Project Report On

UNDERSTANDING THE CONCEPT OF SOCIAL ENTERPRISES

Submitted in partial fulfillment for the Degree Of Bachelor of Business Administration 2008-11

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University PSP Area, Sector-22 Rohini, Delhi-110085 Under the Guidance of: Mrs.Poonam Chawla Faculty, MAIMS Submitted By: Preeti silswal 2nd Year Roll No 0291471808

Table of CONTENTS

Student declaration..i Certificate from Guide.ii Acknowledgementiii Executive Summary..iv

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

ATTENDANCE FOR PROJECT REPORT

Name of the student : Preeti Silswal Class: BBA (B&I)2nd semester Roll No. : 0291471808 Name of the Supervisor: Poonam Chawla S.No. Date Time Progress Report Signature of the student 1 2 3 4 5 6 7 8 9 10 *Minimum (8out of 10) 80% attendance compulsory. Coordinator Signature of Supervisor

STUDENT DECLARATION
This is to certify that I have completed the Project titled

(TATA MOTORS

LIMITED) under the guidance of (Poonam Chawla) in partial fulfillment

of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of Work & I have not submitted it earlier elsewhere.

Name of the Student

Preeti silswal

CERTIFICATE
This is to certify that the project titled TATA academic work done by Preeti

MOTORS LIMITED is an

Silswal submitted in the partial fulfillment of the

requirement for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.

Name of the Faculty Guide

Poonam Chawla

Executive Summary
Chapter-1
Brief introduction about Automobile industry

Chapter-2
Company Profile Management Tata Motors(We Drive by your word everyday)

Expansion Tata Brands Important Developments Operations Present and future challenges Companys philosophy on Corporate Governance Environment friendly technologies Upholding Environment Responsibility Corporate Social Responsibility Social Responsibility Tata Motors Ltd. Tracing the history of Tata Motors Motors meets History again Resent history of Tata Motors(TTM)

Chapter-3
Research Methodology of the study

Chapter-4
Findings and Analysis Suggestions

Chapter-5

Conclusion and Limitations

Chapterisation
Chapter-1
Automobile industry

Chapter-2
Company Profile

Chapter-3
Research Methodology of the study

Chapter-4
Findings and Analysis ,Suggestions

Chapter-5
Conclusion and Limitations

Bibliography Webliography

Automobile industry
Automobile Industry

Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being # 2 in two wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year.

Reasons of Growth

Economic liberalization, increase in per capita income, various tax relief policies, easy accessibility of finance, launch of new models and exciting discount offers made by dealers all together have resulted in to a stupendous growth of India automobile industry.
Market Share

Automobile industry of India can be broadly classified under passenger vehicles, commercial vehicles, three wheelers and two wheelers, with two wheelers having a maximum market share of more than 75%. Automobile companies of India, Korea, Europe and Japan have a significant hold on the Indian market share. Tata Motors produces maximum numbers of mid and large size commercial vehicles, holding more that 60% of the market share. Motorcycles tops the charts of two wheelers with Hero Honda being the key player. Bajaj by far is the number one manufacturer of three wheelers in India. Passenger vehicle section is majorly ruled by the car manufacturers capturing over 82% of the total market share. Maruti since long has been the biggest car manufacturer and holds more that 50% of the entire market.

Global recession has impacted, the Indian automobile industry also and can be seen clearly in the sales figures of the last financial year. Even then this industry has high hopes in 2009-2010, as banks have reduced loan interest rates and the major chuck of automobile customers belong to the middle income group who are becoming economically stronger with every passing day.

Company Profile

PROFILE
Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles 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 is 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 breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company?s dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. 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 companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands 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 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. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customerdesired offerings through leading edge R&D. With over 2,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, 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 the UK. 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. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed 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. The Tata Nano has been subsequently

launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than twowheelers being manufactured in India today. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. In June 2009, the exciting new range of premium luxury vehicles from Jaguar and Land Rover were introduced for the Indian market. These include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover. 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 also focusing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation

solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.

MANAGEMENT
Board of Directors
Mr. Ratan N Tata (Chairman) Mr. Ravi Kant Mr. N A Soonawala Dr. J J Irani Mr. R Gopalakrishnan Mr. Nusli N Wadia Mr. S M Palia Dr. R A Mashelkar Mr. Nasser Munjee Mr. Subodh Bhargava Mr. V K Jairath Mr. P M Telang

Senior Management Mr. P M Telang Mr. Rajiv Dube Mr. R Pisharody Managing Director - India Operations President (Passenger Cars) President (Commercial Vehicles Business Unit)

Mr. C Ramakrishnan Chief Financial Officer

Mr. S N Ambardekar Head (Manufacturing Operations - CVBU) Mr. S B Borwankar Mr. A M Mankad Mr. B B Parekh Mr. U K Mishra Mr. S Krishnan Mr. P Y Gurav Mr. S J Tambe Mr. Gajendragadkar Mr. N Pinge Mr. R Bagga A Head (Jamshedpur - Plant) Head (Car Plant) Chief (Strategic Sourcing) Vice President (ADD and Materials - CVBU) Vice President (Commercial - PCBU) Vice President (Corp. Finance - A/c and Taxation) Vice President (Human Resources) Vice President (Corp. Finance - Business Planning) Chief Internal Auditor Vice President (Legal)

Mr. M L Bapna

Chief Executive Officer (HVAL & HVTL) -

Company Secretary Mr. H K Sethna

Corporate Communications Mr. Debasis Ray Head Corporate Communications

TATA MOTORS
We Drive By your World Everyday
Established in 1945, Tata Motors entered into collaboration with Daimler Benz of Germany in 1954 to manufacture commercial vehicles. The collaboration ended in 1969Tata Motors has since grown from strength to strength. It is the largest company in theTata group now, with a total income of US$ 3.4 billion in the year 2003-04. More than 3million Tata vehicles ply on Indian roads making Tata a dominant force in the Indian automobile industry. Tata Motors is Indias only fully integrated automobile manufacturer with a portfolio that covers trucks, buses, utility vehicles and passenger cars. The Company has spread its manufacturing facilities across India by setting up plants at Jamshedpur, Pune and Lucknow. This is coupled with nation-wide sales, service and spares parts network.Tata Motors has the unique distinction of giving India its first and only indigenously built passenger car - the Tata Indica. The Indica launched in 1998 reached the 2,50,000 sales mark within 52 months of launch. Tata Motors Engineering

Research Centre has over900 scientists and engineers dedicated to product and process development, technology up gradation and new product introduction. Besides, the Company works with leading international design and styling houses. Indias most reliable, dynamic and futuristic automobile manufacturer with more than 130models spanning a wide range of Commercial Vehicles, Passenger Cars and Multi-Utility Vehicles, Tata Motors provides the wheels for India's growth.

Values
The Tata Group has always sought to be a value-driven organization. These values continue to direct the group's growth and businesses. The five core Tata values underpinning the way we do business are: Integrity - we must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding - we must be caring, show respect, compassion and humanity for our colleagues and customers around the world and always work for the benefit of India. Excellence - we must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. Unity - we must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Responsibility - we must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over. International Profile Tata Motors is not only at the forefront of the Indian automobile industry, it is also one of Indias best known brands in international markets. Today, Tata branded cars, trucks and buses are seen in most parts of South Asia, Africa, Middle East and Europe. Tata Motors recently entered into an agreement with MG Rover U.K for manufacture of Rover branded Tata Indicas in U.K and continental Europe. Tata Motors vehicles meet international norms like Euro III emission for Passenger cars, Euro II for Light Commercial Vehicles including pick up vans and European standards for frontal landside safety impact for passenger cars. It has a series of quality systems in place including ISO accreditation

from Bureau Veritas Quality International (BVQI).The Companys vehicles are known for their reliability, durability, safety, comfort and value for money.

Brief History
It has been a long and accelerated journey for Tata Motors, India's leading automobile manufacturer. Some significant milestones in the company's journey towards excellence and leadership. 1945:-Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other engineering products. 1948:-Steam road roller introduced in collaboration with Marshall Sons (UK). 1954:-Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles. The first vehicle rolled out within 6 months of the contract. 1959:-Research and Development Centre set up at Jamshedpur 1985:-First hydraulic excavator produced with Hitachi collaboration 1993:-Joint venture agreement signed with Cummins Engine Co. Inc. for the manufacture of high horsepower and emission friendly diesel engines 1994:-1.Launch of Tata Sumo - the multi utility vehicle. 2.Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India. 3.Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing turbochargers to be used on Cummins engines. 2001:-1. Indica V2 launched - 2nd generation Indica. 2. Launch of the Tata Safari EX 3. Indica V2 becomes India's number one car in its segment. 4.Exits joint venture with Daimler Chrysler. 2002:-1.Unveiling of the Tata Sedan at Auto Expo 2002. 2..Launch of the Tata Indigo. 3.Tata Engineering signed a product agreement with MG Rover of the UK 2003:-1. Launch of the Tata Safari Limited Edition. 2.The Tata Indigo Station Wagon unveiled at the Geneva Motor Show. 3.On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited.

2004:-1.Tata Motors unveils new product range at Auto Expo '04. 2.Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement 3.Indigo Advent unveiled at Geneva Motor Show 4.Tata Motors completes acquisition of Daewoo Commercial Vehicle Company 5.Tata Motors lists on the NYSE

Processes Followed In Tata Motors

1)Research & Development Research provides the much-needed inspiration for the birth of new ideas, which in turn breathes new life into products. World-class automotive research and development are key factors that contribute to the leadership of the Company. Tata Motors believes intechnology for tomorrow. Its products stand testimony to this. The annual expenditure on R&D is approximately 1.3% of annual turnover. They have also set up two inhouse Engineering Research Centres that house India's only Certified Crash TestFacility 1.1) Engineering Research Centre (ERC) : The Research Centre at Jamshedpur regularly upgrades components and aggregates.Awell-equipped torture track enables rigorous and exhaustive testing of modificationsbefore they are used as regular fitments. The Engineering Research Centre in Pune was setup in 1966 and is among the finest in the country. It has been honored with two prestigious awards - 'The DSIR National Award for R&D Effort in Industry 1999' and 'National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern - 2000.' 2)Social Obligations 2.1)Green Matters Tata Motors, a Company that cares about the future.Tata motors products are environmentally sound in a variety of ways. These include reducing hazardous materials in vehicle components, developing extended life lubricants, fluids and using ozonefriendly refrigerants. Tata Motors has been making conscious effort in the implementation of several environmentally sensitive technologies in manufacturing processes. The Company uses some of the worlds most advanced equipment for emission check and control.Tata Motors concern is manifested by a dual approach -

2.1.1Reduction of environmental pollution First Indian Company to introduce vehicles with Euro I and Euro II norms well ahead of the mandated dates Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a pioneering effort to introduce emission control technology for India upgraded the performance of its entire range of four and six cylinder engines with the help of world-renowned engine consultants like Ricardo and AVL It has manufactured CNG version of buses and followed it up with a Conversion of its passenger car, the Indica. 2.1.2Restoration of ecological balance. Effluent treatment facilities in its plants, to avoid release of polluted water into the ecosystem Tree plantation programmers involving villagers and Tata Motors employees Their endeavors towards environment protection are soil and water conservation programmes and extensive tree plantation drives. Tata Motors is committed to restoring and preserving environmental balance, by reducing waste and pollutants, conserving resources and recycling materials. 2.2Community Development The Company encourages economic independence through self-initiated cottage industries and contributing to community and social forestry, road construction, rural health, education, water supply and family planning. 2.3Health & Sanitation Mobile health service staff provides preventive and curative health services under the Health For All" programme. They train village health workers in conducting the same. Safe drinking water facilities are provided to ensure health of the villagers. 2.4 Employment Generation Tata Motors encourages self-sufficiency with the aim to improving the confidence, morale and lives of its employees and their dependents. Employees' relatives at Pune have been encouraged to form various industrial co-operatives engaged in activities such as re-cycling of scrap wood into crates and furniture, welding, steel scrap baling, battery cable assembly etc. The Tata Motors Grihini Social Welfare Society caters to employees'

women dependents'. The women folk make a variety of products, ranging from pickles and uniforms to electrical cable harnesses etc. 3)H.R Policies Executive Selection Scheme (ESS) ESS is a fast track programme for accelerated growth of high potential professionals. This facilitates their early advancement to challenging and visible assignments through very systematic procedure. Candidates selected gain a huge lead in terms of promotion and learning. They are promoted to Manager's level thereby saving almost10 to 13 years of work time. The successful candidates are relieved from their current jobs and put on various project based training programmes under the guidance of senior managers in the Company. If the candidates do not possess management education, they undergo a 4 months MEP at IIM, Ahmedabad. After successful completion of training the candidates are mandatorily rotated across departments to acquire general management skills. The ESS is a jewel in Tata Motors overall profile as it provides platform for every employee of the Company to perform and achieve maximum potential. The HR-Training Division of Tata Motors has also bagged the prestigious and internationally recognized Golden Peacock National Training Award in the category of Large Employer 4)Manufacturing process The company has manufacturing plants in Jamshedpur, Pimri , chinwad (near pune),and lucknow. Tata has taken many initiatives in manufacturing its vehicles , these can be summarized into :4.1)Benchmarking Tata motors have employed M/s harbor associates as CONSULTANTS for benchmarking various automobile manufacturing aspects like level of automation ,quality norms and standards followed internationally, information sharing with other manufacturers, etc. 4.2)Capacity utilization Tata motors have undertaken processing of Mercedes Benz cars in their paint shops, which has led to full capacity utilization of its paint plant and also helped in benchmarking the facilities and practices to that of Mercedes Benz. 4.3)Load Management The following load management techniques were employed :-

 Use of under body spary machine. Starting of chilling plants Switching off transformers when not in use. Switching off unwanted cooling towers at press shop. 4.4)Energy Audits Sr. No. Area Auditing Agency Measures Implemented for efficiency Saving Achieved 1 Distribution system M/s BSES and M/s Nelco Redistribution of LT supply system and installation of HT capacitors in view of voltage drop optimization Rs. 30/car 2 Pumps, fans and Blowers M/s Nelco Installation of VFDs at 25 locations Rs. 52/car 3 Compressed

air system M/s ARS Engineering and CPED Systematic approach to determine and arrest compressed air leakages Rs. 32/car 4 Heating and cooling systems M/s IIPM Re-insulation, Replacement of worn out glass wool and cladding Rs. 80/car 5 Water and distribution usage M/s gaytri Erectors Leakage arrestance for underground water piping Rs. 90/car 6 Lighting Internal Use of latest lamps, luminaries and gears Rs. 07/car

5) Information Technology

In today's digital economy, manufacturing companies need to compete in demanding global marketplaces. Shrinking product lifecycles are driving companies to deliver solutions to extended enterprise environments which embrace employees, suppliers, partners and trusted customers across geographically dispersed locations. As such, managing such diverse intellectual assets throughout the product lifecycle is as important as the product itself and the effective collaboration of all participants in the supply chain terms is the key. Tata Motors UGS PLM Team centre* implementation would help it to surmount such business pressures. This solution would allow the company to unify the product lifecycle and break down the geographical and technical barriers, which might limit the design efficiency of truly global enterprises such as Tata Motors .The solution utilizes Visual Area Networking (VAN) technology from Intel-based SGI platforms. This accelerates product time-to-market cycles by making it possible to solve larger, more complex design problems in collaborative, geographically distributed environments. The solution comprises SGI Onyx* 3900 and Intel Itanium 2 based SGIAltix* 3300 servers deployed across 4 locations. It would run UGS PLM Team centre, as well as BEA Weblogic*, Apache, Java* and SGI* IRIX* OS based applications. The key business benefits of this solution to Tata Motors include: Reduced Product Development Costs by utilizing the collaborative capabilities of the application and the versatility of Visual Area Networking technology .Higher Innovation by allowing free flow of information between design team members .Reduced Time-to-Market for a new product by fully leveraging the extendedsupply chain .Improved product quality by making it easier to spot design flaws while working in collaborative environment In the keenly contested automotive market, these benefits will help Tata Motors significantly increase both brand equity and financial bottom-line. Tata Motors is deploying Intel Itanium 2 based SGI*servers to enable enhanced Product Lifecycle Management (PLM) capabilities and bring the power of networked visualization to user work stations. Tata Motors Limited (TML) plans to have the largest integrated information technology application for any auto company in the country, in two years. Once ready, the project for which TML was working with three outside

vendors in addition to Tata Technologies, would connect every function of the company with every other, from board room strategizing to customers' access to dealerships, the official said. They are working with Tata Technologies (an `end-to-end' engineering and design firm owned by the Tata group), German company SAP for the ERP (enterprise resource planning) part, UGS PLM Solutions for the product life cycle management part and with Siebel on the CRM (customer resource management) part of the application. From hiring Free Markets that helped boost its `e procurement' to a fifth of all purchases last year, to hiring a top notch IBM official to head operations at Tata Technologies, TMLhas taken various steps in exploiting IT.

Recent Developments
1)Tata Motors drives into Wall Street Tata Motors is the first Indian engineering company to list on the New York Stock Exchange (NYSE).The company listed its depository shares on NYSE through the conversion of its existing international global depository shares (GDSs) into American Depository Shares (ADSs). Subsequent to the NYSE listing, the GDS listing on the Luxembourg Stock Exchange would stand suspended. The symbol for the company on the NYSE will be TTM and Citibank NA is the depository. 2)Tata Motors signs pact with Brilliance China August 23, 2004 Tata Motors has signed an MoU with Shanghai-based Brilliance China Automotive Holdings to conduct a feasibility study for launching its cars in China. Tata Motor is keen to sell its cars in the Chinese market through this agreement with Brilliance China. 3)Tata Motors and TFL Agreement Tata Motors and TFL have recently entered into a joint marketing arrangement. The two companies had undertaken a joint marketing initiative to approach the market under the common brand of Tata Motors Finance. The company intends to expand its vehicle financing activities to capture the significant potential for the value adds from this business and support its vehicles. These joint teams oversees the sales and marketing operations of the two companies, in order to align and integrate product, service offerings and business operations, and reduce costs and promote operational efficiency by

rationalizing distribution networks, sharing information technology systems and mounting joint treasury operations. last year, an increase of 30.3%. 4)BPCL in tie-up with Tata Motors for marketing lubricants September 23, 2004 Bharat Petroleum Corporation Ltd (BPCL) has entered into a marketing tie-up with automobile manufacturer Tata Motors for marketing of engine oils as co-branded lubricants for their commercial vehicles. Tata Motors and BPCL, has also agreed to open service stations at select outlets of BPCL across the country. BPCL has network of 4,500 retail outlets, retailing petrol and diesel for vehicles. Both the companies already have an existing agreement of marketing gear oil, axle oil, transmission fluid, coolant and greases Issuses. A)Tata motors foray into the European market Will they be able to Withstand initial setbacks. Touted as the high point of Indian manufacturing industry , the deal of tata motors with city rovers to sell 100,000 Tata-made cars under the brand name - City Rover -over five years ,seems to be in shambles. Rover launched the car in October 2003 in four versions, priced at 6,495-8,895. In November, the CAR magazine chose the cheaper Fiat Panda as the best European car. It wrote: "The CityRover is not a bad car, it's just the Panda is a generation ahead. Sales tapered and only 4,606 City Rovers were sold in the first six months while Tata Motors had exported nearly 7,000 units. The City Rover had teething problems too. Engines in two cars were seized and gearbox had to be replaced early on, leading to doubts on quality. The first road tests by car magazines painted a bleak picture on two aspects: quality and price. Popular magazine What Car? wrote poorly about its plastic panels and Spartan interiors, comparing it to the cheaper and better-built Hyundai Getz and Skoda Fabia.Now city rover wants to re-negotiate the deal , but Ratan Tata is in no mood for another negotiation; he argued that a lower price would spell losses on the deal for Tata Motors. Though it was a showcase project, Tata is unwilling to relent. So, in April, Rover has stopped placing orders for cars. Tatas has two options

a) To go for reengineering and look into the flaws in its manufacturing process. which will certainly increase the cost and thus the price. b) To renegotiate with Rover and lower the prices further OR is there any other alternative? Please suggest if there is any. B)Will Gunsan prove to be the turning stone for the Indian manufacturing industry and Tata Motors? Till it acquired the Daewoo Plant in Gunsan , Korea, Tata Motors' commercial vehicles(CV) business was squarely focused on the domestic market; global sales were just 5 percent of total sales. It had plans to expand the global business to 20 per cent by 2005-06,well before the Daewoo deal was on the radar, but nothing much had come out of it.Among other things, the Tatas had planned an ambitious entry into China, the worlds fastest growing CV market. For over a year, Tata Motors had tried hard to break into that country through possible joint ventures and technology transfers. But none of these options succeeded - Tata just did not have relevant products in the fastest-growing segments of the market. With their expressway system in plan, the Chinese were no longer interested in low-powered trucks that made up the Tata Motors range; they wanted more sophisticated trucks. The Indian trucking market is years behind Europe, the US and even Korea. So how does a predominantly Indian manufacturer leapfrog to the next level and catch up with its global peers? That's exactly what Daewoo brings to the table. Daewoo makes heavy trucks with payloads of 8 tonnes and above. These are tough machines for developed countries with good road infrastructure. These machines, powered by engines of 350 and more horsepower, run at 140 kmph even with loads of 12 tonnes. With the Daewoo trucks, Tata can now enter not only China and Korea, but also markets like Italy and Spain. So, instead of being seen as a niche player making small trucks, the Tatas can now enthrall the big, sophisticated markets with a full product range. Also, the Tata range of 1-tonne pickups could find a new market in Korea and the rest of the region. Daewoo isnt present in that segment yet. (One-tonne pickups form the biggest segment of the market in that country.)At the same time, the Daewoo acquisition will also show whether Indian

manufacturers can make the transition to a truly international mindset. Most firms still prefer to 'export and sell' instead of thinking about local manufacture-assembly-andselling. Then there are other lessons to be learnt. Delicate labour negotiations and the issue of trust they raise are just a few of them. Tata Motors can learn a lot from Daewoo, especially about how to crank up its product development and design skills. Also, there is a big gap between the productivity levels of Korean and Indian workers. About600 workers in Korea make trucks that are stronger than what 1,000 workers in Jamshedpur make. Will Tata Motors have the humility to learn from a company it bought?

Expansion
The first generation Tata Indica
After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major

improvement over the previous version and quickly became a mass-favourite. A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover. Tata Motors also successfully exported large quantities of the car to South Africa.The success of Indica in many ways marked the rise of Tata Motors.

Tata brands
Tata Daewoo Commercial Vehicle
With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were:

Company's global plans to reduce domestic exposure. The domestic commercial vehicle 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 light commercial vehicle (LCV) segment. Since the domestic commercial vehicle 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 Daewoos (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 remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely, GloBus and StarBus.

Hispano Carrocera
In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors became acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company giving it controlling rights of the company.

Jaguar Cars and Land Rover

After the acquisition of British Jaguar Land Rover (JLR) business, which also includes the Daimler and Lanchester brand names Tata Motors became a major player in the international automobile market. On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar and Land Rover operations for US$2 billion. The sale was completed on 2 June 2008 Tata has gained the rights to the Daimler, Lanchester, and Rover Company.

In addition to the brands, Tata Motors has also gained access to 2 design centers and 2 plants in UK. The key acquisition would be of the intellectual property rights related to the technologies.

Joint ventures
Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of Brazil. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. Tata and Marcopolo have launched a low-floor city bus which is widely used by Delhi, Mumbai and Bangalore Transport Corporations. Tata Motors also formed a joint venture with Fiat and gained access to Fiats diesel engine technology. Tata Motors sells Fiat cars in India and is looking to extend its relationship with Fiat and Iveco to other segments. Fiat's first body-on frame pickup will have the same styling as Tata Xenon and is to be named Fiat Terra. Tata has also formed numerous JV's with many small companies in various countries around the world

Important developments
Tata Nano
In January 2008, Tata Motors launched Tata Nano, the least expensive production car in the world at about Rs. 1,00,000 (US $2,500). The supermini car was unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Tata has faced controversy over developing the Nano as some environmentalists are concerned that the launch of such a low-priced car could lead to mass motorization in India with adverse effects on pollution and global warming. Tata has set up a factory in Sanand, Gujarat and the first Nanos are to roll out summer 2009.

Tata Nano Europa has been developed for sale in developed economies and is to hit markets in 2010 while the normal Nano should hit markets in South Africa, Kenya and countries in Asia and Africa by late 2009. A battery version is also planned. Nano has put Tata on the world automobile map

Tata Ace
Tata Ace was India's first mini truck Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries. By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the number maker for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its introduction. Tata Ace has also been exported to several European, South American and African countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division.

Compressed air car

Motor Development International of Luxembourg has developed the world's first prototype of a compressed air car, named OneCAT. In 2007, MDI owner Guy Negre was reported to have "the backing of Tata". It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In 2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3 minutes. There are no gasoline costs and no fossil fuel emissions from the

vehicle when run in town, but "the compressed air driving the pistons can be boosted by a fuel burner". OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual fuel car but it is more efficient than any present Hybrid cars

Electric vehicles
Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. Both run on lithium batteries . The company has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing the price. The vehicle would be launched in Norway in 2009. Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in electric vehicle technology firm Miljbil Grenland/Innovasjon of Norway for US$1.93 M, which specialises in the development of innovative solutions for electric vehicles, and plans to launch the electric Indica hatchback in Europe next year

Operations
Tata in India
Tata Motors Limited is Indias largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. 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 companys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with

Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The companys dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.

Tata's global operations

Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights of Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas 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, giving it controlling rights of the company. Hispanos presence is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009 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 has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and

Senegal. Tata has dealorships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Afric

COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE

1.1. As part of the Tata group, the Company's philosophy on Corporate Governance is founded upon a rich legacy of fair, ethical and transparent governance practices, many of which were in place even before they were mandated by adopting highest standards of professionalism, honesty, integrity and ethical behaviour. The Board, being elected by the shareholders, is their representative and a bridge between them and the executive management. Since shareholders are residual claimants, the value creation and sustainability of all the other stakeholders viz. customers, creditors, employees, vendors, community and the Government (of countries in which the Company operates) are of paramount significance to the Company and its shareholders. The Board would therefore have a fiduciary relationship and a corresponding duty to all its stakeholders to ensure

that their rights are protected. Through the Governance mechanism in the Company, the Board along with its Committees endeavours to strike the right balance with its various stakeholders. 1.2. The Corporate Governance philosophy has been further strengthened with the implementation, a few years ago, by the Company of the Tata Business Excellence Model, the Tata Code of Conduct applicable to the Company, its subsidiaries, directors and employees. The Company is in full compliance with the requirements of Corporate Governance under Clause 49 of the Listing Agreement with the Indian Stock Exchanges (the Listing Agreement). The Company's Depository Programme being listed on the New York Stock Exchange, the Company also complies with US regulations as applicable to Foreign Private Issuers (non-US listed companies) which cast upon the Board of Directors and the Audit Committee, onerous responsibilities to improve the Company's operating efficiencies. Risk management and internal control functions have
been geared up to meet the progressive governance standards.

Environment Friendly Technologies

The Company is working with the 'Department of Science & Technology' on the Expert Panel on 'Recyclability of automotive Systems & Components'. It is also working with SIAM as a member of task force to study recyclability of vehicles in India.

All manufacturing facilities of the Company are certified to the ISO-14001, International Standard for Environmental Management Systems. The societal & environmental aspects of products and operations & their related impacts have been formally assessed as apart of the installed Environmental Management System and Environmental Risk Management Process. Various initiatives like

water management system, rain water harvesting, recycling of treated effluent, eco friendly solid waste management, energy conservation, wind energy, recycling of dirty oils & bio-diesel programme are focused on the Company's goal to preserve the environment.

The Company continues to preserve and develop natural habitat through its tree plantation and wetland development programmes (also detailed in COP 2006-07)

Initiatives like End-of-Life Vehicle and Recyclability of products, waste management systems, rain water harvesting initiatives and Tata Motors efforts to preserve the biodiversity has been detailed in last years report, COP 2006-07.

Upholding Environment Responsibility

Energy Conservation
Tata Motors Ltd. considers energy conservation critical to the operation of its manufacturing units. Apart from reducing operational costs, the energy saved amounts to environment protection by way of avoiding pollution due to power generation processes. Energy conservation is driven throughout the organization, by way of setting Divisionwise targets and monitoring performance on everyday basis for optimizing energy consumption. Company has started several Energy Accounting and Energy Conservation programmes, some of which are highlighted below:

Introducing Fiber Reinforced Plastic blades for man-coolers. Installing variable speed drive for flow control and energy saving Introduction of fuel additives in Furnace Oil to improve the combustion efficiency of the fuel. Soft-start energy savers for hydraulic press motors Sheds designed for efficient natural lighting. Use of Compact Fluorescent Lamps, sodium vapour lamps to minimize energy consumption.

Installing portable compressors for isolated running to save compressed air Harnessing natural daylight by installing translucent roof sheets in workshops Use of Liquefied Petroleum Gas in place of Light Diesel Oil and Electricity for heating, wherever applicable. Installation of Turbo Ventilators in forge and Foundry to extract fumes which do not require energy to operate

Representatives of the Company are participating in the following national committees working for improvement of environment throughout the country: 1. Technical committee for "Air quality monitoring, emission inventory and source apportionment studies for Indian cities" constituted by Central pollution control board, Delhi. 2. Group on"Technical evaluation of Automotive Research Association of India reports on development of emission factors" constituted by Central pollution control board, Delhi. 3. Technical committee for "Heavy-duty Diesel retrofit demonstration project" constituted by National environmental engineering research institute, Mumbai. 4. Multi stakeholder committee to "Develop Better environmental sustainability targets for lead battery manufacturers" constituted by development alternatives, Delhi in collaboration occupational knowledge international, UK and national referral center for lead poisoning, India. 5. Steering committee for "Mobile Air conditioning Assessment project" constituted by The Energy Research Institute (TERI), Delhi.

CORPORATE SOCIAL RESPONSIBILITY

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. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

SOCIAL RESPONCIBILITY
Green Matters:
Tata Motors, a Company that cares about the future... 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 believes in technology for tomorrow. Our products stand testimony to this. Our annual expenditure on R&D is approximately 2% of our turnover. We have also set up two in-house Engineering Research Centres that house India's only Certified Crash Test Facility. We ensure that our products are environmentally sound in a variety of ways. These include reducing hazardous materials in vehicle components, developing extended life lubricants, fluids and using ozone-friendly refrigerants. Tata Motors has been making conscious effort in the implementation of several environmentally sensitive technologies in manufacturing processes. The Company uses some of the world's most advanced equipment for emission check and control. Tata Motors concern is manifested by a dual approach -

1) Reduction of environmental pollution and regular pollution control drives 2) Restoration of ecological balance. Our endeavors towards environment protection are soil and water conservation programmes and extensive tree plantation drives. Tata Motors is committed to restoring and preserving environmental balance, by reducing waste and pollutants, conserving resources and recycling materials.

Reducing Pollution:
Tata Motors has been at the forefront of the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. It is the first Indian Company to introduce vehicles with Euro norms well ahead of the mandated dates. Tata Motors' joint venture with Cummins Engine Company, USA, in1992, was a pioneering effort to introduce emission control technology for India. Over the years, Tata Motors has also made investments in setting up of an advanced emission-testing laboratory. With the intention of protecting the environment, Tata Motors has upgraded the performance of its entire range of four and six cylinder engines to meet international emission standards. This has been accomplished with the help of world-renowned engine consultants like Ricardo and AVL. These engines are used in Tata Motors vehicles in the Indian market, as well as in over 70 export markets Tata Motors is

constantly working towards developing alternative fuel engine technologies. It has manufactured CNG version of buses and followed it up with a CNG version of its passenger car, the Indica.

Restoring Ecological Balance:

Tata Motors has set up effluent treatment facilities in its plants, to avoid release of polluted water into the ecosystem. In Pune, the treated water is conserved in lakes attracting various species of birds from around the world thus turning the space into a green belt. Tree plantation programmes involving villagers and Tata Motors employees, have turned acres of barren village green. Tata Motors has planted as many as 80,000 trees in the works and the township and more than 2.4 million trees have been planted in Jamshedpur region. Over half a million trees have been planted in the Poona region. Tata Motors has directed all its suppliers to package their products in alternate material instead of wood.

End of Life Vehicle Treatment and Recycling: India is a recycling society

with many people making value out the recovery of waste materials discarded from products at the end of their useful life. However, Europe, and some other export markets, have recognised that they have become a 'throwaway' society in recent decades, and are now introducing waste prevention regimes in different industry sectors to collect and recycle valuable resource rather than it ending up in landfill. In the Automotive sector, the European End of Life Vehicle (ELV) Directive, points responsibility for this issue to vehicle manufacturers, and the scrap car recovery industry. Similar regulations are being introduced in Japan and Korea. Naturally, Tata Motors has already met the 'producer responsibility' aspects of the ELV Directive, such as compliance to Heavy metals and other hazardous substance

restrictions. Also, material code marking of plastic parts has been introduced to aid achievement of demanding European recycling targets. Central to this European regulation is for manufacturers to provide free take-back networks for environmentally sound treatment of ELVs. Last owner contacts for access to Tata Motors subscribed take-back schemes can be found in: www.tatamotors.com/takeback.php

TATA MOTORS LTD.

"Leading the Future"
Tata Motors is India's largest automobile company. It is the largest commercial vehicle manufacturer in India and 2nd largest passenger car manufacturer. It is the 5th largest medium and heavy commercial vehicle manufacturer in the world. The popular brands of the company are Tata Indica, Tata Indigo, Tata Sumo and Tata Safari.

Quick Facts
Founder Year of Establishment Industry Business Group Listings & its codes Jamshedji Tata 1945 Automotive The Tata Group BSE - Code: 500570 NSE - Code: TELCO & TATAMOTORS

NYSE - Code: TTM Corporate Office Bombay House 24, Homi Mody Street Mumbai 400 001, India Tel.: +(91)-(22)-56561676 Works E-mail Website Jamshedpur, Pune, Lucknow and Dharwad am@tatamotors.com rbc@telco.co.in (for international inquiries)
www.tatamotors.com www.tata.com/tata_motors

Segment and Brands

PRODUCTS Passenger Cars Utility Vehicles Trucks Buses
Indica V2

BRANDS
Tata Indigo CS Indica V2 Turbo Tata Nano Sumo Victa Indigo Marina Indica V2 Xeta Tata Sumo Grande Tata Indicruz

Indigo SX
Indigo XL Safari Dicor

New

All types of Medium & Heavy Commercial Vehicles Starbus LP 407 Turbo Mini- bus LP / LPO 1510 Globus LP 709 E Turbo Bus LP / LPO 1512 TC Turbo Bus Bharat Stage - II Bus Top Troop Carrier Tata SD 1015 TC (4 SFC 407 Turbo Mini- bus LPO 1510 CGS bus (CNG bus) LP / LPO 1512 TC Turbo Bus Stage II TC (4 x4) Tata LPTA 1615

LPO 1610 TC RE Semi Low LPO 1616 TC Luxury LP 1109 Bharat Floor Bharat Stage - II Bus Defence Tata 407 (4 x 4) Soft Top Troop Carrier Tata LPT 709 E Hard Top Tata 407 / (4 x2) Hard Tata LPTA 713

Troop Carrier Tata LPTA 1621 TC (6 x6)

x4) Tata LPTA 1615 TC (4 x2)

TC (4 x 4)

Awards & Accolades

2003

Awarded with the 'Golden Peacock Environment Management Award' in the category of 'large manufacturing by the World Environment Foundation, New Delhi.'

Won the Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practices in the 'manufacturer - large' category, converred by the Council for Fair Business Practices.

The commercial vehicle business unit was presented with a commendation certificate for 'Strong commitment to TQM.'

Tata Indigo was voted as the 'most exciting new car' by the ICICI Bank and Overdrive Awards. The Indian Merchants' Chamber Diamond Jubilee Endowment Trust Award was presented with the 'Industry and Technology Award.'

2002

Tata Indica was presented with the 'voice of the customer award' for the 'best diesel small car' at NFO Automotive India.

Tata Motors, Jamshedpur, was presented with the prestigious 'Prof. Vasant Rao rolling trophy,' instituted by the Indian Value Engineering Society, in the area of value engineering.

Sales Performance & Financials at a Glance

Particulars Quarter Ended September 30, 2005 Vehicle Sales (No.) Vehicle Production (No.) Net Sales/ Income from operations Operating Profit Profit before extraordinary/exceptional items Profit Before Tax Profit After Tax 454.00 337.87 427.21 309.21 814.00 610.54 730.30 532.57 1651.90 1236.95 455.01 428.22 816.02 732.38 1665.75 107066 107853 2004 95576 96552 Six Months ended September 30, 2005 194558 199848 2004 180494 184343 Year Ended March 31, 2005 399566 400941 1 7,419.13 2 ,171.09

4,781.31 4 ,145.35 576.04 5 19.96

8,644.90 7 ,717.44 1,063.79 9 49.40

Milestones
1945

1945 Establishment of Tata Engineering and Locomotive Co. Ltd. to manufacture locomotives and other engineering products.

1948 1954

1948 Introduced steam road roller in collaboration with Marshall Sons (UK). 1954 JV with Daimler Benz AG (West Germany) to manufacture medium commercial vehicles. Within 6 months, the first vehicle rolled out.

1959 1961

1959 Research and Development Centre set up at Jamshedpur. 1961 In exports, the first truck shipped to Ceylon (now Sri

Lanka). 1966 1971 1977 1983 1985 1986 1989 1991 1992 1993 1994 1995 1997 1998 2000

Setting up Engineering Research Centre at Pune to give impetus to the automobile Research and Development. 1971 Introduction of DI engines. 1977 The first commercial vehicle manufactured in Pune. 1983 Commencement of manufacturing Heavy Commercial Vehicle. 1985 First hydraulic excavator produced with Hitachi collaboration. 1986 The first light Commercial Vehicle produced, Tata 407, indigenously designed, followed by Tata 608. 1989 Tatamobile 206 - 3rd LCV model introduced. 1991 Tata Sierra launched, TAC 20 crane produced and one millionth vehicle rolled out. 1992 Tata Estate launched. 1993 JV with Cummins Engine Co. Inc. for manufacturing of high horsepower and emission friendly diesel engines. 1994 Tata Sumo and LPT 709 launched. JV with M/s DaimlerBenz/ Mercdes-Benz and Tata Holset Ltd., UK. 1995 Launched Mercedes Benz car E220. 100,000th Tata Sumo rolled out. Tata Safari and Indica launched. 2 millionth vehicle rolled out. First consignment of 160 Indicas shipped to Malta. Launch of Indica with Euro II engine, CNG buses and 1109 vehicle Intermediate commercial vehicle.

2001 2002

100,000th Indica wheeled out. Launch of CNG Indica. Exits JV with Daimler Chrysler. 2,00,000th Indica and 5,00,000th passenger vehicle rolled out. Tata Engineering signed product agreement with MG Rover of the UK.

2003

Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover rolled out.

2004

Tata Motors and Daewoo Commercial Vehicle Co. Ltd. signed investment agreement and Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launched NOVAS, the heavy duty truck in Korea. Listed on NYSE.

2005

5,00,000th passenger vehicle rolls out. Launch of Starbus and Globus (buses and coaches), Tata Ace (Indi's first mini truck) and Tata Novus, in India as well as in Korea by TDCV. New factory at Jamshedpur inaugurated for Novus.

Company Flashback
Tata Motors Limited is the largest automobile company in India with revenues touching to Rs. 20,483 crores (USD 4.7 billion) in the financial year 2004-05. It leads the market in commercial vehicles in each segment and is the second largest in the passenger vehicles segment. Globally, Tata Motors stands fifth in the medium and heavy commercial vehicle manufacturer category.

Established just in 1945, the company's presence cuts across the length and breadth of the country. More than 3 million its-manufactured-vehicles ply on the Indian roads since the first one rolled out in 1954. This company is the first from the country's engineering sector to be listed in the New York Stock Exchange (Sep. 2004) and has also emerged as a global automotive company.

Through its subsidiaries, Tata Motors has engaged in providing engineering and automotive solutions. With the pace of new product development, the company has launched Tata Ace, in the year 2005, India's first indigenously developed mini-truck.

Tata Motor's 22,000 employees are guided with the vision, "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics."

Research Methodology of the study

Purpose of the Study
The purpose of my study is to gain knowledge about TATA MOTORS LIMITED. To increase my knowledge as I am doing this project work.

Objective of the Study

My objective is to know about the TATA MOTORS LIMITED company. How it operate, its history , Present and future challenges, Companys philosophy on ,Corporate Governance, Environment friendly technologies &Social Responsibility.

Research Methodology
The methodology is an integral primary part of the project work. Every project has been undertaken in and definite manner, which forms the validity of the report. The project

undertaken by me is also based on a definite method, which is usually found in most of the research projects. Secondary Data: -The data has been collected from the secondary source. The data collected from this source are the past records and it is used to analyses. The secondary sources from which the data has been collected are:

Historical data from Internet

Articles from newspapers Magazines

Findings & Analysis

Present and future challenges

The popular myththat Tata Motors have some distinct advantages in comparison to other multi-national competitors especially a cost advantage as labor costs are not true as Tata Motors has 8-9 percent of sales as compared similar percent for most multinational companies[citation http://wiki.answers.com/Q/How_much_does_labor_cost_to_build_a_new_car.
needed]

Also

employee productivity in Tata Motors is less than 1/3rd (in $million sales / employee) than Toyota.[citation needed] Another advantage in the increasing demand in its own backyard, India due to infrastructure developments and rising GDP. India remains one of the few developing auto markets where domestic brands have managed to keep a large presence, Tata and fellow compatriots account for more than 60% of the passenger vehicle sales and 95% of commercial vehicle sales. There are also favorable Government polices and regulations in place in order to help boost the auto industry. However, Tata has not been

able to capitalize on its global presence. Tata relies heavily on its sales in India and has not yet managed to create a foothold in international markets even though it has a number of well reputed subsidiaries. However, Tata Nano may boost its international presence, at least in developing economies. Though it has an advantage in India, thanks to low costs and government policies it soon faces stiff competition from it multinational competitors all eyeing for a share in the ever growing Indian auto sector. Earlier, a policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India and mere car assembling operations were not welcomed. An Indian cabinet panel has since announced a new automobile policy that sets fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors will have to face tough competition in near future, which might affect its growth negatively. Currently, the presence of Suzuki through its subsidiary, Maruti Suzuki in the Indian market may also be alarming. Maruti has aggressively launched family cars to undermine the Tata models. Tata has continued to be strong in the MUV and SUV sector due to lack of competition and correct pricing. However, Tata now faces stiff competition from fellow compatriot Mahindra as well as multinational brand like Toyota and Chevrolet. In addition, the growing presence of fellow Indian competitors, Mahindra and Force Motors not only in the Indian but also in the Global market may effect Tata's sales. Mahindra and Force have formed joint ventures with Renault and MAN respectively. Mahindra has also formed a 51:49 JV called Mahindra Navistar with ITEC, USA (parent Navistar International), to manufacture commercial vehicles and to bolster its position in the CV business Ashok Leyland, which is the second largest commercial manufacturer in India

has remained Tata's biggest competitor in the Indian heavy commercial vehicle market and with its aquistion of Czech Republic-based Avia it may manage to increase its presence in neighbouring markets such as Sri Lanka, Nepal where Tata Motors has a monopoly. To counter the growth of these various companies Tata has come up with revised or new models like Indica Vista, Indigo Vista, Xenon, Tata World Truck and a aggressive marketing polic

Tracing the history of Tata Motors

FROM Rail to Road the Story of Tata Motors. The Tata Group has unveiled an exhibition in Pune showcasing the history of the company. Sixty years ago on June 1, 1945, Tata Sons Ltd purchased from the Government of India, the `Tatanagar Shops' unofficially called the Singhbhum Shops of the East Indian Railway. The purpose was to manufacture steam locomotive boilers and later complete locomotives and other engineering products. Tata Sons decided to set up the project as a new company and called it Tata Locomotive and Engineering Company Ltd, which then became Telco. The roadmap was laid out clearly by the Chairman, J. R. D. Tata (1945-1973), and Sumand Moolgaokar, Chairman (1973-1988), who sensing the boom in the automobile industry set up the second factory in Pune. The rest is history. The company is celebrating its diamond jubilee celebrations this year as also the 100th birth anniversary of Moolgaokar, better known as the Architect of Tata Motors. Leading the company for more than four decades, he built the company into an organisation capable of competing with the world's

best - in terms of people, process and technology. "Expect the best, ask for it, pursue it relentlessly and you will get it'' is what he advocated. So for Puneites and for those who are not very familiar with the history of Tata, the Tata Central Archives is now showcasing the entire history of Tata, from its inception to its present status. On exhibition are thousands of documents, letters, maps, charts, photographs and memorabilia, press clippings, audio/video recordings of the history of the Tatas.

`Small car will be out in 3 years'

MR Ravi Kant, Managing Director, Tata Motors Ltd, who inaugurated the exhibition, said the `small car' from the Tata stable would be brought out within three years and currently the review is being done in Pune. "Every two weeks the review is being conducted and we would be able to present to the consumers a vehicle which will be revolutionary in more sense than one." He said this has not been attempted anywhere else in the world and if there is one company in the world that can do this, it is Tata.Tata

Motors Meets History Again

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No documents, Instant Policy! Transfer no claim bonus, Buy Online Royal Sundaram .in/Car-Insurance Tata Nano has been hailed as a path breaking innovation for the Indian automotive industry. Tata Nano has made innovation and price limit part of car development process across the world. Many world class companies have evinced interest to develop cars similar to Nano. It has been hailed as the biggest innovation in the recent times for automotive industry across the world. Tata Nano is a small car but its proportions belie its big ambitions. Currently, it is the most ambitious project for Tata Motors which will help take it to the next decade. However, it is not the first time that the company has created so much enthusiasm. This is not the first time that Tata Motors has introduced low cost cars for India. Tata Indica revolutionized mobility in India. It hit the roads more than a decade ago and still remains a strong contender in the small car category. The early Tata Indicas were priced just above Rs 2 lakh to make it affordable to a large section of car buyers in India. The same continued to be made available in different forms such as Indica Xeta, Tata Indica V2 and the luxurious Tata Indica Vista. When Mr Ratan Tata thought about making the first indigenously developed car, he had big plans. He wanted to give Indians an idea of making a car with an internal space of Ambassador, the exterior size of Maruti Suzuki Zen and pricing of Maruti M800. In 1998, he launched the new car he called Indica. It was an instant success. Again, Mr. Ratan Tata thought of Nano car as his dream car in 2004. He announced a price tag of Rs 1 lakh for the car much before it was developed. After four years of hard

work the car was displayed to an eagerly awaiting worldwide audience. The price tag remains the same. Since there was a huge gap in the time that Tata had announced the price and it was finally launched, everyone thought that Tata Nano prices would shoot above the Rs 1 lakh price tag. However, Tata Nano managed to retain the price range. Mr Tata said that a promise was a promise. Note that when the Tata Nano development began at the same time global commodity prices rose. To beat the widening price gap in inputs, Tata Motors made great innovations in car construction to retain the price bracket. Consider this when Tata Nano and Indica, were launched the country was under severe economic strain. When Indica launched it was a success story for certain. Tata expects Nano to repeat the story again. The company fared similarly at the time of launch of both these cars. Prior to launch of Tata Indica, Tata Motors had reported a massive losses, its worst since 1945. In 2008-09 it has again reported a 50 percent loss in profits, one of its worst performance. The launch of Tata Indica signified the change of path from commercial vehicles to passenger cars. The launch of Tata Nano is symbolic of opening new markets and new entry level prices for car buyers in India. Indica's launch signified the metamorphosis of a commercial vehicle manufacturer to a passenger car manufacturer. The launch of Nano symbolizes creation of a new price point and a possible new market segment in the industry. Unlike Indica, Tata Motors does not want to allow Nano cars as cabs this time. It may pave the way for a new future for Tata Motors and the Indian automotive sector.

Press Releases
1.Tata Motors Consolidated Gross Revenue Rs. 16954 crores in 1st ... 2. Jaguar Land Rover funding requirements 3.Tata Motors July sales at 48,054 nos., growth of 18% 4. Tata Motors First Quarter Stand-alone net revenue Rs.6405 Crores 5.Tata Motors delivers first Tata Nano in the country in Mumbai

Recent History of Tata Motors (TTM)

The Tata empire has changed dramatically since Ratan Tata took over from his uncle J.R.D. Tata in 1991 -- coincidentally the same year that the Indian government began moving away from its rule by regulation toward economic liberalization. Before 1991, Tata Group and its holding company Tata Sons were said to be like many of the empires of old Asia -- weakly centralized, unable to control its satraps and begums and rajahs, full of formal pomp but empty of power. The Tata Sons holding company and the various family philanthropic trusts had diluted their holdings in many of the companies. Under Ratan Tata, the center began to take hold. He moved Tata Group out of sectors where it was not competitive, such as textiles and cement, and invested more family capital in sectors that he thought held more promise.

Remarkably, considering the state of overcapacity in the world automobile industry, Tata thought and thinks autos to be one such sector. Where Westerners see a stagnant, legacy industry cursed by overcapacity, he sees it, from an Indian perspective, as a growth industry. The company that is now Tata Motors made trucks, buses and construction equipment, and it still has a 60% share of India's commercial-vehicle market. But under new marching orders from Ratan Tata, the motor company introduced its first India-designed car in 1997. After some early stumbles, its Indica small car and mid-size Indigo each accounts for about a quarter of their market segments, for a 16% total share of the Indian car market. The Indian car market grew 17% last year, and Tata Motors' volume grew 27%. Tata Motors (TTM), with a market value of $3.5 billion, is by far the biggest of the Tata companies accessible to American individuals; its American depositary receipts have been listed on the Big Board since September. It reported nearly $4 billion of revenue for the fiscal year ended in March, up 32% from the previous years, and earnings of $283 million, or 79 cents a share, up 41% in dollar terms. The consensus estimate for 2006 is 90 cents a share. The ADRs have been trading at a little below 10, in the middle of a trading range between 12.25 and 8.65 since the listing. Tata Motors soon will incorporate Tata Finance as a wholly owned subsidiary, and the company says it intends to finance up to 40% of its sales within a few years, up from a current 18%. The company noticed what happened in the U.S. and other countries when captive credit companies made it possible for every car dealer to offer financing with small money down and affordable monthly payments. Tata Motors is still recovering from an ill-fated partnership with the now-bankrupt Rover Group in Britain, and it has warned of trouble ahead -- increasing competition and a decline in the commercial vehicle sector, and of course the effect of higher fuel prices. Nonetheless, the company plans to make good on a $1.35 billion five-year capitalexpenditure program that started in April 2004. That includes the launch of a basic

$2,000 car, which, if Tata succeeds, could be the Model-T Ford of the 21st-century developing world. But cars are still cars. [From Barron's Online; India's Nimble Elephant, by Thomas Donlan; paid subscription required]

Suggestions 1. If Tata Motors were to be liquidated, it may be able to recover some of the value
of trademarks and brands.

2. It can also cannibalise from the small car market. 3. Quality of products should be improved so that the consumers will not face any
problem. It will help to add more reputation of company among present consumes and future consumer.

4. Services provided by companys products dealers should also increase.

5. Many consumers have complaint that their vehicles of Tata Motor are containing
old battery. So the the company should confirm through its marketing channels that parts of all vehicles are new and services provided by them is of good nature.

6. Agents of companys products should be authorized. 7. Quality of repair services should be improved.

Conclusion & Limitation

CONCLUSION

The case study shows that Tata motors is the flag bearer of the Indian manufacturing industry , being the first Indian manufacturing company to have its own indigenously manufactured passenger car and being the first to make forays into the global market . It is a showcase for the whole industry with world class process management techniques being incorporated . But inspite of all this Tata motors have not been able to make a dent in the global market , neither in the passenger car market and nor in the heavy commercial vehicles market. Although it holds the 2nd position in the passenger car market in India, its increasingly feeling the heat from global competitors like Hyundai , Suzuki etc. in the domestic market too. Why is tata motors not able to penetrate the global market? Are there still any processes they need to improve upon? These are some questions they need to ponder upon and answer.

Limitations
The project has been successfully completed with certain inherent limitations, which are as follows:

This project report is based on the secondary sources for data collection and no primary data has been used, due to which there is lack of practical knowledge. Time and work constraints are also there. Limited information.

BIBILIOGRAPHY
European Car Magazine

FP Magazine daily ICT Magazine Mint Newspaper

Webliography
http://business.mapsofindia.com/automobile/ http://www.surfindia.com/automobile/automobile-industry.html http://www.tatamotors.com/ http://www.tatamotors.com/products/ http://ir.tatamotors.com/ http://www.tatacarsworldwide.com/ http://www.tatamotors.com/our_world/profile.php

http://money.rediff.com/companies/tata-motors-ltd/10510008/profit-and-loss http://wiki.answers.com/Q/How_much_does_labor_cost_to_build_a_new_car.