.
• The trinamool congress led by Mamata Banerjee protested
against the manufacture of the car and the plant saying
that the land was to be used for agrarian purposes and was
wrongfully allotted to Tata Motors for making the Nano.
• There were protests all over the state and even in the capital
city of New Delhi.
• Activists of the Trinamool congress stood outside the main
gate of the plant and protested against any work in the
plant.

• Finally the dream project of Ratan Tata got
completed ,Nano people ‘s car launched
successfully after facing so many hurdles.



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