project on Leadership in TATA Motors
project on leadership
UNI. ENROL. ID:-0131131706
The present work is an effort to throw some light on TATA MOTORS growth & development. With good use of Internet I will be able to complete this project. I wish to convey my sincere gratitude to my worthy teacher of personality development & communication skills for her valuable guidance and constant encouragement in completition of this project. I shall be failing in my duties if I do not extend my regards and thanks to my parents who have been constant source of inspiration for achieving the success in completition of this project.
TABLE OF CONTENTS
The TATA group comprises 93 operating companies in seven business sectors : information systems and communications; engineering; materials services; energy; consumer products; chemicals. the group was founded by Jamsetji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from the British rule. Consequently, Jamsetji Tata and those who followed him aligned business opportunities with the objective of nation building. This approach remains enshrined in the group’s ethos to this day. The Tata Group is one of India’s largest and most respected business conglomerates, with revenues in 2004-05 of $17.8 billion (Rs.799,118 million), the equivalent of about 2.8 per cent of the country’s GDP. Tata companies together employ more than 250,000 people.
Tata group also created history that the tata group has become the first Indian corporate house to cross the Rs.2 lakh crore mark in market capitalization overtaking the public sector giant, oil and natural gas corporation group (including ONGC and Mangalore refinery & petrochemicals), whose present market capitalization is $39.4 billion. The Mumbai-based Tata Group is spread across seven sectors and has 29 listed companies under its fold. Companies that led the current rally were Tata consultancy services, Tata steel, Tata Motors , Tata power and videsh sanchar nigam limited.
TATA MOTORS 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 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."
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.
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 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.
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 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.
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' 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 hived off its vehicle finance business into a separate subsidiary, TML Financial Services (TMLFS), in September 2006.The company plans to build a car that will cost just under Rs 1,00,000 considering that 2 wheelers in India cost Rs 50,000/-.All the board of directors are well qualified but Dr.JJ Irani is person who is different from all of them. He is the only person which have all qualification of the world which is related to finance. And this may be the reason that the Tata group was become the first Indian corporate house which to cross the Rs.2 lakh crore mark in market capitalization
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
Time line and milestones
In the begining
Tata Motors is the 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.
Tatamobile introduced in 1989. 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 Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines.
In 1999, TATA Motors launched his first small car in India named Indica V2. The strength point in this car is that Indica is the first diesel small car in India which have 1.4 litre engine which produces more than 60HP.
In 2000, it launched 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.
In 2000, TATA Motors upgrade his most successful car Indica V2 by introducing New Generation Indica V2. The V2 is the next generation Indica which builds on the confidence of over 90,000 customers that exist in less than 2 years of its launch. Following the Indica's launch in 1999, the Company launched the Euro II diesel models in January 2000 and the MPFI petrol Indica 2000 in May 2000 culminating with the launch of the V2 range and the 2 new power steering models in February 2001.
Again in 2000, Riding on the successful run of the Indica V2 diesel range, Tata Engineering announced the addition of its latest MPFI Petrol version to its V2 range. The Indica V2 petrol MPFI is engineered to deliver high standards of performance, drivability and ride comfort to meet the growing customer expectations in the market. The Indica V2 Petrol MPFI came with a powerful 1400 CC Petrol Engine with a superior 16 bit micro-processor driven engine management system.The Indica V2 petrol MPFI available in three trim levels. All the models are competitively priced and will be available at ex-showroom price beginning at Rs 3.22 Lacs (Ex- Mumbai).
In 2002, India's first fully indigenous sedan set to debut with class-leading features. The Indigo is positioned as a comfortable, spacious, premium feature sedan with class leading ride and handling characteristics in the midsize (C) segment. Developed on Tata Engineering's highly successful car platform, the Indigo was launched in 3 models of petrol and 2 models of diesel in 6 attractive colours. The Indigo petrol came with an 85 bhp engine, while the diesel version is the only vehicle in this class with a turbo charged engine. An entirely new power train, a three link independent suspension and large 14'' wheels was unique features of the Indigo. With 450 litres of trunk space and a 42-litre fuel tank capacity, the Tata Indigo is appropriately suited for long family drives on weekends and vacations.
Again in 2002, Tata Engineering launched new 2003 SAFARI range. The new Safari EX & LX came equipped with new contemporary interiors and cabin features aimed at providing increased drive comfort and enhanced ergonomics. the Safari EX has the quietest passenger cabin in its class, twin-pot calipers with tandem booster to ensure more effective braking system and a tuned up suspension mechanism to provide better ride quality. The price for the Safari EX (ex-showroom, Mumbai) was Rs. 9.23 lakh for the 4x2 version and Rs. 10.16 lakh for the 4x4 model. The price for the Safari LX (ex-showroom, Mumbai) is Rs. 7.76 lakh for the 4X2 and Rs. 8.77 lakh for the 4X4 model.
In 2004, Tata Motors announced the national launch of its new estate, the Tata Indigo Marina. The Indigo Marina is positioned as a stylish, spacious, premium feature car in the 'C' Segment for mainstream usage. The brand communication was built on the theme of "Because we like to carry our world with us." The Indigo Marina was priced in the range of Rs.4.24 lakhs to Rs.5.19 lakhs (ex showroom, Delhi) and debuts with 3 models of petrol and 2 models of diesel in 5 attractive colours. The Indigo Marina was powered by the tried and proven 1.4 Litre high performance 85 PS petrol engine and the highly fuel efficient 62 PS turbo charged diesel engine.
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 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.
Again in 2005, India's largest selling diesel car, the Indica V2, enhanced its range today with the launch of the Indica V2 Turbo. The new Indica V2 Turbo wasonly car in the Compact segment to offer a Turbo charged engine. The car delivers an enhanced output of 68PS @ 4500 rpm, while the increased torque of 130Nm @ 2500 rpm is the highest in its class. Apart from the changes in the engine, the car also features 14`` wheels among other class leading features. It was available in 3 colour options, including the exclusive Cherry Red colour, which was already very popular in the European market. The Indica V2 Turbo was launched in two trim levels. The ex-showroom Delhi price was Rs.4.10 lakhs for the DLG model and Rs.4.30 lakhs for the DLX model.
Tata Motors launched an exciting introductory offer on
the new Indica V2 Xeta range. The new 1.2 litre range was available in 4 models - GV, GVE, GVS and GVG. It came with maximum power of 65.3 PS @ 5000-5200 rpm and maximum torque of 10.2 kgm @ 2600 rpm. The top end GLX model came with a 1.4 litre petrol engine delivering a power output of 70 PS @ 4800 rpm and maximum torque of 12.4 kgm @ 2600 rpm. The entire range continues to be available in the popular colours of Salsa red and Lagoon blue while delivering well accepted enhanced fuel efficiency.
Tata motors launched the Indigo XL which is the upgrde model of Indigo. The new Indigo XL have all luxury features of ‘C’ class i.e airbags, anti lock braking system, power steering and window, dual LCD screen, maximum boot space, etc. The ex-showroom price of this mode Rs 7.90 lakh.
Tata Motors launched the Sumo Victa Turbo DI, The new range, fitted with a new 3-litre Turbocharged DI engine, delivers improved fuel economy, higher power and torque. The new engine develops maximum power and torque of 70 PS (at 3000 rpm) and 223 Nm (at 2200 rpm) respectively. This results in considerable improvement in overall performance and driveability. The range comprises 4 trim levels – Cx, Lx, Ex and Gx -- in both BSII and BSIII emission compliance levels. It offers a wide range of seating configuration -- 7,8,9, and 10 seats -- to choose from, along with the comfort and convenience features of the Victa IDI range. HVAC is standard equipment on Lx, Ex and Gx variants.
The BSII range of Sumo Victa DI was priced between Rs. 4.84 lakhs and Rs. 5.89 lakhs, (ex-showroom, Karnal), while the BSIII range was between Rs.4.95 lakhs and Rs. 6 lakhs (ex showroom, Delhi).
Some thing about project of 1 lakh car Indiva
India's largest automobile manufacturer, TATA Motors Ltd. Announces that they will launch the india’s cheapest car in 2008.the also release the name of the car i.e Indiva. They also said the company aims to keep the car's price below 100,000 rupees, making it the cheapest car on the Indian road. Tata didn't say how many cars the proposed plant will produce each year. It also wasn't clear if the company planned to sell the car in overseas markets as well. And company already sign the contract with the Bosch to introduce common rail direct injection(CRDi) engine for their cheapest small car.
Controversies on this project
Farmers are agitating against the land acquired by the firm in Singur for its ambitious Rs 1,00,000 car project. The protest is being lead by Mamta Banerjee of the Trinamool Congress. Farmers are protesting that the land is fertile land and the government acquired the land without their consent.
In 2004, it acquired the Daewoo Commercial Vehicle Company of Korea. The reasons behind the acquisition were:
· Company’s global plans to reduce domestic exposure The domestic CV market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of 94% in the MHCV segment and 84% in the LCV segment. Since the domestic CV 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
TATA Motors Joint Venture with FIAT
Tata Motors, through its JV with Fiat, is likely to gain access to Fiat’s diesel technology and 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 USA. 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 JV with Thailand’s Thonburi,( Exhibit-1) an independent auto assembler, in which Tata Motors will hold a 70% stake. The JV 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 JV product is likely to be a part of Tata Motors’ ‘Global pick-up’ plans.
Effect of gvernment policy on Tata motors
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
· The trust they already build in the people by providing so many goods & services.
· Tata motors is the first Indian company to launch successful diesel engine car Indica v2 in 1999.
· Tata motors have more 160 dealerships backed by 700 strong service network in more than 200 cities of the country, the second largest in the country.
· Extremely qualified management which includes Dr.J J Irani. The whole Tata group will never suffer the financial sickness because of their master mind.
· Delay in launching the product after the announcement. i.e. the 1 lakh car Indiva which was announced in 2005 but yet not to be launched.
· Service network is not sufficient to meet the satisfaction of millions of customers as compare to Maruti and Hyundai.
· After launching successful diesel car Indica V2 in 1999, they get success to create goodwill in the mind of people for small car. And now they have opportunity to enter in luxury segment cars to increase their product line. Customers can easily attracts towards their product because of goodwill created by indica V2
· First company which announces to bring the ever cheapest 1 lakh car in India.
· They have threats by their competitors. Companies like Xenitis, Bajaj Renault, Maruti Suzuki also announces to introduce 1 Lakh car.
· Car companies like BMW, VOLVO, AUDI and other luxury car makers are already entered in the Indian market. And WOLKSWAGEN, NISSAN and Chinese companies are planning to attack the Indian market in the next 2 years which can affect Tata motors strategy.
· Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA, (parent NAVISTAR), to manufacture commercial vehicles and to bolster its position in the CV business.
· Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles.