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COMPANY REPORT

ON

TATA MOTORS Ltd.

BY

AMAN MAHESHWARI
{A3146915057}

B.Com (H) Evening Class of 2015-18

Under the Supervision of:

Dr. Bhawna Agarwal

In Partial Fulfilment of the Requirements for the Degree of
Bachelor of Commerce (Honours) At
AMITY COLLEGE OF COMMERCE AND FINANCE
AMITY UNIVERSITY UTTAR PRADESH, 2015-18
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INDEX
S.NO CONTENTS PAGE NO

1. TITLE PAGE

2. INDEX

3. ACKNOWLEDGEMENT

4. EXECUTIVE SUMMARY

5. INTRODUCTION TO COMPANY
6. MODULE 1 INDUSTRIAL ANALYSIS

7. MODULE 2 COMPANY ANALYSIS

8. CONCLUSION

9. REFERENCE

ACKNOWLEDGEMENT
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I would like to express my special thanks to my guide Dr . BHAWNA AGARWAL

who has provided me the ways and techniques to make this project; even she
helped me in finding out the research papers to complete this project.

I would also like to give a special thanks to our director Dr. SUJATA KHANDAI
who gave me the golden opportunity to do this wonderful project on the topic,
Company Report On TATA MOTORS Ltd.I would also like to thank my
parents who helped me a lot in completing this project within the limited time
frame.

AMAN MAHESHWARI

B.Com (Hons.) - evng

A3146915057

Executive Summary
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The project is prepared on Financial Trend Analysis Of TATA

MOTORS Ltd. The project has been designed to know the companies
financial health and the financial ratios in the respective years. The
learning from this project is the Financial stability, Financial
background, Financial Performance, Key ratios of the company. This is a
dynamic environment and every year, even in every quarter of the
company financial statements, the ups and downs in companys
performance are reflected and shown.

With this project the people get to know the about the companys
financial statement i.e., Profit and loss statement, Balance sheet, Cash
flow statement etc. The biggest learning from this project is that the
students or people will be able to study the financial statements properly
which is very important in this modern world. The companies have
various transactions with their stakeholders, investors, shareholders etc.
which are to be shown in companies financial statements. So by
studying the financial statements and financial ratios we will be able to
know the companys transactions with the investors, stakeholders,
shareholders etc. The project will help us in corporate world as these
financial statements prepared by the company are disclosed to the public
and employees also. The knowledge about the financial statements will
help us to work with efficiency and effectively in an organization.

The learning from this type of project is that you may know that how the
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company is audited and on what basis they are audited. There are
various types of data which has to be categorized due to the nature of
transactions in the financial statements. With this we will be able to learn
about the company nature and the transactions in the company. We will be get
know about the different formulas for calculating the ratios from the financial
statements.

The graphical representation will make our report easy to know about the
companys years happenings and the financial health. This will help us in
increasing our financial skills which are to be strictly used in the modern times of
corporate world. Each and every transaction is noted in the financial statements of
the company and through which only we can calculate the financial ratios and their
interpretation.
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Introduction

-) Multinational automotive manufacturing

company headquartered in Mumbai, Maharashtra,
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India and subsidiary of the Tata group.

-) Currently Indias largest automobile company,

with consolidated revenues of INR 2, 32,834 crores
(USD 38.9 billion) in 2013-2014.

-) Products include passenger Cars, Trucks, Vans,

Coaches, Buses, construction equipment and
military vehicles.

-) Presence cuts across the length and breadth of

India with around 60,000 employees.

-) Over 8 million Tata vehicles ply on India roads.

-) Through subsidiaries and associate company, Tata

motors has operation in the UK, South Korea,
Thailand, South Africa and Indonesia. Among them
is Jaguar, Land Rover, acquired in 2008.

-) Presence in UK, South Korea, Thailand, South

Africa and Indonesia.

-) Tata Motors is the largest commercial vehicle

company in India.

-) Tata Motors as an Indian automotive giant has a

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very large fan base and high level of awareness

amongst Indian consumers.
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Chapter-2
INDUSTRIAL ANALYSIS

PESTEL ANALYSIS

A PESTEL analysis is a framework or tool

used by marketers to analysis and
monitor the macro-environmental
(external marketing environment) factors
that have an impact on an organization.
The result of which is used to identify
threats and weaknesses which is used in
a SWOT analysis.

PESTEL stands for:

P Political

E Economic

S Social
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T Technological

E Environmental

L Legal
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PESTEL ANALYSIS

1. PO

LITICAL ASPECT Political aspect

means the aspect which includes
the government intervention in
particular sector or the for the
company it is basically a political
environment under which the
company have to perform in well
manner to achieve the stability and
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target goals in sector under which

the business is running . This
political aspect includes , taxation
policy by which government decides
the various tax implication on the
company it includes the import and
export regulation and other point
which can be helpful for the growth
of the company . The next
important aspect in the political
factor is of international trade
regulation in which the government
and various special ministry decides
the various rules and regulations
regarding the international trade
done by the company. International
stability includes the no war
situation and the other things which
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can be dangerous from the point of

the view of the company.

POLITICAL FACTOR OF TATA

MOTORS

When Tata set up its small car

manufacturing plant at Singur it faced
fierce opposition from the government
as a result of which it decided to move
its operation from Singur to Sanand.
Since then no industrial development
has touched the region, people have
been left poor and helpless. Government
has promised them industrialization and
new jobs but failed to deliver so. The
government says that earlier the
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industries were taking off lands from

farmers and in a way causing more harm
than good that is why the government
had to push them out now that they
have implanted laws to ensure the
safety of rights of farmers they are
ready for industrialization to take over.

2 ECONOMIC FACTOR Another

important aspect in the PESTEL
analysis is of the economic point of
view the growth and the stability of a
particular company is depends on the
economic conditions of the country .
It may be nations economy or
international economy. The economic
aspect of pestel analysis includes
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market trends , inflation rate,

demand and supply of the particular
commodity and globalization. If these
factors are unstable in nature the
company may face the tremendous
loss.

ECONOMIC FACTORS OF TATA

MOTORS
The Operating in numerous countries
across the world, Tata Motors functions
with a global economic perspective while
focusing on each individual market.
Because Tata is in a rapid growth period,
expanding or forming a joint venture in
over five countries world-wide since
2004, a global approach enables Tata
Motors to adapt and learn from the
many different regions within the whole
automotive industry. They have
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experience and resources from five

continents across the globe, thus when
any variable changes in the market they
can gather information and resources
from all over the world to address any
issues. For instance, if the price of the
aluminium required to make engine
blocks goes up in Kenya, Tata has the
option to get the aluminum from other
suppliers in Europe or Asia who they
would normally get from for production
in Ukraine or Russia.

Tata Motors also has to pay close

attention to shifts in currency rates
throughout the world. Currency
fluctuations can equate to higher or
lower demands for Tata vehicles which in
turn affect profitability. It can also mean
a rise in costs or a drop in returns. But
they also have to pay attention to not
just the domestic currency, the rupee,
but also to the dollar, euro, bhat, won,
and pound, to just name a few. Just
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because the rupee is strong against the

dollar does not mean it is strong against
all the other currencies

3 SOCIO-CULTURE FACTOR Socio-

culture aspect means the
achievements or the willingness of
the company to do the welfare of the
people in society without the profit
earning motive as it deals with social
responsibility.

SOCIO-CULTURE FACTORS OF TATA

MOTORS Tata Motors is very
responsible and ethical in terms of its
business activites. They have benn
committed to promoting and improving
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education standards in areas which are

near to its manufacturing facility. They
give scholarships to under privileged
children at public schools in order to
encourage them to study also the spend
on improving he infrastructure facilities
at rural areas. In Thailand Tata Motors
donated sun-filter shades in order to
prevent the sunlight from disturbing the
students. They also donated life vest to
many schools in ooutskirts of Thailand,
food esstials were also distributed
among malnutrition kids. In order to
promote the skills and talent of youth
Tata Motors has collaborated with
training institutes.
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4 TECHNOLOGICAL FACTOR
Technological aspect in thrpestel
analysis means that how company is
able to use the present technologies
in the productions process it can also
state as how company is using the
technology for the maximum
utilization of the resources. it
includes the material process and it
development, speed in adaption of
new technology and software up
gradation in the company for the
convenience.

TECHNOLOGICAL FACTORS OF

THE TATA MOTORS Tata motors

has setup its research and
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development centre in united

kingdom by the name of Tata
motors European Technical centre.
It has been responsible for
providing engine development
and support services. It has file
for 7 patents. Apart from this Tata
motors has also signed an
agreement with EngageNext
iSourcing to shift to delivery
based model from staff
accumulation one. This will help in
streamlining activities and fasten
the process of advancement and
development at Tata motors.
EngageNext will help Tata Motors
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in delivering good against a set of

standards and measures and will
prevent from any kind of
deviation from any from the
standards.Tata motors will
hopefully produce innovative
designs much faster and make it
efficiently available to the people.

ENVIRONMENTAL FACTOR -
Environmental aspect means how
the company is protecting the
environment from thr pollution
and others factors which are
harmful for the society and nature
as it includes the pollution
problem, waste disposals etc.
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ENVIRONMENTAL FACTORS OF

TATA MOTORS
1)TML manufactures its vehicles
according to the norms of Indian
and Euro standards of emission.
2)TML has invested huge sums of
money in its R&D section to
produce eco-cars.
3)It has also worked towards the
stopping of deforestation many
years in a row.
4)TML organize awareness
sessions to educate people on the
importance various aspects of
environment.
5)TML also planted trees(67,000)
on wastelands in an attempt the
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green cover.
6)TML also manufactures greener
cars with low fuel consumption
and lowest emission gases
possible.

LEGAL FACTOR Every company

is bound with some internal and
external rules and regulations
which is helpful for the smooth
flow of the company. It also
includes the international lawa
and regulations that company is
bound to follow it also includes
the safety and health regulations
of the employees of the company .
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LEGAL FACTORS OF THE TATA

MOTORS The main importance is
given to the employees safety at
the work place to ensures the EHS
{ Environmental health and safety
} under which each and every
employees activity is managed by
EHS framework.

MODULE 2
COMPANY ANALYSIS

Porters five forces

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Porter's five forces analysis is a framework that attempts

to analyze the level of competition within an industry and
business strategy development. It draws upon industrial
organization (IO) economics to derivefive forces that
determine the competitive intensity and therefore
attractiveness of an Industry

'Porter's 5 Forces
1. Competition in the industry;

2. Potential of new entrants into the industry;

3. Power of suppliers;

4. Power of customers;
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5. Threat of substitute products.

Entry barriers: High

The threat of new entrants is very
high for the car industry. The
growing economy and the increasing
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buying power of the customers has

made every player to grab the in
big/small car segment.

Competition: Threat from rivals is

high, hence Industry attractiveness
is low
Automobile industry in India is
growing very rapidly with all major
players having their manufacturing
base and sales in India. This is a
major threat to existing Indian
automobile players. With 100% FDI
allowed in Indian automobile sector,
it is expected there will be more than
20% increase in export sales market.
The industry rivalry is very intense
from competitors like Maruti,
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Hyundai and Chevy having a good

dominance in car segments.

Bargaining power of suppliers:

Bargaining power of suppliers is
medium, hence Industry
attractiveness is moderate
The suppliers for this industry
include the supply of raw materials
like steel and a lot of components
are involved in the Value chain
process. Steel which is a major raw
material for this industry is
constantly increasing in price due to
excess demand and availability. For a
player like Tata the bargaining power
of suppliers is less as it can get
constant supply of steel and ancillary
parts from its own units like Tata
steel, subsidiary of Tata. For other
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players the bargaining power of

suppliers is moderate. Many ancillary
industries are opening up near
automobile manufacturers realizing
that there are lot of opportunities in
automobile industry; hence there are
lot of suppliers in this industry.

Threat of substitutes: High

.Substitutes for this Tata Motors
already existed in the market from
players like Maruti, Chevy Hyundai,
Toyota etc. Most of the car
manufacturer has in this segment to
defend their market share in terms
of volume. From a customer
perspective, the alternative vehicle
will be either purchase of a new car
in car segment or going for second-
hand vehicle of same price. Other
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substitutes include Diesel/Petrol cars

which can be used for both personal
and commercial use.

Bargaining power of Buyers: Is

medium, industry attractiveness is
moderate

The bargaining power doesnt have

major influence in current scenario
as Tata motors (Nano) doesnt have
direct alternative in its 600cc
product category. But there is
availability of substitutes for buyers
in terms of vehicle utility.
.
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CONCLUSION
From the above discussion we came
to across the Tata Motors is one the
strongest player in the automobile
industry. They are player in the
sector they follow the every aspect
of the PESTEL ANALYSIS .Tata motors
is also putting many efforts in the
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development in the industry.

REFRENCES
http://www.tatamotors.com/innovatio
n/

http://www.tatamotors.com/investors
/financials/71-ar-html/csr.html
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http://www.tatamotors.com/investors
/financials/67-ar-html/csr.html

Take the information from the

company website and from company
annual report 67th and 71th annual
report of Tata motors.
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