History about tata

1. Tata Motors and the Automotive
Industry

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

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

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

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

15. •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. Thank you.