A Project Report On

TATA MOTORS

In partial fulfillment for the requirements of Two-year Full Time MBA Programme of Gujarat Technological University

SUBMITTED TO:
Asst. Prof. Niyati dave Asst. Prof. Deepak Hadiya

SUBMITTED BY:
Vijay Khara Suresh Chavda Rutvij Jani Ravi Limbasiya Piyush

Batch: 2012-14

ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my teacher Prof. Niyati Dave and Prof. Deepak Hadiya who gave me the golden opportunity to do this wonderful project on the topic TATA MOTORS, which also helped me in doing a lot of Research and i came to know about so many new things. I am really thankful to them.

Secondly I would also like to thank my parents and friends who helped me a lot in finishing this project within the limited time.

Content
1. Introduction 2. Company profile 3. TATA MOTORS organization 4. The code of conduct for the directors in tata motors 5. Corporate governance of tata with certain rules 6. The code of ethics in tata motors 7. Swot analysis 8. Porter's five forces

Introduction
A promise is promise and I kept my promise- this is the historical statement which Mr. RATAN TATA said when he launched his ambitious TATA NANO; the peoples car in India on 23 rd march 2009. Tata has always given value products in the Indian Car Market whether it is path breaking recently launched TATA NANO or TATA INDICA (which created great brand into the car industry in the diesel segment). Not only is the passenger car, even into the heavy vehicle segment TATA is the only sole leader in India. TATA has created its brand value not only in India but even outside India it has created its brand by acquiring Jaguar-Land Rover, Corus Steel during 2007-08. TATA has been named among top 10 brand companies by Fortune Magazine in the year 2008. It has got into top 100 companies in the survey of Standard & Poor Modys research in the year 2008. Being into most valued brand in world the consumer satisfaction to its customers is very important for TATAS and thus they are continuously working into this area where their objective is to provide best products with full value of the money of their customers. The TATA INDICA VISTA has been one of those products you just cannot ignore. While it got media coverage around the world, the reactions, though mixed, flowed easily. On the one hand there has been pride in the Worlds mid size small car tag, as a great achievement for Indian industry. The Worlds mid size small Car tag has been well received with the hope that a whole new category of people can look to buy a car now.

Companys profile

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The Tata Motors Groups over 55,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.'' Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts network comprises over 3,500 touch points. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate

companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. JLR supports two state of the art engineering and design facilities and three manufacturing plants (Solihull, Castle Bromwich & Halewood) in the UK. In 2004, Tata Motors acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd., has its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gauteng province of South Africa. The plant can assemble, from semi knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 - 50 tonnes. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal. The foundation of the company's growth over the last 66 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 4,500 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle,

India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed minitruck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. In October 2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover. The Tata Aria redefines several benchmarks with its design and technologies, offering class leading features that take comfort and safety to a new height. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative health care. The goal of environment protection is

achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Organization structure

The Board: No separate office is maintained for the Non-Executive Chairman. Being the Group Chairman, the Company does not reimburse expenses incurred by the Non-Executive Chairman for maintenance of a separate Chairmans office. No specific tenure has been specified for the Independent Directors. Mr Setna and Mr S A Naik, Independent directors, have tenures, in the aggregate, exceeding a period of nine years. Shareholder Rights: A half yearly declaration of financial performance, including summary ofsignificant events in the last six months, is sent to all the shareholders. The Financial Results are alsoput up on the Companys website, besides being available on the SEBIs website www.sebiedifar.nic

Audit Qualifications: During the year under review, there was no audit qualification in the Companys financial statements. The Company continues to adopt best practices to ensure a regime of unqualified financial statements. Training of Board Members: The Directors interact with the management in a very free and open manner on information that may be required by them on orientation and factory visits. The independent Directors are encouraged to attend training programmes that may be of relevance and interest to the Directors in discharging their responsibilities to the Companys stakeholders under the emerging business environment. Mechanism for evaluation of non-executive Board members: The performance evaluation of non-executive members is done by the Board annually based on criteria of attendance and contributions at Board/ Committee Meetings as also role played/ contributions other than at Meetings. Whistle Blower Mechanism: The Audit Committee had, at its Meeting held on August 9, 2004, framed a Whistle-Blower Policy and the same was reviewed and amended by the Audit Committee on January 19,2009. The Policy provides a formal mechanism for all employees of the Company to approach the Management of the Company (Audit Committee in case where the concern involves the Senior Management) and make protective disclosures to the Management about unethical behaviour, actual or suspected fraud or violation of the Companys Code of Conduct or ethics policy. The Whistle Blower Policy is an extension of the Tata Code of Conduct, which requires every employee to promptly report to the Management any actual or possible violation of the Code or an event he becomes aware of that could affect the business or reputation of the Company.

THE CODE OF CONDUCT FOR THE DIRECTORS IN TATA MOTORS

The Company expects all Directors to exercise good judgment, to ensure the interests, safety and welfare of customers, employees, and other stakeholders and to maintain a cooperative, efficient, positive, harmonious and productive work environment and business organization. The Directors while discharging duties of their office must act honestly and with due diligence. They are expected to act with that amount of utmost care and prudence, which an ordinary person is expected to take in his/her own business. These standards need to be applied while working in the premises of the Company, at offsite locations where the business is being conducted whether in India or abroad, at Company-sponsored business and social events, or at any other place where they act as representatives of the Company. A. adherence to the highest standards of honest and ethical conduct, including proper and ethical procedures in dealing with actual or apparent conflicts of interest between personal and professional relationships. B. full, fair, accurate, timely and meaningful disclosures in the periodic reports required to be filed by the Company with government and regulatory agencies. C. Compliance with applicable laws, rules and regulations. D. To address misuse or misapplication of the Company's assets and resources. E. The highest level of confidentiality and fair dealing within and outside the Company.

CORPORATE GOVERNANCE OF TATA WITH CERTAIN RULES

In TATA the corporate governance is managed very well with certain rules which are given below and there are some people assigned to address the issue, so overall the corporate governance in TATA is in very sound position as their disclosures during annual report or quarterly report and very clear to the share-holders and investors also, provided their codes of ethics are also very strong. 1. Any employee/business associate who becomes aware of a suspected wrongful conduct is encouraged to send his/her observations/concrete facts to the Direct Touch Team either through phone or written communication complete with related evidence (to the extent possible) without fear of reprisal or retaliation of any kind. 2. The information on suspected wrongful conduct is such information which the Employees/business associates in good faith, believe, evidences: a. A violation of any law or regulation, including but not limited to corruption, bribery, theft, fraud, coercion and willful omission b. Pass back of Commissions/benefits or conflict of interest c. Procurement frauds d. Mismanagement, Gross wastage or misappropriation of company funds/assets e. Manipulation of Company data/records f. Stealing cash/company assets; leaking confidential or proprietary information g. Unofficial use of Companys material/human assets h. Activities violating Company policies including Code of Ethics and Conduct i. A substantial and specific danger to public health and safety j. An abuse of authority

THE CODE OF ETHICS IN TATA MOTORS

Commitment to ethical professional conduct is a MUST for every employee at TATA- in all of its businesses/ units/ subsidiaries. The code is intended to serve as a basis for ethical decision-making in the conduct of professional work. Contribute to society and human well-being This principle concerning the quality of life of all people affirms an obligation to protect fundamental human rights and to respect the diversity of all cultures. So employee in TATA attempts to ensure that the products of their efforts will be used in socially responsible ways, will meet social needs and will avoid harmful effects to health and welfare of others. In addition to a safe social environment, human well-being includes a safe natural environment. Therefore, all who are accountable for the design, development, manufacture and promotion of TATA products, must be alert to, and make others aware of, any potential damage to the local or global environment. Avoid harm to others "Harm" means injury or negative consequences, such as loss of property, property damage or unwanted health and environmental impacts. This principle prohibits use of men, material and technology in ways that result in harm to our consumers, employees and the general public. Well-intended actions, including those that accomplish assigned duties, may lead to harm unexpectedly. In such an event, the responsible person or persons are obligated to undo or mitigate the negative consequences as much as possible. Be honest and trustworthy: Honesty is an essential component of trust. Without trust an organization cannot function effectively. So they are expected not to make deliberately false or deceptive claims about their products/ systems, but instead provide full disclosure of all pertinent limitations and problems Be fair and take action not to discriminate The values of equality, tolerance, respect for others, and the principles of equal justice govern this imperative. Discrimination on the basis of race, sex, religion, age, disability, national origin, or other such factors is an explicit violation of this code.

Practice integrity in our inter-personal relationships In their relationships with colleagues, all should treat them with respect and in good faith; in the same way we ourselves would expect them to treat us. The principle to be adopted to guard against loose talk or in its worst formcharacter assassination- is not to say anything behind ones back and never utter something, which cannot be put in writing. Honor confidentiality The principle of honesty extends to issues of confidentiality of information. The ethical concern is to respect all obligations of confidentiality to all stakeholders unless discharged from such obligations by requirements of the law or other principles of this code. SPECIFIC PROFESSTIONAL RESPONSIBILITY Ownership This is our company. We accept personal responsibility and accountability to meet business needs. Passion for winning We all are leaders in our area of responsibility with a deep commitment to deliver results. We are determined to be the best at doing what matters most. People development People are our most important asset. We add value through result driven training and we encourage & reward excellence. Consumer focus We have superior understanding of consumer needs and develop products to fulfill them better. Teamwork We work together on the principle of mutual trust and transparency in a boundary less organization. We are intellectually honest in advocating proposals, including recognizing risks. Innovation Continuous innovation in products and processes is the basis of our success.

SWOT ANALYSIS
STRENGTH:
1.Strong Presence in the Marketplace:-Tata Motors is the only company in India with a broadbased presence across the industry, in all segments of the commercial vehicles market heavy and medium commercial vehicles, light commercial vehicles, pick-ups, sub one-tonne mini-trucks - and key segments compact, midsize car and utility vehicle segments - of the passenger vehicles market. 2.Unique Understanding of Customer Need:- With 50 years presence in the automotive business,Tata Motors understands customer needs and develops products that meet their needs.To consider a few examples, as early as 1980s, the company launched Light Commercial Vehicles, amidst Japanese competition, in which it today strongly leads. In the 1990s, anticipating the need for an affordable family car, it launched the now famous Tata Indica, which occupies a leading position among compact cars. 3.Skill Base Developed Over the Last 40 Years:-Tata Motors is also very wellplaced on technology capability.The company had set up its Engineering Research Centre as early as 1966.With 1400 scientists and engineers and stateof-the-art development, testing and validation facilities, it is this technology capability which has, allowed Tata Motors, over the decades, to offer indigenouslydeveloped products.This strength has been accentuated, with the inclusion of TMETC,TDCV and Hispano Carrocera in the R&D network, besides several other specialist external agencies.The company no longer needs to develop every necessity itself.Today it just has to manage the process of product creation, drawing upon already available R&D and skills from different sources. 4.People Strength:- The companys key strength is its people.The over 22,000 employees comprise a very broad talent base, with the required skills in every aspect of the industry.With increasing international initiatives by the company, this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost. The company will achieve this by developing and marketing relevant products, on its existing platforms and new ones, which delight consumers in every market they are introduced in.

5.Tata Motors linkages in Europe through Subsidiary Companies:- In October 2005,Tata Technologies Ltd, a 100 per cent subsidiary of Tata Motors, acquired a 94.3 per cent stake in INCAT International Limited. INCAT is a supplier of engineering & design, product lifecycle management and product-centric IT services to the automotive, aerospace and durable goods industries. 6.Tata Motors R&D in Europe:- Deepening its engagement with the European R&D space, in September 2005,Tata Motors set up the Tata Motors European Technical Centre, a 100 per cent subsidiary, in the UK. It is engaged in design engineering and development of products for the automotive industry.Working synergistically,TMETC provides the company with design engineering support and development services, complementing and strengthening the companys skill sets and providing European standards of delivery to the companys passenger vehicles. 7. Engineering:-The Tata group has a robust presence in engineering, with operations in automobiles and auto components and a variety of other engineering products and services. 8.Materials:- The Tata group is among the global leaders in this business sector, with operations in steel and composites. 9.Services: The Tata group has widespread interests in the hospitality business, as also in insurance, realty and financial and other services. 10. Energy: The Tata group is a significant player in power generation and is also involved in the oil and gas segment. 11.Chemicals: The Tata group is one of the largest producers of soda ash in the world. Additionally, it has interests in fertilisers and in the pharmaceuticals business.

OPPURTUNITIES:
1. Indias huge geographic spread-This is one aspect where the company is looking for and its diversified range of cars suits very much this area of car or say auto industry in country. 2. Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country. 3. Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days.

4. Increasing Road Development, Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand. 5. Increasing dispensable income of rural agri sector-Some how this year the rural demand was very enthusiastic than the urban market which drive the auto industry so, the development of rural infrastructure and condition will create handsome demand from the rural area. 6. Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon. 7. Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so, this is also very good opportunity for this sector. 8. Graduating from Two wheeler to Four wheeler-The dream of NANO will boost demand for four wheeler in the auto industry.

THREAT:
1. Indian is lacking in proper infrastructure this is slowing the pace of growth of auto industry 2. Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss. 3. High competition from foreign players-As the giants like GM, Audi, MERC etc are trying to capture the high segment market it is one of the very effective threat to the company.

WEAKNESS:
1.The current financial situation of its recently acquired firms like Corus and Land Rover-Jaguar is very big headache for the company and it should be back to the track in the near future. 2. The high ratio of debt equity ratio is also weakness of the company. 3. The small car segment is still not good for the company due to marutisuzuki so, it need to tap this section also.

Porter's five forces

Porter's five forces analysis is a framework for the industry analysis and business strategy .It uses concepts developed in Industrial Organization economics to derive five forces, which determine the competitive intensity and therefore attractiveness of a market.

The Five Forces:

1.The threat of substitute products-As we know the Indian customers choices range from mileage, pick-up, power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product. 2.The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth. 3.The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect. 4.The bargaining power of customers-Another important aspect for a car or auto company where they have to manage the pricing control of their product to spurt the sales in the market. 5.The bargaining power of suppliers- The distribution channel is very important in country like India where the demand is highly different with all across its dimension so, supply is very much required in the industry for a company.

REFERENCE
1. 2. 3. 4. www.wikipedia.com www.google.com www.tatamotors.com www.scribd.com