Project Report On Tata Motors
Project Report On Tata Motors
Project Report On Tata Motors
ON
TATA MOTORS LTD
Submitted for partial fulfillment of the requirement for the awards of Degree of
Bachelor of Business Administration.
(BBA)
Submitted By: Under the Gu
idance of:
Vineet gupta Prof. Rachna Chawla
STUDENT DECLARATION
I Vineet Gupta hereby declare that the work presented in this project entitled Ta
ta Motors Limited submitted towards completion of project in B.B.A at Bharatiya V
idyapeeth University Institute of Management and Research, New Delhi, is an auth
entic record of my original work carried out under the guidance of Ms. Rachna, P
rofessors, BVUIMR, New Delhi.
I have not submitted the matter embodied in this project for the award of any ot
her degree.
Vineet Gupta
ACKNOWLEDGEMENT
The successful completion of the project would have been far from reality withou
t mentioning the people who made an indelible impression while making the projec
t.
All the very outset thanks to Ms. Rachna Chawla for instructing me and providing
me the opportunity to participate in the project and sharing her invaluable kno
wledge and experience with me. Her innovative ideas provided me clarity of thoug
hts, which helped me to think in the right way.
Without her help and guidance completion of the project report would have been v
ery difficult. I would also like to give gratitude to all the other faculties wh
o helped me in making the project worth wile and successful.
I would also like to express my gratitude to Dr. S.S Vernekar [Director], BVIMR,
New Delhi for providing all needful facilities in the campus and the best facul
ty for the students.
Their thoughtful ideas, comments and conceptual insight into the subject kept me
from floundering in my quest. Despite their busy schedule they spared valuable
moments for reviewing and rectifying this project work.
Due to the proper guidance the making of project report became an enjoyable expe
rience and easy to workout.
Vineet Gupta
Certificate
This is to certify that the project titled TATA MOTORS Is a benefice work carried
out by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & R
esearch, University of Pune. It is submitted in partial fulfillment of the requi
rement for the award of the Degree of BBA under our guidance and direction.
To the best of our Knowledge, it is an original piece of work.
Certificate
This is to certify that the project titled TATA MOTORs Is a bonafide work carried
out by Vineet Gupta, a student of Bharati Vidyapeeth Institute of Management & R
esearch, University of Pune. It is submitted in partial fulfillment of the requi
rement for the award of the Degree of BBA under our guidance and direction.
To the best of our Knowledge, it is an original piece of work.
Director of BVIMR
Dr.S.S.Vernekar
INDEX
CURRENT INDUSRTRIAL SCENARIO .. 9
CHAPTER: 1 COMPANY INTRODUCTION 11
1.1 GROUP INTRODUCTION .. .. 12
1.2: HISTORY OF GROUP ... 13
1.3: COMPANY PROFILE 15
1.4: NATURE OF BUSINESS 17
1.5 TYPE AND OWNERSHIP PATTERN ... 18
1.6: VISION . . 19
17: MISSION ... . 20
1.8: BOARD OF DIRECTORS . . 21
1.9: REGISTERED OFFICE .... . 21
1.10: SUBSIDIARIES ... .. 22
CHAPTER 2: PRODUCTS & MARKETING STRATEGY ....24
2.1: BRAND . . ..25
2.2: PRODUCT MIX . 25
2.3: PRODUCTS ... .27
2.4: PRODUCT LINE ... 30
2.5: TARGET CUSTOMER .31
2.6: PRESENCE OF THE COMPANY ... 32
2.7: NUMBER OF BRANCHES .. .33
2.8: DISTRIBUTIONAL CHANNEL COMPETITORS .. .. ...33
2.9: MARKET SHARE . . 34
2.10: POSITIONING . 36
2.11: MARKETING STRATEGIES 37
2.12: ADVERTISEMENT EXPENSES . ..39
CHAPTER 3: FINANCIAL ANALYSIS 40
3.1: STOCK EXCHANGE ON WHICH THE COMPANY IS LISTED .41
3.2: WEIGHT AGE IN INDEX 41
3.3: AUTHORIZED CAPITAL STRUCTURE .. 42
3.4: AUDITORS REPORT 42
3.5: AUDITING COMPANY 44
3.6: BALANCE SHEET ... .44
3.7: PROFIT AND LOSS ACCOUNT .....45
3.8: BALANCE SHEET FOR THREE Year s 47
CHAPTER 4: ORGANIZATION STRUCTURE ..48
4.1: ORGANIZATION STRUCTURE . .. ..49
4.2: EMPLOYEES RECRUITMENT AND SELECTION PROCEDURES ..51
4.3: TRAINING & DEVELOPMENT POLICIES .52
4.4: CONFLICT RESOLUTION MECHANISM .. .55
CHAPTER 5: FACTORY LOCATION .....56
5.1: FACTORY LOCATION .. .57
CHAPTER 6: SWOT ANALYSIS OF TATA MOTORS ...58
6.1: STRENGTHS ...59
6.2: WEAKNESSES . . .60
6.3: OPPORTUNITY . . . ..60
6.4: THREAT . 61
MY LEARNINGS FROM THIS PROJECT . .62
BIBLIOGRAPHY ..63
CHAPTER - 2
PRODUCTS
&
MARKETING STRATEGIES
2.1 BRAND
Tata Motors is the brand which concentrates on every kind of customer.
It s the brand of every one. It is best in compact as well as sedan and SUV cars.
It s a brand due to its superior quality, low running cost, high comfort, low main
tenance cost. Its commercial vehicle is the best among the other entire brand pr
esent in the market. Some of the brands are the leading market capturer and won
many awards for their distinct feature and quality. As the Tata Indica is the se
cond largest selling car in India for successive years and in CV sector there is
no matching in India of it. Some of the other brands are INDICA VISTA, INDIGO X
, FIAT CAR
2.2: PRODUCT MIX
PRODUCT MIX mainly comprises of how many types of product a company produces
Breadth - the number of product lines carried.
Depth - the variety of sizes, colors, and models offered within each product lin
e.
Tata motors has wide range of products in Indian and overseas market. In India T
ata is the largest seller of both commercial sectors as well as in passenger one
. As the company produces vehicles mainly in three segments they are;
Passenger segment
Commercial segment
Military segment.
First we highlighted the PV sector or Passenger vehicle.
Passenger sector
Tata Motors has N number of PV cars in the automobile market both in INDIA and A
BROAD. They have designed the cars with the view of NEED, PREFRENCES, and how mu
ch their pocket allow them to spend on cars, SO Tata s have every type of customer
from lower middle to upper middle class which comprises half of Indian market.
Tata has also purchased LAND ROVER and JAGUAR as to step in the luxury car marke
t.
Although the sales of cars has decreased
continuously, due to economic slow down in the financial year 2008 but the sale
s level is increasing at a decreased rate from last year results. Company also w
orking on number of concept cars and NANO is one of them. It is the cheapest car
ever made in the world at this level of production. It is stylish, good in perf
ormance, has all the effective features and more over its price is ONE LAKH RUPE
E in Indian currency.
Next on the commercial sector;
Commercial sector
Tata motor is 4th largest producer of commercial vehicle in the world and it is
the top most producers in Indian market. It has over 60% market share among the
entire competitor. But its market share in abroad is less than 8% as it is on e
the new or emerging brand. Though the economic slow down has affected the sales
volumes but hasn t a dramatic effect on is. Its condition is better than the PV sa
les volumes.
About product Tata motors changes their
product with the change in the need of the customer, they are now emphasizing on
the small trucks or the medium size trucks that can be used on daily bases and
easy to drive, park and won t require to much space. In bus segment Tata has intro
duce luxury buses for long tour purposes and for business uses. Some of them are
,
PASSENGER CARS
INDICA VISTA
INDIGO XL
NANO
FIAT CAR
UTILITY VEHICALES
SAFARI DICOR
SUMO GRANDE
SUMO
XEMON XT
COMMERCIAL SEGMENT(CV)
Tata Motors currently has Trucks and Buses in the automobile market.
Tata 407
Tata 709
Tata 809
Tata 1109
1510/1512
Tata 1610/1616
Tata 1613/1615
Tata 2515/2516
Tata Starbus
Tata Globus
Tata 3118
MILLITARY SEGMENT
Tata Motors currently has 8 Military Vehicles in the military segment.
Tata LSV
Tata 407 Troop Carrier
Tata LPTA 713 TC
Tata LPT 709 E
Tata SD 1015 TC
Tata LPTA 1615 TC
Tata LPTA 1621 TC
Tata LPTA 1615
CHAPTER - 3
FINANCIAL
ANALYSIS
3.1 Stock Exchange on which the company is listed
Tata Motors is listed in
New York Stock Exchange [NYST] (September 200
4)
National Stock Exchange [NSE] and
Bombay Stock Exchange [BSE]
India &South Asia
3.2 Weight age in Index
NAME TATA MOTORS
PERCENT WEIGHT IN INDEX 63 SHARES
IN INDEX 0.385.66
LAST PRICE 459
Chartered Accountants
M.S. Dharmadhikari
Partner
Membership No.: 30802
Mumbai: May 28, 2008
3.6: Balance sheet and Ratio Analysis
[Rs in crores]
Mar ' 08 Equity share capital 385.54 Share application money - Preference
share capital - Reserves & surplus 7,428.45 Secured loans 2,461.99 Unsecur
ed loans 3,818.53 Total 14,094.51 Gross block 10,830.83 Less : revaluation
reserve 25.51 Less : accumulated depreciation 5,443.52 Net block 5,361.80
Capital work-in-progress 5,064.96 Investments 4,910.27 Current assets, loan
s & advances 10,781.23 Less : current liabilities & provisions 12,029.80 Tot
al net current assets -1,248.57 Miscellaneous expenses not written 6.05 Tota
l 14,094.51 Book value of unquoted investments 4,145.82 Market value of quot
ed investments 2,530.55 Contingent liabilities 5,590.83 Number of equity sha
resoutstanding (Lacs) 3855.04
3.7: PROFIT AND LOSS ACCOUNT
[Rs in crores]
Mar ' 08 Operating income 28,738.30 Material consumed 20,931.81 Manufactu
ring expenses 1,230.14 Personnel expenses 1,544.57 Selling expenses 1,179.48
Administrative expenses 1,982.79 Expenses capitalized -1,131.40 Cost of sales
25,737.39 Operating profit 3,000.91 Other recurring income 389.03 Adjusted P
BDIT 3,389.94 Financial expenses 471.56 Depreciation 652.31 Other write offs
64.35 Adjusted PBT 2,201.72 Tax charges 547.55 Adjusted PAT 1,654.17 Non
recurring items 374.75 Other non cash adjustments - Reported net profit 2,028
.92 Earnings before appropriation 3,042.75 Equity dividend 578.43 Preference
dividend - Dividend tax 81.25 Retained earnings 2,383.07
PERIOD ENDING 31-Mar-08 31-Mar-07 31-Mar-06 Assets Current Assets Cash And C
ash Equivalents 373,800 246,100 252,500 Short Term Investments 19,300
60,100 70,800 Net Receivables 1,640,600 1,406,100 830,100 Inventor
y 858,100 787,100 591,400 Other Current Assets 219,700 144,100 280,5
00 Total Current Assets 3,111,500 2,643,500 2,025,300 Long Term Invest
ments 2,563,100 1,799,700 1,185,600 Property Plant and Equipment 2,489,70
0 1,476,800 1,023,100 Goodwill 174,100 167,900 158,100 Intangible
Assets 77,800 69,400 53,000 Accumulated Amortization - - - Other A
ssets 811,100 130,800 99,800 Deferred Long Term Asset Charges - - -
Total Assets 9,227,300 6,288,100 4,544,900 Liabilities Current Liabili
ties Accounts Payable 1,482,600 1,184,700 943,000 Short/Current Long T
erm Debt 1,724,500 902,600 212,200 Other Current Liabilities 1,390,500
715,100 663,300 Total Current Liabilities 4,597,600 2,802,400 1,818,50
0 Long Term Debt 1,469,100 933,500 611,600 Other Liabilities 236,600
199,400 81,100 Deferred Long Term Liability Charges 152,900 138,800 13
7,900 Minority Interest 140,800 94,100 74,300 Negative Goodwill - -
- Total Liabilities 6,597,000 4,168,200 2,723,400 Stockholders' Equi
ty Redeemable Preferred Stock - - - Preferred Stock - - - Common
Stock 96,300 89,400 86,100 Retained Earnings 977,600 746,800 458,700
Capital Surplus 994,000 921,400 871,700 Other Stockholder Equity 562,
400 362,300 405,000 Total Stockholder Equity 2,630,300 2,119,900 1,82
1,500 3.8: BALANCE SHEET FOR THREE YEAR s
[Rs in crores]
CHAPTER - 4
ORGANIZATIONAL
STRUCTURE
I. Policy
The purpose of this policy is to provide uniform guidelines for the recruitment
and selection of employees at Tata Motors.
II. Process
The recruitment and selection process includes
Creating a new position.
Filling an existing vacancy.
Hiring a person.
Reclassification of a position.
Transferring an employee from one position to another.
All requests should be submitted at least 30 days prior to the effective date of
the requested action.
CHAPTER-5
FACTORY
&
PLANT LOCATION
5.1: FACTORY LOCATION
Tata motors have number of branches in India as well as in other countries. Some
of productions branches which are located in India with the range of product th
ey produce and some are under construction are as follows;
Plant location RANGE OF PRODUCTS PRODUCED PIMPLI AND CHIKALI, PUNE
CHINCHWAD, PUNE ( M&HCVS), ( LCVS), (UCVS) JAMSHAEDPUR TOWN POST OFFICE
JAMSHEDPUR M&HCVS CHINHAT DEVA ROAD, LUCKNOW M&HCVS AND LCVS KIADB BLOCK 2, B
ELURE INDUSTRIAL AREA, DHARWAD PROJECT UNDER FORMULATION PLOT NO 1, SECTION 11
INTEGRATED INDUSTRIAL ESTATE PANTNAGAR, RUDRAPUR, DISTRICT UTTAMSINGH NAGAR, UTT
ARAKHAND TRIAL PRODUTION COMMENCED PS SINGUR, HOOGLY DISTRICT, WEST BENGAL PROJ
ECT UNDER IMPLEMANTATION
CHAPTER - 6
SWOT ANALYSIS
OF
TATA MOTORS
SWOT ANALYSIS
SWOT Analysis means Strength, Weakness, Opportunity, and Threat.
These are the factors and the conditions prevailing in the company, industry and
out side its environment. Those factors which prevail inside the company are kn
own as Internal Factors and other which affect decision making and strategies of
the business from outside are known as External Factors.
6.1: STRENGTHS
1. Name Recognition
The name Tata Motors is the most recognizable auto manufacturer in India
2. Company Image
Tata Motors image is that of tough, dependable, long lasting vehicles. It s "Like
a Rock solid vehicles".
3. Product Diversity
Tata Motors features many different products for many different target groups. I
t has four divisions of vehicles: Compact Cars, Sport Utility Vehicles, Vans, Se
dan.
4. Racing Sponsor
Tata Motors organizes racing events in India.
Other
6.2: WEAKNESSES
1. No Luxury Vehicle
Tata Motors does not feature, and has no intent to feature any type of luxury ve
hicle. Without this they cannot compete with foreign manufacturers. Even Ford an
d Chrysler have developed a luxury vehicle for their fleets.
2. Weak In Horse Power
Besides the Grand Vitara, all Tata Motors vehicles are substandard to their fore
ign competition when comparing horse power. The Tata Motors s all vehicles feature
s less than 160 bhp engine, while the Honda, Ford, Tata its direct competitor, b
oasts a 180 bhp engine.
3. Dull Product Design
Once again, Tata Motors vehicles have a very conventional and boring design.
This hurts the company drastically because people want power, reliability and st
yle.
Limited product portfolio in the passenger segment
Operations mainly restricted to India
6.3: OPPORTUNITY
Increasing Plant Capacity
Tata Motors is increasing its production capacity by creating two more plants in
near 2011.
Result in mass production and will help in reducing per unit cost
Company will be able to capture more shares in market due to Increasing demand
for cars in India.
6.4: THREAT
Foreign Competitor
Intense competition from global players
Tata Motors has a threat from foreign players as
Their technology is much more new
Products are more upgraded
They have much more funds to invest in research and development.
Increase in price of raw material.