Group 7 - ITERP
Its holding company, Tata Sons, is 65% owned by charitable trusts, which doledout over a billion rupees last year - and trusts in India are not tax avoidingschemes like in the U.S. Recently, the "Tata" brand was valued at $5.5 billion,and has mindshare with "trust" - a Tata product is considered reliable and a valuefor money, more than anything else. All group companies pay Tata Sons a fee for using the Tata name.The Tata Group's Chairman, Ratan N. Tata, is recognized as the leading Indianbusinessman of his generation. Taking over as chairman in 1991 during a time of tumultuous change in India's economic landscape, he undertook a boldrestructuring and reorganization of the group, and is widely given credit for thegroup's transition and success post the economic reforms of 1991 that made theIndian business environment far more competitive. Ratan Tata has repeatedlyspoken of targeting what University of Michigan professor, C.K. Prahalad, mightcall "the bottom of the pyramid" - in other words, the market opportunity offeredby the vast and voiceless masses of India. TTM Managing Director Ravi Kanthas vast experience in the Indian automotive market, and is a veteran of thecompany, the right man in the right place at the right time.TTM is key growth business for the Tatas, and currently contributes $4.6 billionor about 20% to the group's total revenue. It manufactured only heavy and lightcommercial vehicles, and its foray into passenger cars has been drivenaggressively by Ratan Tata. Tata trucks dominate the Indian commercial vehiclelandscape, having approximately 65% market for medium and heavy commercialvehicles (MCVs and HCVs), and 55%+ share for light commercial vehicles(LCVs).For passenger vehicles, the numbers are less impressive, with teething problemson some of its models (and stiff competition in the Indian passenger car market),such as the Tata Indica (compact car). TTM also offers the Tata Safari SUV andTata Sumo MUV, and also has a presence in the mid-size car segment, with aslightly modified version of the Indica, called the Indigo. TTM's most ambitiousproject, the $2200 (Rs. 1 lac) car is due out by CY 2008, and is by far Tata'sbiggest push into the passenger car segment. There will be no competitor at thisprice point. The compact car will have a 30 BHP engine, and will seat 4-5 people.The target market is the "bottom of the pyramid" - or the lower middle-class tomiddle class Indian, who is looking to change to a car from a two-wheeler. WithIndia's burgeoning middle class of over 300 million people, the car has a largemarket. Its customer is less in cities like Bombay and Calcutta, than the smaller towns and perhaps even villages of India, true to the chairman's vision.
Information Technology background
At Tata IT is seen as an important global function. Organizationally it isincorporated into the management services division. Mitra’s (CIO) task isprimarily to provide each area with IT resources and tools required and to
Group Assignment 1 – Management issues in Implementing SAP @ Tata Motors3