Make use of it and Grow in your life

1. Anchuri Anthony Reddy

2. Outline
• History and Product offerings
• Tata Group & Corporate Responsibility
• Financial Analysis
• Tata’s Future & what impact, if any, for the
American auto market

3. History
• Started in 1945 in • The family founded:
Mumbai, India. – Ironworks
• Original production was – Steelworks
on locomotives. – cotton mills
• 1954 – hydroelectric-power
– First car rolled off of the plants
assembly line. • Are of their endeavors
• Tata’s are a family of have been proved to be
Indian industrialists and crucial to India's
philanthropists. industrial development.

4. History
• Tata Motors is India’s • Together both
owns the largest companies started their
independent company commercial vehicle
in India. operations in 1960.
• Mercedes and Tata • in 1986 the company
teamed up to create a created and sold the
truck line. first LCV
– First major business deal – LCV = light commercial
with another firm. vehicle
– Was the Tata 407

5. History
• Tata Motors decided to • Began creating new
pursue joint ventures. lines in the late 1990’s
– Cummins Engine Co., and early 2000’s:
Inc., was the first – Compressed natural gas
company to jointly buses
venture with Tata in – 1109 vehicle, used for
1993. commercial purposes.
– Manufactured a diesel – Ex-series
engine that had high
– Newly designed LCV
horsepower and emitted
called the 207 DI
less harmful chemicals.

6. Products
• Tata Indigo
– Created in 2002
– Mid-sized sedan.
– Different models run on
either normal gasoline
or diesel fuel.
– Seats 5 people.
– Same luxuries as
American made vehicles.

7. Products
• Tata Indigo SW
– Station wagon version of
the Indigo.
– Same basic features as
the Indigo.
– Seats 5 people.
– Different models fun on
different fuels.
– Different optional safety
features than other
vehicles.

8. Products
• Tata Indica
– Hatchback version of the
Indigo sedan.
– Easily affordable.
– Smallest in the line of
Tata vehicles to date.
– Seats 5 people.
– Same basic features as
the sedan.

9. Products
• Tata Safari
– Mid-sized SUV.
– Has a special engine
called DICOR.
• Direct Injection Common
Rail.
• Allows the engine to
intercool itself.
– Comes in either a 4x4 or
a 4x2.
– Can seat 7 passangers.

10. Products
• Tata Sumo
– Runs off of diesel fuel.
– Seats up to 7
passengers.
– Has a separate rear and
front suspension for an
optimal ride.
– Has two separate air
conditioners for the
front and rear of the
vehicle.

11. Tata Group
• 100 companies throughout 7 business sectors
•Engineering, materials, energy, chemicals, services,
consumer products, information systems and
communications
•Tata AutoComp Systems - Automotive
•Tata Steel - Materials
•Tata Power - Energy
•Rallis India - Chemicals
•Tata Realty and Infrastructure - Service
•Tata Tea - Consumer Products
•Tata Technologies - Information Systems and
Communications

12. Corporate Social Responsibility
•“A Company that cares about the future”
•Committed to corporate social responsibility
•Signed the United Nations Global Compact
•Plays role in community development
•Environmentally-friendly products and technology

13. Corporate Social Responsibility
•Two main concerns:
•Reduction of pollution
•Restoration of ecological balance
•Implemented soil and water conservation
programs
•Cleaner Engines
•Advanced emission-testing labs
•Developing alternate fuel engines
•Sewage treatment facilities
•Encourages tree planting

14. Corporate Social Responsibility
•India – Recycling Culture
•Value in discarded products
•Europe – “Throw-away” culture
•European ELV Directive

15. Corporate Social Responsibility
•Community Development
•Community Service Division
•Promote economic independence
•“Self-initiated cottage industries”

16. Tata Finance: overview
• Stock Trend
• Growth and Expansion
– Sales
– assets
• Financing Operations
• Tata vs. American Companies

17. Tata Motors Inc. Stock
• TTM
• NYSE since 2004
• $15.84 as of Friday (Yahoo, 2008)
• Down 8% in last year

18. Since 2004: TTM

19. Growth and Expansion
• large Indian market
– Familiar with market
– Brand loyalty
• Fuel efficiency
• Mahindra & Mahindra- $1.88 billion

20. Debt vs. Equity
• Debt growth: $2.3 billion  $4.1 billion
• Equity growth: $1.2 billion  $2.1 billion
– 55 million outstanding shares
– ROE : 19%
• Debt/ equity ratio: .87
– Industry average: .58
– Cash now for growth

21. Growth
• Asset growth  doubled since 2005
– Acquisition of Jaguar and Land Rover from Ford
• Sales:
– $7.6 billion and grew 42.2% from 2006
• PROFITS!!
– $.95 billion on 2005  $1.5 billion on 2007

22. Cash Management
• Liquidity and solvency are good
• Inventory
• Improved cash management:
– 12% of assets in 2005
– 4% of assets in 2007

23. Comparatively Speaking
Brand: Tata Ford GM
Sales: $7.6 billion $172 billion $181 billion
# of employees 33,900 246,000 266,000
Profit Margin 20% 17% 6.7%

24. Effects on U.S. Economy
• Slow economy
– High oil prices
– Demand for fuel efficiency
– Cut backs
• Tata’s effect

25. Jaguar and Ford
• Purchase from Ford
– Concerns
• Changes or Plans
– More Tata vehicles
– Made in India
• Future

26. U.S. Car Companies
• $ 2 Billion in sales
• GM-$50; Ford-$40; Honda- $20
• In the U.S.
• Going overseas
– 75% by 2017 for GM
• Expanding in India

27. U.S. Car Companies
• Toyota- 7.5% increase in profits
• Foreign Markets
– No help
– 1. Can’t offset
– 2. India out of reach

28. The Next Auto Capital
• Detroit current auto capital
• 21st century belongs to India
• 2050 in India and China
– Labor
– Environment

29. Future of the Nano
• Not for the U.S.
– 3rd world countries
– U.S. standards
• Detroit make or buy version

30. Summary
• Tata history and products
• Tata Group
• Tata: Social Responsibility
• Tata Motors Finance
• Future

31. Questions