Case Study

Tata’s Dream Car Plant Location

Team Members
• • • • • Shreyas Godse – 13 Amit kanade – 19 Gaurang Medhekar – 27 Ashish Raut –
45 Saurabh Sangle – 48
Introduction
• • • • • Low Cost assembly operation Use of plastic in body of the car Use of
Adhesives instead of welding Small satellite units Encourage local entrepreneurs
Tata Nano
Q. Why did Tatas prefer to locate their ‘dream car’ plant Singur, West Bengal
despite other equally good options such as Dharwad and Uttaranchal ?
• TATA Group want to produce Nano in larger volumes with all the high-volume parts
manufactured in one plant • The West Bengal government was ready to provide
required area (around1000 acres) to TATA by doing land acquisition • They have
offered various subsidies to TATA group • Singur is about 50 kilometers north west
of Kolkata to be the most suitable place • Singur is very close to National Highway
No. 2 connecting Kolkata with Delhi • Fulfilled the different aspects such as
logistics, easily available of resources, skilled labor, social infrastructure such
as educational institute for the children of its employees
Q. Tata should have considered Pune and Jamshedpur where they already have multiple
facilities and several ancillary units for locating this new plant. Do you agree
with this statement?
• • • •

Cost of the car was important Operating cost should be low Cost of setting up of
new plant West Bengal government was interested to bring TATA to their state
Q. Tata’s have often chosen wrong location for their plants, such as the one at
Lucknow, which is also marred with controversies. Discuss.
• Lucknow as location for Tata Motors was not appropriate • Did not get incentives
as stated in the Industrial Investment Promotion Policy by UP government •
Uttarakhand government is providing excise duty exemption • Shifted production to
Pantnagar
Q. How do you think the problems at Singur can be amicably resolved by Tatas for
earliest construction of their plant?
• • • • •

Creating awareness of employment Provide training to locals Conducting weekly

meetings Training programs for women Introducing technical subjects in secondary
schools