 A dream that every eye had dreamt

 A dream seen by many of us but only TATA thought about fulfilling

 A dream that could have changed the fate of all connected to it

Introduction About Tata Group

• 3.2 million shareholders Tata Group

• India’s largest business group
• 5.3% of India’s GDP
• Operations in 80 countries, exports to 85 countries
• 61% of all revenue from abroad
• Group revenue: Rs. 250,000 crores, US $ 62.5 bill
• Group Profit: Rs 21,000 crores, US $ 5.4 bill
• Major Companies and Brand like Titan, TCS, Tata Steel, Tata Automobiles.

Introduction of Tata Nano

• “Dream-dream and dream, because dream gives vision, vision gives thoughts
and finally thoughts lead to the action”
• Each letter of these motivational words said by India's former President Dr.
A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata
group, who in the year 2003, dreamt of producing a safe, affordable Car for
the common man. Finally after the wait of five years, crossing all financial and
technological barriers, Ratan Tata kept his promise and unveiled Tata 'Nano'
on 10th January 2007
• The car is expected to boost the Indian economy create entrepreneurial-
opportunities across India, as well as expand the Indian car market by 65%.

Why was initial Plant Location a Problem?

• Tata Motors started constructing a factory to manufacture their $2,500 car, the
Tata Nano at Singur
• The project faced massive opposition from 2,000 of the 12,000 displaced
farmers
 • The problem has been raised by those farmers who maintain that their land
has been taken away from them by force against their will.
• The unwilling farmers were given political support by West Bengal's firebrand
opposition leader Miss Mamata Bannerjee with an eye to the upcoming Lok
Sabha (Parliamentary) elections
• Miss Bannerjee's “Save Farmland” movement was supported by celebrity
anti-development activists & farmers
• The issue had turned into a power show. Where one party claimed to be
fighting for poor of Bengal while other says whatsoever is being done is for
growth of state
• The Tatas finally decided to move out of Singur on 3rd October, 2008
• The pullout decision meant, loss of huge investment for the state of West
Bengal
• On 7th October, 2008, the Tatas announced that they would be setting up the
Tata Nano plant in Sanand, Gujarat.

The alternatives available

• Several states that had offered to help include Haryana, Maharashtra, Orissa,
Andhra Pradesh.
• Even Sri Lanka had made up suitable plans for TATA’S relocation.
• Finally Gujarat is basking in the glory of rescuing the plant & is at present
providing shelter to the car which had been every common man’s dream.

Why Sanand?

• Conditions did not improve at Singur

• Land available in plenty at Sanand
• The overall climate in Gujarat has been extremely favorable to industry
• The general populace of the state is in favour of industrialization
• The strategic location of Sanand,
o some 30 km from Ahmedabad and
o its proximity to the Ahmedabad-Rajkot highway made the new site attractive
o close to the Charodi railway station
• Setting up the Nano plant in Gujarat is advantageous for the group because
nearly 50 % of the car parts are produced in Rajkot , and the extensive
coastline of the state could be beneficial for imports and exports
• The location was, it was just 200 km from Rajkot, where the best engineering
workforce can be found.
• Then there is the ultra mega power project of 4,000 mw that the Tatas are
setting up at Mundra port . The Tatas could draw on power from their own
plant in Mundra
 • Mundra Port would allow them to import steel and other raw materials at very
low cost even from overseas. Transporting the same over land would cost
thrice as much.
• Mundra had the edge given its container depots for vehicles and a huge roll
on, roll off terminal for loading and unloading vehicles
• Then there was a 6-lane highway just 1 km away from the land earmarked for
Tata Motors
• When the Tata Motors team visited Andhra Pradesh, they were confronted by
agitated farmers who did not want to part with their land. That was scary for
the Tata folk. Maharashtra automatically became the choice, but the Tatas got
mixed signals from several quarters

Ratan Tata’s Speech

“One was stupid if not investing in Gujarat. I have to say that today there is
no state like Gujarat. Under Mr Modi’s leadership, Gujarat is head and
shoulders above any state. A state would normally take 90 to 180 days to
clear a new plant but in the Nano case, we had our land and approval in just
two days.’’

Current Scenario

 Tata Motors Ratan Tata chose Sanand , 30 kms away from

Ahmedabad, for the Tata Nano project .
 The mother plant, will come up on an area of about 1100 acres in
Sanand.
 The new Nano Plant could have a capacity of 5,00,000 units,
compared to 3,00,000 for Singur.
 Gujarat has also agreed to match all the incentives offered by West
Bengal government.

Conclusion – Tata Nano’s 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.