ENTERPRISE ANALYSIS-DESK RESEARCH

CHAPTER:- 01 ESTABLISHMENT

1.1 INTRODUCTION:-
Jehangir Ratanji Dadabhoy Tata (29 July 1904 – 29 November 1993) was a French-born
Indian aviator, entrepreneur, chairman of Tata Group and the shareholder of Tata Sons.
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) headquartered in Mumbai, is an Indian multinational automotive manufacturing
company and a member of the Tata Group. Its products include passenger cars, trucks,
vans, coaches, buses, sports cars, construction equipment and military vehicles. Tata
Motors has been ranked 5th in 2017 Responsible Business Ranking developed by IIM
Udaipur.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,
Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa,
Great Britain and Thailand. It has research and development centers in Pune, Jamshedpur,
Lucknow, and Dharwad, India and in South Korea, Great Britain and Spain. Tata Motors'
principal subsidiaries purchased the English premium car maker Jaguar Land Rover (the
maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle
manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture with
Marcopolo, a construction-equipment manufacturing joint venture with Hitachi (Tata
Hitachi Construction Machinery), and a joint venture with Fiat Chrysler which
manufactures automotive components and Fiat Chrysler and Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in
1969. Tata Motors entered the passenger vehicle market in 1991 with the launch of the
Tata Sierra, becoming the first Indian manufacturer to achieve the capability of developing
a competitive indigenous automobile. In 1998, Tata launched the first fully indigenous
Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the world's cheapest
car. Tata Motors purchased Jaguar Land Rover from Ford in 2008.

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Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index, the National Stock Exchange of India, and the New York Stock
Exchange. The company is ranked 226th on the Fortune Global 500 list of the world's
biggest corporations as of 2016. On 17 January 2017, Natarajan Chandrasekaran was
appointed chairman of the company.

TAGLINE: - “CONNECTING ASPIRATIONS.”

ESTABLISHMENT YEAR: - MUMBAI, 1945.

FOUNDING MEMBERS: - J.R.D TATA

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1.2 HISTORY:-

Tata entered the commercial vehicle sector in 1954 after forming a joint venture with
Daimler-Benz of Germany. After years of dominating the commercial vehicle market in
India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata
Sierra, a multi utility vehicle.

Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although
initially criticized by auto analysts, its excellent fuel economy, powerful engine, and an
aggressive marketing strategy made it one of the best-selling cars in the history of the
Indian automobile industry. A newer version of the car, named Indica V2, was a major
improvement over the previous version and quickly became a mass favourite. Tata Motors
also successfully exported large numbers of the car to South Africa. The success of the
Indica played a key role in the growth of Tata Motors.

On 27 September 2004, Tata Motors rang the opening bell at the New York Stock
Exchange to mark the listing of Tata Motors.

In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo
Bus, to manufacture fully built buses and coaches.

In 2008, Tata Motors acquired the English car maker Jaguar Land Rover, manufacturer of
the Jaguar and Land Rover from Ford Motor Company.

In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata
Daewoo; the range went on sale in South Korea, South Africa, the SAARC countries, and
the Middle East at the end of 2009.

In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality
Award.

In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company
Trilix for €1.85 million. The acquisition formed part of the company's plan to enhance its
styling and design capabilities.

On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the
22nd floor to the fourth floor of the Shangri-La Hotel in Bangkok, where he was to attend
a meeting of Tata Motors Thailand.

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On 2 November 2015, Tata Motors announced Lionel Messi as global brand ambassador
at New Delhi, to promote and endorse passenger vehicles globally.

On 27 December 2016, Tata Motors announced the Bollywood actor Akshay Kumar as
brand ambassador for its commercial vehicles range.

On 8 March 2017, Tata Motors announced that it has signed a memorandum of

understanding with Volkswagen to develop vehicles for India's domestic market.

1.3 VALUES, VISION & MISSION OF COMPANY

MISSION:-

They innovate mobility solutions with passion to enhance quality of life.

VALUES:-

 Integrity
 Teamwork
 Accountability
 Customer focus
 Excellence
 Speed

VISION:-

As a High Performance Organisation, they are, by FY2019

 Among the Top 3 in Global CV & Domestic PV.

 Achieving Sustainable Financial Performance.
 Delivering Exciting Innovations.

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1.4 BOARD OF DIRECTORS:-

Chairman Emeritus Ratan .N. Tata

Managing Director & Chief Executive Officer Mr. Guenter Butschek

Non-Executive Director & Chairman Mr. Natarajan Chandrasekaran

Non-Executive Director Dr. Ralph Speth

Executive Director & Chief Operating Officer Mr. Satish Borwankar

Non-Executive & Independent Director Ms. Falguni Nayar

Non-Executive & Independent Director Mr. Vinesh .K. Jairath

Non-Executive & Independent Director Mr. Nasser Munjee

Non-Executive & Independent Director Ms. Hanne Sorensen

Non-Executive & Independent Director Mr. Omprakash Bhatt

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1.5 JOINT-VENTURES, MERGERS & ACQUISITIONS:-

JOINT-VENTURES:-

 Tata Macropolo is a bus manufacturing joint venture between tata motors (51%)
and Brazil based Marcopolo (49%). it manufactures & assembles fully built buses
& coaches targeted at developing mass rapid transportation systems.

 Fiat-Tata is an Indian based joint venture between Tata and fiat automobiles which
produces Fiat & Tata branded passenger cars, as well as engines and transmissions.

 Tata Hitachi Construction Machinery Japan, has 40% holding rest is held by Tata
motors that is 60% where, Telco Construction Equipment Company makes
construction equipment & provides allied services.

 Tata motors European Technical Centre is a UK based, 100% subsidiary engaged

in design engineering and development of products.

MERGERS & ACQUISITIONS:-

 Acquired South Korean Based Daewoo Commercial Vehicles in March – 2004. It

is the second largest & wholly owned subsidiary of Tata motors in the business of
heavy commercial vehicles.

 Acquired Spain Based Company Hispano Carrocera in Feburary- 2005. It is the bus
& coach manufacturer and wholly owned subsidiary of Tata motors.

 Merged with ford motors company for Jaguar & land rover, March – 2005. It is a
British premium automaker Jaguar luxury & sports car and land rover premium
four-wheel drive-vehicles. It is wholly owned subsidiary of Tata motors since june-
2008.

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 TML Drivelines Limited merged with HV Tranmission and HV Axles is a wholly

owned subsidiary of tata motors engaged in manufacture of gear boxes and axles
for heavy & medium commercial vehicles.

1.6 CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:-

 Kaushalya - Employability or Skilling

 Vasundhara - Environment

 Amrutdhara - Drinking Water

 Aadhaar - Community Development

 Seva – Volunteering

 Aarogya - Health

 Vidyadhanam – Education

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CHAPTER: - 02 ORGANISATIONAL STRUCTURE

Source:-www.tatamotors.com

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2.1 GEOGRAPHICAL FOOTPRINTS:-

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2.2 HEADQUARTERS - MUMBAI

Mumbai: Bombay House is a historic privately owned building in Fort, Mumbai, India
that serves as the head office of the Tata Group.

Situated near Flora Fountain, it was completed in 1924 and has been the Tata Group's
headquarters ever since. The building is a four-story colonial structure built
with Malad stone, and was designed by Scottish architect George Wittet, who designed
over 40 buildings for the group and later became the head of Tata Engineering Company
Limited, now Tata Motors.

The building houses the office of chairman and all top directors of Tata Sons, the holding
company. Core companies of the group-Tata Motors, Tata Steel, Tata Chemicals, Tata
Power, Tata Industries and Trent-operate out of the Bombay House.

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2.3 MANUFACTURING PLANT & SERVICE LOCATION:-

Tata Motors' Plants are located at:-

 Jamshedpur (eastern India)

 Pune and Sanand (west)
 Dharwad (south west)
 Lucknow
 Pantnagar (north).
 Tata Motors and Fiat have set up a common manufacturing facility at Ranjangaon,
near Pune.

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2.4 AWARDS & CERTIFICATIONS:-

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AWARDS:-

 TML Starbus Hybrid received Special Recognition at the Apollo CV January

Awards 2018.
 Tata Hexa won ‘Best 4X4 of the Year’ at Autoportal Best Car Awards 2018.
 Tata Motors won the Business Today ‘Best Companies to Work for Award 2017.
 CII Energy Efficient Unit Award 2015.
 Tata Motors received the ‘Tata Affirmative Action Programme (TAAP) Jury
Award’.
 Tata Motors, Jamshedpur received the ‘Industry Champion for Sustainable
Development Goals Award’.
 Tata Motors receives the ‘HR Innovation of The Year’ award for outstanding
contribution to skill development in 2016.
 TML Nexon received the prestigious Best Design Award of this year by Autoportal.

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CHAPTER: - 03 MARKET

3.1 Major Customer:-

 Business People (Tata motors Employees)

 Adults.
 Middle Class People.

3.2 Customer Segments:-

 Demographic – Age (anybody above age of 18)

Income (available in all ranges)
 Geographic
 Psychographic (available to different segments)
 Behavioural – Benefit (quality & style)
Users (Potential & First time users)
Readiness Stage (those who are aware, informed, interested, and are
intended to buy.)

3.3 Products:-

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3.4 Product Line:-

3.5 Major Brands:-

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3.6 Market Share:-

www.financialexpress.com

3.7 Advertising Punch line/ Slogan:- “More Dreams In Every Car.”

3.8 Logo:-

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CHAPTER: - 04 FINANCIALS

4.1 Revenue:-

Year Mar-18 Mar-17 Mar-16 Mar-15 Mar-14

Revenue 60389.01 45297.4 44247.78 38176.15 38121.14

Revenue
70000

60000

50000

40000

30000

20000

10000

0
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

4.2 Profitability:-

Profit After Tax

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Profit Before Tax

4.3 MARKET CAPITALIZATION (RS CR):- 53,632.00

4.4 SEGMENTED REVENUE:-

Automotive Operations 2,93,453.33

Others 3,252.36
Total 2,95,409.34

4.5 AUDITORS:-

For B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/W-100022

Yezdi Nagporewalla Partner, Membership No: 049265.

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4.6 LISTING STATUS & SCRIPT CODE:-

BSE – 500570

NSE – TATAMOTORS

4.7 GLOBAL LISTING ON INTERNATIONAL STOCK MARKET: INE155A01022

4.8 FACE-VALUE PER SHARE (RS):- 2.00

4.9 CURRENT MARKET VALUE AS ON 09TH OCTOBER: -

NSE BSE
Prev.Close 212.35 212.75
Open price 205.70 205.80
Close price 184.35 184.25

4.10 ANNUAL LOW ANNUAL HIGH:-

Today’s Low Today’s High 52 week low 52 week high

BSE(Rs.) 170.65 206.00 170.65 466.95
NSE(Rs.) 170.30 206.00 170.30 468.00

4.11 PRICE TO EARNING RATIO:- 54.69

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4.12 SHARE HOLDING PATTERN ON 09TH OCTOBER:-

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CHAPTER: - 05 GOVERNANCE

5.1 PHILOSOPHY:-

Tata Motor is recognized for its world-class quality, Originality, engineering & design
excellence, the company is on the path of shaping the future mobility in India.
Sustainability and the spirit of ‘Giving Back to Society’ is Our Guiding Philosophy and
Good Corporate Citizenship is strongly embedded in Our DNA.

With a Large global Footprint, the Company has consolidated its position as the TATA
MOTOR’s Group through Mergers and Acquisitions. It has a Network of 76 Subsidiaries
in India and Internationally, which provides a Host of Engineering and Auto-motive
Solutions.

Some of The World’s Most Iconic Brands, Including Jaguar Land Rover in the UK and
TATA DAEWOO in South Korea Form Part of Auto-motive Operations of the group.

Tata Motors' Corporate Governance philosophy is further strengthened with the adherence
to the Tata Business Excellence Model as a means to drive excellence.

5.2 ACTION TAKEN BY SEBI IF ANY:-

The Securities and Exchange Board of India took action against TATA MOTOR’S vide
Order dated March 6, 2018 issued directions for the Company to conduct an internal
inquiry within 3 months into the leakage of information relating to its financial results for
the quarter ended December 2015 and to take appropriate actions against those responsible
as well as to submit its report within 7 days thereafter.

The Company has paid a penalty of `5.60 lakhs each, levied by BSE Limited and the
National Stock Exchange of India Limited, in respect of delayed filing of the listing
application for 266 Ordinary Shares and 80’A’ Ordinary Shares allotted, out of shares held
in abeyance, on settlement of an Inter-se dispute amongst the shareholders. This penalty
has been paid ‘under protest’ subsequent to various representations made by the Company.

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5.3 INVOLVEMENT IN SCAMS:-

MUMBAI, FEBRUARY 15

The office of Tata Sons Chairman Emeritus Ratan N Tata said to be involved in a
corruption case involving Israeli Prime Minister Benjamin Netanyahu and a claim of a
huge profit are “factually incorrect and appear to be motivated”.

The clarification follows media reports that said Tata’s name figures in the Israeli police’s
recommendations seeking to indict Netanyahu in two corruption cases.

Israeli proposal

The ‘Tata project’ was a proposal received by Tata in 2009 from the Israeli establishment,
seeking the assistance of the Tata organization in preparing a concept plan, as part of a
broader peace initiative with Palestine, for a low volume automotive assembly plant on the
banks of the Jordan river. The intention was to provide skilled employment to Palestinians,
Ratan Tata’s office said in a statement.

To be viable, the plan predicted the establishment of a free trade corridor to Haifa to
facilitate exports and offset higher logistics costs in Israel, it said.

“These discussions on the project were directly held between a Tata team and the Israeli
authorities, and not with Arnon Milchan (Israeli-born Hollywood mogul), as stated by the
Israeli media. Tata wishes to clarify once again that there has never been any partnership
in any such project with Milchan,” it added.

A broad concept plan for a low output automobile assembly plant was prepared by Tata
Motors. It never reached the stage of detailed planning or costing, as the peace initiative
itself was not put in place. The car project died a natural death. During Tata’s visit to Tel
Aviv on November 1, 2017 to address a conference on mobility, he met a team of Israeli
investigators at their request, and Stated Clearly these facts to them.

“Tata reiterates that the reports in the media of a ‘partnership with Arnon Milchan’ and the
claim of ‘a huge profit’ are both factually incorrect and appear to be motivated,” it added.

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Mistry claims fraud in Tata Group; SEBI to examine alleged financial lapses:

Markets regulator SEBI took action on the high profile Tata-Mistry case for any possible
breach of corporate governance norms and listing regulations at various listed companies
of the over USD 100 billion conglomerate.

In a fresh turn of events in the Tata-Mistry saga, leading stock exchanges BSE and NSE
sought clarification from various listed companies of Tata Group about purported
disclosure by the ousted chairman about USD 18-billion possible write down at these firms.

The exchanges have asked these companies, including Tata Motors, Tata Steel, Indian
Hotels, Tata Teleservices and Tata Power, to provide full details about these issues.

The Securities and Exchange Board of India (SEBI) is looking into the alleged disclosure
made in the purported letter written by Mistry to Tata Sons' board members including about
financial and other irregularities as also lapses on the corporate governance front, sources
said.
The notices from the stock exchanges followed reports about Cyrus Mistry, who was
ousted as the chairman of the group's main holding company Tata Sons, disclosing possible
write down to the tune of USD 18 billion faced by the conglomerate. The exchanges have
asked the companies to provide "clarification/confirmation on the news item in detail".

The companies have also been asked to explain "whether such event/negotiations/article
stated in published news were taking place?

"If so, you are advised to provide the said information along with the sequence of events
in chronological order and the material impact of this article on the company," the
exchanges said.

The companies have also been asked about "any information that has not been announced
to the exchanges" as required under the Listing Regulations.

The companies were yet to respond to the exchanges. Markets regulator SEBI is also
keeping a close tab on the high profile Tata-Mistry case and will look into any possible
breach of corporate governance norms and listing regulations at the listed companies of

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over USD 100 billion conglomerate. “We are taking note of each and every development
and will act immediately if there is any hint of possible violation of corporate governance
and listing norms or any other regulation under our jurisdiction," a senior official said.”

5.5 STANDARD & POOR’S CORPORATE GOVERNANCE SCORES:-

5.6 CRISIL RATING:-

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Bibliography

1. www.tatamotors.com
2. www.moneycontrol.com
3. www.financialexpress.com

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