Acknowledgment

My self Shyamjee choudhary PG RFM 2018 highly appreciate my professor

at FDDI,FURSATGANJ and Ms Garima Kakkar mam who gave me
opportunity and motivated me to work on the case study over 1st and 2nd
line of action for establishing” Tata Nano plant”
INTRODUCTION
TATA GROUP
TATA group is a multinational group based in Mumbai Maharashtra,
India. Founded in 1868 by TATA Gasmi and gained international
recognition after the purchase of many international companies. It is
owned by TATA sons ,a charity registered with the charity commissioner
of India.
There are 30
listed companies in TATA with a combined market capital of
approximately US dollar 130 billion in March 2017. Tatas large companies
include TATA steel, TATA motors, TATA consulting services, TATA
energy, TATA chemical, TATA communication etc.

TATA NANO
TATA NANO is a city car made by TATA motors. This car is made and sold
in India. TATA NANO is made a budget friendly car and it was launched
on a price tag of ₹100000. This car was targeted to be bought instead of
motor cycle by the middle class people.

THE HISTORY OF TATA NANO

The idea of TATA NANO came to Mr.Ratan tata. He was travelling on a
rainy day when he saw a man carrying his whole family (4people)on a
bike. He saw that the man was facing a lot of problem while driving his
bike as it was raining and his bike was overloaded.
This event struck an idea to Mr.Ratan tata about building a car that was
big enough for a small family and affordable by people who ride bikes.
His first idea was to develop a s safer bike he made design’s of bikes with
2 rare wheel’s, then he made designs with a safety cage around the bike
but none looked feasible. He also thought of making a car with safety bars
instead of doors but no one would like to buy a half car.
After many designs fails,he came up with a car that only had the
essentials.
After a few days of planning and research,he found out that the costing of
making this car comes around to ₹100000 Mr.Ratan TATA faced many
statements of making the world’s cheapest car but he went ahead with
idea.
A group of engineers worked together and finally came out with a car
that met all the safety requirements of a car and named it NANO.
TABLE 1 Number of motor vehicle per 1000 people by country.
Country Motor vehicle per 1000
United states 765
Canada 619

Germany 563
Japan 546
United Kingdom 543
India 12

Source united nations world statistics pocket book and statistical

yearbook 2007.

1st LINE OF ACTION

 This was the controversy that was generated by land
acquisition of the NANO factory of TATA NANO at Singur
in Hooghly in West Bengal.
 The government of West Bengal caused the controversy by
using 1894 land acquisition act. In this government has
the right to take over the private property for public use
and development.
 They took over 997 acres of land to let TATA build it’s factory. This
project was opposed by the opposition parties and activists in West
Bengal.
 Many farmers whose land was seized for the factory were
displaced ,the opposition leader Mamta Banerjee help the
farmer get their land back.
 Highways surrounding the factory were at a standstill
and workers were threatened. TATA finally abonded the
Singur factory in which it had invested Dollar 350
million.
 The plant finally shut down on 3rd October 2008 and was
shifted to Sanand Gujarat

2nd LINE OF ACTION

 The then CM of Gujarat,Shri Narendra Modi helped TATA to
construct their plan in Gujarat.
 On October 7 2008 the Gujarat government and TATA motors
signed a MOU in Ahmedabad, bringing the ambitious NANO project
to that state.
 Gujarat chief minister Narendra Modi announced allocation of 1100
acres of land at Sanand near Ahmedabad to TATA motors. The state
government promised TATA various tax rebates and ready land
along with connectivity to the national highway.
 The relocation of the plant was not painless. In December 2008
several farmers field a case against the local Indian government and
TATA motors demanding better compensation for land sold to
support Gujarat factory.
 TATA was pressured to find a quick solution ultimately,it decided
that NANO production would begin at TATAS existing factory in
Pantnagar in the northern state of Uttrakhand after receiving an
additional allotment of land from the Uttrakhand government to
expand the Pantnagar factory for NANO production.
 The first Nanos were rolled out of the Pantnagar plant which could
produce only 60000 unit’s a year. Annual output was projected to
increase by further 350000 unit’s. When the facility at Sanand in
Gujarat was completed at the end of 2009.

CONCLUSION
 The shifting of the whole factory across India caused
a huge delay in the release date of the car.
 It also wasn’t possible now to sell the car at₹100000
as the costing increased.
 In spite of that Mr.Ratan tata promised to sell the car
at ₹100000 for the customers who had pre -booked
and then later in increase the price.
 TATA NANO is the world’s cheapest car.
 It was affordable for the lower middle class people.
 The car was turning heads in the beginning but later
it was seen as a cheap car and people didn’t prefer
this car.
 It had to face a lot of competition and it offered
much less than its competitors for the same price.
 TATA motors had done bad publicity and improper
placement of the car in the market that have the car
bad name.
  The car couldn’t perform well on the road as it had
small engine,poor suspension small wheels, no safety
and basic features and a low top speed.
 TATA NANO had to shift in factory from Gujarat due
to political pressures,this caused a delay in the car
production and increased the costing of the car.
Though the car was launched to be affordable,it is now
available starting at₹ 2.5 lakh other car manufacturer like
Renault, Hyundai, Maruti have offered cars at the same
price range with more features and safety.
Thank you