RELOCATION OF TATA NANO & THE PROBLEMS FACED BY NANO..

SUBMITTED TO:PROF.NEERJA ARORA

SUBMITTED BY:

SHRUTI GUPTA

SMITU GUPTA

PRATEEK GUPTA

Introduction

TATA NANO-PEOPLES CAR

The tale of the creation and design of the Nano is one of innovation and ingenuity, both inside and outside Tata's own organization. IT Offshoring South of the Border Top 10 'Greensourcers The introduction of the Nano received media attention due to its targeted low price. The Financial Times reported ." The car is expected to boost the Indian economy create entrepreneurialopportunities across India ,as well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost.

Location of tata nano

The Nano was originally to have been manufactured at a new factory in Singur ,West Bengal.

Singur is present in the states of west bengal and about 997 acres had been alloted to Tata Motors for buiding the Nano. The construction for this factory on which the Nano was supposed to be coming up started in the month of july 07, but soon faced opposition from a political party.

Tatas tale of two cities.

After months of voilent opposition ,Tata Motors has abondoned the Indian site in Singur where it had worked for two years to build a new plant. Instead the automaker is relocating to sanand, where it will construct a $417 million facility to make the Nano mini car. October 7th ,only four days after the withdrawal from West Bengal the company announced that it would relocate and rebuild the plant in Sanand a city in Gujrat state in West Central India. It was an extraordinary turnof events inside one of the worlds most rapidly industralizing

Relocation of Tata Nano

With the continued agitation led by Mamatha Banerjee against the Nano car project, Tata finally decided to leave West Bengal. The project will be relocated in Gujarat. Sanand, on the outskirts of Ahmedabad, will be Nanos new home. The Trinamool Congress and its partners were, in the beginning, opposed to the entire acquisition.
On Aug. 22, Tata Chairman Ratan Tata suggested the company may move Nano production to another factory in India. "I've made a major investment here.To move will be at a great cost to Tata Motors and to shareholders," Tata told reporters in Kolkata.

 Ratan Tata has two options if he moves out of West Bengal: He will either retain the selling price and delay the project by six [or] seven months, or he might sell the Nano at a higher price," he says. Tata has closed shop because, as chairman Ratan Tata told journalists in Kolkata.. "I can't bring our managers and their families to West Bengal if they're going to be beaten, if there is going to be violence constantly, if their children are afraid to go to school."

Problems faced by Tata Nano

Tata has faced trouble ever since it got the goahead for the plant on May 18, 2006. Indeed, even before the current troubles, rising costs and delays already have had many industry watchers wondering how long it will take Tata to turn the Nano into a profitable venture. 1. Rising Costs-Rising materials prices have also disproportionately affected the Nano. 2. Tata's share price, also depressed by a $2.3 billion . 3. Paying a Price-If Tata Motors does pull out of Singur, it could cause the project cost to increase and therefore impact the company's ability to produce a low-cost car

4. Tatas share price also depressed by a $2.3 billion acquisition of Land Rover and Jaguar. 5. The main problem faced by the Tata Nano was delayed in production because of relocation of plant,as it is natural that setting the plant is a harder task.

 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.

Conclusion -Tata nano controversy

 Finally the dream project of Ratan Tata got completed ,Nano people s car launched successfully after facing so many hurdles.