INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Professor Dr. S. Rangnekar

Department of Management Studies
IIT Roorkee
 Table of Contents

1. Group Profile

2. Company overview

3. SWOT Analysis

4. Revenue Breakdown

5. PESTEL Analysis

6. IPO – A Deeper analysis

7. Future Plans

8. TATA Motors in News

9. References
Group Profile

Priyanka Aggarwal Khushal Swami Rahul Das Mahendra Singh Meena

• B. Tech, ECE, Modi Institute • B. Tech, Mechanical • B. Sc, Industrial Chemistry, • IDD, Ceramic Engineering,
of Technology & Science, Engineering, Government Ramakrishna Mission Indian Institute of
Sikar. Engineering College Vidyamandira. technology (BHU), Varanasi.
• 1 Year work experience in Bikaner. • Summer Internship at Haldia • Summer Internship at Steel
AMDOCS as an Associate RF • Summer Internship at Petrochemicals Limited, Authority of India (SAIL).
Engineer. North western Railway Haldia • Gave Interview of Media
• Gave Interview of Carriage and Wagon • One year teaching Cell, SportsComm and
PlaceComm, BMA, Vittarth Workshop, Lalgarh. experience in Sun Shine Operazione Club.
and Operazione Club. • Gave Interview of Media school
Cell, Operazione and • Interviewed for Media & PR
MarkIIT Club. cell, Domination Design and
Sports com.
3
TATA Motors : Introduction

Part of the USD113 billion Tata group founded by Jamsetji Tata

in 1868, Tata Motors is among the world’s leading manufacturers
of automobiles. They believe in ‘Connecting aspirations’, by
offering innovative mobility solutions that are in line with
customers' aspirations. They are India's largest automobile
manufacturer, and they continue to take the lead in shaping the
Indian commercial vehicle landscape, with the introduction of
leading-edge powertrains and electric solutions packaged for
power performances and user comfort at the lowest life-cycle
costs. TATA’s new passenger cars and utility vehicles are based on
Impact Design and offer a superior blend of performance,
driveability and connectivity.

Jamsetji Nusserwanji Tata (3 March
1839 – 19 May 1904)
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Beginning of journey

Tata Motors was founded in 1945, as a locomotive

manufacturer. TATA Group entered the commercial
vehicle sector in 1954 after forming a joint
1945-1954 venture with Daimler Benz of Germany.

Tata Motors entered the passenger vehicle market

in 1991 by launching the Tata Sierra. Tata
subsequently launched the Tata Estate (1992),
1991-1998 the Tata Sumo (1994) and the Tata Safari (1998).

In 2004, Tata Motors acquired Daewoo's South

Korea-based truck manufacturing unit, Daewoo
Commercial Vehicles Company, later renamed Tata
2004 Daewoo.

5
Expansion and Innovation

Tata Motors acquired a 21% controlling stake in the

Spanish bus and coach manufacturer Hispano
Carrocer. Tata Motors continued its market area

2005
expansion through the introduction of new products such
as buses (Starbus and Globus) and trucks (Novus).

Tata formed a joint venture with the Brazil-

2006
based Marcopolo, Tata Marcopolo Bus to manufacture
fully built buses and coaches.

Tata launched the first fully indigenous Indian passenger

car, the Indica and in 2008 launched the Tata Nano the

2008
world's affordable car and purchased Jaguar Land
Rover from Ford in 2008.

6
Tata Motors Ltd Values

Integrity Teamwork Accountability Costumer focus

Excellence Speed

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Serving the Nation

Vehicles

Passenger Vehicles Commercial Vehicles Military Vehicles

TATA Safari TATA Ace(mini truck) TATA LSV

TATA 407(mini truck)
TATA Tiago TATA Mine
TATA 1512c(medium protected vehicle
TATA Nexon bus)
TATA 1015 TC
TATA 1623(Heavy Bus)
TATA Altroz TATA LPTA 1615
TATA 1613(medium TC
TATA Tigor truck) TATA Xenon
TATA 4923(heavy truck)
TATA Harrier TATA LPT 709E

8
Transformation

CV Retail Sales March 2021 – Tata Motors Maintains Lead

With 43% Market Share
Topping the charts, Tata Motor commercial vehicle market
share increased to 42.78% in March,2021 from 41.78% in
Feb,2021. However company suffered a de-growth of
46.35% in terms of retail sales.

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Transformation
CAR MARKET SHARE MARCH 2021 – MARUTI LOSES 8.5%, TATA
GAINS 5.2%
Tata Motors is back to 3rd spot after 9 years helped by the
Harrier and reincarnation of Safari SUV and became biggest
gainer in March 2021.

10
Group Profile

Priyanka Aggarwal Khushal Swami Rahul Das Mahendra Singh Meena

• B. Tech, ECE, Modi Institute • B. Tech, Mechanical • B. Sc, Industrial Chemistry, • IDD, Ceramic Engineering,
of Technology & Science, Engineering, Government Ramakrishna Mission Indian Institute of
Sikar. Engineering College Vidyamandira. technology (BHU), Varanasi.
• 1 Year work experience in Bikaner. • Summer Internship at Haldia • Summer Internship at Steel
AMDOCS as an Associate RF • Summer Internship at Petrochemicals Limited, Authority of India (SAIL).
Engineer. North western Railway Haldia • Gave Interview of Media
• Gave Interview of Carriage and Wagon • One year teaching Cell, SportsComm and
PlaceComm, BMA, Vittarth Workshop, Lalgarh. experience in Sun Shine Operazione Club.
and Operazione Club. • Gave Interview of Media school
Cell, Operazione and • Interviewed for Media & PR
MarkIIT Club. cell, Domination Design and
Sports com.
11
SWOT Analysis – TATA Motors

S
T W
O
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Strengths

Acquisition Strategies.

Large employee base.

Strong Management team.

Established distribution and service Network.

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Weaknesses

Unsuccessful in finding a foothold in Luxury Segment.

Increase in Operation cost and reduced profits.

Limited Presence compared to International

Manufacturers.

14
Opportunities

Shift focus in developing luxury car brands.

Low credit rate.

Electric Vehicles.

Increasing the cost of Research and Development.

15
Threats

Uncertainty in fuel price hikes.

Increasing Tax on Fuel Consumption.

Competition with Others.

16
Total Revenue earned
by Tata Motors in
Quarter 2 of FY 21-22 -
₹53.5KCr

17
18
Group Profile

Priyanka Aggarwal Khushal Swami Rahul Das Mahendra Singh Meena

• B. Tech, ECE, Modi Institute • B. Tech, Mechanical • B. Sc, Industrial Chemistry, • IDD, Ceramic Engineering,
of Technology & Science, Engineering, Government Ramakrishna Mission Indian Institute of
Sikar. Engineering College Vidyamandira. technology (BHU), Varanasi.
• 1 Year work experience in Bikaner. • Summer Internship at Haldia • Summer Internship at Steel
AMDOCS as an Associate RF • Summer Internship at Petrochemicals Limited, Authority of India (SAIL).
Engineer. North western Railway Haldia • Gave Interview of Media
• Gave Interview of Carriage and Wagon • One year teaching Cell, SportsComm and
PlaceComm, BMA, Vittarth Workshop, Lalgarh. experience in Sun Shine Operazione Club.
and Operazione Club. • Gave Interview of Media school
Cell, Operazione and • Interviewed for Media & PR
MarkIIT Club. cell, Domination Design and
Sports com.
19
TATA Motors : PESTEL Analysis

P – Political

E - Economical

S – Social

T - Technological

E - Environmental

L - Legal

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Political and Legal

Political Confrontation and intervention of regional political parities in

the operations of the company stands as a threat to the company.
Shifting of Tata Nano plant out of Singur in WB is an example of the
same. Government policies have a cascading effect on the Automotive
sectors in India. Budget allocated by the government and the taxation
rules are volatile. GST and the Maximum Axle Load regulations Law
are an example of the same. Increase in maximum axle came as a blow
for the automobile companies, as the need for new vehicles is curtailed
as the existing automobiles can take more load. Laws pertaining to
Patents of technology and operations are unadequate.
Lobbying activities also play an important role in operation in India.
Government vision to completely scrape Diesel and Petrol cars by 2030
and such environmental measures pose a threat to the company.
Key Understanding: The company needs keep the changing itself and
adapt to the changing political environment which is volatile in view to
understand it’s working. Also, learning about the laws that may come up
will be helpful. The adaptability of the company is need of the hour.

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Economic

By and large, the GDP of the state is a significant factor assisting in the
success of the organization like Tata Motors. 7.1% of India’s GDP
comes from automotive Sector and contributes to about 49% of India’s
Manufacturing GDP. Also the Impact of Brexit on Tata Motors is huge.
JLR says “Hard Brexit” may force the company to shut the UK
Operations which costs 1.52 Billion to the company. Undesirable Foreign
Exchange rates are also plaguing the Tata Motors. The Commercial
Vehicle segment of TML has an edge over the passenger vehicle.

Other than various other factors, raise Credit availability of in an

economy year on year and also the rise in the net disposable income of the
country. These factors along with the increasing GDP helps the
automotive sector to grow Year on Year.

Another major economic impact on the economy of the India is the

Impact of GST. Across all the Domains, all the sectors are affected with
the GST. How did the company perceived it. According the TML, the
following are the impact of the GST.

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Social , Cultural & Environmental

Cheap Labour Available in India is an Advantage of any production

related company in the country. Trust in the Brand is another added
advantage Tata’s leverage on. TML has always given weightage in
employing the local population, creating job opportunities and good will
among the society. Few social and cultural factors influencing TATA
Motors are as follows:

• Perception of TATA automobiles, Specially in the Passenger segment

is that of a cheap car and the marketing of TATA Nano added to the
same.
• Labour Unions play a vital role in the manufacturing sector in Indian
Automotive Industry. Maruti-Suzuki Manesar Plant is an example of
the same. However, Tata is considered to be an employee friendly
company, which is an advantage to the company.
• TML in involved in philanthropy and supports more than 300 NGOs.
• The company had to shut it’s operation in Thailand as the business is
not viable in the country. However, the cars will be sold in the country
by imports.

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 Technological factors

To adapt to newer technologies, TML owns Tata Technologies

Ltd, which helps upgradation of Design and Technology of Tata
Motors. Tata has been pushing for Electrical Vehicles specially in
the Category of Commercial Passenger Vehicles (Buses). Tata
Motors also ready to adopt Super Milo Fuel Efficient Engines . Tata
Motors adopted Ecommerce to maximum use by selling 15 Tata
safaris on Ecommerce Platform Amazon in 1 hour time.

In the financial year 2016-17, 6300 Crores were spent in R&D

of Automotive industry in India. TML and M&M were the highest
spenders on the R&D according to the data sourced from SIAM
and CMIE. Tata Motors Partnered with Amazon AWS for cloud
based business which allowed the company to meet the needs
faster. Tata Motors has introduced 'Tata Alert', a highway
assistance programme for medium and heavy commercial vehicles,
which will be available across all national highways in India. The
Service will be available in 4 hours.

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Financial year 2020-2021 performance

25
Sales performance of JLR and Tata Motors

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Group Profile

Priyanka Aggarwal Khushal Swami Rahul Das Mahendra Singh Meena

• B. Tech, ECE, Modi Institute • B. Tech, Mechanical • B. Sc, Industrial Chemistry, • IDD, Ceramic Engineering,
of Technology & Science, Engineering, Government Ramakrishna Mission Indian Institute of
Sikar. Engineering College Vidyamandira. technology (BHU), Varanasi.
• 1 Year work experience in Bikaner. • Summer Internship at Haldia • Summer Internship at Steel
AMDOCS as an Associate RF • Summer Internship at Petrochemicals Limited, Authority of India (SAIL).
Engineer. North western Railway Haldia • Gave Interview of Media
• Gave Interview of Carriage and Wagon • One year teaching Cell, SportsComm and
PlaceComm, BMA, Vittarth Workshop, Lalgarh. experience in Sun Shine Operazione Club.
and Operazione Club. • Gave Interview of Media school
Cell, Operazione and • Interviewed for Media & PR
MarkIIT Club. cell, Domination Design and
Sports com.
27
Tata Motor – Futuready

Tata Motors now India's third-largest carmaker Market

share 2010-2021
From a paltry 4.8 percent market share in FY20, Tata Motors
today has a market share of over 9 percent. The company,
with a 69 percent growth in sales in FY21, is now busy
scripting a remarkable turnaround.

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Tata Motor - IPO
• Tata motor IPO was launched on 3rd Jan,2000 with IPO price of Rs.38.64.
• The company is listed on Stock Exchange, Mumbai , National Stock Exchange of India Ltd. , New York Stock
Exchange

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Why the share price fell from 52W high?

Major Reason – Chip shortage

Tata Motors share fell for the second straight session after the Indian auto major flagged
chip supply shortage for its UK-based subsidiary Jaguar Land Rover (JLR).

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Future plans of Tata Motors

Tata Motors will launch ten new battery-electric vehicles across its commercial and
passenger vehicle businesses in India, by 2025, in its quest to lead the domestic electric
vehicle market.

TATA NEXON EV RANGE TATA EVISION ELECTRIC RANGE TATA TIGOR EV

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Tata Motors in News
• Tata Motors ties up with Gujarat govt to support setting up of vehicle scrapping centre in
Ahmedabad
• Tata Motors seeks to raise $1 billion for new EV biz, values it at $7 billion
• Tata Motors to gift Altroz to Indian Olympic athletes who narrowly missed bronze medals
• Tata Motors to unveil Ziptron-powered Tigor EV next week
• All Tata Cars Get Costlier By Up To Rs 27,000

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References

Book: Small Wonder the making of the Nano

Author: Philip Chacko, Christabelle Noronha, Sujata Agrawal

About the book: This book tells the story of how that dream was realised.
This is the story of the Nano, the Rs1-lakh wonder, and how it came to be.
Once upon a time there was a dream — born of the vision of Ratan Tata
— to enable middle-class Indians to have a safe and affordable means of
personal mobility, to break the shackles of the mind and go where no one
had gone before, to create a motor car that would be more than just
another automobile. The making of the Nano has been a struggle and a
vindication, a long, arduous and expensive endeavour to cope with a wide
range of problems. This, then, is also the story of how Tata Motors, the
company behind the project, overcame the limitations imposed by
conventional technology and traditional methods of manufacturing to
craft a motor car that has changed the automobile world.

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Book: Jewels in the Crown: How Tata of India Transformed Britain's Jaguar and Land Rover
Author: Ray Hutton

About the Book: Jewels in the Crown provides an analysis of Tata's acquisition of Jaguar
and Land Rover in 2008, and subsequent transformation of their fortunes, written by an
award-winning motoring writer. Ray Hutton goes behind the scenes to examine how Tata
have not only returned the business to profit, but also transformed the public image of
these long-established British brands. This book is an account of how this impressive
business turn round was achieved. Jaguar Land Rover exists to make cars, so the story
follows the concept, design and development of its products, the methods of production,
and how they are promoted and sold across the world. To understand the heritage, it
must also look back to the automotive icons that Tata inherited: the jaguar E-type and
XJ6, the original Land Rover, and the Range Rover, king of the SUVs.

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Book: Nanovation: How a Little Car Can Teach the World to Think Big and Act Bold
Author: Kevin Freiberg, Jackie Freiberg and Dain Dunston

About the book: The Nano car disrupted an entire industry and changed the game in India forever.
But this inspiring book is more than the story of one ingenious invention. Nanovation explains how
revolutionary business thinking and product design can have profound effects on companies,
industries, and the world. Discover the thought processes that bred innovation, the leadership that
overcame adversity, the risks that were necessary to avoid failure, and how all of these efforts
resulted in success beyond customers’ wildest expectations. This book will inspire you to contest
management dogma, taken-for-granted assumptions, and updated systems--asking instead the tough
questions of “What if?” and “Why not?” The process may even motivate you to overcome the
toughest roadblocks in your career, the limitations of your business, and the biggest challenges facing
your industry, In India, entire families? too poor to afford a car? crowd onto a single motor scooter
every day to brave the tangled traffic of the streets. One evening, Tata Motor's then–venerable
chairman Ratan Tata witnessed something on those rain-soaked streets that horrified him: an
overloaded scooter lost traction in a busy intersection and sent several members of a family tumbling
across the pavement. In that moment, the dream of Nanovation took root--and Ratan Tata perused it
undeterred.

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References

Reference Paper: A Study on Capital Structure and Leverage of Tata Motors Limited: Its Role and future Prospects.
Author: Dr. M Sekara, Ms. M. Gowrib, Ms. G. Ramyac

Abstract: This study examines the influence of capital structure on the performance of the company. It is measured using
EBIT-EPS analysis. In this paper an attempt is made to analyze the capital structure of Tata Motors Limited during the period
2003-04 to 2012-2013, so as to understand the factors that influenced the capital structure decisions of the company and
to know the impact of capital structure decisions on profitability and performance of the company. The company’s
performance is measured through EBIT-EPS analysis. Increase in the level of debt and net worth increases the debt equity
ratio. Capital structure is the crucial decision to be taken by every business, the positives and negatives of these decisions
plays a important role in determining the future of every business.

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END OF THE PRESENTATION

THANK YOU

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