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Group No. 9
Project Report Submitted by:
Kapil Jain (11FN-050) Nikhil Gagrani (11DM-089) Nipun Duhan (11DM-093) Rahul Kumar (11DM-118) Sukriti Tayal (11DM-161)
While selecting Singur at plant location the proximity and rail connectivity to Tata Steel plant was considered which is there in Jamshedpur.in/wp-content/uploads/2009/12/nano. However. [http://en. Ratan Tata.casestudy. The plant location was 40 km of Kolkata. Revisiting The Great Transformation: Tata's Entry and Exit in West Bangal]: .casestudy. Also. Singur of Hooghly district was selected as final location. The plant construction started on 21st January.doc] The land acquired for the construction was 997 acres (4.in/wp-content/uploads/2009/12/nano. near a railway station and national highway. [www.org/wiki/Singur_Tata_Nano_controversy].03 Km2) under a contract with state government for mother plant and vendor park together. the specific selection Singur as the location of the plant was due few key advantageous factors. The original plant completion schedule was for 28 months. 2010.doc].Introduction Tata Nano once termed impossible by many experts was made possible by the man none other than Mr.org/wiki/Singur_Tata_Nano_controversy] For the land acquisition in Singur the Govt of West Bengal had to receive approximately USD 200 million for the land acquisition.wikipedia. Further events led up Tata to take tough decision of relocating the plant to Sanand in Gujarat state.co.co. 2007. This included land of farmers as well as government land [www. The plant for manufacturing of Nano was very much in limelight not only because of the achievement of building the cheapest car but because of controversies related to land acquisition and related politics. considering logistics cost and proximity from Kolkata city. Initial Progress The intention of Tata to select the location as West Bengal was to promote investment flow in the industrially ignored east india . Project Background (Singur Case) Originally planned to be setup at Singur in West Bengal state. The objective of this report is to bring all the details together from start till first Nano rolled out of the plant. The same was divided in installments of 30 years block till 100 years with rest amount being settled in the end installment . 35 km of Howrah station and a little far from national highway. An MOU was also signed between state government and Tata according to which Tata received state controlled subsidies of [Drew Stewart.wikipedia. Dissertation. the project progressed considerably till the controversy cropped up. [http://en.
) All costs related to government acquisition of the 997 acres of land4. to be repaid by Tata at 0. Under the MOU.6-million [http://www. Mamta Banerjee about the land acquisition. the lease cost is $340/acre/year or $30/acre/month. power upgrades. Pull-out from Singur was officially announced on 3rd Oct. 4. with $260 million dedicated to the mother plant and $110 million for the vendor park. Thus. Tata promised to invest: 1.businessstandard. This even included damaging their property and . Tata was to pay: 1. to be paid off between 2027 and 2031. a subsidy is equivalent to 15%-18% of the Nano’s retail cost. market complex.000 (David 2008).com/india/news/from-nano-to-magna/442049/]. She claimed that 450 acres of acquired land which belongs to the farmers was forcibly taken from them by the government. 310 crores.000 per year on a 90-year lease of 645 acres for the mother plant. Total cost of the plant was estimated as $416. 3. for the first five years.) Value Added Tax (VAT) and Central Sales Tax (CST) exemption given in the form of soft loans at 0. Trinamool workers then started troubling their work schedule and tried every possible act to make them move the plant from Singur. Till that time the plant construction had already started with an investment of Rs. The price to increase by 25% at five-year intervals. and road-building. 2.) $220.) A 28% discount on electricity costs (and guarantees against future price increases) worth an estimated annual saving of $4 million.) $370 million. training centre. Deutsche Bank estimated the value of these subsidies on per car-manufactured basis to be between Rs 15. 2008 by Tata at a press conference. 2.01% interest only after realizing the monetary equivalent of benefits that it would have received in Uttaranchal. 5.) Loan of $43 million at 1% interest. Controversy The political controversy which made Tata to move out of state to another location cropped up due to claims by Trinamool Congress Leader Ms.) $170/acre/year on the remaining 290 acres allocated as vendor park. Under the MOU.) $64 million toward canal dredging and widening. approximately $15/acre/month.1.000 and 18. culvert and bridge-making.01% interest with repayment delayed to 2037.
com/india/news/from-nano-tomagna/442049/]. The plant capacity was 250. Chief Minister of Gujarat.com/article. Contractors Involved and procurement  The general framework of Tata Motor's supply chain consists of tier 1. 2010 [http://tata. Since it was planned to source 80% of value of component from the park it was crucial to streamline vendor facility along. Tata also planned to expand the facility to 500.beating the employees. . Tata Motors paid Rs.aspx?artid=XFBpop5GFuM=]. As lot of machinery was already installed at Singur along with lot of construction work completed a large part of the loss was irrecoverable.000 units/year. Tata declared to stop the work till West Bengal government do not interfere to stop such acts and eventually decided to move to Sanand in Gujarat after accepting the proposal from Mr. Narendra Modi.2 and 3 suppliers and original equipment manufactureres (OEMs) representing the suppliers.co.000 units/year by setting up 3 new additional plants .000 units/year expandable to 350.in/wpcontent/uploads/2009/12/nano. 1000 crores to shift their plant to new location with a delay of around 4-6 months in launching Nano [www.casestudy.000 units/year within 3 years horizon and final capacity of 1. The supplier network consists of approx 100 tier one suppliers which were selected put of 1000 suppliers considered initially.000. 900/sqm (US$85000/acres) to Gujarat Government for land acquisition in Sanand [http://www. Tata’s estimated a total cost of Rs. Current capacity was supplemented by another facility at Pantnagar. representing the distribution network. To ensure same 41 vendors were accommodated when plant commissioned [http://tata. The factors considered for supplier selection were expertise. One of the major factor considered during Nano's supplier network was Proximity to assembly plant.doc].aspx?artid=XFBpop5GFuM=] The land utilized for the facility was 725 acres for main plant and another 375 acres for vendor park. The plant was inaugurated by Chief Minister of Gujarat Mr. engine and transmission OEMs along with the assembly plant(s) representing the automaker itself. and the third party dealers. the design group.com/article. However she denied the claim and asked Tatas to return the land of farmers.business-standard. Narendra Modi on 2nd June. It took 14 months to complete the project. Project at Sanand The Tata Nano manufacturing plant construction started in Sanand in November 2008.
One such example is alliance with Bosch for engine management system which had centers both in Bangalore and Germany.org/wiki/Sanand_Plant_(Tata_Motors)]. These suppliers were engaged from the design stage of Nano itself. Also there is a facility which includes a railway transportation hub near Nidhrad Village is part of the project [http://en. The suppliers were also asked to set up facilities near assembler and around 50 suppliers were confirmed to have co-located with Nano assembly plant at Singur. The lines are fitted with energy-efficient motors. Plant Features The plant at Sanand has state of the art equipments including sophisticated robotics and high speed production lines.wikipedia. The supplier proximity was achieved by offering long term contract and giving significant commitments on volume. Out these 15-20 are for integrated facilities. Beside Tata subsidiaries. there are some unique suppliers providing components for Nano which deals with two wheeler and three wheeler industry in India like gear boxes for CVT by Kinetic Motors. Even though cost of monitoring in this industry is high Tata was able to go for vertical integration as many of the suppliers involved are subsidiaries of Tata. . This strategy was inline with what was followed for Tata Ace. The core competencies of Tata Motors which is engines and manual transmissions was taken into account while designing the manufacturing structure for Nano plant along with assembly plant and paint shop. variable frequency drives and systems to measure and monitor carbon levels. composite material for Nano body by Caparo.capacities and reliability in terms of quality. Most of the suppliers are single sources for the components and only 3% of the components are imported. While selecting suppliers for outsourced design components Tata made sure that the suppliers are well established and that there was a local presence. This also helped in tackling supplier unreliability and quality concerns. Others considered under the same principle were Tata Steel which is evenly split joint venture with Ryerson to make all the chassis and a few non-load bearing components of the vehicle and subsidiaries of Tata such as Tata Auto Components Systems (TACO) and HV axles. Manufacturing practices have been set to follow the Japanese processes of lean manufacturing and continuous development as there in other plants of Tata as well. Singur plant expects a rejection rate of 100 parts per million which is less than national average and even other automobile plants of Tata .
doc 7. The Tata "Nano" Leassons and Issues in Project Management.wikipedia.casestudy. Massachusetts Institue of Technology.wikipedia.) Tata Motors. India.aspx?artid=XFBpop5GFuM= 11. Palathinkal.) www. Dissertation.business-standard.) http://en.) Case Study on Pre Engineered Buildings. PM Forum.com/article.) Drew Stewart.org/wiki/Sanand_Plant_(Tata_Motors) . 2. Greenfield Automotive Project India. Strategies for High Volume Supply Chains in India. Revisiting The Great Transformation: Tata's Entry and Exit in West Bangal 9. 2010.org/wiki/Singur_Tata_Nano_controversy 8.References 1.) http://tata.) http://www.) Don J. June 2008.com/india/news/from-nano-to-magna/442049/ 10.in/wp-content/uploads/2009/12/nano.) http://en. Dissertation. 4.co. Automotive PEB. BEE. 67th Annual Report 2011-2012. 5. 3. Automobile Manufacturing.) Report: Tata Motors Limited. 6.) Raju Rao. Februaury 2008. Regional Report.
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