You are on page 1of 24

INDUSTRIAL REPORT

ON
TATA MOTORS LTD
Submitted for partial fulfillment of the requirement for the awards of Degree of
Bachelor of Business Administration.
(BBA)
Submitted By: Under the Gu
idance of:
Vineet gupta Prof. Rachna Chawla

Bharati Vidyapeeth University Institute of Management and Research


An ISO 90001:2000 Certified institute NAAC Accredited grades A University .

STUDENT DECLARATION
I Vineet Gupta hereby declare that the work presented in this project entitled Ta
ta Motors Limited submitted towards completion of project in B.B.A at Bharatiya V
idyapeeth University Institute of Management and Research, New Delhi, is an auth
entic record of my original work carried out under the guidance of Ms. Rachna, P
rofessors, BVUIMR, New Delhi.
I have not submitted the matter embodied in this project for the award of any ot
her degree.

Vineet Gupta

ACKNOWLEDGEMENT
The successful completion of the project would have been far from reality withou
t mentioning the people who made an indelible impression while making the projec
t.
All the very outset thanks to Ms. Rachna Chawla for instructing me and providing
me the opportunity to participate in the project and sharing her invaluable kno
wledge and experience with me. Her innovative ideas provided me clarity of thoug
hts, which helped me to think in the right way.
Without her help and guidance completion of the project report would have been v
ery difficult. I would also like to give gratitude to all the other faculties wh
o helped me in making the project worth wile and successful.
I would also like to express my gratitude to Dr. S.S Vernekar [Director], BVIMR,
New Delhi for providing all needful facilities in the campus and the best facul
ty for the students.
Their thoughtful ideas, comments and conceptual insight into the subject kept me
from floundering in my quest. Despite their busy schedule they spared valuable
moments for reviewing and rectifying this project work.
Due to the proper guidance the making of project report became an enjoyable expe
rience and easy to workout.

Vineet Gupta

Certificate
This is to certify that the project titled TATA MOTORS Is a benefice work carried
out by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & R
esearch, University of Pune. It is submitted in partial fulfillment of the requi
rement for the award of the Degree of BBA under our guidance and direction.
To the best of our Knowledge, it is an original piece of work.

Ms. Rachna Chawla

Certificate
This is to certify that the project titled TATA MOTORs Is a bonafide work carried
out by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & R
esearch, University of Pune. It is submitted in partial fulfillment of the requi
rement for the award of the Degree of BBA under our guidance and direction.
To the best of our Knowledge, it is an original piece of work.

Director of BVIMR
Dr.S.S.Vernekar

INDEX
CURRENT INDUSRTRIAL SCENARIO .. 9
CHAPTER: 1 COMPANY INTRODUCTION 11
1.1 GROUP INTRODUCTION .. .. 12
1.2: HISTORY OF GROUP ... 13
1.3: COMPANY PROFILE 15
1.4: NATURE OF BUSINESS 17
1.5 TYPE AND OWNERSHIP PATTERN ... 18
1.6: VISION . . 19
17: MISSION ... . 20
1.8: BOARD OF DIRECTORS . . 21
1.9: REGISTERED OFFICE .... . 21
1.10: SUBSIDIARIES ... .. 22
CHAPTER 2: PRODUCTS & MARKETING STRATEGY ....24
2.1: BRAND . . ..25
2.2: PRODUCT MIX . 25
2.3: PRODUCTS ... .27
2.4: PRODUCT LINE ... 30
2.5: TARGET CUSTOMER .31
2.6: PRESENCE OF THE COMPANY ... 32
2.7: NUMBER OF BRANCHES .. .33
2.8: DISTRIBUTIONAL CHANNEL COMPETITORS .. .. ...33
2.9: MARKET SHARE . . 34
2.10: POSITIONING . 36
2.11: MARKETING STRATEGIES 37
2.12: ADVERTISEMENT EXPENSES . ..39
CHAPTER 3: FINANCIAL ANALYSIS 40
3.1: STOCK EXCHANGE ON WHICH THE COMPANY IS LISTED .41
3.2: WEIGHT AGE IN INDEX 41
3.3: AUTHORIZED CAPITAL STRUCTURE .. 42
3.4: AUDITORS REPORT 42
3.5: AUDITING COMPANY 44
3.6: BALANCE SHEET ... .44
3.7: PROFIT AND LOSS ACCOUNT .....45
3.8: BALANCE SHEET FOR THREE Year s 47
CHAPTER 4: ORGANIZATION STRUCTURE ..48
4.1: ORGANIZATION STRUCTURE . .. ..49
4.2: EMPLOYEES RECRUITMENT AND SELECTION PROCEDURES ..51
4.3: TRAINING & DEVELOPMENT POLICIES .52
4.4: CONFLICT RESOLUTION MECHANISM .. .55
CHAPTER 5: FACTORY LOCATION .....56
5.1: FACTORY LOCATION .. .57
CHAPTER 6: SWOT ANALYSIS OF TATA MOTORS ...58
6.1: STRENGTHS ...59
6.2: WEAKNESSES . . .60
6.3: OPPORTUNITY . . . ..60
6.4: THREAT . 61
MY LEARNINGS FROM THIS PROJECT . .62
BIBLIOGRAPHY ..63

CURRENT INDUSRTRIAL SCENARIO


In a matter of few months, things have begun to appear gloomy for the auto compo
nents sector. Rapid escalation in steel and iron prices, a key raw material, has
literally pushed the players to the wall.
Though OEM customers have been dithering on the issue of price increase, in the
current scenario manufacturers and suppliers would have to share the burden of t
his price escalation in pig iron and steel, said DGM, Engineering and Business D
evelopment, AM Divekar. Component suppliers point out that scrap steel, which wa
s available on spot at around Rs 20-22 per kg till about three months back, is n
ot available currently even at Rs 30 per kg, either on spot or cash basis. Scrap
traders or dealers have been refusing to commit on any medium or long-term comm
itment of supplying scrap metals even to their regular customers in anticipation
of higher price realisations at a future date.
The anticipation of higher price realisation is driving the prices more than any
fundamental reasons and even pig iron suppliers are getting on to the bandwagon
to take advantage of the situation, said Divekar. In current scenario, he added
that players would have to be selective in their supply contracts with OEM cust
omers, as it would not make much sense to continue with production and selling a
t cost price or even loss.
Smaller size foundries with castings and forging capacity of around 10,000 to 40
,000 metric tonnes are the ones that are particularly badly hit by the metal pri
ce increase. The problem is further compounded by the fact that most of these sm
aller foundries supply non critical components to OEMs and getting a price hike
from customers has been particularly difficult.
Though critical component suppliers may not have a major problem in getting the
necessary price increase from customers, the situation is clearly tenable and co
uld lead to foundries going slow on their production rather than sell at a loss
to OEMs, said Senior Manager, Projects at Precision Camshafts, AJ Jain. Precisio
n Camshafts manufactures camshafts for passenger cars and tractors and counts Ta
ta Motors, Hyundai and M&M among its key customers, in addition to having a majo
r presence in the export market.
Foundries have no choice but to be selective in terms of customers as they would
continue to supply to OEMs willing to give price increase in tune with current
market realities and stop supplies to ones that are not responding to the situat
ion, said President, Rajkot Engineering Association, Bhaveshbhai Patel who also
runs his own foundry Vijay Engineering. Rajkot has an estimated 500 foundries an
d most are reeling under the rapid price escalation of steel and scrap/pig iron.
Raw material forms around 40 to 60 percent of the total cost for a foundry. Fou
ndries vary the percentage of scrap steel and pig iron used for manufacturing ca
stings depending on the cost and availability of these inputs.
The raw material price escalation has come at a time when foundries dependent on
the automotive sector have seen a marked slowdown in all industry segments. Aut
omotive sales have registered around seven percent fall in the period April 2007
to March 2008, according to data from the Society of Indian Automobile Manufact
urers (SIAM). The unfolding credit crisis also has players on edge of their seat
s in terms of continued demand for components from their global customers.
CHAPTER - 1
COMPANY
INTRODUCTION

1.1 Group introduction



Jamsetji Nusserwanji Tata (1839 - 1904) was a pioneer of Indian industrialism as
well as the founder of the Tata Group.
TATA s first step in the business came in December 1859 when his father sends him
to hongkong to open a branch with a sum of Rs. 21000. There he makes connections
& buyers by the time he started a trading company & established it to the Japan
, China, Europe, and the United States. IN 1969 he acquired a bankrupt oil mill
in
Queen Victoria was proclaimed Empress of India.
In year 1868 Jamsetji Tata, started business with name as TATA since than compan
y hasn t stop and became a global enterprise. Jamsetji were inspired by the spirit
of nationalism which led the foot for the group. The group pioneered€several in
dustries of national importance in India: steel, power, hospitality and airlines
. In more recent times, the Tata group s pioneering spirit has been showcased by c
ompanies like Tata Consultancy Services, India s first software company, with the
international delivery model, and Tata Motors, which made India s first indigenous
ly developed car, the Indica, in 1998 and recently unveiled the world s lowest-cos
t car, the Tata Nano, for commercial launch by end of the financial year 2008-09
.
Tata has a rapidly growing business group based in India with significant intern
ational operations. Revenues in 2007-08 are estimated€at $62.5 billion (around R
s251,543crore), of which 61 per cent is from business outside India. The group e
mploys around 350,000 people worldwide. The Tata name has been respected in Indi
a for 140 years for its adherence to strong values and business ethics. They hav
e n number of companies in India and in collaboration with other foreign compani
es
Indian Companies:
4. TATA AIRLINE-CIVIL AVIATION well known as the chota nawab.
5. TATA CNSULTANCY SOFTWARE one of the leading consultancy in the world
They also work for the welfare of the workers as they introduce;
EIGHT-HOUR WORKING DAY in 1912.
FREE MEDICAL AID in 1915
SCHOOLING FACILITY FOR CHILDREN in 1917
LEAVE WITH PAY WORKERS PF SCHEME in 1920
1.3: COMPANY PROFILE
Tata Motors Limited is India s largest automobile company, with revenues of Rs. 35
651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehic
les in each segment, and among the top three in passenger vehicles with winning
products in the compact, midsize car and utility vehicle segments. The company i
s the world s fourth largest truck manufacturer, and the world s second largest bus
manufacturer. The company s 23,000 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.
Established in 1945, Tata Motors presence indeed cuts across the length and bread
th of India. Over 4 million Tata vehicles ply on Indian roads, since the first
rolled out in 1954. 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. Through subsidiaries and associate compa
nies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Amo
ng them is Jaguar Land Rover, a business comprising the two iconic British brand
s that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles
Company, South Korea s second largest truck maker. The rechristened Tata Daewoo C
ommercial Vehicles Company has launched several new products in the Korean marke
t, while also exporting these products to several international markets. Today t
wo-thirds of heavy commercial vehicle exports out of South Korea are from Tata D
aewoo.
In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spani
sh 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 an
d select international markets. In 2006, Tata Motors entered into joint venture
with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and m
arket the company s pickup vehicles in Thailand. The new plant of Tata Motors (Tha
iland) has begun production of the Xenon pickup truck, with the Xenon having bee
n launched in Thailand at the Bangkok Motor Show 2008.
Tata Motors is also expanding its international footprint, established through e
xports since 1961. The company s commercial and passenger vehicles are already bei
ng marketed in several countries in Europe, Africa, the Middle East, South East
Asia, South Asia and South America. It has franchisee/joint venture assembly ope
rations in Kenya, Bangladesh, Ukraine, Russia and Senegal.
The foundation of the company s growth over the last 50 years is a deep understand
ing of economic stimuli and customer needs, and the ability to translate them in
to customer-desired offerings through leading edge R&D. With over 2,500 engineer
s and scientists, the company s Engineering Research Centre, established in 1966,
and has enabled pioneering technologies and products. The company today has R&D
centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and t
he UK. It was Tata Motors, which developed the first indigenously developed Ligh
t 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. In 2005, Tata Motor
s created a new segment by launching the Tata Ace, India s first indigenously deve
loped mini-truck
In January 2008, Tata Motors unveiled its People s Car, the Tata Nano, which India
and the world have been looking forward to. A development, which signifies a fi
rst for the global automobile industry, the Nano brings the comfort and safety o
f a car within the reach of thousands of families. When launched in India later
in 2008, the car will be available in both standard and deluxe versions. The sta
ndard version has been priced at Rs.100,000 (excluding VAT and transportation co
st).
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 als
o focussing on environment-friendly technologies in emissions and alternative fu
els.
Through its subsidiaries, the company is engaged in engineering and automotive s
olutions, construction equipment manufacturing, automotive vehicle components ma
nufacturing and supply chain activities, machine tools and factory automation so
lutions, high-precision tooling and plastic and electronic components for automo
tive 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 Natio
ns Global Compact, and is engaged in community and social initiatives on labour
and environment standards in compliance with the principles of the Global Compac
t. In accordance with this, it plays an active role in community development, se
rving rural communities adjacent to its manufacturing locations.
1.4 NATURE OF BUSINESS
As it was established in 1945 its main business is to manufacture locomotive. Th
e company manufactured its first commercial vehicle in 1954 in collaboration wit
h "Benz AG. It is a global firms & one of the largest producer of CV & PV in comp
etitive world. As it has the heavy raw material consumption in heavy quantity fo
r producing heavy vehicles such as cars , trucks , mini trucks , railway coaches
etc. It is India s top & leading manufactures of the vehicles. It is listed in th
e top four commercial vehicle producer in the world. Its numerous joint ventures
are going with different organizations across the world with DAEWOO & FORD so o
n.
There after they have produced numerous pro
ducts in both commercial as well as in the passenger section. the company is als
o engaged in engineering and automotive solutions, construction equipment manufa
cturing, automotive vehicle components manufacturing and supply chain activities
, machine tools and factory automation solutions, high-precision tooling and pla
stic and electronic components for automotive and computer applications, and aut
omotive retailing and service operations.
In 2008, Tata Motors unveiled its People s Car, the Tata Nano, which India and th
e world have been awaiting. A development, which signifies a first for the globa
l automobile industry, the Nano brings the comfort and safety of a car within th
e reach of thousands of families. In India, the car will be available in both st
andard and deluxe versions. The standard version has been priced at Rs.100, 000.
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 comm
unity and social initiatives on labour and environment standards in compliance w
ith the principles of the Global Compact. In accordance with this, it plays an a
ctive role in community development, serving rural communities adjacent to its m
anufacturing locations. As all the Tata group companies are.
1.5 TYPE AND OWNERSHIP PATTERN
TYPE OF THE COMPANY:
Tata motor is a public limited company. As 69% c
ompany holding is in the hands of the financial institutions and around 31% stak
e is with the Tata sons.
OWNERSHIP PATTERN:
Tata Companies 33.42 % Daimler Chrysler 6.64 % Indian Financial Institutions /
MFs / Banks 15.97 % ADR/GDR Holders / Foreign holders DR status 12.72 % Foreign
Institutional Investors 16.96 % Other 14.08 % Total 100.00 % 1.6 VISION
This year we will also be focusing on expanding our business internationally . This
will demand that our products and services are globally competitive and that ou
r enterprises operate to international standards in terms of quality and custome
r service. We will need to be extremely aggressive in the marketplace and much m
ore proactive than we have been in the past in order to be leaders in our fields
of business. We need a change of mindsets that break with past tradition in wel
coming rather than resisting change.

Become a globally networked enterprise seizing opportunities worldwide to genera


te USD 25 million annual profits by 2008.
Description of Vision
Achieved aggressive and profitable growth of business.
Become a cohesive, integrated and synergized global entity providing horizontal
and vertical reach and infrastructure to all our partners worldwide.
Consistently achieved customer delight by focusing on value adding activities th
roughout our value chain.
Achieved best partner status with Group Companies in international business on a
sustained basis.
A strong global supply base for world class VEHICLES.
Become a learning and knowledge rich organization acknowledged as thought leader
s in international business.
Institutionalized Tata Business Excellence Model and achieved best in class stat
us.
Become an exciting organization, which attracts and retains best talent worldwid
e for global competitiveness.
Become a proactive, integral and responsible member of our environment and commu
nities.
MISSION
To be a competitive value provider in international business for Group companies
and all our partners.
Improve the quality of life of the communities.
We serve through leader s ship in the sector of national economic significance.
Tata Motors constantly looks for ways to offer the customer the best value for mo
ney. Beginning with a single truck model way back in the 1950s, today we have ov
er 150 models and variants of vehicles, designed to transport goods and passenge
rs. Our commercial vehicles can haul loads ranging from 2 tonnes to 40 tonnes. L
ikewise we have mini buses that can seat 12 people and buses that can accommodat
e as many as 60. Tippers, Tractor-trailers, 4x4 off road vehicles, multi-utility
vehicles-our range are vast. A significant breakthrough has been the developmen
t and commercialization of the truly Indian cars- Tata Indica and Tata Indigo.
Our vehicles are capable of meeting stringent Euro norms. And we have been able
to do so by using technology, which is environmentally sustainable.
1.8 BOARD OF DIRECTORS
1. Mr.Ratan N Tata (Chairman)
2. MR. N A Soonawala
3. Dr. J J Irani
4. Mr. V R Mehta
5. Mr. Gopalakrishnan
6. Mr. Nusli N Wadia
7. Mr. S M Palia
8. Dr. R A Mashelkar
9. Mr. Nasser Munjee
10. Mr. Subodh Bhargava
11. Mr. Ravi Kant (Managing Director)
12. Mr. P M Telang (Executive Director (Commercial Vehicles)
1.9 REGISTERED OFFICE
Tata Motors has its registered offices in Mumbai, India. Its address is:
Is Bombay House, 24
Homi mody Street,
Maharashtra,
Mumbai 400001
1.10 SUBSIDIARIES
Telco Construction Equipment (TCE)
ltd-adr" \t "_top" Hitachi, which focuses on excavators and other construction equ
ipment.
Telcon currently ranks among the top 40 Global Construction Equipment OEMs at th
e 38th position. It was at the 47th position last year.
Telcon volume sales registered 44% growth; from 5,360 units in FY07 to 7,698 uni
ts in FY08.
Telcon continues to be the market leader in excavator segment with a share of 53
%.
Market share in wheel loaders and backhoe loaders improved from 10% to 11.5%.
Several new products were launched by Telcon during the year such as Hitachi s ZAX
IS 50U, a 5 Tonne Mini Excavator which is India s first zero tail swing Excavator,
Hitachi ZW 220 Wheel Loader, which has many path breaking features that are set
to redefine customer expectations from wheel loaders.
TELCON is setting up a new State-of-the-Art Manufacturing Facility, Research and
Development Centre.
a Training School at Kharagpur in India .
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 Detro
it and London respectively. It also has a presence in Thailand. Tata Technologie
s is a software service provider in the IT services and BPO space. Its global cl
ient list includes Ford, General Motors, Toyota and Honda, to name a few. It bou
ght over the British engineering and design services company, Incat Internationa
l Plc for Rs4b in August 2005. Incat specializes in engineering & design service
s and product lifecycle management in the international automotive, aerospace an
d engineering markets. With this acquisition, Tata Motors will have closer proxi
mity to its global customers and be able to provide a wider range of services.
Tata Daewoo CV (TDCV)
TDCV is a 100% subsidiary of the Tata Motors based in South Korea, which was acq
uired in March 2004. TDCV is in the business of manufacture and sale of heavy co
mmercial vehicles. Tata Daewoo is Tata Motors 100% subsidiary in Korea, with a ma
rket 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. I
n line with this strategy, it has already introduced the Novus, a high-end tippe
r developed by Tata Daewoo for the Indian market.

CHAPTER - 2
PRODUCTS
&
MARKETING STRATEGIES

2.1 BRAND
Tata Motors is the brand which concentrates on every kind of customer.
It s the brand of every one. It is best in compact as well as sedan and SUV cars.
It s a brand due to its superior quality, low running cost, high comfort, low main
tenance cost. Its commercial vehicle is the best among the other entire brand pr
esent in the market. Some of the brands are the leading market capturer and won
many awards for their distinct feature and quality. As the Tata Indica is the se
cond largest selling car in India for successive years and in CV sector there is
no matching in India of it. Some of the other brands are INDICA VISTA, INDIGO X
, FIAT CAR
2.2: PRODUCT MIX
PRODUCT MIX mainly comprises of how many types of product a company produces
Breadth - the number of product lines carried.
Depth - the variety of sizes, colors, and models offered within each product lin
e.
Tata motors has wide range of products in Indian and overseas market. In India T
ata is the largest seller of both commercial sectors as well as in passenger one
. As the company produces vehicles mainly in three segments they are;
Passenger segment
Commercial segment
Military segment.
First we highlighted the PV sector or Passenger vehicle.

Passenger sector
Tata Motors has N number of PV cars in the automobile market both in INDIA and A
BROAD. They have designed the cars with the view of NEED, PREFRENCES, and how mu
ch their pocket allow them to spend on cars, SO Tata s have every type of customer
from lower middle to upper middle class which comprises half of Indian market.
Tata has also purchased LAND ROVER and JAGUAR as to step in the luxury car marke
t.
Although the sales of cars has decreased
continuously, due to economic slow down in the financial year 2008 but the sale
s level is increasing at a decreased rate from last year results. Company also w
orking on number of concept cars and NANO is one of them. It is the cheapest car
ever made in the world at this level of production. It is stylish, good in perf
ormance, has all the effective features and more over its price is ONE LAKH RUPE
E in Indian currency.
Next on the commercial sector;
Commercial sector
Tata motor is 4th largest producer of commercial vehicle in the world and it is
the top most producers in Indian market. It has over 60% market share among the
entire competitor. But its market share in abroad is less than 8% as it is on e
the new or emerging brand. Though the economic slow down has affected the sales
volumes but hasn t a dramatic effect on is. Its condition is better than the PV sa
les volumes.
About product Tata motors changes their
product with the change in the need of the customer, they are now emphasizing on
the small trucks or the medium size trucks that can be used on daily bases and
easy to drive, park and won t require to much space. In bus segment Tata has intro
duce luxury buses for long tour purposes and for business uses. Some of them are
,

Last one military sector;


Military vehicles
Tata motors also manufacture military vehicles in India for Indian armed forces.
Such as military trucks, jeeps, etc
2.3 PRODUCTS
Tata motors has wide range of products in Indian and overseas market. In India T
ata is the largest seller of commercial sectors & in passenger one has a market
share of around 13%. As the company produces vehicles mainly in,
Passenger Segment,
Commercial Segment &
Military Segment
PASSENGER SEGMENT (PV)
Some the brand names are here,

PASSENGER CARS
INDICA VISTA
INDIGO XL
NANO
FIAT CAR
UTILITY VEHICALES
SAFARI DICOR
SUMO GRANDE
SUMO
XEMON XT

COMMERCIAL SEGMENT(CV)
Tata Motors currently has Trucks and Buses in the automobile market.
 
Tata 407
Tata 709
Tata 809
Tata 1109
1510/1512
Tata 1610/1616
Tata 1613/1615
Tata 2515/2516
Tata Starbus
Tata Globus
Tata 3118
MILLITARY SEGMENT
Tata Motors currently has 8 Military Vehicles in the military segment.
Tata LSV
Tata 407 Troop Carrier
Tata LPTA 713 TC
Tata LPT 709 E
Tata SD 1015 TC
Tata LPTA 1615 TC
Tata LPTA 1621 TC
Tata LPTA 1615

2.4: PRODUCT LINE


In product mix there are different products but in product line there is classif
ication of one product on basis of color, accessories etc.
A product line is a broad group of products, intended for similar uses and havin
g similar characteristics.
As Tata Motors deals in cars, trucks, Buses but here we are talking about Tata M
otors which produces cars so its product line will be differentiated on the basi
s of the size or class of the car, as a compact car, sedan, Muv, Suv. Because th
ere are no other type of products so its product mix and product line will be al
most same.
The most recent inclusion in Tata is the world famous car NANO. It is included i
n the list because of its price as it is the cheapest car in the world and provi
des all the facilities which a car needed. Tata has launched NANO in India in 20
08, with its four models. The standard model is the cheapest one of one lakh (ex
clusion of all taxes).
In case of cars the Product Line will include different colors of a car, facilit
y provided, accessories of the car.
Like, in case of Tata,
It comes in various colors. Like white, blue, red, black, etc.
It has variance on basis of accessories provided like
1. Power steering,
2. Stereo,
3. Leather Seats etc.
It has deviation on basis of engine. Like diesel, petrol, etc.
2.5: TARGET CUSTOMER
Tata Motors has every kind of customer from lower middle to upper middle class w
hich comprises of more than half of Indian automobile market.
Tata Motors focuses on every customer as it is customer loyal brand it has produ
cts like,
Tata Indica, Tata Marina which are cars simple but trendy cars for lower income
group people.
Tata Indigo is big size cars which are high performance, luxury cars.
Tata safari, sumo, Vista is some Muv which is trendy, stylish and powerful.
Tata Motors has a future planning to capture whole rural market, because they sa
y no other brand focuses on that huge part of market and it will be an opportuni
ty on our part to satisfy their emerging needs of automotive products.
So it s very difficult to classify target customer for Tata Motor because they are
modifying their products and company and are inventing new products to capture
whole automobile market and each and every customer.
PRESENCE OF THE COMPANY
Tata motors established in 1945 and thereafter it has developed in different cou
ntries like Japan, China, Europe, the United States, UK, Britain, Middle East As
ia and south east.
 SHAPE \* MERGEFORMAT 
NUMBER OF BRANCHES
It will not be false to say that Tata Motors is present in INDIA because it has
its
29 regional sales centre,
1450 dealers,
500 independent dealer outlets,
2000authorized service centers
At those place where other competitors don t have.
2.8 Distributional Channel Competitors
TATA MOTORS has about 19 distributors and over 1000 authorized retailer outlet b
ut it is continuously trying to develop a better or correcting by making it bett
er to cut down the complaint about the none availability of auto parts easily, s
ervice centers, Original spare parts and so. Therefore they take some steps to c
orrect out the deficiencies of its distributional channel in comparison its comp
etitors.
Strengthening the Distribution Channel They are co
nstantly trying to make their distribution channel as widespread as possible and
ensure that Tata Genuine Spare Parts are easily available.
Distributors and authorized retailers: To identify
authorized retailers, look for:
€Tata Motors Glow Sign Boards displayed outside
Retailer authorization certificate with customer code and name of authorized dis
tributor.
Retailer Authorization Certificate: Look for Tata M
otors glow sign boards prominently displayed outside the authorized retail outle
ts
Retailer Authorization Certificate: Displayed by every
Authorized Retailer in his shop bearing his customer code and name of Authorize
d Distributor.
Retailers Directory: To assist their customers in locat
ing authorized retail outlets, they have published the retailer s directory, a fir
st of its kind by any vehicle manufacturer in India.
2.9: MARKET SHARE
Tata motors have a wide variety of products in different ranges for each section
of society. There fore it is difficult to maintain the same share of each secto
r or for each product. But in case of Tata motors they are maintaining the progr
essive rate with large variety in each section of its products in CV as well as
PV sector.
They have over 60% market
share in CV sector and 12.66% in PV sector. The market share of Tata in recent p
ast is shown in graphical form with the comparison with its competitive firms in
last few financial years.

The tabular formation shows the competitive ratio s of Tata with its competitors i
n PV SECTOR
Indian Passenger Vehicle Market Competitive Scenario
€ MARUTI€ TATA€ HYUNDAI€ MAHINDRA€ TOYOTA€ HONDA€ Passenger Cars 52% 17% 19%
- 1% 5% Utility Vehicles 2% 18% 1% 42% 21% 1%
4TH LARGEST VEHICALE IN ASIA
The tabular formation shows the competitive ratio s of Tata with its competitors i
n CV SECTOR.
€ TATA ASHOK LEYLAND €MAHINDRA € EICHER € FORCE SWARAZ MAZADA Medium & Heavy
CV - Trucks 64% 24% - 8% - 3% Buses L, M & HCV 40% 30% 7%
5% 10% 6% Light & Small Comm Veh Trucks 59% <1% 32% 4%
3% 3%
2.10 POSITIONING
Tata motors has strong hold or can be said a monopolist in Indian market.
It has over 60% of market share in Indian commercial vehicle sector and has good
reputation of passenger vehicle in Indian markets around 12.35%. But in foreign
market the hold of the Tata motors is not as strong as in India. It is emerging
as the global brand in world map by its acquisition of brand like land rover &
jaguar and merger with fiat to tell the presence of Tata motors at world level
. As Tata enters foreign market in year 2000 and hasn t performed that well which
they expected from them and only capitalize a small market of 8% till financial
year 2008.
They also tried to enter luxury car mark
et with land rover & jaguar. They ranked as the 20th largest automobile company
in world and TATA MOTORs has been ranked 50th among 100 global brands in the wor
ld. Tata motors position also get strengthen after the launch of NANO in 2009 an
d it will became the largest producer and seller of low cost PVs in India beatin
g Maruti Suzuki by the year 2013. India will become the largest seller and produ
cer of the LPVs till 2013 in the world.
 EMBED Excel.Chart.8 \s 
Pie chart showing position in global market
2.11 MARKETING STRATEGIES
A marketing strategy is a process that can allow an organization to concentrate
its limited resources on the greatest opportunities to increase sales and achiev
e a sustainable competitive advantage. A marketing strategy should be centered o
n the key concept that customer satisfaction is the main goal.
From the time of introduction TATA GROUP is following a simple group values thes
e are
INTEGRITY
FAIR HONESTY TRANSPARENCIES ON ALL DEALINGS.
UNDERSTANDING
CARE RESPECT COMPASSION FOR CUSTOMER AND COLLEAGES.
EXCELLANCE
HIGHEST POSSIBLE STANDARDS IN QUALITY OF GOODS AND SERVICES.
UNITY
BUID STRONG RELATIONS WITH PARTNERS AND CUSTOMERS
RESPONSIBILITY
WHAT COMES FROM THE PEOPLE GOES BACK TO THE PEOPLE MANY.
These policies help or become a path for the market stratergies & led a solid fo
undation for introduction of their products and services, which can be easily vi
sible at the time of launching of TATA NANO. True to the tradition of the Tata G
roup, Tata Motors is committed in letter and spirit to Corporate Social Responsi
bility. It is a signatory to the United Nations Global Compact, and is engaged i
n community and social initiatives on labour and environment standards in compli
ance with the principles of the Global Compact. In accordance with this, it play
s an active role in community development, serving rural communities around its
manufacturing locations.
Some other issues they work on are;
Green Matters,
Restoring Ecological Balance,
End of Life Vehicle Treatment and Recycling,
Reducing Pollution.
The recent of the process is employed in RUSSIA
THEY have decided to enter Russia not just to sell their vehicles but also to be
part of the Russian economy and grow with our customers by offering the best va
lue proposition through products and services Russian market with a range of pro
ducts, as part of its global growth strategy.
2.12 ADVERTISEMENT EXPENSES

As we can see that {Q1-Quarter 1, Q2-Quarter 2} in all on an average Tata Motors s
expenses on advertisement are increasing. Due to the rise in competition and en
trance of new players into the market the company now has to spend a huge amount
on the advertisement of its products.

CHAPTER - 3
FINANCIAL
ANALYSIS
3.1 Stock Exchange on which the company is listed
Tata Motors is listed in
New York Stock Exchange [NYST] (September 200
4)
National Stock Exchange [NSE] and
Bombay Stock Exchange [BSE]
India &South Asia
3.2 Weight age in Index
NAME TATA MOTORS
PERCENT WEIGHT IN INDEX 63 SHARES
IN INDEX 0.385.66
LAST PRICE 459

3.3 Authorized Capital Structure


From year 2007 to 2008,
Class of share Eq
uity share
Authorized capital Rs 450
Issued capital Rs
385.50
Paid up share (nos) 38550
3954
Paid up face value 10
Paid up capital
Rs 385.50

3.4: AUDITORS REPORT


1. We have audited the attached Balance Sheet of TATA MOTORS LIMITED as at Marc
h 31, 2008, and also the Profit and Loss Account and the Cash Flow Statement for
the year ended on that date both annexed thereto. These financial statements ar
e the responsibility of the Company s Management. Our responsibility is to express
an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accep
ted in India. Those standards require that we plan and perform the audit to obta
in reasonable assurance about whether the financial statements are free of mater
ial misstatement. An audit includes examining, on a test basis, evidence suppor
ting the amounts and disclosures in the financial statements. An audit also incl
udes assessing the accounting principles used and significant estimates made by
the Management, as well as evaluating the overall financial statement presentati
on. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor s Report) Order, 2003 issued by the Cent
ral Government of India in terms of sub-section (4A) of Section 227 of the Compa
nies Act, 1956, we enclose in the annexure a statement on the matters specified
in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we
report that:
(i) We have obtained all the information and explanations, which to the best of
our knowledge and belief were necessary for the purposes of our audit;
(ii) in our opinion, proper books of account as required by law have been kept b
y the Company so far as appears from our examination of those books;
(iii) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt w
ith by this report are in agreement with the books of account;
(iv) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow St
atement dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the directors, as on M
arch 31, 2008, and taken on record by the Board of Directors, we report that non
e of the directors is disqualified as on March 31, 2008 from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of the Compa
nies Act, 1956; and
(vi) in our opinion and to the best of our information and according to the expl
anations given to us, they said accounts give the information required by the Co
mpanies Act, 1956, in the manner so required and give a true and fair view in co
nformity with the accounting principles generally accepted in India:
(b) According to the information and explanations given to us, no undisputed amo
unts payable in respect of statutory dues including provident fund, investor edu
cation and protection fund, employees state insurance, income tax, sales tax, wea
lth tax, service tax, customs duty, excise duty, cess and other material statuto
ry dues applicable to the Company were in arrears, as at March 31, 2008 for a pe
riod of more than six months from the date they became payable.
3.5: AUDITING COMPANY
For DELOITTE HASKINS & SELLS

Chartered Accountants
M.S. Dharmadhikari
Partner
Membership No.: 30802
Mumbai: May 28, 2008
3.6: Balance sheet and Ratio Analysis
[Rs in crores]
Mar ' 08 Equity share capital 385.54 Share application money - Preference
share capital - Reserves & surplus 7,428.45 Secured loans 2,461.99 Unsecur
ed loans 3,818.53 Total 14,094.51 Gross block 10,830.83 Less : revaluation
reserve 25.51 Less : accumulated depreciation 5,443.52 Net block 5,361.80
Capital work-in-progress 5,064.96 Investments 4,910.27 Current assets, loan
s & advances 10,781.23 Less : current liabilities & provisions 12,029.80 Tot
al net current assets -1,248.57 Miscellaneous expenses not written 6.05 Tota
l 14,094.51 Book value of unquoted investments 4,145.82 Market value of quot
ed investments 2,530.55 Contingent liabilities 5,590.83 Number of equity sha
resoutstanding (Lacs) 3855.04
3.7: PROFIT AND LOSS ACCOUNT
[Rs in crores]
€ Mar ' 08 Operating income€ 28,738.30 Material consumed€ 20,931.81 Manufactu
ring expenses€ 1,230.14 Personnel expenses 1,544.57 Selling expenses 1,179.48
Administrative expenses 1,982.79 Expenses capitalized -1,131.40 Cost of sales
25,737.39 Operating profit 3,000.91 Other recurring income 389.03 Adjusted P
BDIT 3,389.94 Financial expenses 471.56 Depreciation€ 652.31 Other write offs
64.35 Adjusted PBT 2,201.72 Tax charges€ 547.55 Adjusted PAT € 1,654.17 Non
recurring items 374.75 Other non cash adjustments - Reported net profit 2,028
.92 Earnings before appropriation 3,042.75 Equity dividend 578.43 Preference
dividend - Dividend tax 81.25 Retained earnings 2,383.07

PERIOD ENDING 31-Mar-08 31-Mar-07 31-Mar-06 Assets Current Assets Cash And C
ash Equivalents 373,800€€ 246,100€€ 252,500€€ Short Term Investments 19,300€€
60,100€€ 70,800€€ Net Receivables 1,640,600€€ 1,406,100€€ 830,100€€ Inventor
y 858,100€€ 787,100€€ 591,400€€ Other Current Assets 219,700€€ 144,100€€ 280,5
00€€ Total Current Assets 3,111,500€€ 2,643,500€€ 2,025,300€€ Long Term Invest
ments 2,563,100€€ 1,799,700€€ 1,185,600€€ Property Plant and Equipment 2,489,70
0€€ 1,476,800€€ 1,023,100€€ Goodwill 174,100€€ 167,900€€ 158,100€€ Intangible
Assets 77,800€€ 69,400€€ 53,000€€ Accumulated Amortization - € - € - € Other A
ssets 811,100€€ 130,800€€ 99,800€€ Deferred Long Term Asset Charges - € - € - €
Total Assets 9,227,300€€ 6,288,100€€ 4,544,900€€ Liabilities Current Liabili
ties Accounts Payable 1,482,600€€ 1,184,700€€ 943,000€€ Short/Current Long T
erm Debt 1,724,500€€ 902,600€€ 212,200€€ Other Current Liabilities 1,390,500€€
715,100€€ 663,300€€ Total Current Liabilities 4,597,600€€ 2,802,400€€ 1,818,50
0€€ Long Term Debt 1,469,100€€ 933,500€€ 611,600€€ Other Liabilities 236,600€€
199,400€€ 81,100€€ Deferred Long Term Liability Charges 152,900€€ 138,800€€ 13
7,900€€ Minority Interest 140,800€€ 94,100€€ 74,300€€ Negative Goodwill - € -
€ - € Total Liabilities 6,597,000€€ 4,168,200€€ 2,723,400€€ Stockholders' Equi
ty Redeemable Preferred Stock - € - € - € Preferred Stock - € - € - € Common
Stock 96,300€€ 89,400€€ 86,100€€ Retained Earnings 977,600€€ 746,800€€ 458,700
€€ Capital Surplus 994,000€€ 921,400€€ 871,700€€ Other Stockholder Equity 562,
400€€ 362,300€€ 405,000€€ Total Stockholder Equity 2,630,300€€ 2,119,900€€ 1,82
1,500€€ 3.8: BALANCE SHEET FOR THREE YEAR s

[Rs in crores]

CHAPTER - 4
ORGANIZATIONAL
STRUCTURE

4.1 ORGANIZATION STRUCTURE


Tata Motors has a Flat organizational Structure.

REASONS FOR CHOOSING FLAT ORGANIZATIONAL STRUCTURE
Employees are free to make suggestions.
Team work
Quality is basic ingredients.
Information sharing,
Team work,
Participative management.

In more elaborated form it is like this,

4.2 EMPLOYEES RECRUITMENT AND SELECTION PROCEDURES


EMPLOYEE SELECTION PROCEDURE

I. Policy
The purpose of this policy is to provide uniform guidelines for the recruitment
and selection of employees at Tata Motors.

II. Process
The recruitment and selection process includes
Creating a new position.
Filling an existing vacancy.
Hiring a person.
Reclassification of a position.
Transferring an employee from one position to another.
All requests should be submitted at least 30 days prior to the effective date of
the requested action.

This will require proper planning.


Once a person is identified for a position, the following steps should be comple
ted:

1. The Office of Human Resources will assist the hiring manager/supervisor in co


mpleting the Hiring Recommendation form.
2. The Hiring Recommendation form will be routed for the necessary signatures an
d returned to the Office of Human Resources after completion.
3. Once the candidate returns the signed offer letter, the Office of Human Resou
rces will distribute copies to the Office of the Manager, the appropriate Manage
r, payroll, the appropriate collective bargaining unit and any other office that
has a need to know.
III. Responsibilities
The purpose of the search committee is to evaluate candidates for vacant positio
ns on campus and make recommendations for hire. The Office of Human Resources wi
ll oversee each search committee and monitor the committee s progress to ensure th
at positions are being filled expeditiously. In addition, the Office of Human Re
sources must ensure that the process remains fair.
SELECTION
Decision to Appoint
In selecting the successful candidate, the panel must make a decision based on t
he merit and eligibility of the candidates as judged by:
Content of application
Qualifications (if required for the post)
Performance at Interview
Outcome of any selection tests
Right to work in the UK.
The panel must seek to ensure that candidates appointed will actively promote th
e IPCC s Core Values.
4.3 Training & Development Policies
Tata motors are following a technique known as Big-scale cost reduction (BSCR) f
or its training and development of the employees of the company. They have adopt
ed this technique as most of the TATA GROUP companies have implementing the tech
nique. Due to its main focus is on the cost reduction on a sustainable basis. Wi
th this technique alone Tata motors have saved over 2000crores in three years.
BSCR major agenda is for all firms is, as competition demands elimination of all
varieties of slack and inefficiencies. Companies have to strive to reduce cost
on a continuous basis. The cost-reduction initiative has to be focused on major
cost elements and broad-based across all functions.
Objective
The programme will present a framework that could be used by Companies for reduc
ing cost through a process-driven approach. The programmed will attempt to learn
from the best practices that the Tata motors have adopted and used.
The Programme will also build practical linkages with the workplace through inte
gration with the TBEM.
Contents
The following will be the contents of each half-day session :
1. Open your eyes!
4. Application!
 INCLUDEPICTURE "http://www.tmtctata.com/images/bullet_arrow02_red.gif" \* MERGEF
ORMATINET  Brainstorming specific cases for approach, based on results of initial d
iagnosis (to be carried out with the invitation)  INCLUDEPICTURE -management ski
lls Methodology
Combination of
case studies and
interactive discussions along with
lectures,
Backed by reading material.
4.4 Conflict Resolution Mechanism
Our relationship with the Future Group is essential to our business model, and w
e believe that it will operate to benefit of shareholders of our Company. This r
elationship may also create conflicts of interest with respect to potential oppo
rtunities between our Company and other entities within the Future Group.
See Risk Factors Conflicts of interest may arise and our failure to deal with the
m appropriately could damage our reputation and adversely affect our business. on
page of this Draft Red Herring Prospectus.
In respect of opportunities of strategic importance where operational control is
intended, a right of first offer will be granted to the Future Group entity ope
rating in the specific industry or sector in which those opportunities have aris
en.

CHAPTER-5
FACTORY
&
PLANT LOCATION
5.1: FACTORY LOCATION
Tata motors have number of branches in India as well as in other countries. Some
of productions branches which are located in India with the range of product th
ey produce and some are under construction are as follows;
Plant location RANGE OF PRODUCTS PRODUCED PIMPLI AND CHIKALI, PUNE
CHINCHWAD, PUNE ( M&HCVS), ( LCVS), (UCVS) JAMSHAEDPUR TOWN POST OFFICE
JAMSHEDPUR M&HCVS CHINHAT DEVA ROAD, LUCKNOW M&HCVS AND LCVS KIADB BLOCK 2, B
ELURE INDUSTRIAL AREA, DHARWAD PROJECT UNDER FORMULATION PLOT NO 1, SECTION 11
INTEGRATED INDUSTRIAL ESTATE PANTNAGAR, RUDRAPUR, DISTRICT UTTAMSINGH NAGAR, UTT
ARAKHAND TRIAL PRODUTION COMMENCED PS SINGUR, HOOGLY DISTRICT, WEST BENGAL PROJ
ECT UNDER IMPLEMANTATION

CHAPTER - 6
SWOT ANALYSIS
OF
TATA MOTORS

SWOT ANALYSIS
SWOT Analysis means Strength, Weakness, Opportunity, and Threat.
These are the factors and the conditions prevailing in the company, industry and
out side its environment. Those factors which prevail inside the company are kn
own as Internal Factors and other which affect decision making and strategies of
the business from outside are known as External Factors.
6.1: STRENGTHS
1. Name Recognition
The name Tata Motors is the most recognizable auto manufacturer in India
2. Company Image
Tata Motors image is that of tough, dependable, long lasting vehicles. It s "Like
a Rock solid vehicles".
3. Product Diversity
Tata Motors features many different products for many different target groups. I
t has four divisions of vehicles: Compact Cars, Sport Utility Vehicles, Vans, Se
dan.
4. Racing Sponsor
Tata Motors organizes racing events in India.
Other

6.2: WEAKNESSES
1. No Luxury Vehicle
Tata Motors does not feature, and has no intent to feature any type of luxury ve
hicle. Without this they cannot compete with foreign manufacturers. Even Ford an
d Chrysler have developed a luxury vehicle for their fleets.
2. Weak In Horse Power
Besides the Grand Vitara, all Tata Motors vehicles are substandard to their fore
ign competition when comparing horse power. The Tata Motors s all vehicles feature
s less than 160 bhp engine, while the Honda, Ford, Tata its direct competitor, b
oasts a 180 bhp engine.
3. Dull Product Design
Once again, Tata Motors vehicles have a very conventional and boring design.
This hurts the company drastically because people want power, reliability and st
yle.
Limited product portfolio in the passenger segment
Operations mainly restricted to India
6.3: OPPORTUNITY
Increasing Plant Capacity
Tata Motors is increasing its production capacity by creating two more plants in
near 2011.
Result in mass production and will help in reducing per unit cost
Company will be able to capture more shares in market due to Increasing demand
for cars in India.
6.4: THREAT
Foreign Competitor
Intense competition from global players€
Tata Motors has a threat from foreign players as
Their technology is much more new
Products are more upgraded
They have much more funds to invest in research and development.
Increase in price of raw material.

MY LEARNINGS FROM THIS PROJECT:


I have learned lot of things through this industrial report. It is a great exper
ience of making industrial report on TATA MOTORS PUBLIC LTD. TATA MOTORS Company
is one of the world s largest automobile companies. The Tata motors Company was f
ound by the Tata group in the year 1945 in INDIA. The Company operates world wid
e. The Company has produced numerous products.
I have learned two things from the industrial report. First is the about the com
pany and second thing about the ms office & ms word. First in this project I lea
rn that how a company perform it operations. How they are marketing their produc
ts? Which type of distribution network they have used? How to search data on int
ernet? How to arrange the data in systematic manner in MS - Word?
Following are the learning about the company from this industrial project:
History of the company.
Vision and mission of the company.
Board of the directors of the company.
Products of the company.
How the company target the market.
Distribution network of the company.
Regional presence of the company in all over the world.
Competitors of the company.
Marketing strategy of the company.
Financial position of the company.
Market share of the company.
Organization structure of in India.
SWOT Analysis.
BIBLIOGRAPHY
Presence of TATA MOTORs in the global world

You might also like