Description
Tata Motors Li mi ted, the leading automotive vehicle manufacturing company in India in terms of
revenues and one of the largest private sector companies in India in terms of revenues and assets.
The Company is the largest company in terms of revenues in the Tata Group, which is one of the
leading business groups in India.
The wide array of commercial vehicles from Tata Motors is designed to take care of almost every
business needs, big and small. From rigid trucks to tractor trailers, from light commercial vehicles to
specialised defence carriers, from luxury buses to compact city carriers, we have it all.
Commercial Vehicle Business Unit (CVBU) manufactures and markets commercial vehicles ranging
from 1.5 tonnes Gross Vehicle Weight (GVW) pick-ups to buses to 49 tonnes GVW heavy trucks. The
specifications of our trucks have become brand names in the market place such as 407, 709, 207DI,
2516, 4021, EX series, etc.
TATA MOTORS LIMITED
CORPORATE SUSTAINABILITY REPORT
(2007-08)
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
2
GRI CONTENT INDEX
Section
Aspect
Indi cator
Page #
Statement from MD
1.1
8-9 1. Pr ofil e
Description of key issues, risks and opportunities
1.2
21-23
Name of the Organisation
2.1
13
Primary brands, products and services
2.2
13
Operational Structure
2.3
13
Location of HQ
2.4
13
Countries with major operations
2.5
14
Nature of ownership and legal form
2.6
14
Markets served
2.7
14
Scale of the Organisation
2.8
14
Significant changes in size, structure or ownership
2.9
15
2. Or gani sati onal
Pr ofi l e
Awards Received
2.10
15-18
Reporting Period
3.1
20
Recent previous Report
3.2
20
Reporting cycle
3.3
20
Contact persons
3.4
20
Report content
3.5
2-6
Boundary of the report
3.6
23
Limitations of the Report
3.7
23
Basis for reporting on subsidiaries and associate
companies
3.8
23
Data Measurement Techniques
3.9
23
Restatements
3.10
23
Significant changes from previous reporting periods
3.11
23
GRI Content Index
3.12
2-6
3. Repor t
Par ametr es
Policy and current practices for seeking external
assurance
3.13
23
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Governance structure and Board composition
4.1
25-26
Non-executive status of the chair
4.2
25-26
Independent and/or non-executive members
4.3
25-26
Mechanism for shareholders and employees to provide
recommendations to the highest body
4.4
27-28
Linkage between compensation and performance of the
Board
4.5
28-29
Process to avoid conflicts of interest
4.6
29
Process to determine expertise of Board members
4.7
29
Statements and application of mission, values and code
of conduct
4.8
10-11 & 29-30
Overseeing of risks and opportunities by governance
bodies
4.9
27
Evaluating the performance of highest governing body
4.10
30
Approach to risk management in operational planning
4.11
30-31
Charters, initiatives and principles that the organization
subscribes to
4.12
32
Membership in associations and national/international
organizations
4.13
32
Stakeholder engagement
4.14
32
Identification and selection of stakeholders
4.15
21
4. Gover nance,
Commi tments and
Engagement
Approach to stakeholder engagement
4.16
32
Economic performance
EC1
36-40
Significant financial assistance received from the
government
EC4
40
Range of ratios of standard entry level wage compared
to local minimum wage at significant locations of
operation
EC5
41
Policy, practices and proportion of spending on locally-
based suppliers
EC6
41
Procedure for local hiring
EC7
41
5, Economi c
Per for mance
Indi cator s
Indirect economic impacts
EC9
41-42
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Materials used
EN1
45
Recycled input materials
EN2
45-46
Direct energy consumption
EN3
46
Indirect Energy Consumption
EN4
46
Energy saved
EN5
46-47
Initiatives to provide energy-efficient products and
services
EN6
47-48
Initiatives to reduce indirect energy consumptions
EN7
47-48
Total water use
EN8
48
Water sources significantly affected
EN9
48
Total recycling and reuse of water
EN10
48
Location and size of land owned, leased or managed in
biodiversity rich habitats
EN11
48
Impacts of activities, products and services on
biodiversity
EN12
48
Habitats protected or restored
EN13
49
Strategies, current actions and plans for managing
impacts on bio-diversity
EN14
49
Number of IUCN red list species and national
conservation list species with habitats in areas affected
by operations
EN15
49
Total direct Greenhouse Gas emissions
EN16
50
Total indirect Greenhouse Gas emissions
EN17
50
Initiatives to reduce Greenhouse Gas emissions
EN18
50
Emissions of ozone-depleting substances
EN19
51
NO, SO and other significant air emissions
EN20
51
Total water discharge
EN21
52
Total waste by type and disposal method
EN22
52-53
Total number and volume of significant spills
EN23
53
Weight of waste deemed hazardous
EN24
53
Initiatives to mitigate environmental impacts of products
and services
EN26
54-55
Packaging materials that are reclaimed
EN27
55
6. Envi ronmental
Per for mance
Indi cator s
Fines and sanctions for non-compliance with
environmental laws
EN28
56
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Environmental impacts of transporting organisation’s
products
EN29
56
Environmental protection expenditure and investments
EN30
56
Total workf orce
LA1
59
Total rate of employee turnover
LA2
59
Percentage of employees covered by collective
bargaining
LA3
59-60
Percentage of employees covered by collective
bargaining agreement
LA4
60
Minimum notice period(s) regarding operational
changes, including whether it is specified in collective
agreements
LA5
60
Workforce represented in joint management-worker
health and safety committees
LA6
61
Rates of injury and work-related fatalities
LA7
61
Education, training and risk control programmes to
assist workforce, their families and community
members regarding serious diseases
LA8
61-63
Health and safety topics covered in formal agreements
with trade unions
LA9
63
Average hours of training per year per employee by
employee category
LA10
63
Programmes for skill management and managing
career endings
LA11
63-64
Employees receiving regular performance and career
development reviews
LA12
63-64
Breakdown of employees by category and gender
LA13
65
6. Soci al
Per for mance
Indi cator s
Ratio of basic salary of men to women by employee
category
LA14
65
Human rights screening for suppliers and contractors
HR2
66
Employee training on policies and procedures regarding
aspects of human rights
HR3
66-67
Total number of incidents of discrimination
HR4
67
Managing risk to freedom of association
HR5
67-68
Efforts to eliminate child labour
HR6
68
Efforts to eliminate forced and compulsory labour
HR7
68-69
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Incidents of violations concerning rights of indigenous
people
HR9
69
Programmes and practices to assess and manage
impacts on communities
SO1
70
Business units analysed for risks related to corruption
SO2
70-71
Employees trained in organisation’s anti-corruption
policies and procedures
SO3
71
Contributions to political parties
SO6
71
Legal actions for anti-competitive, anti-trust and
monopoly practices
SO7
71
Customer health and safety
PR1
72
Total number of incidents of non-compliance with
regulations concerning health and safety impacts of
products and services
PR2
72
Product and service labeling
PR3& 4
72-73
Adherence to Regulations regarding Marketing
Communications
PR6
73
Complaints regarding breaches of consumer privacy
PR8
73
GRI Applicat ion Level
G3 Management
Approach Disclosures
G3 Profile
Disclosures
G3 Performance
Indicators
1.1 to 4.15 included in
the Report
Beginning of each
section
Reported on 67
performance
indicators
A
S
E
L
F
D
E
C
L
A
R
E
D
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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1
Strategy and Analysis
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Ladies and Gentlemen,
I am delighted to make public Tata Motor’s Sustainability Report which provides a balanced and
reasonable presentation of the Company’s economic, social and environmental performance.
The year 2007-08 was a historic year for Tata Motors, marked with two significant events- the
unveiling of Tata Nano - the world’s least expensive car, and the signing of the definitive agreement
with Ford Motor Co. for the purchase of J aguar and Land Rover, which has since been completed on
J une 2, 2008. Besides this, the Company achieved its highest ever sales of 585,649 vehicles to
remain India’s largest automobile company by turnover.
While the Company achieved new heights in the worldwide automobile industry, the overall economic
environment threw many challenges during the year. The moderation in economic growth in the
Indian economy impacted demand to some extent. The Company’s margins were under pressure due
to rising interest rates, constraints in availability of vehicle financing, and an unprecedentedincrease
in raw material prices.
Notwithstanding all these challenges, the Company continued to strengthen its social development,
environmental management and bio-diversity conservation programmes, in line with the Tata Group’s
commitment of improving the quality of life of the community it serves. The Company’s heritage of
returning to the society what it earns evokes trust among the consumers and other stakeholders. Tata
Motors has been continuously launching environment friendly products in the markets by using the
latest technologies available. While a number of models are already available with the LPG and CNG
technologies, the Company is also actively pursuing electric vehicles programmes. Further, the
Company is committed to meet all emission norms in its products that are enforcedfrom time to time
in India and the international markets where it operates. This is evident from the fact that the small
car Nano, which is expected to be launched in the near future, has also been designed to meet BS3
emission standards despite the stiff cost targets of the project.
All the manufacturing facilities of Tata Motors are certified to meet ISO: 14001 Environment
Management System (EMS) standards. The manufacturing plants have reduced power and water
consumption per unit of vehicle by pursuing various energy and water conservation initiatives. Rain
water harvesting continues to be a focussed activity at the manufacturing plants and the Company
continues to successfully run its Rain Water Harvesting project in J amshedpur manufacturing unit.
The manufacturing unit at Pune, Maharashtra has consumed around 50 million units of wind energy
annually since 2001 as part of the Clean Development Mechanism of the United Nations.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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The Company has well-defined thrust areas for its community development initiatives which are
linked to national and international goals and standards, including the Human Rights Charter, Bharat
Nirman Programme and the Millennium Development Goals. Over a thousand youth from rural areas
adopted by the Company were trained in various technical and vocational trades. 350 of these youth
were trained at the Singur site in West Bengal, where the small car project was supposed to come up.
As part of the women empowerment programme, over a thousand women were trained in sewing,
manufacturing food products and beautician courses.
The Company’s contribution in the national development, environmental conservation andsocietal
value creation has been acknowledged at various forums. The J amshedpur plant was awarded the
National Energy Management Award by CII and declared the “Energy Efficient Unit 2007”. It also
received a trophy and award for Outstanding Performance by CII- ER Energy Conservation (ENCON)
Award 2007- 08 Contest. Tata Motors is also the only Indian automobile company that has earned the
distinction of “Notabl e COP” for the third consecutive year in 2006-07.
Tata Motors is confident that the wealth generated as a result of development would not only power
the business but would also be ploughed back in the conservation and enrichment of environment
and for greater prosperity of the community.
Your’s truly,
Ravi Kant
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
10
The vision, mission and core values for the two business units of Tata Motors, Passenger Car and
Commercial Vehicle are given below:
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Tata Motors Ltd. CorporateSustainabilityReport 2007-08
12
2
Organi sati onal Profi l e
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Name of the Organi sati on
Tata Motors Limited, the leading automotive vehicle manufacturing company in India in terms of
revenues and one of the largest private sector companies in India in terms of revenues and assets.
The Company is the largest company in terms of revenues in the Tata Group, which is one of the
leading business groups in India.
Pri mary brands, products and serv i ces
The wide array of commercial vehicles from Tata Motors is designed to take care of almost every
business needs, big and small. From rigid trucks to tractor trailers, from light commercial vehicles to
specialised defence carriers, from luxury buses to compact city carriers, we have it all.
Commercial Vehicle Business Unit (CVBU) manufactures and markets commercial vehicles ranging
from 1.5 tonnes Gross Vehicle Weight (GVW) pick-ups to buses to 49 tonnes GVW heavy trucks. The
specifications of our trucks have become brand names in the market place such as 407, 709, 207DI,
2516, 4021, EX series, etc.
Passenger Cars Business Unit (PCBU) manufactures and markets cars (Indica and Indigo brand)
along with marketing of utility Vehicles like Sumo and Safari.
Tata Motors through its Engineering Research Centre provides design and development capabilities.
Both the business units of Tata Motors reach customer via large network of dealers, Tata Authorised
Service Stations, Tata Authorised Service Centres and spare parts distributors.
Operati onal structure of the organi zati on, i ncl udi ng mai n di v i si ons, operati ng compani es,
subsi di ari es, and j oi nt v entures
Tata Motors is a fully integrated automobile company. Today, it is the only automobile manufacturer
to offer the entire range of commercial vehicles for transportation of goods and passengersand also
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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passenger cars in India through its two business unit viz. Commercial Vehicle Business Unit (CVBU)
and Passenger Car Business Unit (PCBU).
Over the years, Tata Motors has made substantial investments in building subsidiary and associate
companies that add value, facilitate and support its diverse range of business activities: Telco
Construction Equipment Co. Ltd. (Telcon), Tata Technologies Ltd. (TTL), HV Axles Ltd. (HVAL), HV
Transmissions Ltd. (HVTL), TAL Manufacturing Solutions Ltd. (TAL), Tata Marcopolo Motors Limited
(TMML), Tata Motors (SA) Proprietary Limited (TMSA), Tata Motors (Thailand) Limited (TMTL), Tata
Motors European Technical Centre (TMETC), Tata Motors Finance Limited (TMFL), Tata Motors
Insurance Broking and Advisory Services Limited (TMIBASL), Sheba Properties Ltd., Tata Daewoo
Commercial Vehicle Company Ltd (TDCV), TML Distribution Company (TDCL), Automobile
Corporation of Goa Limited (ACGL), Fiat India Automobiles Private Limited (FIAPL), Tata Cummins
Ltd. (TCL), Tata AutoComp Systems Ltd. (TACO), Tata Precision Industries Pte Ltd., Hispano
Carrocera S.A. and Nita Company Ltd.,
Locati on of organi zati on’ s headquarters
Tata Motors Limited,
Bombay House,
24 Homi Modi Street, Mumbai 400 001, India
Phone – 91 22 56658282
Countri es where the organi zati on operates, and
Names of countri es wi th maj or operations
We have subsidiary/associate companies outside of India as under:
• Tata Daewoo Commercial Vehicle Co. Ltd., Korea
• Nita Company Limited, Bangladesh
• Tata Precision Industries Pte. Ltd., Singapore
• Tata Technologies Limited, USA/UK
• Tata Motors European Technical Centre, UK
• Tata Motors (SA) Proprietary Limited, South Africa
• Tata Motors (Thailand) Limited, Thailand
• Hispano Carrocera S.A., Spain
In addition to the above, we also have a liaison office in Dubai which caters to promoting our
international business for the Middle East and Africa region.
Nature of ownershi p and l egal form
Tata Motors Limited is a public limited company listed on 2 stock exchanges (Bombay Stock
Exchange and National Stock Exchange of India Limited) in India. Company’s Depositary Receipt
Programme is listed on the New York StockExchange.
Markets serv ed
Tata Motors has major operations in India with sales and marketing operations in more than 70
countries. The scope of this report though, includes only Indian operations.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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More details are available at Tata Motors website http://www.tatamotors.com
Scal e of the reporti ng organi zati on:
Key elements depicting the scale of the organisation in 2007-08 is given in the table below:
Number of per manent employees as on March 31, 2008 23,230
Net sales for FY 2007-08
Rs. 330.94 billion
Volumes of products sold
585,649
Total net assets as on March 31 ‘08
Rs. 150.96 billion
Gross debt
Rs. 62.81 billion
Share Capital
Rs. 3.86 billion
Largest Shareholder
Tata Sons Ltd. with 21.92% to paid-up capital
Sharehol di ng
The Company is a widely held, listed company (including on the New York Stock Exchange), with
approximately 292,090 shareholders. The Company’s international offerings of Foreign Currency
Convertible Bonds are listed on the Luxembourg/Singapore Stock Exchanges. The sharehol ding
pattern as on March 31, 2008 for the Company is given below:
Categor y
No. of shar es
% of hol di ng
Promoters 128819405 33.42
NRIs, Foreign Companies & ADRs 79068379 20.51
Government Companies, Financial Institutions, Banks
and Insurance Companies
57079243 14.81
Mutual Funds & Unit Trust of India 10160944 2.63
Foreign Institutional Investors 65388543 16.96
Others 44987440 11.67
Total
385503954
100
Si gni fi cant changes duri ng the reporti ng peri od regardi ng si ze, structure, or ownershi p
Tata Motors acqui red Land Rov er and Jaguar, part of Premi er Automoti v e Group of Ford
Motor Company for US$ 2.3bi l l i on on cash free, debt free basis. The two enterpri ses were
formal l y transferred on June 2, 2008 at a si gni ng ceremony at the Jaguar and Land Rov er
headquarters i n West Mi dl ands. To fund thi s acqui si ti on, Tata Motors i s rai si ng Rs. 72000
mi l l ions on a ri ghts basi s and US $500/600 mi l l i on through an international offeri ng of equi ty
and/or cost effecti ve quasi equi ty i nstruments. Jaguar and Land Rov er achi eved rev enues of
US$ 19.09 bi l l i on for the fi nanci al year 2007-08.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
16
Awards recei v ed i n the reporti ng period
Business Rel ated:
Auto Moni tor Commerci al Vehi cl e Manufacturer of the Year
• Tata Motors has received the Auto Monitor Commercial Vehicle Manufacturer of the Year
award for the year 2007. The Auto Monitor awards are given to honor the best in the Indian
automotive industry for their contribution to the sector in the calendar year 2007. The seven-
member jury that comprised of senior people from the industry and Auto Monitor editorial
team adjudicated the nominations across 10 categories and decided on the winners.
Tata Motors among Indi a’ s Most Trusted Brand i n cars
• Tata Motors has been chosen as one of India’s Most Trusted Brand in cars for the second
consecutive year, in a Readers Digest/AC Neilsen consumer survey. Tata Motors received
the Readers Digest Trusted Brands Gold Award based on feedback from over 7000
respondents.
Tata Motors recei v es the Gl obal Game Changer Award
A speci al award at the Innovati on for Indi a Awards 2008
• Tata Motors has received the Global Game Changer Award at the 'Innovation for India
Awards 2008', organised by the Marico Innovation Foundation. This special award salutes the
company's passion and zeal behind the creation of the Nano. The awards recognise great
innovations in India that have a great idea coupled with a unique insight, and have positively
impacted lives. This year, the foundation received 206 entries. Mr Ravi Kant, Managing
Director, accepted the award from Mr Harsh Mariwala, Chairman and Managing Director,
Marico and Dr Mashelkar, Chairman of the Marico Innovation Foundation, on March 19,
2008.
Tata Motors recei ves Upti me Champi on Award 2007
• Tata Motors has received the Uptime Champion Award 2007 in the 'General Industry'
category. The award by Emerson NetworkPower and Express Computer is given to an
organisation that is working to improve overall reliability of its IT (Information Technology)
infrastructure and has implemented a solution that guarantees optimal infrastructure uptime
24x7. Mr C P Lohiya, Dy. General Manager (Information Technology), Tata Motors, accepted
the award on behalf of the company.
Tata Motors bags the “ Best Company Award”
• Tata Motors, Pune was declared as the “Best Company” at 20
th
National Work Skills & 2
nd
CII
World Skills Competitions conducted jointly by CII and the Directorate General of
Employment and Training (DGET), Ministry of Labour, Govt. of India. Tata Motors secured
fourteen rankings in seven trades
Passenger Car Busi ness Uni t bags Handa Gol den Key Award
• The Passenger Car Business Unit of Tata Motors bagged the Handa Golden Key Award 2007
for the 'Best Value Engineering Organisation'. The award is conferred by the IndianNational
Value Engineering Society (INVEST).
TRAKIT bags si l v er award for 'Excel l ence i n Desi gn'
• TRAKIT won the silver award for 'Excellence in Design' in the 'Electronics' category at the
20th International Appliance Design Excellence in Design Awards 2007, USA. TRAKIT is a
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
17
vehicle tracking telematic device developed by Tata Motors for Indian truck driversand fleet
owners.
Process Related:
Tata Motors bags Nati onal Award for Excel l ence i n Cost Management
• Tata Motors has won the National Award for Excellence in Cost Management for the year
2006, conferred by the Institute of Cost and Works Accountants of India (ICWAI). Tata Motors
bagged the first prize in the ''Manufacturing'' category in the private sector.
'NDTV Profi t' Busi ness Leadershi p Award for Tata Motors
• Tata Motors has received the coveted ''NDTV Profit'' Business Leadership Award in the
category of four-wheelers for the year 2007. Mr. Rajiv Dube, President -Passenger Car
Business Unit, received the award on behalf of the company.
Tata Motors - CVBU bags 'Hi ghest Del ta Award' for Busi ness Excel l ence
• Tata Motors CVBU has crossed the score band of 551-650 in the Tata Business Excellence
Model 2007 assessment and has moved into the ''Industry Leader'' (651-750 score) band.
• CVBU has won the ''Highest Delta Award'' in the 600+point category. This award is given to
an organisation that displays the highest jump in its scores from the previous year.
Tata Motors awarded SAP Customer Excel l ence Award
• Tata Motors has been awarded the SAP ACE Customer Excellence Award for the year 2007
in the "Best Project in the Automotive Vertical (Large Enterprise)" category. The award was
conferred on Tata Motors for the exceptional results in business transformation using the
SAP-SRM (Supplier Relationship Management) and SAP Warehouse Managementsolutions.
Aggregates Busi ness of CVBU bags Best Suppl i er Award from ECEL
• The Aggregates Business of Tata Motors' Commercial Vehicle Business Unit has won
the 'Best Supplier Award' from Escorts Construction Equipment Ltd (ECEL). This award has
been presented to Tata Motors in recognition for supporting ECEL's business growth plans
through the supply of high tech aggregates including engines, gear boxes and axles. Mr PVS
Prasad, Head- Aggregates Business, Tata Motors accepted the award on behalf of the
Company
Gol den Peacock Award for Occupati onal Heal th & Safety
• Tata Motors Pune - CVBU bagged the Golden Peacock Award for Occupational Health &
Safety. The award was received by Mr. A. K. Ghose, DGM (HR, CVBU - Pune) and Mr. V.
Gandhi, DGM (Auto, CVBU - Pune)
Tata Motors wi ns Best Paper Award at the Asi an Network for Qual i ty Congress 2007
• Tata Motors has won the 'Best Paper Award' among 120 papers presented at the Asian
Network for Quality (ANQ) Congress 2007. Mr. A. S. Parasharami, DGM (B E S - Pune)
received the award for his paper on the 'Appl i cati on of 3P (Producti on Preparation Process)
concept at Tata Motors'.
Tata Motors Commerci al Vehi cl e Busi ness Uni t bagged the Fi rst pri ze in “ Excellence in
Suggesti on Scheme Contest 2007”
• Tata Motors CVBU Pune has bagged the First prize in “Excel l ence i n Suggestion Scheme
Contest 2007” (in group V) from the Indian National Suggestion Schemes' Association
(INSSAN). The award is given to organisations who have achieved the highest levels of
employee involvement and excellence through Suggestion Scheme.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Commerci al Vehi cle Busi ness Uni t wi ns Raj i v Gandhi Nati onal Qual i ty Award for 2007
Tata Motors, CVBU Pune has won the prestigious Rajiv Gandhi National Quality Award for
2007. CVBU Pune received this award in the large scale manufacturing organisation
category. The Rajiv Gandhi National Quality Award is instituted by the Bureau of Indian
Standards (BIS), New Delhi and has criteria similar to prestigious international quality awards
like the Malcolm Baldrige National Quality Award USA, the European Quality Awardand the
Deming Prize, J apan.
Recogniti ons:
Sumo, Indi ca among 'Most Trusted Brands' of Indi a
• The Sumo and the Indica have once again been adjudged among the ''Most Trusted Brands''
of India. The annual ''Most Trusted Brands'' survey is conducted among consumers across
the country by ''Brand Equity'', the marketing and advertising supplement of ''The Economic
Times''. The Sumo is ranked No.3 (up from No.5 last year), while the Indica retains its No.7
position - both above all other car brands
Tata Motors Indi a's 5th most v al uabl e brand
• Tata Motors has been ranked as the 5th most valuable ''company brand'' - the face of the
business for all stakeholders - in India. The study was conducted by The Economic Times
and Brand Finance. The study indicated that Tata Motors is also among the 14 companies in
India in terms of its ability to sustain earnings into the future with the least risk.
Tata Motors among most reputed Indi an fi rms
• Tata Motors has emerged as one of the most reputed corporates in India according to the
Corporate Reputation Index by global consultancy firm, TNS. Tata Motors shares the second
spot with Tata Steel and Hindustan Lever
Tata Motors among 10 Most Respected Companies i n Indi a
• Tata Motors is among the top 10 Most Respected Companies in India. Ranked at #8, Tata
Motors is the only automobile company in the top 10. The findings are of the Business World
'Most Respected Companies Survey - 2007'.
Tata Motors among Asi a's 50 best performi ng compani es
• Business Week has listed Tata Motors among Asia's 50 best performing companies. The
other Indian companies, among the 50 best, are TCS, Tata Steel, HDFC, Hero Honda
Motors, Siemens India, Sterlite Industries and Cipla. Business Week says that these
companies have been powered by robust revenue growth, profitability and shareholder
returns.
Indi v i dual Awards
Mr Kwang-Ok Chae, President - Tata Daewoo, honoured wi th the 'CEO of Korea' award
• Mr Kwang-Ok Chae, President - Tata Daewoo, was conferred with the ''CEO - Korea Award
2007'', by the Economic Review magazine of South Korea. The award is given to an
outstanding South Korean CEO, who has contributed to the development of the national
economy, and generated a sense of achievement among citizens through exemplary
leadership and business innovation.
Mr. Vi v ek Joshi bags patent for energy sav i ng dev i ce
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
19
• Mr. Vivek J oshi from the Uttarakhand team has been awarded a patent (Patent No. 203430)
for an energy saving device for high pressure gas discharge lamps. The patent is for a period
of twenty years. This device can save 22% electrical energy consumption and can be used in
any gas discharge lamp at home, in shops, malls, hotels offices etc.
3
Report Parameters
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
20
Reporti ng peri od for i nformati on prov ided
The information provided in this report is for fiscal year 2007-08 (April to March).
Most recent previ ous report
Tata Motors GRI Report 2006-2007
Reporti ng cycl e
This is the fourth GRI report from Tata Motors Limited. The reporting cycle for the GRI report is
annual.
Contact poi nt for questi ons regardi ng the report or i ts contents
Dr. Sangram Tambe
Vice President – Corporate Human Resources
Tata Motors Limited, Bombay House
Phone – 91 22 66657227
E Mail – [email protected]
Website – www.tatamotors.com
Mr. M B Paralkar
Consultant Advisor – CSR & IR
Tata Motors Limited, Pune
Phone – 91 20 66132381
E Mail – [email protected]
Website – www.tatamotors.com
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
21
Report Scope and Boundary
Process for defining report content
Tata Motors Limited has prepared this report in line with Sustainability Reporting Guidelines (G3
Guidelines) released in 2006. The report is to be used by the stakehol ders of the Company
identified as including the following:
Opportunities and Threats have been identified through a combination of various instituted processes,
including the Enterprise Risk Management (ERM) process and interviews with department heads,
including vendor development, environment, safety and human resources. These are enumerated
below:
Opportuni ti es
Road dev elopment: Continued improvement in road infrastructure in coming years is expected to
have a positive effect on automobile sales. The Golden Quadrilateral road project was 97% complete
as on March 31, 2008. The North South East West (NSEW) road corridors are expected to be
completed by December 2009. Rural connectivity is expected to correspondingly improve which
would expand significantly the population/markets/supply sources participating in the overall
economic growth. Improvement in road infrastructure would facilitate faster transportationof goods
and passengers, and would in turn create demand for safer, reliable and faster vehicles. The
Company is poised to benefit from the same as it has a wide range of goods and passenger
transportation vehicles ranging from 0.7 Ton load carrier to large haulage tractors (49T) for goods
movement, buses and coaches for public transportation and passenger cars and utility vehicles for
personal transportation.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
22
Car penetrati on i n Indi a: The reduction in excise duty on ‘Small cars’ announced in the Budget is
expected to increase the penetration of cars in the country from 7 per 1,000 people as compared to a
higher penetration level in developed and developing markets for example, Germany 550, France
495, Malaysia 253, South Korea 219, Brazil 96 and Thailand 51 cars per 1000 people. India and
China (with a car penetration of 6 per 1,000 people) are perceived as highly attractive markets for the
global automotive industry. Due to growth in urbanization and expansion of cities, the outlook for
growth in passenger car sales remains positive.
Increase i n i ncome l ev el s: A growing middle income level population, rise in their average income
levels, moderation in income tax rates and the recently announced increase in compensation for
government employees, all augur well for the automotive industry, both in terms of personal
transportation requirements as well as freight movement.
Large two wheel er parc/market: India has a 60 million two wheeler parc and an annual sale of over
7.2 million two wheelers. The Company believes that the gap between two wheeler prices and the
current entry level car prices offer a huge opportunity for an affordable, safe and comfortable small
car with appealing design and features. It is hoped that the Tata Nano would address this huge
potential in demand.
Internati onal busi ness: India continues to be a cost effective source for the automotive industry
globally, both for vehicles and components. India’s manufacturing base will benefit from these scale
economies and technology/quality improvements. The Company’s exports currently constitute 9.8%
of the total sales value and have opportunities to increase significantly, particularly with the new and
contemporary product offerings in commercial vehicles and passenger cars. The Company is also
setting up / exploring manufacturing footprint overseas that would combine these advantages with
local operations and sourcing in these markets.
Growi ng consumer cul ture: The demand for a better lifestyle has enhanced consumption levels and
rapid growth in several areas like retail chains, cellular phones and cable and satellite television. The
Company, with its wide portfolio is expected to benefit from improvement in lifestyle and higher
aspiration levels in passenger cars and potential growth in freight movement.
Threats
Credi t unavai l abi l i ty: Further tightening of liquidity position and reduction in exposure to vehicle
financing by banks/NBFCs would have an adverse impact on the automotive industry. Though in-
house vehicle financing has been strengthened by the Company, it would be a challenge for the
Company to fully offset the decrease in credit availability from outside sources.
Interest rates hardeni ng and other i nfl ationary trends: Further hardening of consumer interest
rates could have an adverse impact on the automotive industry. Increase in inflation could also have
a negative impact on automobile sales in the domestic market.
Fuel Pri ces: The international crude prices witnessed steep increase from price levels of $62 per
barrel at the beginning to $100-110 per barrel towards the end of the fiscal. Further hardening of fuel
prices would adversely impact the automotive sales.
Input Costs: Prices of commodity items like steel, non-ferrous and precious metals and rubber
witnessed an upward movement, which was partially offset by the Company’s cost reduction
initiatives. The price of steel, in particular, has increased by 30% – 35% in the last 24 months and is
expected to further increase significantly in the coming year. Whilst the Company continues to pursue
cost reduction initiatives, increase in price of input materials could have a negative impact on the
demand in the domestic market and/or could severely impact the Company’s profitability to the extent
that the same are not absorbed by the market through price realisation.
Government Regulati ons: Stringent emission norms and safety regulations could bring new
complexities and cost increases for automotive industry, impacting the Company’s business. WTO,
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
23
Free Trade Agreements and other similar policies could make the market more competitive for local
manufacturers.
Gl obal Competi ti on: India continues to be an attractive destination for the global automotive players.
The global automotive manufacturers present in India have been expanding their product portfolio
and enhancing their production capacities. To counter the threat of growing global competition, the
Company has planned to bridge the quality gap between its products and foreign offerings while
maintaining its low cost product development/sourcing advantage.
Growi ng consumer awareness: Growing awareness amongst consumers is driving up expectations
from automobile companies in terms of providing world class features and technology for which
adequate price realization is not always possible.
Growth i n Mass Transi t Systems: The domestic passenger vehicle demand could be impacted by
the growth of road and rail based mass transit systems. However, the Company would benefit from
the road based mass transit system due to its wide range of commercial passenger carriers.
Boundary of the Report
This report includes only Indian manufacturing Operations of Tata Motors. The sales and revenue
figures include international business. The products and services of Commercial Vehicle and
Passenger Car Business Units (CVBU and PCBU) including Trucks, Buses, Multi-Utility Vehicles,
Sports Utility Vehicles and cars is included in the scope of the report. In addition, operations of
Engineering Research Centre are also included. Economic indicators are provided for CVBU, PCBU
and International Business. International Business exports are included in the CVBU and PCBU
business.
Speci fi c l i mi tati ons on the scope or boundari es
Tata Motors would not be reporting on all indicators as the data compilation for some of the indicators
is still underway. Attempt would be to report on such indicators in subsequent reports.
Basi s for reporti ng on Subsi di ari es and Associ ate Compani es
We have added to this year’s GRI report, a summary of the financial performance of Tata Motor’s
primary subsidiary and associate companies. Information reported for the subsidiaries and associate
companies is sourced from our Annual Report 2007-08.
Data measurement techni ques
Tata Motors has implemented SAP 4.6c system for its data operations reliability and has integrated
its operations under it. The SAP Modules implemented include Finance (FI), Production Planning
(PP), Material Management (MM), Sales and Distribution (SD) Quality Management (QM).
Tata Motors also uses Indian GAAP for reporting its financial performance (from which most of the
Economic performance indicators have been addressed). Most financial details have beensourced
from the Annual Report, which are in turn verified by external auditors.
Internal and external audit practices are designed to provide assurance on systems and data. These
include Corporate Assurance Process every year with the help of Tata Quality Management Services,
Internal and External Financial Audit, ISO 14001 as also ISO 9000 -2000 and IS/TS16949.
Expl anation of the effect of any restatement
There are no re-statements from Tata Motors
Si gnifi cant changes
Disclosure on Management processes for the performance indicators is being included in the report.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
24
Seeki ng External Assurance
This report is not subjected to external assurance. The data reported under financial and environment
aspects are, however, subjected to procedural external audit as per national standards.
4
Governance, Commitments and
Engagement
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
25
Governance Structure and Board Composi ti on
As part of the Tata group, the Company’s philosophy on Corporate Governance is founded upon a
rich legacy of fair, ethical and transparent governance practices, many of which were in place even
before they were mandated by adopting highest standards of professionalism, honesty, integrity and
ethical behaviour. The Corporate Governance philosophy has been further strengthened with the
implementation, a few years ago, by the Company of the Tata Business Excellence Model, the Tata
Code of Conduct applicable to the Company, its subsidiaries and Directors and employees. The
Company is in full compliance with the requirements of Corporate Governance under Clause 49 of
the Listing Agreement with the Indian Stock Exchanges. The Company’s Depositary Programme
being listed on the New York Stock Exchange, the Company also complies with US regulations as
applicable to Foreign Private Issuers (non-US listed companies) which cast upon the Board of
Directors and the Audit Committee, onerous responsibilities to improve the Company’s operating
efficiencies. Risk management and internal control functions have been geared up to meet the
progressive governance standards.
The Board, being elected by the shareholders, is their representative and a bridge between them and
the executive management. Since shareholders are residual claimants, the value creation and
sustainability of all the other stakeholders viz. customers, creditors, employees, vendors, community
and the Government (of countries in which the Company operates) are of paramount significance to
the Company and its shareholders. The Board would therefore have a fiduciary relationship and a
corresponding duty to all its stakeholders to ensure that their rights are protected. Through the
Governance mechanism in the Company, the Board alongwith its Committees endeavours to strike
the right balance with its various stakeholders.
The Board of Directors presently comprises of 10 Directors, out of which 8 are Non-Executive
Directors. The Company has a Non-Executive Chairman and the 4 Independent Directors comprise
more than one third of the total strength of the Board. The Company has taken initiatives to comply
with the recent amendment of Clause 49 of the Listing Agreement pertaining to composition of
directors for induction of independent directors.
Board Committees:
To focus effectively on the issues and ensure expedient resolution of diverse matters, the Board has
constituted a set of Committees with specific terms of reference/scope. The Committees operate as
empowered agents of the Board as per their Charter/terms of reference. Targets set by them as
agreed with the management are reviewed periodically and mid-course corrections are also carried
out. The minutes of the meetings of all Committees of the Board are placed before the Board for
discussions/noting. The Board constituted Committees and the status on independence of these
Committees is given in table below:
Name of
Commi ttee
Rol e
Status on
Independence
Audit
Committee
The Audit Committee functions according to its Charter that defines its
powers, scope and role in accordance with the Companies Act, 1956, listing
All 3 Independent
Directors
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
26
requirements and US regulations applicable to the Company and is
reviewed from time to time. Whilst, the full Charter is available on
Company’s website www.tatamotors.com
Remuneration
Committee
The Remuneration Committee of the Company is empowered to reviewthe
remuneration of the Managing Director and the Executive Director,
retirement benefits to be paid to them under the Retirement Benefit
Guidelines approved by the Board and deal with matters pertaining to
Employees’ Stock Option Scheme
2 Independent and 2
Non-Executive
Directors
Investors’
Grievance
Committee
The Investors’ Grievance Committee of the Board is empowered to oversee
the redressal of investors’ complaints pertaining to share/debenture
transfers, non-receipt of annual reports, interest/dividend payments, issue of
duplicate certificates, transmission (with and without legal representati on) of
shares and debentures and other miscellaneous complaints
1 Independent
Director as Chairman,
1 Non-Executive and
Managing Director
Ethics &
Compliance
Committee
The Ethi cs and Compl iance Commi ttee was constituted to formulate
policies relating to the implementation of the Tata Code of Conduct for
Prevention of Insider Trading (the Code), take on record the monthly reports
on dealings in securities by the “Specified Persons”and decide penal action
in respect of violations of the applicable regulations/the Code
Chairman being
Independent Director,
1 Non-Executive
Director and 1
Executive director
Executive
Committee of
Board
The Executi ve Commi ttee of Boar d reviews capital and revenue budgets,
long-term business strategies and plans, the organizational structure of the
Company, real estate and investment transactions, allotment of shares
and/or debentures, borrowing and other routine matters. The Committee
also discusses the matters pertaining to legal cases, acquisitions and
divestment, newbusiness forays and donations
5 Non-Executive
Directors, 1 Executive
Director and
Managing Director
Nominations
Committee of
the Board
The Nomi nati ons Commi ttee of the Boar d was constituted with the
objective of identifying independent directors to be inducted on the Board
and to take steps to refresh the constitution of the Board from time totime
4 Non-Executive
Directors
Donations
Committee and
Corporate
social
Responsibility
Committee
The Donati ons Committee reviews and approves donations to non-
governmental organisations/non-profit institutions on basis of need and
merit. The CSR Commi ttee reviews, monitors and guides the CSR work
undertaken across all locations
Managing Director
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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The relationship between the Board, the Committees and the senior management functions is
illustrated below:
Mechani sm for sharehol ders and empl oyees to provi de
Recommendati on to the Board
Shareholders/Investors
A monthly shareholders report is sent to the Board members which describes the shareholding
pattern and also the performance of Tata Motors stock with respect to the other automotive
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
28
companies and the stock indices. The report also highlights the expectations from various equity
analysts and the Company’s performance vis-à-vis the same. The Ethics & Compliance Committee
also reviews on a monthly basis the trading in the Company’s shares by the designated employees to
ensure that they do not unduly benefit on account of access to unpublished price sensitive
information. Investors’ Grievance Committee reviews the investor grievance redressal procedure and
also proactively gives suggestions/directions to protect the interest of the investor.
On recommendations of the Investors’ Grievance Committee, the Company has taken various
investor friendly initiatives like sending of reminders to investors who have not claimed their dues,
launching an odd lot scheme, sending nominations forms, launching a shareholders’ discount
scheme, arranging factory visits, etc. Critical feedback, complaints and suggestions received from
investors are considered appropriately and addressed.
Channel partners/Suppliers:
A Supplier Relationship Management programme and Dealer Management Systemare in place and
the Management Committee reviews the programme from time to time. The key indicators of review
are the Supplier coverage and the efficiency of the transactions with the Company. The Company
also organizes Supplier’s day/Vendor meets/Channel partner meets where suppliers can touch base
with the Board members and share their thoughts and inputs.
Employees:
The Management Committee on a very regular basis reviews the employees’ issues. The
remuneration guidelines, the employee satisfaction, the employee growth plan and the organization
culture are discussed in these meetings. Major employee welfare schemes are put up to the Board for
approval. The Board is also kept informed of senior level changes in management, status on signing
of Union wage agreements, remuneration of senior executives, etc.
Customers:
The Company is also in the midst of implementing a very comprehensive Customer Relationship
management program which is reviewed by the Management Committee and the Board sub-
Committees from time to time. This program ensures that the Customers are treated in the fair
manner by the channel members of the Company and their needs are also captured and responded
to through this programme.
Li nkage between executi ve compensati on and
Achi evement of the organi sati on's financi al and non-fi nanci al goal s
The annual performance/appraisal of the Whole-time Directors are reviewed by the Remuneration
Committee through a structured Balance Scorecard mechanism as agreed to at the beginning of the
year and the performance of the individual Whole-time Director is evaluated against the same. The
Company pays remuneration by way of salary, perquisites and allowances (fixed component),
incentive remuneration and commission (which are major variable components depending on the
performance parameters) to its Whole-time directors after a review of their individual performance.
Annual increments of each Whole-time Director are decided by the RemunerationCommittee within
the salary scale approved by the Members and are effective from April 1, annually. The Company has
not issued any stockoptions to its senior management/employees. Approval of the shareholders is
obtained for payment of remuneration to the Executive and Non-Executive Directors and adequate
disclosures on terms of appointment, tenure and remuneration are included in the Explanatory Notes
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
29
to the Notice of the General Meeting. The Annual Report contains details of the remuneration drawn
by the Whole-time Directors.
The remuneration by way of commission paid to the Non Whole-time Directors is decided very
objectively by the Board of Directors and distributed to them based on their attendance and
contribution at the Board and certain Committee meetings, as well as time spent on operational
matters other than at the meetings. Approval of the shareholders is taken for payment of commission
to Non-Executive Directors which is within the limits prescribed under the Companies Act, 1956.
Appropriate disclosures are made in the notice of the General Meetings. The Annual Report also
contains details of the remuneration paid to the Directors - both Executive and Non-Executive
Directors.
Process to avoi d confl i cts of i nterest
To ensure that no conflict of interests arise among the highest governing body, transparency in
operations and selection and disclosure policies for governance is maintained. The Board of the
Company has adopted the ‘Code of Corporate Disclosure Practices’ according to which the public
spokespersons are identified who are responsible in ensuring timely and adequate disclosure of price
sensitive information. This Code ensures simultaneous release of information through various
mediums of disclosure/dissemination in a transparent and fair manner. Informationis available to the
shareholders through Annual Reports and half-yearly communications which are dispatchedto them,
besides press releases for audited quarterly financial statements, which are also intimated to Stock
Exchanges. This information is also available on the Company’s website. The 20F Annual Report
prepared as per the US regulations and the New York Stock Exchange Listed Manual provides
information which is not normally in the public domain vi s-à-vi s other listed companies, is also
available on the website of the Securities and Exchange Commission and the Company. The 20-F
Annual Report contains information on five-year financial data under US GAAP; risks associated with
the Company’s business; investments in the Company and relating to ADRs; a business overview
which includes sections on the Indian economy and the automotive market and competition;business
strategy and operations; a complete product profile; production facilities and distribution network;
R&D initiatives; intellectual property; legal proceedings; organisation structure; subsidiaries and
affiliates; operating and financial review and prospects; capital expenditure incurred and sources of
financing; details of the auditors; Board composition and management; governance structure;
shareholding pattern; dividend policy; share and ADR price; rights of shareholders; exchange control
policy of the Government and taxation as relevant to investors; Chief Executive Officer and Chief
Financial Officer certification to the investors and audited consolidated financial statements for the
last three years.
To ensure that the Company has disclosed relevant, accurate and complete information to its
investors so as to ensure that the Company’s financial condition and results of operations in all
material respects have been disclosed on a timely basis under the applicable laws, the Company
recently constituted a Disclosure Committee comprising of the senior management as also heads of
the larger subsidiary companies.
Sel ecti on Cri teri a for Board members
The Directors are selected based on the following criteria:
• Business experience
• Expertise in the field
• Ability to bring in the external perspective
• Relation to the Company and Board
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Nomination by Articles of Association, Debenture holders, financial institutions, virtue of technical
collaboration and financial agreement
Internal l y Dev el oped Mi ssi on, Code of Conduct and Val ues
Being a global player, Tata Motors has ensured that its corporate governance practices are
compatible with the international standards. Tata Motors has adopted the Tata Business Excellence
Model (TBEM) as a means of driving excellence. In order to trackprocess on long-term strategic
goals, a Balanced Score Card methodology is used. This enables the Company to go beyond
financial performance to incorporate considerations of environment and society, as well.
Tata Code of Conduct
Tata Code of Conduct (TCoC) is applicable to all employees, including the Managing Director and the
Executive Directors. (TCoC can be viewed at our website). The Code is a set of 25 principles, adherence
to which ensures ethical conduct both by the employees as well as the Company at large.
For internally developed mission statement and core values of Tata Motors, please refer to 1.1
Board-l evel process for ov erseei ng the organisati on's i denti fi cati on and management of
economi c, env i ronmental, and soci al ri sks and opportuni ti es
The Board takes responsibility for the total process of risk management in the organization. The Audit
Committee reviews with the Management, External and Internal Auditors, the adequacy of internal
control systems. It reviews management letters / letters of internal control weaknesses issued by
Statutory / Internal auditors. The Management implements actions to mitigate residual risks. The
Board assures all stake holders about adequacy of internal control Systems and documents
procedures in the Company’s Annual Report.
The Management is accountable for the integration of riskmanagement practices into the day to day
activities. Lapses are highlighted as findings after risk assessment or audit reviews.
The Risk management and internal control model and framework adopted by the Company provides
the Board reasonable assurance on the effectiveness and efficiency of the Company’s operations; the
safeguarding of the Company’s assets, the Company’s compliance with laws, regulations and
supervisory requirements; the sustainability of the Company’s operations under normal andadverse
operating conditions; the reliability of the Company’s reporting and the Company’s responsible
behaviour towards all stakeholders.
Ev al uati ng the Board’ s Performance
The organisation has adopted the Balanced Scorecard concept and an online dynamic Performance
Appraisal System which is a fairly transparent and formal procedure for deciding on the director,
senior and middle management remuneration
Approach to Ri sk Management i n Operati onal Pl anning
The Company has a comprehensive system of control, focused on mitigation of risks to ensure
achievement of objectives. The control environment comprising of values, ethics, management
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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philosophy, employee competence, etc. supports risk management. The risks are assessed on an
ongoing basis and controls are designed to respond to risk throughout the Company.
There is a twofold approach to RiskManagement:
1. Enterprise Risk Management (ERM)
2. Internal Audit
Enterpri se Ri sk Management:
The ERM process identifies entity level risks. For the purpose of review, risks are categorized into
three categories viz high, moderate and low and are also rated from 1-5 based on impact and
frequency. All risks are classified as per processes in the “Enterprise Process Manual”. Certain
clusters of risks are treated as priority clusters. The Audit Committee reviews the mitigation action
taken against these risks on a periodic basis. Also, other risks which may materialize may also be
accorded priority if they are critical. Pertinent information on risk assessment and control activities is
communicated effectively to employees. The line management regularly monitors controls. Thus the
risk management/internal control practices contribute to the development of robust business
operations and promotes/enhances value creation. The Board regularly reviews processes and
procedures to ensure the effectiveness of the internal systems of control. Management reports to the
Board provide a balanced assessment of significant risks, a balanced assessment of the
effectiveness of the system of internal controls in managing those risks and identify significant
failings/weaknesses, its impact on the Company and actions taken to rectify them.
The Company is promoting risk awareness through a structured risk management process. The
ownership of these programs vests with operating managers, with Internal Audit playing a facilitators
role. However, the primary responsibility remains with the process owners.
The ERM Process has been initiated in the Company as a tool to strengthen the Strategic Planning
process. It aims at sustaining desired operational performance and providing a platform for rational
allocation of capital across Small Business Units. The process maps the Strategic, Operational,
Financial & Governance Risks related to the Business strategy as also on account of weaknesses in
the internal processes.
The agreed risks are logged in the Company’s Risk register and the respective Responsibility Centers
are required to determine the risk treatment (Accept/Reduce/Transfer/Eliminate) and workout the
mitigation plans accordingly. The outcomes of the Risk Mapping Process were presented to the
Management Committee and the Audit Committee for review and direction. The outcomes of ERM
process were also reported to the Board on March 31, 2006.The Major risks along with the mitigation
actions are planned to be reviewed by the Management Committee and presented to the Audit
Committee and the Board on a regular basis.
A benchmarking of ERM practices of other local and global companies has been done to ascertain
opportunities for improvement. The ERM process is designed to be compliant with SOX and Clause
49 of the Listing Agreement with the Indian Stock Exchanges.
Internal Audi t:
Internal Audit has an annual risk based audit plan. Risk Universe is defined covering all processes of
the company. Inherent risk scores are assigned to each process and are reviewed every 5 years. At
the start of the year, CIA informally discusses the business imperatives with Senior Executives.
These imperatives serve as an important input whilst developing the annual plan. The annual audit
plan is prepared to cover a majority of the high & near high risk areas and a considerable number of
processes with moderate and low risk scores.
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Audits are conducted by way of Self Assessment Questionnaires or through full fledged audits. The
Audit Committee reviews audit reports every quarter. Audit Reports are classified as Section A and
Section B type reports. The Audit Committee reviews observations and recommendations highlighted
in Section A reports as well as critical issues pertaining to Section B reports. The timelines for
implementing the recommendations is monitored by way of a robust process, whichyields meaningful
and actionable reports
Subscri bi ng to externall y dev el oped Charters, Pri nci pl es and Ini ti ativ es
Tata Motors is a signatory of the United Nations Global Compact. By adhering to this voluntary
initiative, the Company commits itself to the ten principles that range from HumanRights protection,
Labour Standards, Environmental Protection and Anti-Corruption. The Company has been submitting
its “Communication on Progress” (COP) to the Global Compact and is in fact the only Indian
automobile company to have been appreciated as “Notable COP”for consecutive years. Tata Motors
is a member of CII (Conference of Indian Industries), BCCI (Bombay Chambers of Commerce and
Industries) and ASSOCHAM (Association of Chambers of Commerce of India).
Stakehol der Engagement
Approach
Identify their
concerns and
Issues
Address concerns
and issues in
Strategy Planning
Process
Steering Committee
Review and
corrective action
Prioritize
concerns and
issues
Set Goals , targets
Report and communicate
to all stakeholders
(Annual Report, Chairman &
ED letters/GRI &Corporate
Governance reports, etc)
Engagement of
Stakeholders:
Meetings, feedbacks,
I nteractions, etc
Learning & sharing
across and improve
Strategic
Di recti on
Balanced
Scorecard &
I nitiatives
Stakeholder engagement and input is central to the entire strategic planning and deployment
exercise. There are several mechanisms (as detailed in Annexure) through which the Company
engages its stakeholders and identifies the key stakeholder concerns and issues.
The organizational challenges and issues identified are considered in the strategic planning process
to determine strategic objectives.
The vision, mission and values guide the strategic planning process. This process also involves a
comprehensive external environment scan, various survey feedback, inputs, SWOT (strengths,
weakness, opportunities and threats) analysis and business planning exercise. After identification of
key business drivers, the short terms and long term strategic objectives are identified. The strategic
objectives are deployed using the balanced scorecards, which balance the needs of all stakeholders.
An indication of how various objectives are aligned with stakeholder concerns has been provided in
Annexure I (Stakeholder Engagement Chart).
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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5
Economi c Management Approach
and Performance Indi cators
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
34
MANAGEMENT APPROACH
Ri sks and concerns i dentifi ed for the economi c performance of the company are enumerated
bel ow:
Interest rates and credi t avai l abi li ty: Consumer interest rates witnessed an upward movement in
the second half of FY 07-08. Further tightening of the liquidity position, non-availability of vehicle
finance and firming up of interest rates would affect vehicle demand, which could impact the
Company’s revenues and profits.
Exchange rates: The Company’s exports constitute 9.8% of the turnover and imports constitute
4.6% of material consumption. Further, the Company has large foreign currency borrowings in the
form of foreign currency convertible securities. Movements in exchange rates and volatility in the
foreign exchange markets could significantly impact profits.
Frei ght Rates: Moderation in industrial activity, slowdown in freight movement and increase in fuel
price would adversely impact vehicle operators’ margins to the extent not recovered throughincrease
in freight rates. This would have an adverse impact on commercial vehicle demand.
Rai l ways: Railways’ renewed focus on cement and steel movement and container movement and
planned nationwide rail freight corridor connecting major cities could impact the demand of
commercial vehicles for goods transportation. However, it is expected that with the growth in road
infrastructure and increase in vehicle penetration and with product offerings suitable for different
applications, road transport would continue to have a dominant role and offer flexible, speedy and
point-to-point service.
Domesti c market: The commercial vehicle industry due to its strong linkages with the economy
would be impacted by slowdown in economic growth. The Company has strengthened its less cyclical
businesses like passenger carriers, small and light trucks and passenger cars as well as its spare
parts and other service offerings to counter moderation in demand. The increasing trend of offering
price discounts in the market could also affect the Company’s margins.
Ov erseas markets: In the overseas markets, many of which have stricter norms of vehicle
regulations related to emission, safety, noise, technology, etc., the Company competes with
international players which have global brand image, larger financial capability and multiple product
platforms. These factors may impact the demand of the Company’s products in overseas markets.
Manufacturing: The Company manufactures its products at multiple locations and its operations
could be affected by disruption in its supply chain due to any natural calamities and workstoppages
at its suppliers’ end due to load shedding, labour problems, etc.
New Competi ti on: Intensity of competition has increased in almost all the segments of the Indian
automotive market due to entry of new players and expansion plans of existing ones. The Company
is aware of the increasing competition and is taking measures to remain competitive in the market
place.
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New proj ects: The Company is undertaking a variety of new projects ranging from the launch of a
small car to the development of a new truck model. These projects are in various stages of execution.
Though the Company employs sophisticated techniques and processes to forecast the demand of
new products, yet the same is subject to margin of error. Timely introduction of new products, their
acceptability in the market place and managing complexity of operations across various
manufacturing locations would be the key to sustain competitiveness.
Internal Control Systems and thei r adequacy to manage these risks are hi ghl i ghted bel ow:
The Company has in place adequate system of internal control. It has documented procedures
covering all financial and operating functions. These controls have been designed to provide a
reasonable assurance with regard to maintaining of proper accounting controls, monitoring of
operations, protecting assets from unauthorized use or losses, compliances with regulations and for
ensuring reliability of financial reporting. The Company has continued its efforts to align all its
processes and controls with global best practices in these areas as well.
The Management Approach managing economic risks and concern is to have a robust internal
control system so as to achieve the maximum economic value creation. Some significant features of
the internal control systems are:
• Corporate policies on accounting and major processes;
• Well-defined processes for formulating and reviewing annual and long term business plans;
• Preparation and monitoring of annual budgets for all operating and service functions;
• State-of-the-art ERP, Supplier Relations Management and Customer Relations Management,
connect its different locations, dealers and vendors for efficient and seamless information
exchange;
• An on-going program for reinforcement of the Tata Code of Conduct. The Code covers
integrity of financial reporting, ethical conduct, regulatory compliance, conflict of interests
review and reporting of concerns. All employees of the Company are regularly exposed to
communications under this program;
• Bi-monthly meeting of the management committee at apex level to review operations and
plans in key business areas;
• A well established multidisciplinary Internal Audit team, which reviews and reports to
management and the Audit Committee about the compliance with internal controls and the
efficiency and effectiveness of operations and the key process risks;
• Audit Committee of the Board of Directors, comprising independent directors, which is
functional since August 1988, regularly reviews the audit plans, significant audit findings,
adequacy of internal controls, compliance with Accounting Standards as well as reasons for
changes in accounting policies and practices, if any;
• A comprehensive information security policy and continuous upgrades to IT system;
• Documenting major business processes and testing thereof including financial closing,
computer controls and entity level controls as part of compliance with Sarbanes-Oxley Act;
• Anti-fraud programme.
The Board takes responsibility for the total process of risk management in the organisation. The Audit
Committee reviews reports covering operational, financial and other business risk areas. Through an
Enterprise Risk Management programme, each Business Unit addresses opportunities and the
attendant risks through an institutionalized approach that is aligned to the Company’s objectives. This
is also facilitated by internal audit. The business risks are managed through cross functional
involvement and intense communication across businesses. Results of the risk assessment and
residual risks are presented to the senior management.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
36
EC 1: Dir ect Economic Value Gener at ed
Di stri buti on of Revenue (INR i n crores – 1 crore=10mi l l i ons)
Sources of Rev enue (INR in crores – 1 crore=10mi l l i ons)
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
37
Summari zed Bal ance Sheet
(Rupees in Millions)
What the Company OWNED
1. Net Fixed Assets 104522.7
2. Investments 49102.7
3. Net Current Assets (2728.5)
4. Miscellaneous Expenditure 60.5
5. Total Assets (NET) 150957.4
What the Company owed
1. Loans 62805.2
2. Net Worth 78395
Represented by:
Share Capital 3855.4
Reserves 74539.6
3. Deferred Tax Liability (NET) 9757.2
4. Total Funds Employed 150957.4
Summari zed Profi t and Loss Account
(Rupees crores)
1. Income
Sale of Products and other Income 330939.3
Less: Excise Duty 43631.1
287308.2
Dividend and other income 4831.8
292140.0
2. Expendi ture
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
38
Raw materials / components,
Manufacturing and Other Expenses 240939.3
Employee Cost 15445.7
Product Development Expenditure 643.5
Depreciation 6523.1
Interest 2823.7
Total Expenditure 266375.3
Profi t Before Tax 25764.7
Profi t After Tax 20289.2
Balance Brought Forward From Previous Year 10138.3
30427.5
Appropriations
(i) Proposed Dividends 5784.3
(ii) Tax on Proposed Dividends 812.5
(iii) General Reserve 10000.0
(iv) Balance carried to Balance Sheet 13830.7
30427.5
Donati ons
Total Donations disbursed during 2007-08 to various non-governmental and non-profit institutions,
based upon merit and need Rs. 12.8 millions.
Communi ty Inv estments
Tata Motors invests in various CSR projects that target improvement of quality of life of people. The
thrust areas for these projects include - Education, Health, Employability and Environment. The
Company views the expenditure in such projects as an investment and not a cost. In the year 2007-
08, investments in social and community projects amounted to Rs. 12.5 millions. This amount is
excluding administrative expenditures involved.
Summary of Economi c Performance of Subsi di ary and Associ ate Compani es
Subsidiary Companies
For the financial year ended March 31, 2008, the Company’s subsidiaries, on an aggregate basis,
have significantly improved on their financial performance and profitability. A brief profile of the
subsidiary companies and their main financial parameters for FY 2007-08, are given below:
Tata Daewoo Commercial Vehicle Company Limited (TDCV), Korea is a 100% subsidiary of the
Company is the second largest manufacturer of Heavy and Medium commercial vehicles in Korea.
During the year ended March 31, 2008, TDCV recorded a turnover of Rs. 28650.2 millions, which is
45% higher to the previous year. PAT increased by 78% and stood at Rs. 1531.1 millions as against
Rs. 974.6 millions in 2006-07.
Telco Construction Equipment Company Limited (Telcon) is engaged in the business of
manufacturing and sale of construction equipment and allied services in which the Companyhas 60%
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
39
holding and Hitachi Construction Machinery Company Limited, J apan, holds 40%. Duringthe year,
the Company divested 20% of its stake to Hitachi, thus reducing its stake from 80% to the present
60%. With the increase in economic activity especially in the infrastructure sector, Telcon recorded its
best performance to date having sold 7,698 machines with a Profit After Tax of Rs. 3240 millions.
Tata Marcopolo Motors Limited (TMML) is engaged in the business of manufacture and sale of fully
built buses and coaches in which the Company has a 51% holding with the balance 49% being held
by Marcopolo S.A., Brazil. The Company started its commercial production from November 2007 and
has sold 190 low entry CNG buses. TMML recorded a net turnover of Rs. 65.7 millions andloss after
tax is Rs. 38.3 millions.
Tata Motors (SA) Proprietary Limited (TMSA) a joint venture company was incorporated during the
year in which the Company holds 60% with the balance 40% being held by the Tata Africa Holdings
(SA) (Pte.) Limited. TMSA has been formed for manufacturing and assembly operations of the
Company’s Light and Heavy commercial vehicles and Passenger Cars in South Africa. TMSA has yet
to start its operations.
Tata Motors (Thailand) Limited is a 70:30 joint venture between the Company and Thonburi
Automotive Assembly Plant Co., for manufacture, assembly and marketing pick-up trucks. The joint
venture enables the Company to address the ASEAN and Thailand markets, the latter being the
second largest pick-up market in the world after the USA. While TMTL has begun setting up
operations in 2007-08, the manufacturing of vehicles began only during March 08’ with revenues from
sales and other income at Rs. 9 millions.
Tata Motors Finance Limited a wholly owned subsidiary of the Company, is registered withReserve
bank of India as a Non-Banking Finance Company and has been classified an “Asset Finance
Company”. During the year under review, total income was 423% higher than last year andstood at
Rs. 8369.5 millions, with Profit Before Tax of Rs. 502.6 millions exceeding the 2006-07 figures by
150%.
Tata Technologies Limited (TTL), along with its subsidiaries is in the business of providing information
technology services. Tata Technologies Pte. Ltd. (TTPL) which became a subsidiary of TTL acquired
Tata Technologies, USA, (TT US) in March 2006. TTUS acquired INCAT International Plc (INCAT), a
global provider of Product Life Cycle Management (PLM), Engineering and Design services to
automotive and aerospace industry. INCAT acquired CEDIS Mechanical Engineering GmbH, in
J anuary 2006, to enhance its presence in its lines of business in Germany. TTL incorporateda wholly
owned subsidiary in Thailand named Tata Technologies (Thailand) Limited which wouldbe TTL’s
second global delivery to take advantage of the growth in the area. TTL has 13 subsidiary companies
as on March 31, 2008.
The Company holds 81.71% of TTL’s share capital. The year marked an important milestone in the
growth history of the Company with consolidated revenues crossing the Rs. 10,000millions threshold.
TAL Manufacturing Solutions Limited (TAL) is a 100% subsidiary of the Company engaged in the
business of providing factory machine tools, equipments, material handling systems and fluid power
solutions. During the year, it has ventured into Aerospace business by signing agreement with Boeing
Corporation, USA for manufacturing structural components. TAL has also signed sales and service
agreement with HELLER, Germany, a globally renowned manufacturer of high end machining
centres. TAL recorded a turnover of Rs. 2205.8 millions and a Profit After Tax of Rs. 120.2millions.
HV Transmissions Limited (HVTL) and HV Axles Limited (HVAL) 85% subsidiary companies of the
Company are engaged in the business of manufacture of gear boxes and axles for Heavy and
Medium commercial vehicles, with production facilities and infrastructure based atJ amshedpur. With
the rise in demand for Medium and Heavy commercial vehicle over the years, major improvement
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
40
initiatives were undertaken at HVTL and HVAL. Both HVTL and HVAL manufactured prototypes of
gear boxes and axles for application in the Company’s new products. HVTL recorded a 9.39%
increase in its turnover of Rs. 1919.8millions in 2007-08, PAT being Rs. 474.4 millions. HVAL
recorded a turnover of Rs. 2032.4 millions and a PAT of Rs. 634.1 millions.
TML Distribution Company Limited (TDCL) a 100% subsidiary of the Company incorporated on March
28, 2008 would be engaged in the business of dealing and providing logistics support for distribution
of the Company’s products throughout the country. TDCL is yet to start operations.
Sheba Properties Limited is a 100% owned Investment Company, whose income was Rs. 213.7
millions and Profit After Tax was Rs. 162.2 millions.
Concorde Motors (India) Limited (CMIL), a 100% subsidiary of the Company engaged in sales and
service of Tata and Fiat passenger cars recorded a turnover of Rs.6252 millions with PAT of Rs. 53.3
millions.
Tata Motors Insurance Broking and Advisory Services Limited (TMIBSAL) (formerly known as Tata
Motors Insurance Services Limited), a 100% subsidiary of the Company, proposes to undertake the
business of direct insurance broking. TMIBSAL has received a licence from Insurance Regulatory and
Development Authority (IRDA) to act as Direct Broker under the IRDA Act on May 13, 2008. Pending
the issue of licence, no business was carried out during the period of October 2005 to March 2008.
Tata Motors European Technical Centre plc. (TMETC) is a 100% subsidiary of the Company engaged
in the business of design engineering and development of products for the automotive industry.
Working synergistically with the Company, TMETC provides it with design engineering support and
development services, complementing and strengthening the Company’s skill sets and providing
European standards of delivery to the Company’s passenger vehicles. TMETC earned gross
revenues of Rs. 1279.5 millions and an operating profit of Rs. 114.3 millions as against Rs. 70.8
millions in 2006-07.
Associ ate Compani es
Automobile Corporation of Goa Limited (ACGL) in which the Company has a 37.79% shareholding
was incorporated in 1980, jointly with EDC Limited, a Government of Goa enterprise. ACGL is a listed
company engaged in manufacturing sheet metal components, assemblies and bus coaches and is
the largest supplier of buses (mainly for exports) to the Company.
Fiat India Automobiles Private Limited (FIAPL) is a J oint Venture with Fiat auto S.p.A., Italy to
manufacture Fiat and Tata cars and powertrains at Ranjangaon, Maharashtra, India. The new facility
was inaugurated on April 2, 2008 and is one more step towards confirming the strong motivation and
understanding between the partners towards developing new opportunities in India and abroad.
Tata Cummins Limited (TCL), in which the Company has a 50% shareholding, withCummins Engine
Co. Inc., USA holding the balance. TCL is engaged in the manufacture and sale of high horse power
engines used in the Company’s range of Medium/Heavy commercial vehicles.
Tata AutoComp Systems Limited (TACO) is a holding company for promoting domestic and foreign
J oint Ventures in auto components and systems and is also engaged in engineering services, supply
chain management and after market operations for the auto industry. The Company’s shareholding in
TACO is 50%.
Tata Precision Industries Pte. Ltd., Singapore, in which the Company has a 49.99% shareholding, is
engaged in the manufacture and sale of high precision tooling and equipment forthe computer and
electronics industry.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
41
Nita Co. Ltd., Bangladesh, in which the Company holds 40% equity, is engaged in the assembly of
Tata vehicles for the Bangladesh market.
Hispano Carrocera S.A. (HC), a well-known Spanish bus manufacturing company, in which the
Company acquired a 21% stake in March 2005, was another major step in the Company’s plans for
globalization. Hispano has two manufacturing units, one in Spain which caters to the European
market and the other tone in Casablanca which caters to the Moroccan and other North African
markets. HC is present in both the ‘city bus’ and ‘coach market’ segment in both the geographies. HC
reported a production of 375 buses during FY 2007-08 on a consolidated basis.
EC 4: Signif icant financial as s ist ance r eceived f r om t he gover nment
The Company recei v ed i ncenti ve package by the State Government for setti ng up the
manufacturing uni t of the Smal l Car (Nano) i n Si ngur, West Bengal in 2007-08. Howev er,
before the incenti ves coul d be uti l i zed, the pl ant was shi fted to a new l ocati on – Sanand,
Guj arat, Indi a. Thi s shi ft occurred as there was lack of safety of i ts empl oyees and equipments
i n the hostil e env ironment created by constant attacks on col l eagues and property i n the
regi on. The Company has al so benefi ted from the i ncenti v es offered by the State Industri al
Devel opment Corporati on of Uttaranchal to attract industri al i zati on i n the regi on. The
Company has set up i ts ACE Factory i n the area and has dev el oped an extensi v e v endor park
i n the regi on as wel l , openi ng a whol e new range of empl oyment opportuni ti es.
EC 5: Range of r at ios of s t andar d ent r y level wage compar ed t o local minimum wage
at signif icant locat ions of oper at ion
If a comparison is made of entry points of wages with the Minimum wages as prescribed bythe law,
Tata Motors offers more than double the minimum prescribed by law. With experience and the tenure
of service, the average wages that an operative earns improve the quality of life that the individual
can enjoy in the society.
EC 6: Policy, pr act ices and pr opor t ion of s pending on locally-bas ed s uppliers
The process for sourcing has many steps and variables and to a certain degree it is often done on a
case-by-case nature. At J amshedpur manufacturing unit there are a very large percentage of local
suppliers.
In terms of environmental and labour practices, the sourcing department will not consider a vendor or
potential vendor that does not have the required list of certifications, including the compliance with
factories Act, audited by the government for confirmation. Following that there are visits, succeeded
by visit reports. A check-list of 37 points is required to be met, including aspects of Quality, Cost,
Delivery, Design and Management Systems (QCDDM). Geographical location, although a part of the
process, is not an overwhelming priority. Quality is the most central factor, then there is loyalty to
current suppliers (whether they operate in the relevant area or would be willing to open business
there), then there is local suppliers considered, proving they can provide the product at a suitable
price.
Moreover, sourcing conditions differ from location to location. For example, J amshedpur is well
endowed with sources around the area, so very little needs to be bought in. If products do need to be
bought in, often they will encourage the company to open a plant in the vicinity. However, while these
are the considered processes, there is much case-by-case analysis, so the process can vary
according to the type of part and also the type of supplier.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
42
EC 7: Pr ocedur e f or local hir ing
In India, citizens have the freedom of domicile in any state of the country (with exceptions of very
few states) and as such local hiring is not specific. Major areas of operation in India lie in
J amshedpur, Pune, Lucknow and now Uttrakhand and at these locations, more than 50% of the
jobs have been created for the local populace there.
EC 9: Indirect economic impact s , including ext ent of impact s
Wor ldwide, Tr ansport sector has emer ged as the biggest employer *
1 Commer cial Vehicle - employment for 13.3 people
1 Car - employment for 5.3 people
1 Three Wheeler - employment for 3.9 people
1 Two Wheeler - employment for 0.5 people
* Sour ce: Automotive Mission Plan 2006-16, Includes: Dir ect and Indirect Employment
Tata Motor s r ecor ded its highest ever sales of 585,649 vehicles (352,785 commer cial; 232,864
passenger ). The appr oximate indir ect economic impact gener ated by the company in 2006-07 is
summar ised below
* Includes initiatives to enhance employability (vocational and technical tr aining,
appr enticeship pr ogr ammes), promotion of co-oper atives and formation of Self-Help Gr oups
** On assumption that one passenger car sold cr eates employment for at least one per son –
dr iver /cleaner
*** On assumption that one commer cial vehicle sold cr eates employment for at least thr ee
people – Dr iver and cleaner /helper & loader
5000
10,300
1,058,355
23,230
232,864
Dir ect
Employees
Employees in
Subsidiar ies
Indirect
employment fr om
passenger car s**
Indir ect employment
fr om commer cial
vehicles***
Employment
thr ough social
initiatives*
18,000
Employment
gener ated through
channel par tners
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
43
6
Envi ronment Management Approach
and Performance Indi cators
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
44
MANAGEMENT APPROACH
Tata Motors Ltd, (TML), plans for the environment in its processes, products and services. “Facilities
and Envi ronment Management” is identified as a Business Process and is formally documented in our
Enterprise Process Manual. “Faci l i ties and Envi ronment Management” process is mapped in detail
and the measures for “effectiveness and efficiency”of the process are specified. This has helped the
Company to evolve a uniform approach across all manufacturing locations in the country.
Environment Management system at Tata Motors is given below:
How it oper ates (Methods/ Pr actices)
[Cr oss Ref.: EMS Manual at r espective locations]
1. Assess the ‘sig nificant’ environmental aspects of products and
activ ities as per established EMS pr ocedur es-
• All Pr ocess Owner s identify the ‘significant’ envir onmental
aspects of pr oducts and activities with the help of ERC centrally
& Envir onment Gr oup at r espective Wor ks locations.
2. Define Oper ational Contr ols, Emer gency Action Plans and set
‘Objectives and Tar gets’
•
Oper ational Contr ol Pr ocedur es and Emergency Action Plans are
established and deployed. Pr ocess r equir ements ar e assessed in
Inputs
• National & Inter national
Legislation & pr otocols
• Quality & Envir onmental
Policy
• Rules & Regulations
• Plant level waste disposal
guidelines.
• ISO:14001
• New developments
• Global developments such
as Climate Change
Outputs
• Impr ovements in
envir onmental
per for mance (e.g.:
r eduction in pollution;
e.g.: r eduction in natur al
r esour ce consumption;
e.g.: elimination of
hazar dous mater ial etc.)
• Compliance to
envir onmental
r equir ements as per
statutory nor ms
• Reduce CO
2
emissions /
incr eased car bon offsets
Effectiveness
Ratio
(TISHD*)
Efficiency
Impr ovement over pr evious year s
‘environmental per for mance’
* TISHD – Tata Index for Sustainable
Human Development
Unit Per for mance Measur e
Key Steps in -
‘Envir onment Manag ement’
• Assess the significant envir onmental aspects of
pr oducts and activities
• Set ‘Contr ol Processes’ and ‘Objectives &
Tar gets’
• Deploy the pr ocess and implement ‘Action Plans’
to achieve ‘Objectives & Tar gets’ including
Climate Change r elated issues
• Review pr ocesses for impr ovements / and
conduct inter nal / ex ter nal audits
• Review the process
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
45
E
All our manufacturing facilities (Pune, J amshedpur, Lucknow and Uttarakhand) have been certified to
the ISO:14001 – Environmental Management System (EMS) Standard. At J amshedpur the
Engineering, Health Care & Civic Services to Tata Motors Township have also achieved certification
to ISO:14001.
EN 1: Tot al mat er ials us ed by type
Materi al Used by Type
Consumpti on i n 2007-08*
Steel ( Thousand MT) 205.094
Oils (KL) 26947.79
Pre Treatment (PT) Chemicals (MT) 936.64
Paints, Primers & Thinners (KL) 9509.9
* Data includes three main manufacturing units in India, viz. J amshedpur, Pune and Lucknow
EN 2: Per cent age of mater ials us ed t hat ar e r ecycled input mat er ials
Re-cycling of material is best illustrated in the use scrap metal generated externally as well as
internally.
Re-use of packaging materials:
Aggregates and assemblies moving between Pune and J amshedpur Plants are packed in wooden
crates manufactured from scrap wooden packaging of incoming material. This was further
improved by changing four types of aggregates to returnable metal pallets,
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
46
Collapsible, custom-built polypropylene (PP) boxes have been developed for bought out
components that are bulky and light (e.g.: dashboards). These PP boxes can be dismantled,
flattened and returned to vendors for re-use, eliminating the use of virgin packaging material each
time. With a cycle time of more than 150 trips these polypropylene boxes have resulted in
significant savings on component packaging.
Quantity of Scrap wooden packaging box sold to recyclers:
In addition, The Company is working with the ‘Department of Science & Technology’ on the Expert
Panel on “Recyclability of automotive Systems & Components”. It is also working with Society of
Indian Automobile Manufacturers (SIAM) as a member of task force to study recyclability of vehicles
in India.
EN 3 & 4: Dir ect and Indirect ener gy us e
Fuels are used for process heat requirements and energy. Liquefied Petroleum Gas (LPG) is used
as a fuel to generate heat as well as in the process for generation of Endo-gas in continuous
Carburising and Hardening Furnaces.
TOTAL Energy Used (Aggregate of al l types)
2007-08
Total Di rect used (i n Mi l l i on MJ) 2339.25
Total Indi rect used (i n Mi l l ion MJ) 2556.11
* Data includes two main manufacturing units in India, viz. Pune and Lucknow
EN 5: Ener gy s aved due t o conser vat ion
Tata Motors considers energy conservation critical to the operation of its manufacturing units. Apart
from reducing operational costs, the energy saved amounts to environment protection by way of
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
47
avoiding pollution due to power generation processes. Energy conservation is driven throughout the
organization, by way of setting Division-wise targets and monitoring performance on everyday basis
for optimizing energy consumption.
Company has started several Energy Accounting and Energy Conservation programmes, some of
which are highlighted below:
• Introducing Fiber Reinforced Plastic blades for man-coolers.
• Installing variable speed drive for flow control and energy saving
• Introduction of fuel additives in Furnace Oil to improve the combustion efficiency of the fuel.
• Soft-start energy savers for hydraulic press motors
• Sheds designed for efficient natural lighting.
• Use of compact fluorescent lamps, sodium vapours lamps to minimize energy consumption.
• Installing portable compressors for isolated running to save compressed air
• Harnessing natural daylight by installing translucent roof sheets in workshops
• Use of Liquefied Petroleum Gas in place of Light Diesel Oil and Electricity for heating, wherever
applicable.
• Installation of Turbo Ventilators in forge and Foundry to extract fumes which do not require
energy to operate
Representatives of the Company are participating in the following national committees working for
improvement of environment throughout the country:
1. Technical committee for “Air quality monitoring, emission inventory and source apportionment
studies for Indian cities”constituted by Central pollution control board, Delhi
2. Group on “Technical evaluation of Automotive Research Association of India reports on
development of emission factors” constituted by Central pollution control board, Delhi
3. Technical committee for “Heavy-duty Diesel retrofit demonstration project”constituted byNational
environmental engineering research institute, Mumbai
4. Multi stakeholder committee to “Develop Better environmental sustainability targets for lead
battery manufacturers” constituted by development alternatives, Delhi in collaboration
occupational knowledge international, UK and national referral center for lead poisoning, India
5. Steering committee for “Mobile Air conditioning Assessment project” constituted by The Energy
Research Institute (TERI), Delhi
EN 6 & EN 7:
Init iat ives t o us e r enewable ener gy sour ces and incr ease energy ef f iciency
The Env i ronment Chal l enge: The demand for energy has grown along with rapid industrial growth.
Studies have forecast a shortage of fossil fuel worldwide leading to ultimate extinction, when natural
deposits will be completely depleted. Fossil fuel based conventional power generation is recognized
as a major contributor to environmental pollution and to the Greenhouse Effect.
Wi nd Power as an al ternate source of energy: Wind power is a ‘clean’ and ‘cost effective’
renewable energy source. Wind energy has emerged as an economically lucrative and the cheapest
source of electrical energy which offers financial returns within a short period of time. It is further
estimated that approximately 1000 Units of electricity saved is equivalent to 1 tonne of carbon dioxide
– the primary greenhouse gas. Tata Motors’ opting for wind energy effectively reduces the demand
for electricity generated by burning conventional fossil fuels such as coal and fuel oil.
Wi nd Power Dev el opment i n Maharashtra: The estimated wind energy potential of India is 20,000
MW and 800-900MW in Maharashtra. The State Govt. has appointed an agency, Maharashtra
Energy Development Agency (MEDA) to encourage use of non-conventional energy sources such as
wind power. MEDA has identified various sites n Maharashtra, where sufficient wind velocity is
available to develop wind power generating units.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Use of Wi nd Power at Tata Motors, Pune: M/s Suzlon Energy Ltd. installed & commissioned 114
Nos. x 350 KW wind turbines & 3 Nos. x 1MW wind turbines at Satara and Supa in Maharashtra. Tata
Motors, Pune has signed a 35.55 MW Power Purchase Agreement (PPA).
In September 2007, the Certi fi ed Emi ssi on Reducti ons were aucti oned through the Chi cago
Carbon Exchange (CCX) and purchased by M/s Eco-Securi ti es Capi tal Ltd., Ireland
It is to be further noted that Tata Motors is working with the steering committee of National Hydrogen
Energy Board, India, to find ways in which India may harness hydrogen potential energy of future.
EN 8: Tot al wat er us e
Total water consumed during 2007-08 was 6222080 m
3
Total water withdrawal by source in 2007-08
was 605057 m
3
(P.S. The above figures are for three manufacturing units of Tata Motors, viz. J amshedpur, Pune
and Lucknow only)
EN 9: Wat er s our ces s ignif icant ly af f ect ed by wat er wit hdr awal
There is no direct withdrawal of water from the source river Subranarekha at J amshedpur. Raw water
is taken from M/s J USCO (J amshedpur Utility Services Company) of Tata Steel and treatedin works
and town water filter plant. All water consumed at Pune manufacturing unit is sourced from State
Utility-MIDC (Maharashtra Industrial Development Corporation), which in turn draws water from
Pavana River. At the manufacturing unit in Lucknow, water is withdrawn from under ground water
sources. At this unit, there is extensive water recycling procedure. The initiatives include - Rain water
harvesting, digging of ponds and deep puncturing water replacement. In the latter, water is collected
from roofs and around the manufacturing unit and funneled down bore holes to deep watersupplies
rather than simply allowing it to remain at the relative surface of the ground.
EN 10: Tot al r ecycling and r euse of wat er
Water Conservation Activities:
They comprise the following broad areas-
Water Management System
Intake Management
Maintenance of water distribution network
Quality of water (portability checks)
Optimization and leakage surveys
Water re-circulation systems
Water boosting systems
Clean production processes.
Rain water harvesting projects
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
49
EN 11: Locat ion and s ize of land owned, leased or managed in biodivers it y r ich
habit at s
While the facilities of Tata Motors are not in biodiversity rich areas, at J amshedpur, the Dalma range,
which is a ‘Biodiversity rich area’ is located at an aerial distance of 10 km from the plant boundary.
At Pune, none of the manufacturing facilities are located near such protected areas. Tata Motors,
however, has taken immense care to develop the residential area adjoining Pimpri Works into a "bird
sanctuary".
EN12: Des cr ipt ion of t he major impact s on biodiver s it y
There are no major impacts on bio-diversity by the Company’s operations.
EN 13: Habit at s prot ect ed or r es t or ed
Major ecological impact on the habitat has been achieved over sustained efforts around the
manufacturing unit of Pune. These include:
1. Transformation of landscape of hard basalt rock, fit for the growth of only wild shrubs into
a Green belt consisting of 3, 00,000 trees.
2. Creation of two lakes which also serves as perennial source of water for Tree Plantations.
3. Pisciculture: A large variety of fish, including rohu, catl a, mri gal , mahseer and silver carp
were introduced which are thriving in this natural environment.
4. Bird Sanctuary: Today, these lakes and the surrounding area, attract a large number of
water birds, many of which have made the lakes their permanent home, creating the only
‘bird sanctuary’ right in the middle of the Pimpri - Chinchwad industrial area
EN 14: St r at egies , cur r ent act ions and f ut ur e plans f or managing impact s on bio-
diver s it y
The Ministry of Environment & Forest (MoEF), Government of India, has appointed Gram Vikas
Kendra, J amshedpur (GVKJ ) an NGO supported by Tata Motors, J amshedpur, as the Regional
Resource Agency (RRA) for National Environmental Awareness Campaigns (NEAC) 2008 for
J harkhand State for 15th consecutive year. National Theme for the year 2007 was Solid Waste
Management and for the year 2008 is Biodiversity Conservation.
GVKJ has been constantly involved in the dissemination of Environmental Awareness Programmes
and creating water Management network by making ponds, check dams and wells in the surrounding
areas of the company.
• Strategic initiatives to develop 150 hectares of land for irrigation through water shed
development project in FY 07-08
• Tree plantation drive by Gram Vikas Kendra, J amshedpur. In FY 07-08 165000 trees were
planted
• Rain water harvesting pond constructed in 4 villages of Singhbhum (E) district namely
Kanikola, J askandih, Patherchakri and Narayanpur
• GVKJ has been appointed as Regional Resource Agency for the 15th consecutive year to co-
ordinate the National Environmental Awareness Campaign (NEAC)
• A good number of Forest Protection groups formed. to maintain the status quo of biodiversity
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
50
At the manufacturing unit in Lucknow, initiatives taken include:
• Fencing of lake area to protect the sensitive & nurtured plants from being destroyed by wild
animals
• Plantation of 10,000 plants to maintain green belt for healthy work ambience, natural
aesthetic & meeting statutory environmental compliance
• Mass plantation of J atropha Curcas (Bio fuel plant) satisfying National economic interest and
Global environmental concerns
EN 15: Number of IUCN Red Lis t s pecies and nat ional conser vat ion lis t s pecies
wit h habit at s in ar eas af f ect ed by oper at ions , by level of ext inct ion r isk
There is no impact of activities/ operations on such sensitive areas.
EN 16 & EN 17: Gr eenhous e Gas Emiss ions
Based on Fuel consumption (FO, LDO, HSD & LPG) data at each location is considered for Direct
GHG calculation. Ref. Site: Calculation Tools for Corporate GHG Accounting - GHG Protocol
Initiative.htm belong to World Resources Institute and World Business Council for Sustainable
Development is being used for the computation of Direct GHG emission.
Electricity Consumption data at each works is considered for the Indirect GHG computationsCO2 co-
efficients has been arrived by a weighted average emission for generators supplying to the grid in the
states of J harkhand.
Total Di rect GHG emi ssi ons
(CO
2
, Thousand Tonnes)
2007-08
J amshedpur 233.10
Pune 280.26
Lucknow 23.87
Indi rect GHG emi ssi ons
(CO
2
,Thousand Tonnes)
2007-08
J amshedpur 39.78
Note: Assumptions used in the computation:
Direct Emission: To avoid complexity, GHG emissions due to electricity import from J OJ OBERA Power Plant
generation has been categorised under the Direct Emission.
Indirect emissions due to outbound logistics and employee travel (domestic and international) have not been
considered due to unavailability of sufficient data. However, for J amshedpur Plant Township includingHospitals
(works & main) outside the works boundary has been considered under indirect GHG emissions.
Source: GHG Footprint Assessment Report for Tata Motors Ltd. by M/s ERNST &Y OUNG, base year 2007-08.
EN 18: Init iat ives to r educe GHG emiss ions
• Use of propane gas in place of Light Diesel Oil (LDO): Besides, propane gas has negligible
sulphur content as against 1.25% in case of existing LDO. This makes Propane a more
environment friendly fuel compared to LDO due to almost nil SOx emissions. 2 bullets of 100
Metric Tonnes capacities each are under installation phase.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
51
• Clean Development Mechanism (CDM): Taking opportunity of the CDM mechanism, Tata
Motors Ltd. initiated action for 20.85MW Wind Power Projects installed & commissioned at
Satara and Supa.
• Project Information Note (PIN) and Project Design Document (PDD) for 20.85MW Wind
Power Project was prepared with the help of MITCON and submitted to Ministry of
Environment (MoEF) for Host Country Approval. MoEF, New Delhi has issued Host Country
Approval for the Project. The Project was validated by M/s BVQI and registered by UNFCCC.
• In September 2007, successfully traded the CERs through e-bidding on the Chicago Climate
Exchange.
• Plantation of different varieties of trees in factory complex is done to sequester significant
carbon emission
• Replacement of conventional energy with cleaner energy alternatives/renewable energy
sources in plant activity and process.
EN 19: Us e and emis s ion of Ozone Deplet ing Subs tances (ODS)
Refrigerant CFC-12 is an “Ozone Depleting Substance (ODS)”, categorized under Group I of the
ODS (Regulation & Control) Rules, 2000, which is to be phased out by the year 2010. The Company
is actively working to achieve this well ahead of this target, by first targeting reduction in consumption
of CFC-12 for the existing refrigeration equipment. The Company has an EMP in place to convert
refrigeration units using refrigerant CFC-12 to its environmentally friendly alternatives i.e. replaced
with units operating on R-22 / R-134a. Due to the above proactive actions, we have been successful
in containing the consumption of CFC-12 refrigerant for maintenance of existing equipment.
EN 20: NOx, SO
2
, and ot her s ignif icant Emis s ions by t ype
Suspended Parti cul ate Matter (SPM)
Li mi t : 500 mi crogram/m
3
2007-08
J amshedpur Manufacturing unit
Annual Average 280.00
Pune Manufacturing unit
Annual Average 182.66
Lucknow Manufacturing unit
Annual Average 187.04
Sul fur Di oxi de (SO
2
)
Li mi t : 120 mi crogram/m
3
2007-08
Jamshedpur Manufacturi ng uni t
Annual Av erage 7.21
Pune Manufacturi ng uni t
Annual Av erage 11.03
Lucknow Manufacturi ng uni t
Annual Av erage 11.09
Ni trogen al l Oxides (NO)
Li mi t : 120 mi crogram/m
3
2007-08
Jamshedpur Manufacturing unit
Annual Av erage 45.12
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
52
Pune Manufacturing unit
Annual Av erage 12.47
Lucknow Manufacturing unit
Annual Av erage 12.83
Respi rabl e Parti cul ate Matter (RPM)
Li mi t : 150 mi crogram/m
3
2007-08
Jamshedpur Manufacturing unit
Annual Av erage 129.09
Pune Manufacturing unit
Annual Av erage 63.88
Lucknow Manufacturing unit
Annual Av erage 66.06
EN 21: Tot al wat er dis char ge by quality and des t inat ion
At J amshedpur manufacturing unit, the treated effluents from the outlet of Effluent Treatment Plants
(ETP) constitute the only significant discharges to receiving water bodies. Kharkai river is the
receiving water body at J amshedpur. At Pune manufacturing unit, all treated effluents are discharged
into Pavana River. Treated effluents are periodically monitored for compliance with permissible limits
of State Pollution Control Board (mass/volume). All values are found to be in compliance. Surprise
checks are carried out by State Pollution Control Board, which are also found to be within the
permissible limits. At Lucknow manufacturing unit, all effluents generated from plant activity and
process are properly treated at our sophisticated ETP and finally discharged in the inland water
bodies that sustain aquatic fauna and flora.
Table: Total Discharge to Water Body by type
Total Suspended Sol i ds (TSS)
2007-08
(Load i n Metri c Tonnes)
J amshedpur Manufacturing Unit 45.14
Pune Manufacturing Unit 52.74
Total Oi l & Grease (TOG)
J amshedpur Manufacturing Unit 4.1099
Pune Manufacturing Unit 0.95265
Bi o-Chemi cal Oxygen Demand (BOD)
J amshedpur Manufacturing Unit 13.03
Pune Manufacturing Unit 35.81
Chemi cal Oxygen Demand (COD)
J amshedpur Manufacturing Unit 107.63
Pune Manufacturing Unit 176.81
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53
EN 22: Tot al amount of was t e by t ype and des t inat ion
At J amshedpur manufacturing unit:
• Paint sludge generated at Centralized Paint Shop is removed from the scrub water with a
‘Hydropac system’ for effective separation. The water is re-used in the paint booths along
with make up water. This prevents the raw Paint Shop effluent from reaching the ETP
directly. Paint sludge is collected and sent to Industrial Incinerator.
• Press Filter is provided for removal of sludge from phosphating bath.
•
Incinerator model LRD-250 of capacity 250 kg /hr has been installed to incinerate hazardous
waste without production of smoke or odour and to enable all hazards taken care of properly
and to provide a cleaner, safer and healthier environment. The incineration system has been
optimized to:
o Incinerate varying nature and quantities of wastes at any given time
o Remove all the acidic pollutants and particulate matter in the flue gas by effective
scrubbing with water/ caustic
o Following hazardous wastes are being incinerated: Paint sludge, Oil sludge / scum;
Oil soaked waste jute, hand gloves, aprons etc. & Phosphate sludge. Equipped with
Auto-loading system (ram loader), Paint stripping chamber (heat recovery), High
pressure jet wet venturi scrubber with mist eliminator, 30-m self-supported, rubber-
lined chimney, PLC controlled panel board and Flue gas analyzer
At Pune manufacturing unit:
All hazardous wastes are disposed through an Authorised Common Hazardous Waste Treatment
Storage and Disposal Facility (CHWTSDF) located 125 km away at Taloja. The Operator of the
CHWTSDF picks up the generated waste in customised containers and moves the same by
dedicated trucks from our Facility to the final disposal point. The wastes are disposed by various
pathways depending on their hazard characteristics. These disposal pathways include - direct
incineration, direct landfill and landfill after treatment.
At Lucknow manufacturing unit: All waste is collected properly and finally disposed off through
Ministry Of Environment and Forests/Uttar Pradesh Pollution Control Board approved
Recyclers/Vendor.
EN 23: Signif icant s pills of chemicals , oils , and f uels in t erms of t ot al number and
t ot al volume
There were no significant spills of chemicals, oils or fuels in the reporting period. A systematic effort is
underway to quantify and define what could be termed as a “significant spill” based on the nature of
the hazardous chemical, quantity stored, extent of pipeline network and the age of installation.
EN 24: All pr oduction, t r ans port , impor t , or expor t of any was t e deemed
“ hazar dous ”
No hazardous wastes are being imported or exported. However, the Hazardous wastes generated in
various production processes like waste or used oil, non-ferrous metal i.e. waste copper dross/
plates, hazardous wastes (lead bearing type), batteries defined as "hazardous" in Schedule-4 of
Hazardous Wastes (Management & Handling) Amendment Rules 2003 are sold to the MoEF/CPCB
Registered Re-cyclers/ Re-refiners/ Re-processors only. These are being transported as per the
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
54
Hazardous Wastes (Management & Handling) Amendment Rules 2003 to ensure the following
statutory requirements:
• Endorsement of the Hazardous Waste quantity sold in authorised buyer's Pass Book as per
the authorized recycling capacity mentioned
•
Label properly the Hazardous Waste containing consignment
• Fill up and sign the 6 coloured copies of MANIFEST (Form -9) and send to the concerned as
mentioned in the copies
• Hand over the TREM CARD (Transport Emergency Card) to the Transporter
EN 25: Impact s of act ivities and oper at ions on pr otect ed and s ens it ive ar eas
There is no impact of activities/ operations on such sensitive areas.
EN 26: Init iat ives to mit igat e envir onment al impacts of product s and s er vices
Preventi on of Atmospheri c Pol l ution:
Exhaust emission standards are becoming stricter in J apan, Europe, the U.S. and many other
countries and regions. India introduced its first standards in 1991, and these have become
progressively more stringent over the years. Tata Motors aims to respond quickly to develop new
models that comply with latest national standard for domestic product and international standard
relevant to countries where the products are exported.
Reduci ng CO2 Emi ssi ons and Increasi ng Fuel Effi ci ency:
CO2 emissions are considered to be a primary contributing factor to global warming, making their
management the most important challenge for Tata Motors. Of the total volume of CO2 emissions
associated with the life cycle of an automobile, from excavation of raw materials to recycling of end-
of-life vehicles, the largest portion occurs when the vehicle is on the road. Controlling these emissions
is one of the most significant technology challenges TML is tackling today. While we are working in
developing fuel cells and other technologies of the future, we are also working to reduce CO2
emissions today’s vehicles through highly efficient engines and technology.
(a) Diesel Emphasis: As diesel is a more thermodynamically efficient fuel, our product lines
focus heavily on clean and modern diesel engines for automotive and stationary
applications.
(b) Multi-sector coverage: Tata Motors has been consistently developing and manufacturing
products that can contribute to CO2 reduction across all road transport segments and in
shifts between segments e.g. Bus Rapid Transit System (BRTS).
(c) Provide safe affordable transportation of people and goods with least CO2 emissions,
exemplified by Nano and Ace
(d) Alternative fuel initiatives in the widest possible spectrum of products along two axes:
- Blend Axis: Progressively blending of petrol with ethanol, Biodiesel with diesel and
hydrogen with CNG.
- Hybridization Axis: Hybridization from mild hybrid to full electric vehicle to hydrogen fuel
cell vehicle.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
55
(e) Minimize CO2 emissions by designing & developing the vehicles for Indian operating
conditions rather than directly adapting the vehicles from other markets e.g. Mumbai City
Fuel Efficiency Drive Cycle.
(f) Use of energy efficient air conditioning system like Scroll compressor, smaller heat
exchangers and high-efficiency condensers, low GWP refrigerants, etc. and reducing
refrigerant leakage and refrigerant recovery system during servicing.
Reduci ng Ozone Depl eti on:
CFC-12 having potential for ozone depletion is no longer used as refrigerant in AC system of our
product since 1996, HFC134a is used as a refrigerant
Reduced Use of Hazardous Substances:
The European Union directive 2000/53/EC on end-of-life vehicles (ELVs), which was proposed by the
European Commission and approved by the European Parliament, in principle banned the use of four
hazardous heavy metals (lead, mercury, cadmium and hexavalent chromium) in automobiles
(Cars/UV’s & Pick ups upto 3.5 GVW). TML is in compliance with the EU directive on ELV’s for export
vehicles to European Union.
TML has successfully implemented Lead free wheel balance weights, lead free printing inks, lead free
bulbs, alternate designs/coatings for hard Cr plating, cadmium plating, Lead free coatings for fuel
tanks, Lead free carbon brushes for electrical motors etc.
Asbestos free brake pads & clutches have been introduced in many of our products. Water based
paints is being used instead of solvent based paints to avoid VOC emission.
Workis going on for reducing/elimination of hexavalent chromium for corrosion preventive coatings
and development / implementation of lead free bearing shells & bushes.
Reduci ng Noi se Lev el s:
TML is not only meeting the national regulations but also aligned with European noise regulations and
continuously working with international bodies to further improve noise regulations.
Parti ci pati ng i n Nati onal Commi ttees & Ini ti ati v es Rel ated to Env i ronment:
Representatives of the Company are participating in the following national committees working for
improvement of environment throughout the country:
(a) Committee on “Air quality monitoring, emission inventory and source apportionment
studies for Indian cities”constituted by Central Pollution Control Board, Delhi.
(b) Standing Committee on Emission (SCOE) and Sub-committee on Fuel Efficiency Norms
of Union Ministry of Shipping, Road Transport and Highways of India.
(c) “Expert Committee on vehicular pollution control” constituted by Central Pollution Control
Board, Delhi.
(d) Ministry of New & Renewable Energy, Government of India (GoI), is promoting and
assisting technology development for GHG reduction by way of increased usage of
Biodiesel. Tata Motors is engaged in this initiative of Government of India.
(e) Coordinated Automotive Research initiative of Department of Science & Technology of
Government of India, for developing the National Hybrid Propulsion Platform programme.
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56
EN 27: Pr oduct s sold t hat is r eclaimable at t he end of t he pr oduct s us ef ul
Ini ti ati v es Taken to Recl ai m the Products Sol d are as under:
(a) Recyclability and Recoverability Regulation at “End of Life” of vehicle:
a. Meeting European directive on “recyclability” and “hazardous substances”.
b. Providing technical information on dismantleability of the vehicle to the dismantler
for use at “End of life vehicles”.
(b) Extended drain period for axle and gearbox oils:
Vehicle Trials for further enhancement in the drain period of axle & gearbox oil are in progress.
EN 28: Incident s of and fines f or non-compliance wit h all applicable inter nat ional
declar at ions / convent ions / t r eat ies , and nat ional, s ub-nat ional, r egional and local
r egulat ions as s ociat ed wit h envir onment al is s ues
There is no incidence of any fine or non-compliance with respect to any national, sub-national,
regional and local regulations associated with environmental issues.
EN 29: Envir onment al Impact s of t r anspor t ing pr oduct s and ot her goods and
mater ials us ed f or t he or ganisat ion’s oper at ions and t r ans por ting member s of
work f or ce
Strict adherence of the norms applied to transport product, materials and employees. Vehicle
condition check, Pollution Under Control (PUC) checks are in place to avoid any significant
environmental impacts during transportation. Identified concerned agencies
(Vendors/suppliers/contractors/transporters) have specific environmental programmes or control
procedures to mitigate the same.
EN 30: Tot al environment al expendit ur e
Total environmental expenditure in 2007-08 on various environment development initiatives at our
manufacturing units was Rs. 169 millions.
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7
Soci al Management Approach and
Performance Indi cators
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
58
MANAGEMENT APPROACH
Employees are the driving force of our organisation. The permanent employees’ strength of the
Company as on March 31, 2008 was 23, 230. Recruitments across all levels, extensive training and
skill enhancement activities were carried out especially at the new locations, in line with the
Company’s expansion and growth plans. Company’s cordial industrial relations were maintained at
all times and the Company entered into three wage settlement with its union. There has been
consistent improvement in productivity across all locations.
The Company was awarded India’s Best Managed Company for 2007-08 in the automotive sector
by Business Today based on a study conducted by Ernst and Young.
Communicate, Engage,
Reward, Rec ognise,
Union-Mgt Relationship
Strategic Alignment
Pillar
Strategy Execution
Pillar
Leadership / Growth
& Development Pillar
Structure, Competenc ies,
Manpower Planning,
Deployment
Engagement,
Performance Mgmt.,
Consequence Mgmt.
Industrial Relations
Organisational & Change
Capability Building;
Managing &
Expanding Talent Base
Communicate, Reward,
Recognise
Develop / Grow
Strategy-Structure Match,
Family Size, Eff iciency,
Ef fectiveness,
F E E D B A C K
H R S T R AT E G I C P I L L A R S
S T R A T E G I C E L E M E N T S
A C T I V I T I E S
DE L I V E R A B L E S
Vision
Business
Strategy
Core Values
Engagement, Superior
Perf ormance, Motivation,
Retention, Productive &
cordial relationship
Orgn. Capability, Agility
Future Leadership,
International Mindset
Attract, Select and
Deploy
Identify, Train /
Develop, Grow, Rotate
S Y S T E M S S Y S T E M S S Y S T E M S
Labour issues are managed by Employee relations department at each manufacturing location,
which forms a part of the human Resources Department. Within a manufacturing unit, there are
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
59
multiple factories and in each factory there is an officer in charge of safety. These officers in turn
identify and train Safety Stewards from amongst the workers. The structure enables the effective
implementation of Poka-Yoke (mistake proofing).
Manpower planning department looks after recruitment, training and performance management at all
levels. Training division at every location is in charge of identifying skill gaps and designing and
organising training programmes for both the blue-collared and the white-collared workers.
The said structure is at every manufacturing location and the Plant Head is in charge for the unit.
Functional Heads function at the corporate level as well and report to the Managing Director or to the
Executive Director.
A. LABOUR PRACTICES AND DECENT WORK
LA 1: Tot al Wor kf or ce by r egion
Total Workforce by Regi on
Category*
Jamshedpur Lucknow Pune Uttaranchal Mumbai Smal l Car Total
Executive 144 34 315 8 166 4
671
Managerial 1092 398 3199 213 1171 51
6124
Supervisory 1060 100 1461 65 165 20
2871
Operatives 3894 626 8841 27 176 0
13564
*The Management team comprises of Executive Grade which represents the senior leadership, the
TM grade which represents Middle Management as well as the various entry points based on
different level of education like graduation, post graduation etc. Operatives refer to workmen who
have requisite technical qualification employed for direct production activities
LA 2: Tot al r at e of employee tur nover
Tata Motors’ Annual Attrition Percentage for various grades is as follows:
Executive 3.4 %
Managerial 10.4 %
LA 3: Benef it s provided t o f ull-t ime employees t hat ar e not pr ovided to temporary or
part -t ime employees
Employee Benefits
(i) Gratuity
The Company has an obligation towards gratuity, a defined benefit retirement plan coveringeligible
employees. The plan provides for a lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary
payable for each completed year of service. Vesting occurs upon completion of five years of service.
The Company makes annual contributions to gratuity fund established as trust. The Company
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60
accounts for the liability for gratuity benefits payable in future based on an independent actuarial
valuation.
(ii) Superannuation
The Company has two superannuation plans, a defined benefit plan and a definedcontribution plan.
An eligible employee on April 1, 1996 could elect to be a member of either plan. Employees who are
members of the defined benefit superannuation plan are entitled to benefits depending onthe years
of service and salary drawn. The monthly pension benefits after retirement range from 0.75% to 2%
of the annual basic salary for each year of service. The Company accounts for the liability for
superannuation benefits payable in future under the plan based on an independent actuarial
valuation. With effect from April 1, 2003, this plan was amended and benefits earned by covered
employees have been protected as at March 31, 2003. Employees covered by this plan are
prospectively entitled to benefits computed on a basis that ensures that the annual cost of providing
the pension benefits would not exceed 15% of salary. The Company maintains a separate irrevocable
trust for employees covered and entitled to benefits. The Company contributes up to 15% of the
eligible employees’ salary to the trust every year. The Company recognizes such contributions as an
expense when incurred. The Company has no further obligation beyond this contribution.
(iii) Bhavishya Kalyan Yojana (BKY): BKY is an unfunded defined benefit plan. The benefits of the
plan accrue to an eligible employee at the time of death or permanent disablement, while in service,
either as a result of an injury or as certified by the Company’s Medical Board. The monthly payment
to dependents of the deceased / disabled employee under the plan equals 50% of the salarydrawn at
the time of death or accident or a specified amount, whichever is higher. The Company accounts for
the liability for BKY benefits payable in future based on an independent actuarial valuation.
(iv) Post-retirement Medicare Scheme
Under this scheme, employees get medical benefits subject to certain limits of amount, periods after
retirement and types of benefits, depending on their grade and location at the time of retirement.
Employees separated from the Company as part of Early Separation Scheme, on medical grounds or
due to permanent disablement are also covered under the scheme. The liability for post-retirement
medical scheme is based on an independent actuarial valuation.
(v) Provident Fund
The eligible employees of the Company are entitled to receive benefits under the provident fund, a
defined contribution plan, in which both employees and the Company make monthly contributions at a
specified percentage of the covered employees’ salary (currently 12% of employees’ salary). The
contributions as specified under the law are paid to the provident fund and pension fund set up as
irrevocable trust by the Company or to respective Regional Provident Fund Commissioner and the
Central Provident Fund under the State Pension scheme. The Company is generally liable for annual
contributions and any shortfall in the fund assets based on the government specified minimum rates
of return or pension and recognises such contributions and shortfall, if any, as an expense inthe year
incurred.
(vi) Compensated absences
The Company provides for the encashment of leave or leave with pay subject to certain rules. The
employees are entitled to accumulate leave subject to certain limits, for future encashment. The
liability is provided based on the number of days of unutilised leave at each balance sheet date on the
basis of an independent actuarial valuation.
Some other benefits advanced to the permanent employees are:
• Allowances like Transport allowance, Education allowance, Sanitation allowance, Leave
travel allowance etc
• Annual Performance linked Payment
• Free Medical facility for family
• Company loans & advances
LA 4: Per cent age of employees cover ed by collect ive bar gaining agr eement
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61
Tata Motors has internal unions at its manufacturing units at Pune, J amshedpur and Lucknow, which
enjoy majority with upto 98%-99% membership. These unions form representative bodies of the
workmen and negotiate with the management and settlements signed with these unions respectively
cover all permanent workmen present. At Uttarakhand, which is our new manufacturing unitlocation,
compensation of the operatives is decided on the basis of industry and region parity and in
consultation with Works Committee formed from time to time.
LA 5: Minimum not ice per iod(s ) r egar ding oper ational changes, including whether it
is specif ied in collect ive agr eement s
For Notice period regarding operational we follow the procedures mentioned in the Industrial Disputes
Act (21 days). This Act was passed by the Central Government of India to make provisions for
investigation and settlement of industrial disputes and came into existence in April 1947.
LA 6: For mal Joint Management -Work er Healt h and Saf et y Commit t ees
Tata Motors has a Safety Health and Environment (SHE) policy, which encompasses all regulatory
norms along with International Labour Organisation recommendations. Tata Motors has a process for
reporting, recording, analysis and action on accidents and unsafe conditions. The safety issues are
addressed through a bipartite (management and union) arrangement as depicted in the table here
below.
Table 1: Various Health and Saf ety committees at plant location
These committees thus cover 100% of the workforce.
LA 7: Injury, accident s , wor k -relat ed f at alit ies
Our practices are in line with the International Labour Organisation (ILO) “Model code of Safety
Regulations for Industrial establishment for the guidance of Government and Industry”. The decision
taken by the Governing body of the ILO conference held in 1948, the model code is not an instrument
involving any binding obligations, and Government and industries are free to make such use of it as
they see fit in framing or in reviewing their own safety regulations. The above guidelines are,
however, incorporated in the Factories Act 1948 and the Company strictly follows the rules and
accordingly the accident reporting or notice of accident or dangerous occurrence is recorded and
communicated to the concerned authorities (CIF) in FORM No. 17A.
LA 8: Ris k-cont r ol pr ogr ammes in place t o as s is t wor k for ce members, their families
or communit y members r egar ding ser ious dis eas es
Tata Motors provides curative and preventive health services to the employees, their families as
well as the community at large. It views its initiatives as a part of its social responsibility and as an
investment in improving social capital. Of these initiatives, some have been highlighted in the
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
62
following paragraphs. The Company has a robust Medical Scheme which covers complete health
care of employees and their dependent family members.
Tata Motors is committed to take initiatives to combat the spread of HIV/AIDS. Tata Motorsis aware
of the social stigma that accompanies the contraction of HIV / AIDS and thus as a conscious decision,
the Company does not make any discrimination, right from employment to retirement of employees.
• During pre-employment medical check-up, no HIV testing is done
• Employees having HIV /AIDS are allowed to work in our Factory until they are able to
continue normal duty
• Company’s Medical Benefit Scheme extends its’ benefits (reimbursement of medical
expenses) to employees who are suffering from HIV / AIDS. These benefits are at par
with any other medical benefits (It is not under exclusion as most of Insurance
Companies are having)
• Total confidentiality is maintained about HIV +ve status of any employee
T ata Motors started i ts AI DS awareness programme wi th the primary ai m to cover all
empl oyees and to make them aware about the causes, symptoms, myths and
preventi on of HI V/AI DS. Company doctors desi gned a 30 mi nutes lecture module and
del ivered i t to all empl oyees on the shop floor, fol l owed by di stribution of informative
bookl et on AI DS. Al l expenses for the desi gni ng and i mplementation of the programme
were borne by the Company.
In addition, Tata Motors supports a hospital in J harkhand state and also runs Mobile Health Clinics in
various villages adopted by the Company in J amshedpur, Lucknow and Pune. Awareness
programmes are extensively organised on various health issues for the community members. The
curative and preventive health services were provided to over 92390 non-employee patientsin 2007-
2008.
Photo: J amshedpur Hospital
Tata Motor s has also tr eated 8,000 lepr osy patients in last two decades thr ough the Nav Jagr at
Manav Samaj (NJMS) in Jamshedpur, Jhar khand. The ser vices extended have contributed towar ds
the reduction of leprosy pr evalence rate in Jamshedpur down fr om 22/1000 to 2.2/1000.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
63
Photo: Mr . Jowahar Ram Paswan, a beneficiar y of the NJMS pr ogr amme and now a full-time volunteer with
NJMS, with a patient at the ashr am
Rehabilitation work for leprosy-affected people is carried out by the Nav J agrat Manav Samaj in
J amshedpur. 8 ashrams situated around the city of J amshedpur, which are self-settled colonies of
people affected by leprosy, are supported with medical and institutional help for making their lives
comfortable and humane. More than 400 children of cured leprosy patients have been helped into
the formal stream of education. Also promoted are savings in banks by these people and adoption of
small business/vocations like rearing of livestock, poultry, cycle-rickshaw, cart and even growing
vegetables and selling them. A temporary hospitalization facility with 28 beds is available for the
treatment of seriously afflicted patients of leprosy. A 30-bedded Old Age Home runby NJ MS caters to
the old and destitute.
LA 9: Healt h and Saf et y t opics cover ed
Safety has been a concern for Tata Motors and the Company is taking steps to reduce the injuries
and accidents. All Tata Motors manufacturing units, including the new manufacturing unit at
Uttarakhand are certified under Occupational Health and Safety Standards 18801 (OHSAS 18001,
2007 version). OHSAS 18001 is an Occupati on Heal th and Safety Assessment Series for health and
safety management systems. It is intended to help an organization to control occupational health and
safety risks. It was developed by the Government of India in response to widespread demand for a
recognized standard against which to be certified and assessed.
In addition, Tata Motors manufacturing unit at Pune has been certified Social Accountability 8000
compliant. Clause No. 3 of the SA 8000 pertains to occupational health and safety. A Zero Accident
Plan was launched in 2007-08, wherein area ownership was developed by teams comprising of
management and supervisory grade workers called Bay Owners. The Bay Owners met twice a week
and conducted cross audits and organised awareness building programmes.
LA 10: Aver age hour s of t r aining per year per employee by employee cat egor y
Average Hours of Training per year per employee
Executive 49
Managerial 52
Supervisory 41
Operatives 23
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
64
LA 11: Sk ill Management and Managing Career Endings
LA 12: Employees r eceiving r egular per f or mance and car eer development reviews
All employees are evaluated based on performance and merit. The Company has customized the
PMS for the requirements of different categories of employees-managerial, supervisors and
bargainable employees. In the PMS system, Individual performance plans are cascaded from the
Balance Score Card down to the smallest work unit, bringing business and customer focus to all
levels and teams. Monthly and mid-course half yearly reviews are held to ensure resources; targets
and training are in alignment with business needs. Employees have an opportunity to develop their
own view of their performance and discuss it with their supervisor. Formal evaluation ratings are
assigned at the end of the year. PMS instills a high performance culture in the organisation.
Competencies of successful executives are used as input to project the ‘Pen portrait’ of the ideal
incumbent. To trackthe state of readiness and migration paths, the succession planning process
includes colour coding for potential successors. This helps in arriving at the best fit.
The process is reviewed periodically for status of successors and for process improvements. In case
a successor is not identified from the Department and Talent Pool, an internal advertisement is
released. If the position cannot be filled internally, a suitable candidate is selected throughExternal
Advertisement.
All employees have the opportunity to advance their careers. The Company administers career
progression through the PMS system for managerial employees. All employees have the opportunity
of moving to higher levels. This is based on their personal preparation and desire to move, windows
of opportunity and a fair selection process, as under:
Overall PMS Approach (A) &PMS for TM
Employees (B)
Target setti ng at i ndivi dual
l evel and trai ni ng need
identi fi ed
Mi d year review
& feedback to
employee
Mi d cour se
correcti on in
l ine wi th
busi ness needs
Rewards, Compensati on,
Car eer planni ng &
devel opment and overal l
system feedback
Performance
based Ratings
and
Normal isati on
Annual review
and feedback
Empl oyee & Seni or
Senior Leadershi p and
HR (Inputs to HRPl an)
Employee &Senior
Empl oyee & Seni or Empl oyee & Seni or
Senior Leadership & HR
Target Setting Review Process
Compensation
process and
overall review
A
B
Creating High Performance
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
65
High Pot ent ial
Counseling, skill
matching,
Grooming
St ar s
Challenging growth
opport uniti es, career
planning, mentoring
Non Perf ormers
Deselction
annually
Sol id cit izens
Locat e in steady
f unction, retain and
evaluat e pot ent ial
FTSS
T
a
l
e
n
t
M
g
m
t
P
o
t
e
n
t
i
a
l
?
Per for mance ?
Apart from regular progression, other methods used for Fast track career progression are depicted
below. This helps the Company in building a resource for key areas and challenging assignments.
Career Progression Methods
LA 13: Gender Diver s it y by Employee cat egor y
Gender Diversity by Employee category
Male Female
Executive 658 13
Manager ial 5898 226
Super visor y
2730 141
Oper atives
13270 294
LA 14: Rat io of bas ic s alar y of men t o women by employee cat egor y
The Government of India has passed the Equal Remuneration act in 1976. This is an Act to provide
for the payment of equal remuneration to men and women and for the prevention of discrimination, on
the ground of sex, against women in the matter of employment and for matters connected therewith
or incidental thereto. Even before the Act came into force, Tata Group has followed a non-
discrimination policy in employment and compensation. Remuneration is not basedon gender, social
status or age and is linked to responsibility levels and performance.
Bargainable
Supervisors
TM / EG
SVCVP scheme,Master
craftsman, Mechatronics
scheme
Bargainable
to Sup scheme
Mastercraftsman,
Mechatronicsscheme
Engineer /
Internal officer
trainee scheme
Talent management,
@Fast trackselection
@ Fast Track SelectionScheme is
identifiedas best practice and
learnedby other groupcompanies
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
66
B. HUMAN RIGHTS
The Ethics team at Tata Motors is in charge of the human rights aspects in the Company. The
structure of the Ethics Department is given below.
HR 2: Human Right s Scr eening f or Supplier s and Cont r act or s
Tata Motors Limited has Supplier and Dealer assessment process to take care of issues related to
social aspects before inducting them in organisation. All legal and regulatory requirementsneed to
be fulfilled before final selection into the Tata Motors fold. The company periodically audits the job
contractors for adherence to labour laws and other statutory requirement like minimum wages, PF,
payment of gratuity etc. thereby ensuring prevention of violation of Human rights and employment
malpractices.
HR 3: Employee t raining on Policy and Pr ocedur es concerning Human Right s
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
67
Tata Motors adheres to the Tata Code of Conduct in its business. Tata Code of Conduct hascovered
all the Human Rights principles proclaimed in Universal Declaration of Human Rights. However, to
strengthen and support internationally proclaimed Human Rights within the business of the Company,
it was decided to design exclusive policies on various aspects of Human Rights.
The Policy on Human Rights is as under:
“Tata Motors believes in and respects Human Rights as enunciated by the International Labour
Organisation.
Tata Motors is committed to protect the Human Rights of its employees while dealing with them in all
the activities falling under the relationship of ‘Employer’ and ‘Employee’.
Decision to seek employment rests with the individual only, and it is completely voluntary. Tata
Motors does not and will not allow or encourage Compulsory or Forced Labour in any of its processes
and practices.
Tata Motors respects the right of its eligible employees to organise for the purpose of Collective
Bargaining as well as their right to support or oppose the labour union recognised by Tata Motors.
Tata Motors respects the definition of Child Labour as mentioned in the guidelines of International
Labour Organisation. Tata Motors will not engage any person under the age of 18years (legal age of
employment) for any operations or services (as presented in law) unless it is part of government
approved job training or apprenticeship programme.
Tata Motors honours the right of its employees to choose and decide the extent of their involvement
in Political Activities in their Personal Time.
Tata Motors expects its Channel Partners and Contractors to adhere to business principles consistent
with its own.”
Each new joinee receives a copy of the TCoC. Furthermore, Excerpts from the Code is prominently
displayed at all locations and employees are well aware of its components and adhere to it in letter
as well as in spirit.
HR 4: Incident s of Dis cr iminat ion:
The Company has a “Policy on Equal Opportunity and Non-Discrimination in Employment”, which
states:
“As part of its Recruitment Practices, TATA MOTORS is committed to provide Equal Opportunity to all
eligible applicants for employment without any discrimination against their gender, race, religion,
caste, colour, ancestry, marital status, nationality and disability. Opportunity for employment will be
solely based on eligibility and merit of the applicant. Career growth opportunities will be based entirely
on individual merit.”
There is robust Ethics Counsellor Process to monitor implementation of Tata Code of Conduct. The
Tata Code of Conduct incorporates within its fold, the Human Rights principles, which thus get
monitored during the process of monitoring of the former. Employees, as well as outsiders, have the
liberty to raise concerns if any, related to the Tata Code of Conduct and the Human Rights Policies
thus. Ethics Counsellors, who are present at all locations, address these concerns.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
68
In relation to the process of managing the business ethics, it is of much avail to talkabout the Whistle
Blower Policy at Tata Motors. This policy is an extension of the Tata Code of Conduct. The Whistle
Blower’s role is that of a reporting party with reliable information. The Policy also defines clearly the
composition and role of investigators or fact-finders and that of arriving at corrective or remedial
action in each given case. The Policy explicitly mentions pre-requisites to ensure that the identity of
the Whistle Blower is kept confidential. All employees of the Company are eligible to make Protected
Disclosures under the Policy.
For the year 2007-08, 95 of the 115 ethical concerns received were resolved the same year. The
remaining 20 are being reviewed.
HR 5: Suppor t t o Fr eedom of As s ociat ion and Collect ive Bar gaining:
In keeping with the spirit of the Constitution of India wherein Right of Association is a Fundamental
Right, Tata Motors respects the right for association of its employees and has constructive
relationship with trade unions at all locations. Employees are encouraged to join the Trade Unions, as
it believes that most individual and collective grievances can be resolved through bipartite forums.
This has led to good industrial relations. With its collaborative approach to company union, Tata
Motors has not faced legal action regarding anti-union practices.
Approximately 15000 of our permanent employees, who come under the unionised category, are
covered by collective bargaining agreements. These agreements include health and safety provisions
along with compensation structures in the form of a Memorandum of Understanding (MoU)between
the management and the representing Union as per the provisions of the applicable labour
legislations. These MoUs are signed every three years after negotiations between representing
committees of the union and the Management.
While the union membership may vary from each location, all eligible employees, irrespective of his
membership, enjoy the benefits as agreed in the MoU. The table below indicates the percentage of
permanent bargainable employees who are members of the recognised union at respective locations.
While the existing grievance handling process takes care of issues of temporary employees, the
recognised Unions also take up their issues.
Pr ocedur es involving infor mation, consultation and negotiation with employees
Interaction Level Frequency
Business Unit Level
Managing Dir ector , Executive Dir ector (Business Unit
Head)
Annual
Plant Head
Senior VP/ Direct Repor ts
Monthly
Per iodically
Divisional Level
GM/ Dir ect Repor ts
Monthly
Factory/Department Level
Divisional Head/ Factor y Head/ HR
Monthly
Weekly
Centr e of Excellence owners / HRO Need Based one-to-one inter action
Issues not resolved in lower levels are appropriately escalated to higher levels.
HR 6: Cont ribut ion t o Eliminat ion of Child Labour
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69
Tata Motors upholds the Tata tradition of not employing children in any of its Companies. It is bound
by the statutory legislation (Factories Act, 1948) and proper records are maintained in this regard.
The Certified Standing Orders of the Company expressly state that the age of an employee at the
time of recruitment should be 18 years or more.
Moreover, the Company is actively involved in improving both the quality and the access to education
in various regions. Infrastructural support for education helps thousands of children to access primary
and secondary education. Eligible poor students especially from tribal families are given financial
assistance. 1800 students through 33 schools and institutions of social and cultural development are
supported through the Shiksha Prasar Kendra, a Tata Motors society. Quality of education is
improved through special training programs for teachers and students. Vocational guidance programs
are organized so as to help the students in career planning.
Easy access and financial support for education helps in preventing children undertaking child labour.
HR 7: Cont ribut ion t o Eliminat ion of For ced and Compuls or y Labour
Tata Motors strictly adheres to the laws of the land with regard to forced and compulsory labour,
which are prohibited under various acts and statutes. To serve as an audit from time to time, the
Company has implemented Social Accountability standards through SA8000 which audits the
company and its supply chain for forced/compulsory labour, possibility of child labour, minimum
wages, payment of wages, etc.
In addition, the Tata Code of Conduct, referred to earlier, also has clauses on these two principles.
The disciplinary action process at Tata Motors is as per the applicable laws like Model Standing
Orders / Certified Standing Orders that allow the process of natural justice as per statute.
Description of appeal practices
RECEIPT OF REPRESENTATIONS & APPEALS
THROUGH HEAD OFFICE / SR.VP (J SR & LKO) 'S
FORWARDING THE SAME TO APPROPRIATE AGENCY
HRD & C, P & IR
EXAMINATION & VERFICATION OF REPRESENTATION /
APPEALS
PREPARATION OF DETAILED REPORT &
APPROPRIATE REPLY , THE SAME TO BE EXAMINED
BY HO / SR.VP(JSR & LKO)'S OFFICE
MAILED TO RESPECTIVE EMPLOYEES &
EXEMPLOYEES AFTER NECESSARY CORRECTIONS /
MODIFICATION
PROCESS FOR HANDLING
REPRESENTATI ON & APPEALS MADE BY
EMPLOYEES & EXEMPLYEES
Grievance handling Mechanism
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
70
EMPLOYEES
BARGAI NABLE NON BARGAINABLE
TALK TALK TALK TALK
TAL K
WRITE
WRI TE
UNION
REPRESENTATI VE
SUPERVI SOR / CX
OWNER / DI V HEAD
HR OFFI CERS /
MANAGER
LI STENI NG
POST
ETHI CS
COUNSELLOR
HOTLI NE
COORDINATI NG
AUTHORITY
SR VI CE PRESIDENT
CONCERNED AGENCY / DIVISION
HR 9: Rights of Indigenous People:
Government of India considers all Indians to be indigenous. Thus, this indicator is not quite
applicable while reporting only on the operations of Tata Motors within India.
C. SOCIETY
The Company has a Corporate Social Responsibility structure, which involves the top management
as well the employees and is driven by the objective of “i mprovi ng the qual i ty of life of people”. The
structure catering to the needs of the society, which the Company treats as the very purpose of its
business and not just another stakeholder, is as under:
SO 1: Managing Impact s on Communit ies
Institutionalizing CSR
Donations Committee CSR Committee
Two pillars of the CSR
Activities within
C
Suppor t institutions
thr ough donations on
basis of need and mer it
Review, monitor and guide
the CSR wor k under taken
acr oss all locations
Jamshed
pur
Pune Lucknow Non Plant Pantnagar Small Car
LOCTIONAL CSR
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
71
The Company has constantly strived to mitigate the environment as well associal impacts of itsproducts
and operations. Through its various initiatives, the Company has been able to preserve and protect the
environment and has also contributed to integrated social development.
Through its CSR activities, the Company aims to upgrade the quality of life of the communities
around the Company’s areas of operations. Besides, Tata Motors also encourages employees to
devote time to underprivileged sections through Company projects and non-governmental
organisations to share skills and expertise and assist the needy. This is in line with the Company’s
broader goal of practising and promoting self –sustaining processes and welfare activities for social
and economic development and environmental protection. In a structured approach, the Company’s
CSR Committee guides and reviews the CSR activities. In all its CSR initiatives, the Company
recognises and respects diverse community needs by undertaking specific and need-based initiatives
across locations, while deploying global standards and policies.
A summary of the impact created by several community development initiatives in the year 2007-08 is
detailed in the Annual CSR Report, which can be viewed at the Company’s website at
http://www.tatamotors.com/our_world/we_care.php
SO 2: Analys ing Ris k s r elat ed to Cor rupt ion
All employees, from all ranks and grades, have signed the Tata Code of Conduct, which has a specific
clause pertaining to bribery and corruption. Clause 5 of the Tata Code of Conduct enunciates the
group’s approach towards “Gifts and Donations”. It reads “A Tata Company and its employees shall
neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts,
donations or comparable benefits which are intended to or perceived to obtain business or
competitive favours for the conduct of its business. However, a Tata Company and its employees
may accept and offer nominal gifts which are customarily given and are ofcommemorative nature for
special events”.
The Company, moreover, has drafted a Policy on Gifts, which is reproduced as under:
Gifts and business courtesies may be extended at Tata Motors’ expense, and accepted only if they
meet all of the following criteria:
They are not intended to obtain business or competitive favours;
They are not in contravention of applicable law; and
When publicly disclosed, will not be seen as a bribe or illegal payment.
Gifts, received or offered, will be restricted to items of nominal value, like calendars and diaries,
bouquets, sweets. Business courtesies received or offered should only be meals in the course of a
business meeting.
Any other gifts or business courtesies should be politely declined. Any gifts or business courtesies,
which appear to be given as a bribe, should be firmly rejected and reported to the employee’s
superior.”
Further, the Company also has a Policy on Bribery and Corruption, which states:
“Tata Motors is committed to its core value of Integrity. Towards this commitment, Tata Motors will
ensure that neither the Organisation nor its Employees receive or offer any direct or indirect illegal
payments, remuneration, benefits or favours to obtain business or for the conduct of business. Any
violation will be treated as a punishable offence.”
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
72
All complaints are addressed by the Ethics Counsellor Process, detailed earlier.
SO 3: Tr aining of Employees on Ant i-Cor r upt ion Policies and pr ocedures
As stated earlier, the TCoC training covers all employees and it has within it the clauses on anti-
corruption and bribery. Furthermore, the policies, including the Policy on Gifts andPolicy onBribery
and Corruption are prominently displayed at all locations and all employees are made aware on the
process to redress grievances, if any.
SO 6: Contr ibut ions and Par t icipat ion in Polit ical Par t ies
Tata Motors maintains its neutral stance in terms of politics and has no political alignments and/or
inclinations. Thus, there are no financial or non-monetary grants made to any political party.
SO 7: Legal Act ions f or Ant i-compet itive, Ant i-t r ust and Monopoly Pr act ices
No such legal actions have been filed.
Tata Motors products and services have their own merit and no misleading statements are made
about competitor’s products and services. Any information regarding the competitors is collected
through legally permitted sources and means and is made only in the normal course of business.
The Company does not engage in activities which generate or support the formation of monopolies,
dominant market positions, cartels and similar unfair trade practices.
D. PRODUCT RESPONSIBILITY
PR 1: Cus tomer Healt h and Safet y
Tata Motors has been putting in a lot of effort to improve the safety (active and passive). The
Company always meets all the safety regulations of concerned markets and goes beyond the safety
regulations to provide better safety products – example being ACE has been designed to meet more
stringent crash safety norms that are not applicable to that class of products. There has been a
continuous upgradation of the product safety with new technologies being broughtin – Tata Motors is
the first Indian manufacturer to develop and introduce airbags in our vehicles. The Company is still
the only manufacturer in this country to have a crash test facility.
PR 2: Tot al number of incident s of non-compliance wit h r egulat ions concer ning
healt h and s af et y impact s of pr oducts and ser vices
Our record of compliance with regulatory requirements pertaining to emissions, safety, product
labelling, competition, advertising and other clauses of the Central Motor Vehicle Rules have always
been proactive and exemplary. The Company has never received any sanctions for violation of
regulatory norms.
PR 3 & PR 4: Pr oduct and Ser vice Labelling
Product Development is instituted and structured as a New Product Introduction (NPI) business
process to integrate various functions of the company. NPI is aimed at creating a product that meets
customer expectations in terms of quality and value.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
73
New Product Introduction
Engineering Research Centre (Our Research and Development Centre) is adequately equipped with
state of the art facilities to address specifically the issues of customer health and safety. It has
facilities like Crash Test facility for safety and the Hemi Anechoic chamber for NVH and engine
emission testing. These facilities enable development of products meeting safety and environmental
regulations.
Examples of special features used in our products for preserving customer health and safety include
Anti-skid braking systems; Air Bags; Ergonomically designed seating systems with lumbar support;
Euro III complaint engines etc; Non-Chloro Fluro Carbons based vehicle air conditioners.
Tata Motors obtains test certificates for vehicle worthiness and other safety related issues like
emission, brakes, noise etc. before the product is marketed through government authorised agencies.
Tata Motors also obtain Homologation certificates for export markets from authorized test agencies.
Labelling Identification of parts that need to be labelled as per Annex II of EEC directives 2000/53/EC
amended by 2002/525/EC. This directive bans the use of hazardous heavy metals – Lead, Hex-
Chromium, Mercury and Cadmium.
The Company issues certificate of compliance to the above directives based on the declarations
obtained by SQIG from the suppliers.
PR 6: Adher ence t o Regulat ions r egar ding Mar k et ing Communicat ions
Tata Motors has instituted a Policy on Advertising which states:
“Tata Motors honours Advertising as a tool for Healthy Competition within the market. Tata Motors
will ensure that the promotion of its products and services is based only on justifiable or proven facts.
Tata Motors shall not make any misleading statements or use any competitive informationfor unfair
trade practices.”
The Company has embibed the essence of the policy in all its processes pertaining to marketing
communication and no false claims and/or unfair means are used while promotinga product/service.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
74
PR 8: Complaint s r egar ding violat ion of Cons umer Pr ivacy
No such complaints have been made. The Company respects consumer privacy and has in fact a
written policy stating the same. The Policy on Consumer Privacy is given as under:
“Tata Motors values long term relationship with its customers based on the foundation of Trust,
Integrity and Confidence.
While delivering excellent quality products and services, Tata Motors is committed to protect
Consumer Privacy in managing information and data furnished by its customers for official or
personal purposes. Such data will not be divulged to or shared with other individuals/institutions
without the prior written permission from customers.
Tata Motors is committed to designing processes and practices that ensure continued trust of its
customers.”
doc_211300399.pdf
Tata Motors Li mi ted, the leading automotive vehicle manufacturing company in India in terms of
revenues and one of the largest private sector companies in India in terms of revenues and assets.
The Company is the largest company in terms of revenues in the Tata Group, which is one of the
leading business groups in India.
The wide array of commercial vehicles from Tata Motors is designed to take care of almost every
business needs, big and small. From rigid trucks to tractor trailers, from light commercial vehicles to
specialised defence carriers, from luxury buses to compact city carriers, we have it all.
Commercial Vehicle Business Unit (CVBU) manufactures and markets commercial vehicles ranging
from 1.5 tonnes Gross Vehicle Weight (GVW) pick-ups to buses to 49 tonnes GVW heavy trucks. The
specifications of our trucks have become brand names in the market place such as 407, 709, 207DI,
2516, 4021, EX series, etc.
TATA MOTORS LIMITED
CORPORATE SUSTAINABILITY REPORT
(2007-08)
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
2
GRI CONTENT INDEX
Section
Aspect
Indi cator
Page #
Statement from MD
1.1
8-9 1. Pr ofil e
Description of key issues, risks and opportunities
1.2
21-23
Name of the Organisation
2.1
13
Primary brands, products and services
2.2
13
Operational Structure
2.3
13
Location of HQ
2.4
13
Countries with major operations
2.5
14
Nature of ownership and legal form
2.6
14
Markets served
2.7
14
Scale of the Organisation
2.8
14
Significant changes in size, structure or ownership
2.9
15
2. Or gani sati onal
Pr ofi l e
Awards Received
2.10
15-18
Reporting Period
3.1
20
Recent previous Report
3.2
20
Reporting cycle
3.3
20
Contact persons
3.4
20
Report content
3.5
2-6
Boundary of the report
3.6
23
Limitations of the Report
3.7
23
Basis for reporting on subsidiaries and associate
companies
3.8
23
Data Measurement Techniques
3.9
23
Restatements
3.10
23
Significant changes from previous reporting periods
3.11
23
GRI Content Index
3.12
2-6
3. Repor t
Par ametr es
Policy and current practices for seeking external
assurance
3.13
23
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
3
Governance structure and Board composition
4.1
25-26
Non-executive status of the chair
4.2
25-26
Independent and/or non-executive members
4.3
25-26
Mechanism for shareholders and employees to provide
recommendations to the highest body
4.4
27-28
Linkage between compensation and performance of the
Board
4.5
28-29
Process to avoid conflicts of interest
4.6
29
Process to determine expertise of Board members
4.7
29
Statements and application of mission, values and code
of conduct
4.8
10-11 & 29-30
Overseeing of risks and opportunities by governance
bodies
4.9
27
Evaluating the performance of highest governing body
4.10
30
Approach to risk management in operational planning
4.11
30-31
Charters, initiatives and principles that the organization
subscribes to
4.12
32
Membership in associations and national/international
organizations
4.13
32
Stakeholder engagement
4.14
32
Identification and selection of stakeholders
4.15
21
4. Gover nance,
Commi tments and
Engagement
Approach to stakeholder engagement
4.16
32
Economic performance
EC1
36-40
Significant financial assistance received from the
government
EC4
40
Range of ratios of standard entry level wage compared
to local minimum wage at significant locations of
operation
EC5
41
Policy, practices and proportion of spending on locally-
based suppliers
EC6
41
Procedure for local hiring
EC7
41
5, Economi c
Per for mance
Indi cator s
Indirect economic impacts
EC9
41-42
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
4
Materials used
EN1
45
Recycled input materials
EN2
45-46
Direct energy consumption
EN3
46
Indirect Energy Consumption
EN4
46
Energy saved
EN5
46-47
Initiatives to provide energy-efficient products and
services
EN6
47-48
Initiatives to reduce indirect energy consumptions
EN7
47-48
Total water use
EN8
48
Water sources significantly affected
EN9
48
Total recycling and reuse of water
EN10
48
Location and size of land owned, leased or managed in
biodiversity rich habitats
EN11
48
Impacts of activities, products and services on
biodiversity
EN12
48
Habitats protected or restored
EN13
49
Strategies, current actions and plans for managing
impacts on bio-diversity
EN14
49
Number of IUCN red list species and national
conservation list species with habitats in areas affected
by operations
EN15
49
Total direct Greenhouse Gas emissions
EN16
50
Total indirect Greenhouse Gas emissions
EN17
50
Initiatives to reduce Greenhouse Gas emissions
EN18
50
Emissions of ozone-depleting substances
EN19
51
NO, SO and other significant air emissions
EN20
51
Total water discharge
EN21
52
Total waste by type and disposal method
EN22
52-53
Total number and volume of significant spills
EN23
53
Weight of waste deemed hazardous
EN24
53
Initiatives to mitigate environmental impacts of products
and services
EN26
54-55
Packaging materials that are reclaimed
EN27
55
6. Envi ronmental
Per for mance
Indi cator s
Fines and sanctions for non-compliance with
environmental laws
EN28
56
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Environmental impacts of transporting organisation’s
products
EN29
56
Environmental protection expenditure and investments
EN30
56
Total workf orce
LA1
59
Total rate of employee turnover
LA2
59
Percentage of employees covered by collective
bargaining
LA3
59-60
Percentage of employees covered by collective
bargaining agreement
LA4
60
Minimum notice period(s) regarding operational
changes, including whether it is specified in collective
agreements
LA5
60
Workforce represented in joint management-worker
health and safety committees
LA6
61
Rates of injury and work-related fatalities
LA7
61
Education, training and risk control programmes to
assist workforce, their families and community
members regarding serious diseases
LA8
61-63
Health and safety topics covered in formal agreements
with trade unions
LA9
63
Average hours of training per year per employee by
employee category
LA10
63
Programmes for skill management and managing
career endings
LA11
63-64
Employees receiving regular performance and career
development reviews
LA12
63-64
Breakdown of employees by category and gender
LA13
65
6. Soci al
Per for mance
Indi cator s
Ratio of basic salary of men to women by employee
category
LA14
65
Human rights screening for suppliers and contractors
HR2
66
Employee training on policies and procedures regarding
aspects of human rights
HR3
66-67
Total number of incidents of discrimination
HR4
67
Managing risk to freedom of association
HR5
67-68
Efforts to eliminate child labour
HR6
68
Efforts to eliminate forced and compulsory labour
HR7
68-69
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Incidents of violations concerning rights of indigenous
people
HR9
69
Programmes and practices to assess and manage
impacts on communities
SO1
70
Business units analysed for risks related to corruption
SO2
70-71
Employees trained in organisation’s anti-corruption
policies and procedures
SO3
71
Contributions to political parties
SO6
71
Legal actions for anti-competitive, anti-trust and
monopoly practices
SO7
71
Customer health and safety
PR1
72
Total number of incidents of non-compliance with
regulations concerning health and safety impacts of
products and services
PR2
72
Product and service labeling
PR3& 4
72-73
Adherence to Regulations regarding Marketing
Communications
PR6
73
Complaints regarding breaches of consumer privacy
PR8
73
GRI Applicat ion Level
G3 Management
Approach Disclosures
G3 Profile
Disclosures
G3 Performance
Indicators
1.1 to 4.15 included in
the Report
Beginning of each
section
Reported on 67
performance
indicators
A
S
E
L
F
D
E
C
L
A
R
E
D
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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1
Strategy and Analysis
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Ladies and Gentlemen,
I am delighted to make public Tata Motor’s Sustainability Report which provides a balanced and
reasonable presentation of the Company’s economic, social and environmental performance.
The year 2007-08 was a historic year for Tata Motors, marked with two significant events- the
unveiling of Tata Nano - the world’s least expensive car, and the signing of the definitive agreement
with Ford Motor Co. for the purchase of J aguar and Land Rover, which has since been completed on
J une 2, 2008. Besides this, the Company achieved its highest ever sales of 585,649 vehicles to
remain India’s largest automobile company by turnover.
While the Company achieved new heights in the worldwide automobile industry, the overall economic
environment threw many challenges during the year. The moderation in economic growth in the
Indian economy impacted demand to some extent. The Company’s margins were under pressure due
to rising interest rates, constraints in availability of vehicle financing, and an unprecedentedincrease
in raw material prices.
Notwithstanding all these challenges, the Company continued to strengthen its social development,
environmental management and bio-diversity conservation programmes, in line with the Tata Group’s
commitment of improving the quality of life of the community it serves. The Company’s heritage of
returning to the society what it earns evokes trust among the consumers and other stakeholders. Tata
Motors has been continuously launching environment friendly products in the markets by using the
latest technologies available. While a number of models are already available with the LPG and CNG
technologies, the Company is also actively pursuing electric vehicles programmes. Further, the
Company is committed to meet all emission norms in its products that are enforcedfrom time to time
in India and the international markets where it operates. This is evident from the fact that the small
car Nano, which is expected to be launched in the near future, has also been designed to meet BS3
emission standards despite the stiff cost targets of the project.
All the manufacturing facilities of Tata Motors are certified to meet ISO: 14001 Environment
Management System (EMS) standards. The manufacturing plants have reduced power and water
consumption per unit of vehicle by pursuing various energy and water conservation initiatives. Rain
water harvesting continues to be a focussed activity at the manufacturing plants and the Company
continues to successfully run its Rain Water Harvesting project in J amshedpur manufacturing unit.
The manufacturing unit at Pune, Maharashtra has consumed around 50 million units of wind energy
annually since 2001 as part of the Clean Development Mechanism of the United Nations.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
9
The Company has well-defined thrust areas for its community development initiatives which are
linked to national and international goals and standards, including the Human Rights Charter, Bharat
Nirman Programme and the Millennium Development Goals. Over a thousand youth from rural areas
adopted by the Company were trained in various technical and vocational trades. 350 of these youth
were trained at the Singur site in West Bengal, where the small car project was supposed to come up.
As part of the women empowerment programme, over a thousand women were trained in sewing,
manufacturing food products and beautician courses.
The Company’s contribution in the national development, environmental conservation andsocietal
value creation has been acknowledged at various forums. The J amshedpur plant was awarded the
National Energy Management Award by CII and declared the “Energy Efficient Unit 2007”. It also
received a trophy and award for Outstanding Performance by CII- ER Energy Conservation (ENCON)
Award 2007- 08 Contest. Tata Motors is also the only Indian automobile company that has earned the
distinction of “Notabl e COP” for the third consecutive year in 2006-07.
Tata Motors is confident that the wealth generated as a result of development would not only power
the business but would also be ploughed back in the conservation and enrichment of environment
and for greater prosperity of the community.
Your’s truly,
Ravi Kant
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
10
The vision, mission and core values for the two business units of Tata Motors, Passenger Car and
Commercial Vehicle are given below:
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Tata Motors Ltd. CorporateSustainabilityReport 2007-08
12
2
Organi sati onal Profi l e
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
13
Name of the Organi sati on
Tata Motors Limited, the leading automotive vehicle manufacturing company in India in terms of
revenues and one of the largest private sector companies in India in terms of revenues and assets.
The Company is the largest company in terms of revenues in the Tata Group, which is one of the
leading business groups in India.
Pri mary brands, products and serv i ces
The wide array of commercial vehicles from Tata Motors is designed to take care of almost every
business needs, big and small. From rigid trucks to tractor trailers, from light commercial vehicles to
specialised defence carriers, from luxury buses to compact city carriers, we have it all.
Commercial Vehicle Business Unit (CVBU) manufactures and markets commercial vehicles ranging
from 1.5 tonnes Gross Vehicle Weight (GVW) pick-ups to buses to 49 tonnes GVW heavy trucks. The
specifications of our trucks have become brand names in the market place such as 407, 709, 207DI,
2516, 4021, EX series, etc.
Passenger Cars Business Unit (PCBU) manufactures and markets cars (Indica and Indigo brand)
along with marketing of utility Vehicles like Sumo and Safari.
Tata Motors through its Engineering Research Centre provides design and development capabilities.
Both the business units of Tata Motors reach customer via large network of dealers, Tata Authorised
Service Stations, Tata Authorised Service Centres and spare parts distributors.
Operati onal structure of the organi zati on, i ncl udi ng mai n di v i si ons, operati ng compani es,
subsi di ari es, and j oi nt v entures
Tata Motors is a fully integrated automobile company. Today, it is the only automobile manufacturer
to offer the entire range of commercial vehicles for transportation of goods and passengersand also
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
14
passenger cars in India through its two business unit viz. Commercial Vehicle Business Unit (CVBU)
and Passenger Car Business Unit (PCBU).
Over the years, Tata Motors has made substantial investments in building subsidiary and associate
companies that add value, facilitate and support its diverse range of business activities: Telco
Construction Equipment Co. Ltd. (Telcon), Tata Technologies Ltd. (TTL), HV Axles Ltd. (HVAL), HV
Transmissions Ltd. (HVTL), TAL Manufacturing Solutions Ltd. (TAL), Tata Marcopolo Motors Limited
(TMML), Tata Motors (SA) Proprietary Limited (TMSA), Tata Motors (Thailand) Limited (TMTL), Tata
Motors European Technical Centre (TMETC), Tata Motors Finance Limited (TMFL), Tata Motors
Insurance Broking and Advisory Services Limited (TMIBASL), Sheba Properties Ltd., Tata Daewoo
Commercial Vehicle Company Ltd (TDCV), TML Distribution Company (TDCL), Automobile
Corporation of Goa Limited (ACGL), Fiat India Automobiles Private Limited (FIAPL), Tata Cummins
Ltd. (TCL), Tata AutoComp Systems Ltd. (TACO), Tata Precision Industries Pte Ltd., Hispano
Carrocera S.A. and Nita Company Ltd.,
Locati on of organi zati on’ s headquarters
Tata Motors Limited,
Bombay House,
24 Homi Modi Street, Mumbai 400 001, India
Phone – 91 22 56658282
Countri es where the organi zati on operates, and
Names of countri es wi th maj or operations
We have subsidiary/associate companies outside of India as under:
• Tata Daewoo Commercial Vehicle Co. Ltd., Korea
• Nita Company Limited, Bangladesh
• Tata Precision Industries Pte. Ltd., Singapore
• Tata Technologies Limited, USA/UK
• Tata Motors European Technical Centre, UK
• Tata Motors (SA) Proprietary Limited, South Africa
• Tata Motors (Thailand) Limited, Thailand
• Hispano Carrocera S.A., Spain
In addition to the above, we also have a liaison office in Dubai which caters to promoting our
international business for the Middle East and Africa region.
Nature of ownershi p and l egal form
Tata Motors Limited is a public limited company listed on 2 stock exchanges (Bombay Stock
Exchange and National Stock Exchange of India Limited) in India. Company’s Depositary Receipt
Programme is listed on the New York StockExchange.
Markets serv ed
Tata Motors has major operations in India with sales and marketing operations in more than 70
countries. The scope of this report though, includes only Indian operations.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
15
More details are available at Tata Motors website http://www.tatamotors.com
Scal e of the reporti ng organi zati on:
Key elements depicting the scale of the organisation in 2007-08 is given in the table below:
Number of per manent employees as on March 31, 2008 23,230
Net sales for FY 2007-08
Rs. 330.94 billion
Volumes of products sold
585,649
Total net assets as on March 31 ‘08
Rs. 150.96 billion
Gross debt
Rs. 62.81 billion
Share Capital
Rs. 3.86 billion
Largest Shareholder
Tata Sons Ltd. with 21.92% to paid-up capital
Sharehol di ng
The Company is a widely held, listed company (including on the New York Stock Exchange), with
approximately 292,090 shareholders. The Company’s international offerings of Foreign Currency
Convertible Bonds are listed on the Luxembourg/Singapore Stock Exchanges. The sharehol ding
pattern as on March 31, 2008 for the Company is given below:
Categor y
No. of shar es
% of hol di ng
Promoters 128819405 33.42
NRIs, Foreign Companies & ADRs 79068379 20.51
Government Companies, Financial Institutions, Banks
and Insurance Companies
57079243 14.81
Mutual Funds & Unit Trust of India 10160944 2.63
Foreign Institutional Investors 65388543 16.96
Others 44987440 11.67
Total
385503954
100
Si gni fi cant changes duri ng the reporti ng peri od regardi ng si ze, structure, or ownershi p
Tata Motors acqui red Land Rov er and Jaguar, part of Premi er Automoti v e Group of Ford
Motor Company for US$ 2.3bi l l i on on cash free, debt free basis. The two enterpri ses were
formal l y transferred on June 2, 2008 at a si gni ng ceremony at the Jaguar and Land Rov er
headquarters i n West Mi dl ands. To fund thi s acqui si ti on, Tata Motors i s rai si ng Rs. 72000
mi l l ions on a ri ghts basi s and US $500/600 mi l l i on through an international offeri ng of equi ty
and/or cost effecti ve quasi equi ty i nstruments. Jaguar and Land Rov er achi eved rev enues of
US$ 19.09 bi l l i on for the fi nanci al year 2007-08.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
16
Awards recei v ed i n the reporti ng period
Business Rel ated:
Auto Moni tor Commerci al Vehi cl e Manufacturer of the Year
• Tata Motors has received the Auto Monitor Commercial Vehicle Manufacturer of the Year
award for the year 2007. The Auto Monitor awards are given to honor the best in the Indian
automotive industry for their contribution to the sector in the calendar year 2007. The seven-
member jury that comprised of senior people from the industry and Auto Monitor editorial
team adjudicated the nominations across 10 categories and decided on the winners.
Tata Motors among Indi a’ s Most Trusted Brand i n cars
• Tata Motors has been chosen as one of India’s Most Trusted Brand in cars for the second
consecutive year, in a Readers Digest/AC Neilsen consumer survey. Tata Motors received
the Readers Digest Trusted Brands Gold Award based on feedback from over 7000
respondents.
Tata Motors recei v es the Gl obal Game Changer Award
A speci al award at the Innovati on for Indi a Awards 2008
• Tata Motors has received the Global Game Changer Award at the 'Innovation for India
Awards 2008', organised by the Marico Innovation Foundation. This special award salutes the
company's passion and zeal behind the creation of the Nano. The awards recognise great
innovations in India that have a great idea coupled with a unique insight, and have positively
impacted lives. This year, the foundation received 206 entries. Mr Ravi Kant, Managing
Director, accepted the award from Mr Harsh Mariwala, Chairman and Managing Director,
Marico and Dr Mashelkar, Chairman of the Marico Innovation Foundation, on March 19,
2008.
Tata Motors recei ves Upti me Champi on Award 2007
• Tata Motors has received the Uptime Champion Award 2007 in the 'General Industry'
category. The award by Emerson NetworkPower and Express Computer is given to an
organisation that is working to improve overall reliability of its IT (Information Technology)
infrastructure and has implemented a solution that guarantees optimal infrastructure uptime
24x7. Mr C P Lohiya, Dy. General Manager (Information Technology), Tata Motors, accepted
the award on behalf of the company.
Tata Motors bags the “ Best Company Award”
• Tata Motors, Pune was declared as the “Best Company” at 20
th
National Work Skills & 2
nd
CII
World Skills Competitions conducted jointly by CII and the Directorate General of
Employment and Training (DGET), Ministry of Labour, Govt. of India. Tata Motors secured
fourteen rankings in seven trades
Passenger Car Busi ness Uni t bags Handa Gol den Key Award
• The Passenger Car Business Unit of Tata Motors bagged the Handa Golden Key Award 2007
for the 'Best Value Engineering Organisation'. The award is conferred by the IndianNational
Value Engineering Society (INVEST).
TRAKIT bags si l v er award for 'Excel l ence i n Desi gn'
• TRAKIT won the silver award for 'Excellence in Design' in the 'Electronics' category at the
20th International Appliance Design Excellence in Design Awards 2007, USA. TRAKIT is a
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
17
vehicle tracking telematic device developed by Tata Motors for Indian truck driversand fleet
owners.
Process Related:
Tata Motors bags Nati onal Award for Excel l ence i n Cost Management
• Tata Motors has won the National Award for Excellence in Cost Management for the year
2006, conferred by the Institute of Cost and Works Accountants of India (ICWAI). Tata Motors
bagged the first prize in the ''Manufacturing'' category in the private sector.
'NDTV Profi t' Busi ness Leadershi p Award for Tata Motors
• Tata Motors has received the coveted ''NDTV Profit'' Business Leadership Award in the
category of four-wheelers for the year 2007. Mr. Rajiv Dube, President -Passenger Car
Business Unit, received the award on behalf of the company.
Tata Motors - CVBU bags 'Hi ghest Del ta Award' for Busi ness Excel l ence
• Tata Motors CVBU has crossed the score band of 551-650 in the Tata Business Excellence
Model 2007 assessment and has moved into the ''Industry Leader'' (651-750 score) band.
• CVBU has won the ''Highest Delta Award'' in the 600+point category. This award is given to
an organisation that displays the highest jump in its scores from the previous year.
Tata Motors awarded SAP Customer Excel l ence Award
• Tata Motors has been awarded the SAP ACE Customer Excellence Award for the year 2007
in the "Best Project in the Automotive Vertical (Large Enterprise)" category. The award was
conferred on Tata Motors for the exceptional results in business transformation using the
SAP-SRM (Supplier Relationship Management) and SAP Warehouse Managementsolutions.
Aggregates Busi ness of CVBU bags Best Suppl i er Award from ECEL
• The Aggregates Business of Tata Motors' Commercial Vehicle Business Unit has won
the 'Best Supplier Award' from Escorts Construction Equipment Ltd (ECEL). This award has
been presented to Tata Motors in recognition for supporting ECEL's business growth plans
through the supply of high tech aggregates including engines, gear boxes and axles. Mr PVS
Prasad, Head- Aggregates Business, Tata Motors accepted the award on behalf of the
Company
Gol den Peacock Award for Occupati onal Heal th & Safety
• Tata Motors Pune - CVBU bagged the Golden Peacock Award for Occupational Health &
Safety. The award was received by Mr. A. K. Ghose, DGM (HR, CVBU - Pune) and Mr. V.
Gandhi, DGM (Auto, CVBU - Pune)
Tata Motors wi ns Best Paper Award at the Asi an Network for Qual i ty Congress 2007
• Tata Motors has won the 'Best Paper Award' among 120 papers presented at the Asian
Network for Quality (ANQ) Congress 2007. Mr. A. S. Parasharami, DGM (B E S - Pune)
received the award for his paper on the 'Appl i cati on of 3P (Producti on Preparation Process)
concept at Tata Motors'.
Tata Motors Commerci al Vehi cl e Busi ness Uni t bagged the Fi rst pri ze in “ Excellence in
Suggesti on Scheme Contest 2007”
• Tata Motors CVBU Pune has bagged the First prize in “Excel l ence i n Suggestion Scheme
Contest 2007” (in group V) from the Indian National Suggestion Schemes' Association
(INSSAN). The award is given to organisations who have achieved the highest levels of
employee involvement and excellence through Suggestion Scheme.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
18
Commerci al Vehi cle Busi ness Uni t wi ns Raj i v Gandhi Nati onal Qual i ty Award for 2007
Tata Motors, CVBU Pune has won the prestigious Rajiv Gandhi National Quality Award for
2007. CVBU Pune received this award in the large scale manufacturing organisation
category. The Rajiv Gandhi National Quality Award is instituted by the Bureau of Indian
Standards (BIS), New Delhi and has criteria similar to prestigious international quality awards
like the Malcolm Baldrige National Quality Award USA, the European Quality Awardand the
Deming Prize, J apan.
Recogniti ons:
Sumo, Indi ca among 'Most Trusted Brands' of Indi a
• The Sumo and the Indica have once again been adjudged among the ''Most Trusted Brands''
of India. The annual ''Most Trusted Brands'' survey is conducted among consumers across
the country by ''Brand Equity'', the marketing and advertising supplement of ''The Economic
Times''. The Sumo is ranked No.3 (up from No.5 last year), while the Indica retains its No.7
position - both above all other car brands
Tata Motors Indi a's 5th most v al uabl e brand
• Tata Motors has been ranked as the 5th most valuable ''company brand'' - the face of the
business for all stakeholders - in India. The study was conducted by The Economic Times
and Brand Finance. The study indicated that Tata Motors is also among the 14 companies in
India in terms of its ability to sustain earnings into the future with the least risk.
Tata Motors among most reputed Indi an fi rms
• Tata Motors has emerged as one of the most reputed corporates in India according to the
Corporate Reputation Index by global consultancy firm, TNS. Tata Motors shares the second
spot with Tata Steel and Hindustan Lever
Tata Motors among 10 Most Respected Companies i n Indi a
• Tata Motors is among the top 10 Most Respected Companies in India. Ranked at #8, Tata
Motors is the only automobile company in the top 10. The findings are of the Business World
'Most Respected Companies Survey - 2007'.
Tata Motors among Asi a's 50 best performi ng compani es
• Business Week has listed Tata Motors among Asia's 50 best performing companies. The
other Indian companies, among the 50 best, are TCS, Tata Steel, HDFC, Hero Honda
Motors, Siemens India, Sterlite Industries and Cipla. Business Week says that these
companies have been powered by robust revenue growth, profitability and shareholder
returns.
Indi v i dual Awards
Mr Kwang-Ok Chae, President - Tata Daewoo, honoured wi th the 'CEO of Korea' award
• Mr Kwang-Ok Chae, President - Tata Daewoo, was conferred with the ''CEO - Korea Award
2007'', by the Economic Review magazine of South Korea. The award is given to an
outstanding South Korean CEO, who has contributed to the development of the national
economy, and generated a sense of achievement among citizens through exemplary
leadership and business innovation.
Mr. Vi v ek Joshi bags patent for energy sav i ng dev i ce
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
19
• Mr. Vivek J oshi from the Uttarakhand team has been awarded a patent (Patent No. 203430)
for an energy saving device for high pressure gas discharge lamps. The patent is for a period
of twenty years. This device can save 22% electrical energy consumption and can be used in
any gas discharge lamp at home, in shops, malls, hotels offices etc.
3
Report Parameters
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
20
Reporti ng peri od for i nformati on prov ided
The information provided in this report is for fiscal year 2007-08 (April to March).
Most recent previ ous report
Tata Motors GRI Report 2006-2007
Reporti ng cycl e
This is the fourth GRI report from Tata Motors Limited. The reporting cycle for the GRI report is
annual.
Contact poi nt for questi ons regardi ng the report or i ts contents
Dr. Sangram Tambe
Vice President – Corporate Human Resources
Tata Motors Limited, Bombay House
Phone – 91 22 66657227
E Mail – [email protected]
Website – www.tatamotors.com
Mr. M B Paralkar
Consultant Advisor – CSR & IR
Tata Motors Limited, Pune
Phone – 91 20 66132381
E Mail – [email protected]
Website – www.tatamotors.com
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
21
Report Scope and Boundary
Process for defining report content
Tata Motors Limited has prepared this report in line with Sustainability Reporting Guidelines (G3
Guidelines) released in 2006. The report is to be used by the stakehol ders of the Company
identified as including the following:
Opportunities and Threats have been identified through a combination of various instituted processes,
including the Enterprise Risk Management (ERM) process and interviews with department heads,
including vendor development, environment, safety and human resources. These are enumerated
below:
Opportuni ti es
Road dev elopment: Continued improvement in road infrastructure in coming years is expected to
have a positive effect on automobile sales. The Golden Quadrilateral road project was 97% complete
as on March 31, 2008. The North South East West (NSEW) road corridors are expected to be
completed by December 2009. Rural connectivity is expected to correspondingly improve which
would expand significantly the population/markets/supply sources participating in the overall
economic growth. Improvement in road infrastructure would facilitate faster transportationof goods
and passengers, and would in turn create demand for safer, reliable and faster vehicles. The
Company is poised to benefit from the same as it has a wide range of goods and passenger
transportation vehicles ranging from 0.7 Ton load carrier to large haulage tractors (49T) for goods
movement, buses and coaches for public transportation and passenger cars and utility vehicles for
personal transportation.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
22
Car penetrati on i n Indi a: The reduction in excise duty on ‘Small cars’ announced in the Budget is
expected to increase the penetration of cars in the country from 7 per 1,000 people as compared to a
higher penetration level in developed and developing markets for example, Germany 550, France
495, Malaysia 253, South Korea 219, Brazil 96 and Thailand 51 cars per 1000 people. India and
China (with a car penetration of 6 per 1,000 people) are perceived as highly attractive markets for the
global automotive industry. Due to growth in urbanization and expansion of cities, the outlook for
growth in passenger car sales remains positive.
Increase i n i ncome l ev el s: A growing middle income level population, rise in their average income
levels, moderation in income tax rates and the recently announced increase in compensation for
government employees, all augur well for the automotive industry, both in terms of personal
transportation requirements as well as freight movement.
Large two wheel er parc/market: India has a 60 million two wheeler parc and an annual sale of over
7.2 million two wheelers. The Company believes that the gap between two wheeler prices and the
current entry level car prices offer a huge opportunity for an affordable, safe and comfortable small
car with appealing design and features. It is hoped that the Tata Nano would address this huge
potential in demand.
Internati onal busi ness: India continues to be a cost effective source for the automotive industry
globally, both for vehicles and components. India’s manufacturing base will benefit from these scale
economies and technology/quality improvements. The Company’s exports currently constitute 9.8%
of the total sales value and have opportunities to increase significantly, particularly with the new and
contemporary product offerings in commercial vehicles and passenger cars. The Company is also
setting up / exploring manufacturing footprint overseas that would combine these advantages with
local operations and sourcing in these markets.
Growi ng consumer cul ture: The demand for a better lifestyle has enhanced consumption levels and
rapid growth in several areas like retail chains, cellular phones and cable and satellite television. The
Company, with its wide portfolio is expected to benefit from improvement in lifestyle and higher
aspiration levels in passenger cars and potential growth in freight movement.
Threats
Credi t unavai l abi l i ty: Further tightening of liquidity position and reduction in exposure to vehicle
financing by banks/NBFCs would have an adverse impact on the automotive industry. Though in-
house vehicle financing has been strengthened by the Company, it would be a challenge for the
Company to fully offset the decrease in credit availability from outside sources.
Interest rates hardeni ng and other i nfl ationary trends: Further hardening of consumer interest
rates could have an adverse impact on the automotive industry. Increase in inflation could also have
a negative impact on automobile sales in the domestic market.
Fuel Pri ces: The international crude prices witnessed steep increase from price levels of $62 per
barrel at the beginning to $100-110 per barrel towards the end of the fiscal. Further hardening of fuel
prices would adversely impact the automotive sales.
Input Costs: Prices of commodity items like steel, non-ferrous and precious metals and rubber
witnessed an upward movement, which was partially offset by the Company’s cost reduction
initiatives. The price of steel, in particular, has increased by 30% – 35% in the last 24 months and is
expected to further increase significantly in the coming year. Whilst the Company continues to pursue
cost reduction initiatives, increase in price of input materials could have a negative impact on the
demand in the domestic market and/or could severely impact the Company’s profitability to the extent
that the same are not absorbed by the market through price realisation.
Government Regulati ons: Stringent emission norms and safety regulations could bring new
complexities and cost increases for automotive industry, impacting the Company’s business. WTO,
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
23
Free Trade Agreements and other similar policies could make the market more competitive for local
manufacturers.
Gl obal Competi ti on: India continues to be an attractive destination for the global automotive players.
The global automotive manufacturers present in India have been expanding their product portfolio
and enhancing their production capacities. To counter the threat of growing global competition, the
Company has planned to bridge the quality gap between its products and foreign offerings while
maintaining its low cost product development/sourcing advantage.
Growi ng consumer awareness: Growing awareness amongst consumers is driving up expectations
from automobile companies in terms of providing world class features and technology for which
adequate price realization is not always possible.
Growth i n Mass Transi t Systems: The domestic passenger vehicle demand could be impacted by
the growth of road and rail based mass transit systems. However, the Company would benefit from
the road based mass transit system due to its wide range of commercial passenger carriers.
Boundary of the Report
This report includes only Indian manufacturing Operations of Tata Motors. The sales and revenue
figures include international business. The products and services of Commercial Vehicle and
Passenger Car Business Units (CVBU and PCBU) including Trucks, Buses, Multi-Utility Vehicles,
Sports Utility Vehicles and cars is included in the scope of the report. In addition, operations of
Engineering Research Centre are also included. Economic indicators are provided for CVBU, PCBU
and International Business. International Business exports are included in the CVBU and PCBU
business.
Speci fi c l i mi tati ons on the scope or boundari es
Tata Motors would not be reporting on all indicators as the data compilation for some of the indicators
is still underway. Attempt would be to report on such indicators in subsequent reports.
Basi s for reporti ng on Subsi di ari es and Associ ate Compani es
We have added to this year’s GRI report, a summary of the financial performance of Tata Motor’s
primary subsidiary and associate companies. Information reported for the subsidiaries and associate
companies is sourced from our Annual Report 2007-08.
Data measurement techni ques
Tata Motors has implemented SAP 4.6c system for its data operations reliability and has integrated
its operations under it. The SAP Modules implemented include Finance (FI), Production Planning
(PP), Material Management (MM), Sales and Distribution (SD) Quality Management (QM).
Tata Motors also uses Indian GAAP for reporting its financial performance (from which most of the
Economic performance indicators have been addressed). Most financial details have beensourced
from the Annual Report, which are in turn verified by external auditors.
Internal and external audit practices are designed to provide assurance on systems and data. These
include Corporate Assurance Process every year with the help of Tata Quality Management Services,
Internal and External Financial Audit, ISO 14001 as also ISO 9000 -2000 and IS/TS16949.
Expl anation of the effect of any restatement
There are no re-statements from Tata Motors
Si gnifi cant changes
Disclosure on Management processes for the performance indicators is being included in the report.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
24
Seeki ng External Assurance
This report is not subjected to external assurance. The data reported under financial and environment
aspects are, however, subjected to procedural external audit as per national standards.
4
Governance, Commitments and
Engagement
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
25
Governance Structure and Board Composi ti on
As part of the Tata group, the Company’s philosophy on Corporate Governance is founded upon a
rich legacy of fair, ethical and transparent governance practices, many of which were in place even
before they were mandated by adopting highest standards of professionalism, honesty, integrity and
ethical behaviour. The Corporate Governance philosophy has been further strengthened with the
implementation, a few years ago, by the Company of the Tata Business Excellence Model, the Tata
Code of Conduct applicable to the Company, its subsidiaries and Directors and employees. The
Company is in full compliance with the requirements of Corporate Governance under Clause 49 of
the Listing Agreement with the Indian Stock Exchanges. The Company’s Depositary Programme
being listed on the New York Stock Exchange, the Company also complies with US regulations as
applicable to Foreign Private Issuers (non-US listed companies) which cast upon the Board of
Directors and the Audit Committee, onerous responsibilities to improve the Company’s operating
efficiencies. Risk management and internal control functions have been geared up to meet the
progressive governance standards.
The Board, being elected by the shareholders, is their representative and a bridge between them and
the executive management. Since shareholders are residual claimants, the value creation and
sustainability of all the other stakeholders viz. customers, creditors, employees, vendors, community
and the Government (of countries in which the Company operates) are of paramount significance to
the Company and its shareholders. The Board would therefore have a fiduciary relationship and a
corresponding duty to all its stakeholders to ensure that their rights are protected. Through the
Governance mechanism in the Company, the Board alongwith its Committees endeavours to strike
the right balance with its various stakeholders.
The Board of Directors presently comprises of 10 Directors, out of which 8 are Non-Executive
Directors. The Company has a Non-Executive Chairman and the 4 Independent Directors comprise
more than one third of the total strength of the Board. The Company has taken initiatives to comply
with the recent amendment of Clause 49 of the Listing Agreement pertaining to composition of
directors for induction of independent directors.
Board Committees:
To focus effectively on the issues and ensure expedient resolution of diverse matters, the Board has
constituted a set of Committees with specific terms of reference/scope. The Committees operate as
empowered agents of the Board as per their Charter/terms of reference. Targets set by them as
agreed with the management are reviewed periodically and mid-course corrections are also carried
out. The minutes of the meetings of all Committees of the Board are placed before the Board for
discussions/noting. The Board constituted Committees and the status on independence of these
Committees is given in table below:
Name of
Commi ttee
Rol e
Status on
Independence
Audit
Committee
The Audit Committee functions according to its Charter that defines its
powers, scope and role in accordance with the Companies Act, 1956, listing
All 3 Independent
Directors
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
26
requirements and US regulations applicable to the Company and is
reviewed from time to time. Whilst, the full Charter is available on
Company’s website www.tatamotors.com
Remuneration
Committee
The Remuneration Committee of the Company is empowered to reviewthe
remuneration of the Managing Director and the Executive Director,
retirement benefits to be paid to them under the Retirement Benefit
Guidelines approved by the Board and deal with matters pertaining to
Employees’ Stock Option Scheme
2 Independent and 2
Non-Executive
Directors
Investors’
Grievance
Committee
The Investors’ Grievance Committee of the Board is empowered to oversee
the redressal of investors’ complaints pertaining to share/debenture
transfers, non-receipt of annual reports, interest/dividend payments, issue of
duplicate certificates, transmission (with and without legal representati on) of
shares and debentures and other miscellaneous complaints
1 Independent
Director as Chairman,
1 Non-Executive and
Managing Director
Ethics &
Compliance
Committee
The Ethi cs and Compl iance Commi ttee was constituted to formulate
policies relating to the implementation of the Tata Code of Conduct for
Prevention of Insider Trading (the Code), take on record the monthly reports
on dealings in securities by the “Specified Persons”and decide penal action
in respect of violations of the applicable regulations/the Code
Chairman being
Independent Director,
1 Non-Executive
Director and 1
Executive director
Executive
Committee of
Board
The Executi ve Commi ttee of Boar d reviews capital and revenue budgets,
long-term business strategies and plans, the organizational structure of the
Company, real estate and investment transactions, allotment of shares
and/or debentures, borrowing and other routine matters. The Committee
also discusses the matters pertaining to legal cases, acquisitions and
divestment, newbusiness forays and donations
5 Non-Executive
Directors, 1 Executive
Director and
Managing Director
Nominations
Committee of
the Board
The Nomi nati ons Commi ttee of the Boar d was constituted with the
objective of identifying independent directors to be inducted on the Board
and to take steps to refresh the constitution of the Board from time totime
4 Non-Executive
Directors
Donations
Committee and
Corporate
social
Responsibility
Committee
The Donati ons Committee reviews and approves donations to non-
governmental organisations/non-profit institutions on basis of need and
merit. The CSR Commi ttee reviews, monitors and guides the CSR work
undertaken across all locations
Managing Director
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
27
The relationship between the Board, the Committees and the senior management functions is
illustrated below:
Mechani sm for sharehol ders and empl oyees to provi de
Recommendati on to the Board
Shareholders/Investors
A monthly shareholders report is sent to the Board members which describes the shareholding
pattern and also the performance of Tata Motors stock with respect to the other automotive
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
28
companies and the stock indices. The report also highlights the expectations from various equity
analysts and the Company’s performance vis-à-vis the same. The Ethics & Compliance Committee
also reviews on a monthly basis the trading in the Company’s shares by the designated employees to
ensure that they do not unduly benefit on account of access to unpublished price sensitive
information. Investors’ Grievance Committee reviews the investor grievance redressal procedure and
also proactively gives suggestions/directions to protect the interest of the investor.
On recommendations of the Investors’ Grievance Committee, the Company has taken various
investor friendly initiatives like sending of reminders to investors who have not claimed their dues,
launching an odd lot scheme, sending nominations forms, launching a shareholders’ discount
scheme, arranging factory visits, etc. Critical feedback, complaints and suggestions received from
investors are considered appropriately and addressed.
Channel partners/Suppliers:
A Supplier Relationship Management programme and Dealer Management Systemare in place and
the Management Committee reviews the programme from time to time. The key indicators of review
are the Supplier coverage and the efficiency of the transactions with the Company. The Company
also organizes Supplier’s day/Vendor meets/Channel partner meets where suppliers can touch base
with the Board members and share their thoughts and inputs.
Employees:
The Management Committee on a very regular basis reviews the employees’ issues. The
remuneration guidelines, the employee satisfaction, the employee growth plan and the organization
culture are discussed in these meetings. Major employee welfare schemes are put up to the Board for
approval. The Board is also kept informed of senior level changes in management, status on signing
of Union wage agreements, remuneration of senior executives, etc.
Customers:
The Company is also in the midst of implementing a very comprehensive Customer Relationship
management program which is reviewed by the Management Committee and the Board sub-
Committees from time to time. This program ensures that the Customers are treated in the fair
manner by the channel members of the Company and their needs are also captured and responded
to through this programme.
Li nkage between executi ve compensati on and
Achi evement of the organi sati on's financi al and non-fi nanci al goal s
The annual performance/appraisal of the Whole-time Directors are reviewed by the Remuneration
Committee through a structured Balance Scorecard mechanism as agreed to at the beginning of the
year and the performance of the individual Whole-time Director is evaluated against the same. The
Company pays remuneration by way of salary, perquisites and allowances (fixed component),
incentive remuneration and commission (which are major variable components depending on the
performance parameters) to its Whole-time directors after a review of their individual performance.
Annual increments of each Whole-time Director are decided by the RemunerationCommittee within
the salary scale approved by the Members and are effective from April 1, annually. The Company has
not issued any stockoptions to its senior management/employees. Approval of the shareholders is
obtained for payment of remuneration to the Executive and Non-Executive Directors and adequate
disclosures on terms of appointment, tenure and remuneration are included in the Explanatory Notes
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
29
to the Notice of the General Meeting. The Annual Report contains details of the remuneration drawn
by the Whole-time Directors.
The remuneration by way of commission paid to the Non Whole-time Directors is decided very
objectively by the Board of Directors and distributed to them based on their attendance and
contribution at the Board and certain Committee meetings, as well as time spent on operational
matters other than at the meetings. Approval of the shareholders is taken for payment of commission
to Non-Executive Directors which is within the limits prescribed under the Companies Act, 1956.
Appropriate disclosures are made in the notice of the General Meetings. The Annual Report also
contains details of the remuneration paid to the Directors - both Executive and Non-Executive
Directors.
Process to avoi d confl i cts of i nterest
To ensure that no conflict of interests arise among the highest governing body, transparency in
operations and selection and disclosure policies for governance is maintained. The Board of the
Company has adopted the ‘Code of Corporate Disclosure Practices’ according to which the public
spokespersons are identified who are responsible in ensuring timely and adequate disclosure of price
sensitive information. This Code ensures simultaneous release of information through various
mediums of disclosure/dissemination in a transparent and fair manner. Informationis available to the
shareholders through Annual Reports and half-yearly communications which are dispatchedto them,
besides press releases for audited quarterly financial statements, which are also intimated to Stock
Exchanges. This information is also available on the Company’s website. The 20F Annual Report
prepared as per the US regulations and the New York Stock Exchange Listed Manual provides
information which is not normally in the public domain vi s-à-vi s other listed companies, is also
available on the website of the Securities and Exchange Commission and the Company. The 20-F
Annual Report contains information on five-year financial data under US GAAP; risks associated with
the Company’s business; investments in the Company and relating to ADRs; a business overview
which includes sections on the Indian economy and the automotive market and competition;business
strategy and operations; a complete product profile; production facilities and distribution network;
R&D initiatives; intellectual property; legal proceedings; organisation structure; subsidiaries and
affiliates; operating and financial review and prospects; capital expenditure incurred and sources of
financing; details of the auditors; Board composition and management; governance structure;
shareholding pattern; dividend policy; share and ADR price; rights of shareholders; exchange control
policy of the Government and taxation as relevant to investors; Chief Executive Officer and Chief
Financial Officer certification to the investors and audited consolidated financial statements for the
last three years.
To ensure that the Company has disclosed relevant, accurate and complete information to its
investors so as to ensure that the Company’s financial condition and results of operations in all
material respects have been disclosed on a timely basis under the applicable laws, the Company
recently constituted a Disclosure Committee comprising of the senior management as also heads of
the larger subsidiary companies.
Sel ecti on Cri teri a for Board members
The Directors are selected based on the following criteria:
• Business experience
• Expertise in the field
• Ability to bring in the external perspective
• Relation to the Company and Board
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Nomination by Articles of Association, Debenture holders, financial institutions, virtue of technical
collaboration and financial agreement
Internal l y Dev el oped Mi ssi on, Code of Conduct and Val ues
Being a global player, Tata Motors has ensured that its corporate governance practices are
compatible with the international standards. Tata Motors has adopted the Tata Business Excellence
Model (TBEM) as a means of driving excellence. In order to trackprocess on long-term strategic
goals, a Balanced Score Card methodology is used. This enables the Company to go beyond
financial performance to incorporate considerations of environment and society, as well.
Tata Code of Conduct
Tata Code of Conduct (TCoC) is applicable to all employees, including the Managing Director and the
Executive Directors. (TCoC can be viewed at our website). The Code is a set of 25 principles, adherence
to which ensures ethical conduct both by the employees as well as the Company at large.
For internally developed mission statement and core values of Tata Motors, please refer to 1.1
Board-l evel process for ov erseei ng the organisati on's i denti fi cati on and management of
economi c, env i ronmental, and soci al ri sks and opportuni ti es
The Board takes responsibility for the total process of risk management in the organization. The Audit
Committee reviews with the Management, External and Internal Auditors, the adequacy of internal
control systems. It reviews management letters / letters of internal control weaknesses issued by
Statutory / Internal auditors. The Management implements actions to mitigate residual risks. The
Board assures all stake holders about adequacy of internal control Systems and documents
procedures in the Company’s Annual Report.
The Management is accountable for the integration of riskmanagement practices into the day to day
activities. Lapses are highlighted as findings after risk assessment or audit reviews.
The Risk management and internal control model and framework adopted by the Company provides
the Board reasonable assurance on the effectiveness and efficiency of the Company’s operations; the
safeguarding of the Company’s assets, the Company’s compliance with laws, regulations and
supervisory requirements; the sustainability of the Company’s operations under normal andadverse
operating conditions; the reliability of the Company’s reporting and the Company’s responsible
behaviour towards all stakeholders.
Ev al uati ng the Board’ s Performance
The organisation has adopted the Balanced Scorecard concept and an online dynamic Performance
Appraisal System which is a fairly transparent and formal procedure for deciding on the director,
senior and middle management remuneration
Approach to Ri sk Management i n Operati onal Pl anning
The Company has a comprehensive system of control, focused on mitigation of risks to ensure
achievement of objectives. The control environment comprising of values, ethics, management
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
31
philosophy, employee competence, etc. supports risk management. The risks are assessed on an
ongoing basis and controls are designed to respond to risk throughout the Company.
There is a twofold approach to RiskManagement:
1. Enterprise Risk Management (ERM)
2. Internal Audit
Enterpri se Ri sk Management:
The ERM process identifies entity level risks. For the purpose of review, risks are categorized into
three categories viz high, moderate and low and are also rated from 1-5 based on impact and
frequency. All risks are classified as per processes in the “Enterprise Process Manual”. Certain
clusters of risks are treated as priority clusters. The Audit Committee reviews the mitigation action
taken against these risks on a periodic basis. Also, other risks which may materialize may also be
accorded priority if they are critical. Pertinent information on risk assessment and control activities is
communicated effectively to employees. The line management regularly monitors controls. Thus the
risk management/internal control practices contribute to the development of robust business
operations and promotes/enhances value creation. The Board regularly reviews processes and
procedures to ensure the effectiveness of the internal systems of control. Management reports to the
Board provide a balanced assessment of significant risks, a balanced assessment of the
effectiveness of the system of internal controls in managing those risks and identify significant
failings/weaknesses, its impact on the Company and actions taken to rectify them.
The Company is promoting risk awareness through a structured risk management process. The
ownership of these programs vests with operating managers, with Internal Audit playing a facilitators
role. However, the primary responsibility remains with the process owners.
The ERM Process has been initiated in the Company as a tool to strengthen the Strategic Planning
process. It aims at sustaining desired operational performance and providing a platform for rational
allocation of capital across Small Business Units. The process maps the Strategic, Operational,
Financial & Governance Risks related to the Business strategy as also on account of weaknesses in
the internal processes.
The agreed risks are logged in the Company’s Risk register and the respective Responsibility Centers
are required to determine the risk treatment (Accept/Reduce/Transfer/Eliminate) and workout the
mitigation plans accordingly. The outcomes of the Risk Mapping Process were presented to the
Management Committee and the Audit Committee for review and direction. The outcomes of ERM
process were also reported to the Board on March 31, 2006.The Major risks along with the mitigation
actions are planned to be reviewed by the Management Committee and presented to the Audit
Committee and the Board on a regular basis.
A benchmarking of ERM practices of other local and global companies has been done to ascertain
opportunities for improvement. The ERM process is designed to be compliant with SOX and Clause
49 of the Listing Agreement with the Indian Stock Exchanges.
Internal Audi t:
Internal Audit has an annual risk based audit plan. Risk Universe is defined covering all processes of
the company. Inherent risk scores are assigned to each process and are reviewed every 5 years. At
the start of the year, CIA informally discusses the business imperatives with Senior Executives.
These imperatives serve as an important input whilst developing the annual plan. The annual audit
plan is prepared to cover a majority of the high & near high risk areas and a considerable number of
processes with moderate and low risk scores.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
32
Audits are conducted by way of Self Assessment Questionnaires or through full fledged audits. The
Audit Committee reviews audit reports every quarter. Audit Reports are classified as Section A and
Section B type reports. The Audit Committee reviews observations and recommendations highlighted
in Section A reports as well as critical issues pertaining to Section B reports. The timelines for
implementing the recommendations is monitored by way of a robust process, whichyields meaningful
and actionable reports
Subscri bi ng to externall y dev el oped Charters, Pri nci pl es and Ini ti ativ es
Tata Motors is a signatory of the United Nations Global Compact. By adhering to this voluntary
initiative, the Company commits itself to the ten principles that range from HumanRights protection,
Labour Standards, Environmental Protection and Anti-Corruption. The Company has been submitting
its “Communication on Progress” (COP) to the Global Compact and is in fact the only Indian
automobile company to have been appreciated as “Notable COP”for consecutive years. Tata Motors
is a member of CII (Conference of Indian Industries), BCCI (Bombay Chambers of Commerce and
Industries) and ASSOCHAM (Association of Chambers of Commerce of India).
Stakehol der Engagement
Approach
Identify their
concerns and
Issues
Address concerns
and issues in
Strategy Planning
Process
Steering Committee
Review and
corrective action
Prioritize
concerns and
issues
Set Goals , targets
Report and communicate
to all stakeholders
(Annual Report, Chairman &
ED letters/GRI &Corporate
Governance reports, etc)
Engagement of
Stakeholders:
Meetings, feedbacks,
I nteractions, etc
Learning & sharing
across and improve
Strategic
Di recti on
Balanced
Scorecard &
I nitiatives
Stakeholder engagement and input is central to the entire strategic planning and deployment
exercise. There are several mechanisms (as detailed in Annexure) through which the Company
engages its stakeholders and identifies the key stakeholder concerns and issues.
The organizational challenges and issues identified are considered in the strategic planning process
to determine strategic objectives.
The vision, mission and values guide the strategic planning process. This process also involves a
comprehensive external environment scan, various survey feedback, inputs, SWOT (strengths,
weakness, opportunities and threats) analysis and business planning exercise. After identification of
key business drivers, the short terms and long term strategic objectives are identified. The strategic
objectives are deployed using the balanced scorecards, which balance the needs of all stakeholders.
An indication of how various objectives are aligned with stakeholder concerns has been provided in
Annexure I (Stakeholder Engagement Chart).
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
33
5
Economi c Management Approach
and Performance Indi cators
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
34
MANAGEMENT APPROACH
Ri sks and concerns i dentifi ed for the economi c performance of the company are enumerated
bel ow:
Interest rates and credi t avai l abi li ty: Consumer interest rates witnessed an upward movement in
the second half of FY 07-08. Further tightening of the liquidity position, non-availability of vehicle
finance and firming up of interest rates would affect vehicle demand, which could impact the
Company’s revenues and profits.
Exchange rates: The Company’s exports constitute 9.8% of the turnover and imports constitute
4.6% of material consumption. Further, the Company has large foreign currency borrowings in the
form of foreign currency convertible securities. Movements in exchange rates and volatility in the
foreign exchange markets could significantly impact profits.
Frei ght Rates: Moderation in industrial activity, slowdown in freight movement and increase in fuel
price would adversely impact vehicle operators’ margins to the extent not recovered throughincrease
in freight rates. This would have an adverse impact on commercial vehicle demand.
Rai l ways: Railways’ renewed focus on cement and steel movement and container movement and
planned nationwide rail freight corridor connecting major cities could impact the demand of
commercial vehicles for goods transportation. However, it is expected that with the growth in road
infrastructure and increase in vehicle penetration and with product offerings suitable for different
applications, road transport would continue to have a dominant role and offer flexible, speedy and
point-to-point service.
Domesti c market: The commercial vehicle industry due to its strong linkages with the economy
would be impacted by slowdown in economic growth. The Company has strengthened its less cyclical
businesses like passenger carriers, small and light trucks and passenger cars as well as its spare
parts and other service offerings to counter moderation in demand. The increasing trend of offering
price discounts in the market could also affect the Company’s margins.
Ov erseas markets: In the overseas markets, many of which have stricter norms of vehicle
regulations related to emission, safety, noise, technology, etc., the Company competes with
international players which have global brand image, larger financial capability and multiple product
platforms. These factors may impact the demand of the Company’s products in overseas markets.
Manufacturing: The Company manufactures its products at multiple locations and its operations
could be affected by disruption in its supply chain due to any natural calamities and workstoppages
at its suppliers’ end due to load shedding, labour problems, etc.
New Competi ti on: Intensity of competition has increased in almost all the segments of the Indian
automotive market due to entry of new players and expansion plans of existing ones. The Company
is aware of the increasing competition and is taking measures to remain competitive in the market
place.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
35
New proj ects: The Company is undertaking a variety of new projects ranging from the launch of a
small car to the development of a new truck model. These projects are in various stages of execution.
Though the Company employs sophisticated techniques and processes to forecast the demand of
new products, yet the same is subject to margin of error. Timely introduction of new products, their
acceptability in the market place and managing complexity of operations across various
manufacturing locations would be the key to sustain competitiveness.
Internal Control Systems and thei r adequacy to manage these risks are hi ghl i ghted bel ow:
The Company has in place adequate system of internal control. It has documented procedures
covering all financial and operating functions. These controls have been designed to provide a
reasonable assurance with regard to maintaining of proper accounting controls, monitoring of
operations, protecting assets from unauthorized use or losses, compliances with regulations and for
ensuring reliability of financial reporting. The Company has continued its efforts to align all its
processes and controls with global best practices in these areas as well.
The Management Approach managing economic risks and concern is to have a robust internal
control system so as to achieve the maximum economic value creation. Some significant features of
the internal control systems are:
• Corporate policies on accounting and major processes;
• Well-defined processes for formulating and reviewing annual and long term business plans;
• Preparation and monitoring of annual budgets for all operating and service functions;
• State-of-the-art ERP, Supplier Relations Management and Customer Relations Management,
connect its different locations, dealers and vendors for efficient and seamless information
exchange;
• An on-going program for reinforcement of the Tata Code of Conduct. The Code covers
integrity of financial reporting, ethical conduct, regulatory compliance, conflict of interests
review and reporting of concerns. All employees of the Company are regularly exposed to
communications under this program;
• Bi-monthly meeting of the management committee at apex level to review operations and
plans in key business areas;
• A well established multidisciplinary Internal Audit team, which reviews and reports to
management and the Audit Committee about the compliance with internal controls and the
efficiency and effectiveness of operations and the key process risks;
• Audit Committee of the Board of Directors, comprising independent directors, which is
functional since August 1988, regularly reviews the audit plans, significant audit findings,
adequacy of internal controls, compliance with Accounting Standards as well as reasons for
changes in accounting policies and practices, if any;
• A comprehensive information security policy and continuous upgrades to IT system;
• Documenting major business processes and testing thereof including financial closing,
computer controls and entity level controls as part of compliance with Sarbanes-Oxley Act;
• Anti-fraud programme.
The Board takes responsibility for the total process of risk management in the organisation. The Audit
Committee reviews reports covering operational, financial and other business risk areas. Through an
Enterprise Risk Management programme, each Business Unit addresses opportunities and the
attendant risks through an institutionalized approach that is aligned to the Company’s objectives. This
is also facilitated by internal audit. The business risks are managed through cross functional
involvement and intense communication across businesses. Results of the risk assessment and
residual risks are presented to the senior management.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
36
EC 1: Dir ect Economic Value Gener at ed
Di stri buti on of Revenue (INR i n crores – 1 crore=10mi l l i ons)
Sources of Rev enue (INR in crores – 1 crore=10mi l l i ons)
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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Summari zed Bal ance Sheet
(Rupees in Millions)
What the Company OWNED
1. Net Fixed Assets 104522.7
2. Investments 49102.7
3. Net Current Assets (2728.5)
4. Miscellaneous Expenditure 60.5
5. Total Assets (NET) 150957.4
What the Company owed
1. Loans 62805.2
2. Net Worth 78395
Represented by:
Share Capital 3855.4
Reserves 74539.6
3. Deferred Tax Liability (NET) 9757.2
4. Total Funds Employed 150957.4
Summari zed Profi t and Loss Account
(Rupees crores)
1. Income
Sale of Products and other Income 330939.3
Less: Excise Duty 43631.1
287308.2
Dividend and other income 4831.8
292140.0
2. Expendi ture
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
38
Raw materials / components,
Manufacturing and Other Expenses 240939.3
Employee Cost 15445.7
Product Development Expenditure 643.5
Depreciation 6523.1
Interest 2823.7
Total Expenditure 266375.3
Profi t Before Tax 25764.7
Profi t After Tax 20289.2
Balance Brought Forward From Previous Year 10138.3
30427.5
Appropriations
(i) Proposed Dividends 5784.3
(ii) Tax on Proposed Dividends 812.5
(iii) General Reserve 10000.0
(iv) Balance carried to Balance Sheet 13830.7
30427.5
Donati ons
Total Donations disbursed during 2007-08 to various non-governmental and non-profit institutions,
based upon merit and need Rs. 12.8 millions.
Communi ty Inv estments
Tata Motors invests in various CSR projects that target improvement of quality of life of people. The
thrust areas for these projects include - Education, Health, Employability and Environment. The
Company views the expenditure in such projects as an investment and not a cost. In the year 2007-
08, investments in social and community projects amounted to Rs. 12.5 millions. This amount is
excluding administrative expenditures involved.
Summary of Economi c Performance of Subsi di ary and Associ ate Compani es
Subsidiary Companies
For the financial year ended March 31, 2008, the Company’s subsidiaries, on an aggregate basis,
have significantly improved on their financial performance and profitability. A brief profile of the
subsidiary companies and their main financial parameters for FY 2007-08, are given below:
Tata Daewoo Commercial Vehicle Company Limited (TDCV), Korea is a 100% subsidiary of the
Company is the second largest manufacturer of Heavy and Medium commercial vehicles in Korea.
During the year ended March 31, 2008, TDCV recorded a turnover of Rs. 28650.2 millions, which is
45% higher to the previous year. PAT increased by 78% and stood at Rs. 1531.1 millions as against
Rs. 974.6 millions in 2006-07.
Telco Construction Equipment Company Limited (Telcon) is engaged in the business of
manufacturing and sale of construction equipment and allied services in which the Companyhas 60%
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
39
holding and Hitachi Construction Machinery Company Limited, J apan, holds 40%. Duringthe year,
the Company divested 20% of its stake to Hitachi, thus reducing its stake from 80% to the present
60%. With the increase in economic activity especially in the infrastructure sector, Telcon recorded its
best performance to date having sold 7,698 machines with a Profit After Tax of Rs. 3240 millions.
Tata Marcopolo Motors Limited (TMML) is engaged in the business of manufacture and sale of fully
built buses and coaches in which the Company has a 51% holding with the balance 49% being held
by Marcopolo S.A., Brazil. The Company started its commercial production from November 2007 and
has sold 190 low entry CNG buses. TMML recorded a net turnover of Rs. 65.7 millions andloss after
tax is Rs. 38.3 millions.
Tata Motors (SA) Proprietary Limited (TMSA) a joint venture company was incorporated during the
year in which the Company holds 60% with the balance 40% being held by the Tata Africa Holdings
(SA) (Pte.) Limited. TMSA has been formed for manufacturing and assembly operations of the
Company’s Light and Heavy commercial vehicles and Passenger Cars in South Africa. TMSA has yet
to start its operations.
Tata Motors (Thailand) Limited is a 70:30 joint venture between the Company and Thonburi
Automotive Assembly Plant Co., for manufacture, assembly and marketing pick-up trucks. The joint
venture enables the Company to address the ASEAN and Thailand markets, the latter being the
second largest pick-up market in the world after the USA. While TMTL has begun setting up
operations in 2007-08, the manufacturing of vehicles began only during March 08’ with revenues from
sales and other income at Rs. 9 millions.
Tata Motors Finance Limited a wholly owned subsidiary of the Company, is registered withReserve
bank of India as a Non-Banking Finance Company and has been classified an “Asset Finance
Company”. During the year under review, total income was 423% higher than last year andstood at
Rs. 8369.5 millions, with Profit Before Tax of Rs. 502.6 millions exceeding the 2006-07 figures by
150%.
Tata Technologies Limited (TTL), along with its subsidiaries is in the business of providing information
technology services. Tata Technologies Pte. Ltd. (TTPL) which became a subsidiary of TTL acquired
Tata Technologies, USA, (TT US) in March 2006. TTUS acquired INCAT International Plc (INCAT), a
global provider of Product Life Cycle Management (PLM), Engineering and Design services to
automotive and aerospace industry. INCAT acquired CEDIS Mechanical Engineering GmbH, in
J anuary 2006, to enhance its presence in its lines of business in Germany. TTL incorporateda wholly
owned subsidiary in Thailand named Tata Technologies (Thailand) Limited which wouldbe TTL’s
second global delivery to take advantage of the growth in the area. TTL has 13 subsidiary companies
as on March 31, 2008.
The Company holds 81.71% of TTL’s share capital. The year marked an important milestone in the
growth history of the Company with consolidated revenues crossing the Rs. 10,000millions threshold.
TAL Manufacturing Solutions Limited (TAL) is a 100% subsidiary of the Company engaged in the
business of providing factory machine tools, equipments, material handling systems and fluid power
solutions. During the year, it has ventured into Aerospace business by signing agreement with Boeing
Corporation, USA for manufacturing structural components. TAL has also signed sales and service
agreement with HELLER, Germany, a globally renowned manufacturer of high end machining
centres. TAL recorded a turnover of Rs. 2205.8 millions and a Profit After Tax of Rs. 120.2millions.
HV Transmissions Limited (HVTL) and HV Axles Limited (HVAL) 85% subsidiary companies of the
Company are engaged in the business of manufacture of gear boxes and axles for Heavy and
Medium commercial vehicles, with production facilities and infrastructure based atJ amshedpur. With
the rise in demand for Medium and Heavy commercial vehicle over the years, major improvement
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
40
initiatives were undertaken at HVTL and HVAL. Both HVTL and HVAL manufactured prototypes of
gear boxes and axles for application in the Company’s new products. HVTL recorded a 9.39%
increase in its turnover of Rs. 1919.8millions in 2007-08, PAT being Rs. 474.4 millions. HVAL
recorded a turnover of Rs. 2032.4 millions and a PAT of Rs. 634.1 millions.
TML Distribution Company Limited (TDCL) a 100% subsidiary of the Company incorporated on March
28, 2008 would be engaged in the business of dealing and providing logistics support for distribution
of the Company’s products throughout the country. TDCL is yet to start operations.
Sheba Properties Limited is a 100% owned Investment Company, whose income was Rs. 213.7
millions and Profit After Tax was Rs. 162.2 millions.
Concorde Motors (India) Limited (CMIL), a 100% subsidiary of the Company engaged in sales and
service of Tata and Fiat passenger cars recorded a turnover of Rs.6252 millions with PAT of Rs. 53.3
millions.
Tata Motors Insurance Broking and Advisory Services Limited (TMIBSAL) (formerly known as Tata
Motors Insurance Services Limited), a 100% subsidiary of the Company, proposes to undertake the
business of direct insurance broking. TMIBSAL has received a licence from Insurance Regulatory and
Development Authority (IRDA) to act as Direct Broker under the IRDA Act on May 13, 2008. Pending
the issue of licence, no business was carried out during the period of October 2005 to March 2008.
Tata Motors European Technical Centre plc. (TMETC) is a 100% subsidiary of the Company engaged
in the business of design engineering and development of products for the automotive industry.
Working synergistically with the Company, TMETC provides it with design engineering support and
development services, complementing and strengthening the Company’s skill sets and providing
European standards of delivery to the Company’s passenger vehicles. TMETC earned gross
revenues of Rs. 1279.5 millions and an operating profit of Rs. 114.3 millions as against Rs. 70.8
millions in 2006-07.
Associ ate Compani es
Automobile Corporation of Goa Limited (ACGL) in which the Company has a 37.79% shareholding
was incorporated in 1980, jointly with EDC Limited, a Government of Goa enterprise. ACGL is a listed
company engaged in manufacturing sheet metal components, assemblies and bus coaches and is
the largest supplier of buses (mainly for exports) to the Company.
Fiat India Automobiles Private Limited (FIAPL) is a J oint Venture with Fiat auto S.p.A., Italy to
manufacture Fiat and Tata cars and powertrains at Ranjangaon, Maharashtra, India. The new facility
was inaugurated on April 2, 2008 and is one more step towards confirming the strong motivation and
understanding between the partners towards developing new opportunities in India and abroad.
Tata Cummins Limited (TCL), in which the Company has a 50% shareholding, withCummins Engine
Co. Inc., USA holding the balance. TCL is engaged in the manufacture and sale of high horse power
engines used in the Company’s range of Medium/Heavy commercial vehicles.
Tata AutoComp Systems Limited (TACO) is a holding company for promoting domestic and foreign
J oint Ventures in auto components and systems and is also engaged in engineering services, supply
chain management and after market operations for the auto industry. The Company’s shareholding in
TACO is 50%.
Tata Precision Industries Pte. Ltd., Singapore, in which the Company has a 49.99% shareholding, is
engaged in the manufacture and sale of high precision tooling and equipment forthe computer and
electronics industry.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
41
Nita Co. Ltd., Bangladesh, in which the Company holds 40% equity, is engaged in the assembly of
Tata vehicles for the Bangladesh market.
Hispano Carrocera S.A. (HC), a well-known Spanish bus manufacturing company, in which the
Company acquired a 21% stake in March 2005, was another major step in the Company’s plans for
globalization. Hispano has two manufacturing units, one in Spain which caters to the European
market and the other tone in Casablanca which caters to the Moroccan and other North African
markets. HC is present in both the ‘city bus’ and ‘coach market’ segment in both the geographies. HC
reported a production of 375 buses during FY 2007-08 on a consolidated basis.
EC 4: Signif icant financial as s ist ance r eceived f r om t he gover nment
The Company recei v ed i ncenti ve package by the State Government for setti ng up the
manufacturing uni t of the Smal l Car (Nano) i n Si ngur, West Bengal in 2007-08. Howev er,
before the incenti ves coul d be uti l i zed, the pl ant was shi fted to a new l ocati on – Sanand,
Guj arat, Indi a. Thi s shi ft occurred as there was lack of safety of i ts empl oyees and equipments
i n the hostil e env ironment created by constant attacks on col l eagues and property i n the
regi on. The Company has al so benefi ted from the i ncenti v es offered by the State Industri al
Devel opment Corporati on of Uttaranchal to attract industri al i zati on i n the regi on. The
Company has set up i ts ACE Factory i n the area and has dev el oped an extensi v e v endor park
i n the regi on as wel l , openi ng a whol e new range of empl oyment opportuni ti es.
EC 5: Range of r at ios of s t andar d ent r y level wage compar ed t o local minimum wage
at signif icant locat ions of oper at ion
If a comparison is made of entry points of wages with the Minimum wages as prescribed bythe law,
Tata Motors offers more than double the minimum prescribed by law. With experience and the tenure
of service, the average wages that an operative earns improve the quality of life that the individual
can enjoy in the society.
EC 6: Policy, pr act ices and pr opor t ion of s pending on locally-bas ed s uppliers
The process for sourcing has many steps and variables and to a certain degree it is often done on a
case-by-case nature. At J amshedpur manufacturing unit there are a very large percentage of local
suppliers.
In terms of environmental and labour practices, the sourcing department will not consider a vendor or
potential vendor that does not have the required list of certifications, including the compliance with
factories Act, audited by the government for confirmation. Following that there are visits, succeeded
by visit reports. A check-list of 37 points is required to be met, including aspects of Quality, Cost,
Delivery, Design and Management Systems (QCDDM). Geographical location, although a part of the
process, is not an overwhelming priority. Quality is the most central factor, then there is loyalty to
current suppliers (whether they operate in the relevant area or would be willing to open business
there), then there is local suppliers considered, proving they can provide the product at a suitable
price.
Moreover, sourcing conditions differ from location to location. For example, J amshedpur is well
endowed with sources around the area, so very little needs to be bought in. If products do need to be
bought in, often they will encourage the company to open a plant in the vicinity. However, while these
are the considered processes, there is much case-by-case analysis, so the process can vary
according to the type of part and also the type of supplier.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
42
EC 7: Pr ocedur e f or local hir ing
In India, citizens have the freedom of domicile in any state of the country (with exceptions of very
few states) and as such local hiring is not specific. Major areas of operation in India lie in
J amshedpur, Pune, Lucknow and now Uttrakhand and at these locations, more than 50% of the
jobs have been created for the local populace there.
EC 9: Indirect economic impact s , including ext ent of impact s
Wor ldwide, Tr ansport sector has emer ged as the biggest employer *
1 Commer cial Vehicle - employment for 13.3 people
1 Car - employment for 5.3 people
1 Three Wheeler - employment for 3.9 people
1 Two Wheeler - employment for 0.5 people
* Sour ce: Automotive Mission Plan 2006-16, Includes: Dir ect and Indirect Employment
Tata Motor s r ecor ded its highest ever sales of 585,649 vehicles (352,785 commer cial; 232,864
passenger ). The appr oximate indir ect economic impact gener ated by the company in 2006-07 is
summar ised below
* Includes initiatives to enhance employability (vocational and technical tr aining,
appr enticeship pr ogr ammes), promotion of co-oper atives and formation of Self-Help Gr oups
** On assumption that one passenger car sold cr eates employment for at least one per son –
dr iver /cleaner
*** On assumption that one commer cial vehicle sold cr eates employment for at least thr ee
people – Dr iver and cleaner /helper & loader
5000
10,300
1,058,355
23,230
232,864
Dir ect
Employees
Employees in
Subsidiar ies
Indirect
employment fr om
passenger car s**
Indir ect employment
fr om commer cial
vehicles***
Employment
thr ough social
initiatives*
18,000
Employment
gener ated through
channel par tners
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
43
6
Envi ronment Management Approach
and Performance Indi cators
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
44
MANAGEMENT APPROACH
Tata Motors Ltd, (TML), plans for the environment in its processes, products and services. “Facilities
and Envi ronment Management” is identified as a Business Process and is formally documented in our
Enterprise Process Manual. “Faci l i ties and Envi ronment Management” process is mapped in detail
and the measures for “effectiveness and efficiency”of the process are specified. This has helped the
Company to evolve a uniform approach across all manufacturing locations in the country.
Environment Management system at Tata Motors is given below:
How it oper ates (Methods/ Pr actices)
[Cr oss Ref.: EMS Manual at r espective locations]
1. Assess the ‘sig nificant’ environmental aspects of products and
activ ities as per established EMS pr ocedur es-
• All Pr ocess Owner s identify the ‘significant’ envir onmental
aspects of pr oducts and activities with the help of ERC centrally
& Envir onment Gr oup at r espective Wor ks locations.
2. Define Oper ational Contr ols, Emer gency Action Plans and set
‘Objectives and Tar gets’
•
Oper ational Contr ol Pr ocedur es and Emergency Action Plans are
established and deployed. Pr ocess r equir ements ar e assessed in
Inputs
• National & Inter national
Legislation & pr otocols
• Quality & Envir onmental
Policy
• Rules & Regulations
• Plant level waste disposal
guidelines.
• ISO:14001
• New developments
• Global developments such
as Climate Change
Outputs
• Impr ovements in
envir onmental
per for mance (e.g.:
r eduction in pollution;
e.g.: r eduction in natur al
r esour ce consumption;
e.g.: elimination of
hazar dous mater ial etc.)
• Compliance to
envir onmental
r equir ements as per
statutory nor ms
• Reduce CO
2
emissions /
incr eased car bon offsets
Effectiveness
Ratio
(TISHD*)
Efficiency
Impr ovement over pr evious year s
‘environmental per for mance’
* TISHD – Tata Index for Sustainable
Human Development
Unit Per for mance Measur e
Key Steps in -
‘Envir onment Manag ement’
• Assess the significant envir onmental aspects of
pr oducts and activities
• Set ‘Contr ol Processes’ and ‘Objectives &
Tar gets’
• Deploy the pr ocess and implement ‘Action Plans’
to achieve ‘Objectives & Tar gets’ including
Climate Change r elated issues
• Review pr ocesses for impr ovements / and
conduct inter nal / ex ter nal audits
• Review the process
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
45
E
All our manufacturing facilities (Pune, J amshedpur, Lucknow and Uttarakhand) have been certified to
the ISO:14001 – Environmental Management System (EMS) Standard. At J amshedpur the
Engineering, Health Care & Civic Services to Tata Motors Township have also achieved certification
to ISO:14001.
EN 1: Tot al mat er ials us ed by type
Materi al Used by Type
Consumpti on i n 2007-08*
Steel ( Thousand MT) 205.094
Oils (KL) 26947.79
Pre Treatment (PT) Chemicals (MT) 936.64
Paints, Primers & Thinners (KL) 9509.9
* Data includes three main manufacturing units in India, viz. J amshedpur, Pune and Lucknow
EN 2: Per cent age of mater ials us ed t hat ar e r ecycled input mat er ials
Re-cycling of material is best illustrated in the use scrap metal generated externally as well as
internally.
Re-use of packaging materials:
Aggregates and assemblies moving between Pune and J amshedpur Plants are packed in wooden
crates manufactured from scrap wooden packaging of incoming material. This was further
improved by changing four types of aggregates to returnable metal pallets,
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
46
Collapsible, custom-built polypropylene (PP) boxes have been developed for bought out
components that are bulky and light (e.g.: dashboards). These PP boxes can be dismantled,
flattened and returned to vendors for re-use, eliminating the use of virgin packaging material each
time. With a cycle time of more than 150 trips these polypropylene boxes have resulted in
significant savings on component packaging.
Quantity of Scrap wooden packaging box sold to recyclers:
In addition, The Company is working with the ‘Department of Science & Technology’ on the Expert
Panel on “Recyclability of automotive Systems & Components”. It is also working with Society of
Indian Automobile Manufacturers (SIAM) as a member of task force to study recyclability of vehicles
in India.
EN 3 & 4: Dir ect and Indirect ener gy us e
Fuels are used for process heat requirements and energy. Liquefied Petroleum Gas (LPG) is used
as a fuel to generate heat as well as in the process for generation of Endo-gas in continuous
Carburising and Hardening Furnaces.
TOTAL Energy Used (Aggregate of al l types)
2007-08
Total Di rect used (i n Mi l l i on MJ) 2339.25
Total Indi rect used (i n Mi l l ion MJ) 2556.11
* Data includes two main manufacturing units in India, viz. Pune and Lucknow
EN 5: Ener gy s aved due t o conser vat ion
Tata Motors considers energy conservation critical to the operation of its manufacturing units. Apart
from reducing operational costs, the energy saved amounts to environment protection by way of
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
47
avoiding pollution due to power generation processes. Energy conservation is driven throughout the
organization, by way of setting Division-wise targets and monitoring performance on everyday basis
for optimizing energy consumption.
Company has started several Energy Accounting and Energy Conservation programmes, some of
which are highlighted below:
• Introducing Fiber Reinforced Plastic blades for man-coolers.
• Installing variable speed drive for flow control and energy saving
• Introduction of fuel additives in Furnace Oil to improve the combustion efficiency of the fuel.
• Soft-start energy savers for hydraulic press motors
• Sheds designed for efficient natural lighting.
• Use of compact fluorescent lamps, sodium vapours lamps to minimize energy consumption.
• Installing portable compressors for isolated running to save compressed air
• Harnessing natural daylight by installing translucent roof sheets in workshops
• Use of Liquefied Petroleum Gas in place of Light Diesel Oil and Electricity for heating, wherever
applicable.
• Installation of Turbo Ventilators in forge and Foundry to extract fumes which do not require
energy to operate
Representatives of the Company are participating in the following national committees working for
improvement of environment throughout the country:
1. Technical committee for “Air quality monitoring, emission inventory and source apportionment
studies for Indian cities”constituted by Central pollution control board, Delhi
2. Group on “Technical evaluation of Automotive Research Association of India reports on
development of emission factors” constituted by Central pollution control board, Delhi
3. Technical committee for “Heavy-duty Diesel retrofit demonstration project”constituted byNational
environmental engineering research institute, Mumbai
4. Multi stakeholder committee to “Develop Better environmental sustainability targets for lead
battery manufacturers” constituted by development alternatives, Delhi in collaboration
occupational knowledge international, UK and national referral center for lead poisoning, India
5. Steering committee for “Mobile Air conditioning Assessment project” constituted by The Energy
Research Institute (TERI), Delhi
EN 6 & EN 7:
Init iat ives t o us e r enewable ener gy sour ces and incr ease energy ef f iciency
The Env i ronment Chal l enge: The demand for energy has grown along with rapid industrial growth.
Studies have forecast a shortage of fossil fuel worldwide leading to ultimate extinction, when natural
deposits will be completely depleted. Fossil fuel based conventional power generation is recognized
as a major contributor to environmental pollution and to the Greenhouse Effect.
Wi nd Power as an al ternate source of energy: Wind power is a ‘clean’ and ‘cost effective’
renewable energy source. Wind energy has emerged as an economically lucrative and the cheapest
source of electrical energy which offers financial returns within a short period of time. It is further
estimated that approximately 1000 Units of electricity saved is equivalent to 1 tonne of carbon dioxide
– the primary greenhouse gas. Tata Motors’ opting for wind energy effectively reduces the demand
for electricity generated by burning conventional fossil fuels such as coal and fuel oil.
Wi nd Power Dev el opment i n Maharashtra: The estimated wind energy potential of India is 20,000
MW and 800-900MW in Maharashtra. The State Govt. has appointed an agency, Maharashtra
Energy Development Agency (MEDA) to encourage use of non-conventional energy sources such as
wind power. MEDA has identified various sites n Maharashtra, where sufficient wind velocity is
available to develop wind power generating units.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
48
Use of Wi nd Power at Tata Motors, Pune: M/s Suzlon Energy Ltd. installed & commissioned 114
Nos. x 350 KW wind turbines & 3 Nos. x 1MW wind turbines at Satara and Supa in Maharashtra. Tata
Motors, Pune has signed a 35.55 MW Power Purchase Agreement (PPA).
In September 2007, the Certi fi ed Emi ssi on Reducti ons were aucti oned through the Chi cago
Carbon Exchange (CCX) and purchased by M/s Eco-Securi ti es Capi tal Ltd., Ireland
It is to be further noted that Tata Motors is working with the steering committee of National Hydrogen
Energy Board, India, to find ways in which India may harness hydrogen potential energy of future.
EN 8: Tot al wat er us e
Total water consumed during 2007-08 was 6222080 m
3
Total water withdrawal by source in 2007-08
was 605057 m
3
(P.S. The above figures are for three manufacturing units of Tata Motors, viz. J amshedpur, Pune
and Lucknow only)
EN 9: Wat er s our ces s ignif icant ly af f ect ed by wat er wit hdr awal
There is no direct withdrawal of water from the source river Subranarekha at J amshedpur. Raw water
is taken from M/s J USCO (J amshedpur Utility Services Company) of Tata Steel and treatedin works
and town water filter plant. All water consumed at Pune manufacturing unit is sourced from State
Utility-MIDC (Maharashtra Industrial Development Corporation), which in turn draws water from
Pavana River. At the manufacturing unit in Lucknow, water is withdrawn from under ground water
sources. At this unit, there is extensive water recycling procedure. The initiatives include - Rain water
harvesting, digging of ponds and deep puncturing water replacement. In the latter, water is collected
from roofs and around the manufacturing unit and funneled down bore holes to deep watersupplies
rather than simply allowing it to remain at the relative surface of the ground.
EN 10: Tot al r ecycling and r euse of wat er
Water Conservation Activities:
They comprise the following broad areas-
Water Management System
Intake Management
Maintenance of water distribution network
Quality of water (portability checks)
Optimization and leakage surveys
Water re-circulation systems
Water boosting systems
Clean production processes.
Rain water harvesting projects
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
49
EN 11: Locat ion and s ize of land owned, leased or managed in biodivers it y r ich
habit at s
While the facilities of Tata Motors are not in biodiversity rich areas, at J amshedpur, the Dalma range,
which is a ‘Biodiversity rich area’ is located at an aerial distance of 10 km from the plant boundary.
At Pune, none of the manufacturing facilities are located near such protected areas. Tata Motors,
however, has taken immense care to develop the residential area adjoining Pimpri Works into a "bird
sanctuary".
EN12: Des cr ipt ion of t he major impact s on biodiver s it y
There are no major impacts on bio-diversity by the Company’s operations.
EN 13: Habit at s prot ect ed or r es t or ed
Major ecological impact on the habitat has been achieved over sustained efforts around the
manufacturing unit of Pune. These include:
1. Transformation of landscape of hard basalt rock, fit for the growth of only wild shrubs into
a Green belt consisting of 3, 00,000 trees.
2. Creation of two lakes which also serves as perennial source of water for Tree Plantations.
3. Pisciculture: A large variety of fish, including rohu, catl a, mri gal , mahseer and silver carp
were introduced which are thriving in this natural environment.
4. Bird Sanctuary: Today, these lakes and the surrounding area, attract a large number of
water birds, many of which have made the lakes their permanent home, creating the only
‘bird sanctuary’ right in the middle of the Pimpri - Chinchwad industrial area
EN 14: St r at egies , cur r ent act ions and f ut ur e plans f or managing impact s on bio-
diver s it y
The Ministry of Environment & Forest (MoEF), Government of India, has appointed Gram Vikas
Kendra, J amshedpur (GVKJ ) an NGO supported by Tata Motors, J amshedpur, as the Regional
Resource Agency (RRA) for National Environmental Awareness Campaigns (NEAC) 2008 for
J harkhand State for 15th consecutive year. National Theme for the year 2007 was Solid Waste
Management and for the year 2008 is Biodiversity Conservation.
GVKJ has been constantly involved in the dissemination of Environmental Awareness Programmes
and creating water Management network by making ponds, check dams and wells in the surrounding
areas of the company.
• Strategic initiatives to develop 150 hectares of land for irrigation through water shed
development project in FY 07-08
• Tree plantation drive by Gram Vikas Kendra, J amshedpur. In FY 07-08 165000 trees were
planted
• Rain water harvesting pond constructed in 4 villages of Singhbhum (E) district namely
Kanikola, J askandih, Patherchakri and Narayanpur
• GVKJ has been appointed as Regional Resource Agency for the 15th consecutive year to co-
ordinate the National Environmental Awareness Campaign (NEAC)
• A good number of Forest Protection groups formed. to maintain the status quo of biodiversity
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
50
At the manufacturing unit in Lucknow, initiatives taken include:
• Fencing of lake area to protect the sensitive & nurtured plants from being destroyed by wild
animals
• Plantation of 10,000 plants to maintain green belt for healthy work ambience, natural
aesthetic & meeting statutory environmental compliance
• Mass plantation of J atropha Curcas (Bio fuel plant) satisfying National economic interest and
Global environmental concerns
EN 15: Number of IUCN Red Lis t s pecies and nat ional conser vat ion lis t s pecies
wit h habit at s in ar eas af f ect ed by oper at ions , by level of ext inct ion r isk
There is no impact of activities/ operations on such sensitive areas.
EN 16 & EN 17: Gr eenhous e Gas Emiss ions
Based on Fuel consumption (FO, LDO, HSD & LPG) data at each location is considered for Direct
GHG calculation. Ref. Site: Calculation Tools for Corporate GHG Accounting - GHG Protocol
Initiative.htm belong to World Resources Institute and World Business Council for Sustainable
Development is being used for the computation of Direct GHG emission.
Electricity Consumption data at each works is considered for the Indirect GHG computationsCO2 co-
efficients has been arrived by a weighted average emission for generators supplying to the grid in the
states of J harkhand.
Total Di rect GHG emi ssi ons
(CO
2
, Thousand Tonnes)
2007-08
J amshedpur 233.10
Pune 280.26
Lucknow 23.87
Indi rect GHG emi ssi ons
(CO
2
,Thousand Tonnes)
2007-08
J amshedpur 39.78
Note: Assumptions used in the computation:
Direct Emission: To avoid complexity, GHG emissions due to electricity import from J OJ OBERA Power Plant
generation has been categorised under the Direct Emission.
Indirect emissions due to outbound logistics and employee travel (domestic and international) have not been
considered due to unavailability of sufficient data. However, for J amshedpur Plant Township includingHospitals
(works & main) outside the works boundary has been considered under indirect GHG emissions.
Source: GHG Footprint Assessment Report for Tata Motors Ltd. by M/s ERNST &Y OUNG, base year 2007-08.
EN 18: Init iat ives to r educe GHG emiss ions
• Use of propane gas in place of Light Diesel Oil (LDO): Besides, propane gas has negligible
sulphur content as against 1.25% in case of existing LDO. This makes Propane a more
environment friendly fuel compared to LDO due to almost nil SOx emissions. 2 bullets of 100
Metric Tonnes capacities each are under installation phase.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
51
• Clean Development Mechanism (CDM): Taking opportunity of the CDM mechanism, Tata
Motors Ltd. initiated action for 20.85MW Wind Power Projects installed & commissioned at
Satara and Supa.
• Project Information Note (PIN) and Project Design Document (PDD) for 20.85MW Wind
Power Project was prepared with the help of MITCON and submitted to Ministry of
Environment (MoEF) for Host Country Approval. MoEF, New Delhi has issued Host Country
Approval for the Project. The Project was validated by M/s BVQI and registered by UNFCCC.
• In September 2007, successfully traded the CERs through e-bidding on the Chicago Climate
Exchange.
• Plantation of different varieties of trees in factory complex is done to sequester significant
carbon emission
• Replacement of conventional energy with cleaner energy alternatives/renewable energy
sources in plant activity and process.
EN 19: Us e and emis s ion of Ozone Deplet ing Subs tances (ODS)
Refrigerant CFC-12 is an “Ozone Depleting Substance (ODS)”, categorized under Group I of the
ODS (Regulation & Control) Rules, 2000, which is to be phased out by the year 2010. The Company
is actively working to achieve this well ahead of this target, by first targeting reduction in consumption
of CFC-12 for the existing refrigeration equipment. The Company has an EMP in place to convert
refrigeration units using refrigerant CFC-12 to its environmentally friendly alternatives i.e. replaced
with units operating on R-22 / R-134a. Due to the above proactive actions, we have been successful
in containing the consumption of CFC-12 refrigerant for maintenance of existing equipment.
EN 20: NOx, SO
2
, and ot her s ignif icant Emis s ions by t ype
Suspended Parti cul ate Matter (SPM)
Li mi t : 500 mi crogram/m
3
2007-08
J amshedpur Manufacturing unit
Annual Average 280.00
Pune Manufacturing unit
Annual Average 182.66
Lucknow Manufacturing unit
Annual Average 187.04
Sul fur Di oxi de (SO
2
)
Li mi t : 120 mi crogram/m
3
2007-08
Jamshedpur Manufacturi ng uni t
Annual Av erage 7.21
Pune Manufacturi ng uni t
Annual Av erage 11.03
Lucknow Manufacturi ng uni t
Annual Av erage 11.09
Ni trogen al l Oxides (NO)
Li mi t : 120 mi crogram/m
3
2007-08
Jamshedpur Manufacturing unit
Annual Av erage 45.12
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
52
Pune Manufacturing unit
Annual Av erage 12.47
Lucknow Manufacturing unit
Annual Av erage 12.83
Respi rabl e Parti cul ate Matter (RPM)
Li mi t : 150 mi crogram/m
3
2007-08
Jamshedpur Manufacturing unit
Annual Av erage 129.09
Pune Manufacturing unit
Annual Av erage 63.88
Lucknow Manufacturing unit
Annual Av erage 66.06
EN 21: Tot al wat er dis char ge by quality and des t inat ion
At J amshedpur manufacturing unit, the treated effluents from the outlet of Effluent Treatment Plants
(ETP) constitute the only significant discharges to receiving water bodies. Kharkai river is the
receiving water body at J amshedpur. At Pune manufacturing unit, all treated effluents are discharged
into Pavana River. Treated effluents are periodically monitored for compliance with permissible limits
of State Pollution Control Board (mass/volume). All values are found to be in compliance. Surprise
checks are carried out by State Pollution Control Board, which are also found to be within the
permissible limits. At Lucknow manufacturing unit, all effluents generated from plant activity and
process are properly treated at our sophisticated ETP and finally discharged in the inland water
bodies that sustain aquatic fauna and flora.
Table: Total Discharge to Water Body by type
Total Suspended Sol i ds (TSS)
2007-08
(Load i n Metri c Tonnes)
J amshedpur Manufacturing Unit 45.14
Pune Manufacturing Unit 52.74
Total Oi l & Grease (TOG)
J amshedpur Manufacturing Unit 4.1099
Pune Manufacturing Unit 0.95265
Bi o-Chemi cal Oxygen Demand (BOD)
J amshedpur Manufacturing Unit 13.03
Pune Manufacturing Unit 35.81
Chemi cal Oxygen Demand (COD)
J amshedpur Manufacturing Unit 107.63
Pune Manufacturing Unit 176.81
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53
EN 22: Tot al amount of was t e by t ype and des t inat ion
At J amshedpur manufacturing unit:
• Paint sludge generated at Centralized Paint Shop is removed from the scrub water with a
‘Hydropac system’ for effective separation. The water is re-used in the paint booths along
with make up water. This prevents the raw Paint Shop effluent from reaching the ETP
directly. Paint sludge is collected and sent to Industrial Incinerator.
• Press Filter is provided for removal of sludge from phosphating bath.
•
Incinerator model LRD-250 of capacity 250 kg /hr has been installed to incinerate hazardous
waste without production of smoke or odour and to enable all hazards taken care of properly
and to provide a cleaner, safer and healthier environment. The incineration system has been
optimized to:
o Incinerate varying nature and quantities of wastes at any given time
o Remove all the acidic pollutants and particulate matter in the flue gas by effective
scrubbing with water/ caustic
o Following hazardous wastes are being incinerated: Paint sludge, Oil sludge / scum;
Oil soaked waste jute, hand gloves, aprons etc. & Phosphate sludge. Equipped with
Auto-loading system (ram loader), Paint stripping chamber (heat recovery), High
pressure jet wet venturi scrubber with mist eliminator, 30-m self-supported, rubber-
lined chimney, PLC controlled panel board and Flue gas analyzer
At Pune manufacturing unit:
All hazardous wastes are disposed through an Authorised Common Hazardous Waste Treatment
Storage and Disposal Facility (CHWTSDF) located 125 km away at Taloja. The Operator of the
CHWTSDF picks up the generated waste in customised containers and moves the same by
dedicated trucks from our Facility to the final disposal point. The wastes are disposed by various
pathways depending on their hazard characteristics. These disposal pathways include - direct
incineration, direct landfill and landfill after treatment.
At Lucknow manufacturing unit: All waste is collected properly and finally disposed off through
Ministry Of Environment and Forests/Uttar Pradesh Pollution Control Board approved
Recyclers/Vendor.
EN 23: Signif icant s pills of chemicals , oils , and f uels in t erms of t ot al number and
t ot al volume
There were no significant spills of chemicals, oils or fuels in the reporting period. A systematic effort is
underway to quantify and define what could be termed as a “significant spill” based on the nature of
the hazardous chemical, quantity stored, extent of pipeline network and the age of installation.
EN 24: All pr oduction, t r ans port , impor t , or expor t of any was t e deemed
“ hazar dous ”
No hazardous wastes are being imported or exported. However, the Hazardous wastes generated in
various production processes like waste or used oil, non-ferrous metal i.e. waste copper dross/
plates, hazardous wastes (lead bearing type), batteries defined as "hazardous" in Schedule-4 of
Hazardous Wastes (Management & Handling) Amendment Rules 2003 are sold to the MoEF/CPCB
Registered Re-cyclers/ Re-refiners/ Re-processors only. These are being transported as per the
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
54
Hazardous Wastes (Management & Handling) Amendment Rules 2003 to ensure the following
statutory requirements:
• Endorsement of the Hazardous Waste quantity sold in authorised buyer's Pass Book as per
the authorized recycling capacity mentioned
•
Label properly the Hazardous Waste containing consignment
• Fill up and sign the 6 coloured copies of MANIFEST (Form -9) and send to the concerned as
mentioned in the copies
• Hand over the TREM CARD (Transport Emergency Card) to the Transporter
EN 25: Impact s of act ivities and oper at ions on pr otect ed and s ens it ive ar eas
There is no impact of activities/ operations on such sensitive areas.
EN 26: Init iat ives to mit igat e envir onment al impacts of product s and s er vices
Preventi on of Atmospheri c Pol l ution:
Exhaust emission standards are becoming stricter in J apan, Europe, the U.S. and many other
countries and regions. India introduced its first standards in 1991, and these have become
progressively more stringent over the years. Tata Motors aims to respond quickly to develop new
models that comply with latest national standard for domestic product and international standard
relevant to countries where the products are exported.
Reduci ng CO2 Emi ssi ons and Increasi ng Fuel Effi ci ency:
CO2 emissions are considered to be a primary contributing factor to global warming, making their
management the most important challenge for Tata Motors. Of the total volume of CO2 emissions
associated with the life cycle of an automobile, from excavation of raw materials to recycling of end-
of-life vehicles, the largest portion occurs when the vehicle is on the road. Controlling these emissions
is one of the most significant technology challenges TML is tackling today. While we are working in
developing fuel cells and other technologies of the future, we are also working to reduce CO2
emissions today’s vehicles through highly efficient engines and technology.
(a) Diesel Emphasis: As diesel is a more thermodynamically efficient fuel, our product lines
focus heavily on clean and modern diesel engines for automotive and stationary
applications.
(b) Multi-sector coverage: Tata Motors has been consistently developing and manufacturing
products that can contribute to CO2 reduction across all road transport segments and in
shifts between segments e.g. Bus Rapid Transit System (BRTS).
(c) Provide safe affordable transportation of people and goods with least CO2 emissions,
exemplified by Nano and Ace
(d) Alternative fuel initiatives in the widest possible spectrum of products along two axes:
- Blend Axis: Progressively blending of petrol with ethanol, Biodiesel with diesel and
hydrogen with CNG.
- Hybridization Axis: Hybridization from mild hybrid to full electric vehicle to hydrogen fuel
cell vehicle.
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55
(e) Minimize CO2 emissions by designing & developing the vehicles for Indian operating
conditions rather than directly adapting the vehicles from other markets e.g. Mumbai City
Fuel Efficiency Drive Cycle.
(f) Use of energy efficient air conditioning system like Scroll compressor, smaller heat
exchangers and high-efficiency condensers, low GWP refrigerants, etc. and reducing
refrigerant leakage and refrigerant recovery system during servicing.
Reduci ng Ozone Depl eti on:
CFC-12 having potential for ozone depletion is no longer used as refrigerant in AC system of our
product since 1996, HFC134a is used as a refrigerant
Reduced Use of Hazardous Substances:
The European Union directive 2000/53/EC on end-of-life vehicles (ELVs), which was proposed by the
European Commission and approved by the European Parliament, in principle banned the use of four
hazardous heavy metals (lead, mercury, cadmium and hexavalent chromium) in automobiles
(Cars/UV’s & Pick ups upto 3.5 GVW). TML is in compliance with the EU directive on ELV’s for export
vehicles to European Union.
TML has successfully implemented Lead free wheel balance weights, lead free printing inks, lead free
bulbs, alternate designs/coatings for hard Cr plating, cadmium plating, Lead free coatings for fuel
tanks, Lead free carbon brushes for electrical motors etc.
Asbestos free brake pads & clutches have been introduced in many of our products. Water based
paints is being used instead of solvent based paints to avoid VOC emission.
Workis going on for reducing/elimination of hexavalent chromium for corrosion preventive coatings
and development / implementation of lead free bearing shells & bushes.
Reduci ng Noi se Lev el s:
TML is not only meeting the national regulations but also aligned with European noise regulations and
continuously working with international bodies to further improve noise regulations.
Parti ci pati ng i n Nati onal Commi ttees & Ini ti ati v es Rel ated to Env i ronment:
Representatives of the Company are participating in the following national committees working for
improvement of environment throughout the country:
(a) Committee on “Air quality monitoring, emission inventory and source apportionment
studies for Indian cities”constituted by Central Pollution Control Board, Delhi.
(b) Standing Committee on Emission (SCOE) and Sub-committee on Fuel Efficiency Norms
of Union Ministry of Shipping, Road Transport and Highways of India.
(c) “Expert Committee on vehicular pollution control” constituted by Central Pollution Control
Board, Delhi.
(d) Ministry of New & Renewable Energy, Government of India (GoI), is promoting and
assisting technology development for GHG reduction by way of increased usage of
Biodiesel. Tata Motors is engaged in this initiative of Government of India.
(e) Coordinated Automotive Research initiative of Department of Science & Technology of
Government of India, for developing the National Hybrid Propulsion Platform programme.
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56
EN 27: Pr oduct s sold t hat is r eclaimable at t he end of t he pr oduct s us ef ul
Ini ti ati v es Taken to Recl ai m the Products Sol d are as under:
(a) Recyclability and Recoverability Regulation at “End of Life” of vehicle:
a. Meeting European directive on “recyclability” and “hazardous substances”.
b. Providing technical information on dismantleability of the vehicle to the dismantler
for use at “End of life vehicles”.
(b) Extended drain period for axle and gearbox oils:
Vehicle Trials for further enhancement in the drain period of axle & gearbox oil are in progress.
EN 28: Incident s of and fines f or non-compliance wit h all applicable inter nat ional
declar at ions / convent ions / t r eat ies , and nat ional, s ub-nat ional, r egional and local
r egulat ions as s ociat ed wit h envir onment al is s ues
There is no incidence of any fine or non-compliance with respect to any national, sub-national,
regional and local regulations associated with environmental issues.
EN 29: Envir onment al Impact s of t r anspor t ing pr oduct s and ot her goods and
mater ials us ed f or t he or ganisat ion’s oper at ions and t r ans por ting member s of
work f or ce
Strict adherence of the norms applied to transport product, materials and employees. Vehicle
condition check, Pollution Under Control (PUC) checks are in place to avoid any significant
environmental impacts during transportation. Identified concerned agencies
(Vendors/suppliers/contractors/transporters) have specific environmental programmes or control
procedures to mitigate the same.
EN 30: Tot al environment al expendit ur e
Total environmental expenditure in 2007-08 on various environment development initiatives at our
manufacturing units was Rs. 169 millions.
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7
Soci al Management Approach and
Performance Indi cators
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
58
MANAGEMENT APPROACH
Employees are the driving force of our organisation. The permanent employees’ strength of the
Company as on March 31, 2008 was 23, 230. Recruitments across all levels, extensive training and
skill enhancement activities were carried out especially at the new locations, in line with the
Company’s expansion and growth plans. Company’s cordial industrial relations were maintained at
all times and the Company entered into three wage settlement with its union. There has been
consistent improvement in productivity across all locations.
The Company was awarded India’s Best Managed Company for 2007-08 in the automotive sector
by Business Today based on a study conducted by Ernst and Young.
Communicate, Engage,
Reward, Rec ognise,
Union-Mgt Relationship
Strategic Alignment
Pillar
Strategy Execution
Pillar
Leadership / Growth
& Development Pillar
Structure, Competenc ies,
Manpower Planning,
Deployment
Engagement,
Performance Mgmt.,
Consequence Mgmt.
Industrial Relations
Organisational & Change
Capability Building;
Managing &
Expanding Talent Base
Communicate, Reward,
Recognise
Develop / Grow
Strategy-Structure Match,
Family Size, Eff iciency,
Ef fectiveness,
F E E D B A C K
H R S T R AT E G I C P I L L A R S
S T R A T E G I C E L E M E N T S
A C T I V I T I E S
DE L I V E R A B L E S
Vision
Business
Strategy
Core Values
Engagement, Superior
Perf ormance, Motivation,
Retention, Productive &
cordial relationship
Orgn. Capability, Agility
Future Leadership,
International Mindset
Attract, Select and
Deploy
Identify, Train /
Develop, Grow, Rotate
S Y S T E M S S Y S T E M S S Y S T E M S
Labour issues are managed by Employee relations department at each manufacturing location,
which forms a part of the human Resources Department. Within a manufacturing unit, there are
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
59
multiple factories and in each factory there is an officer in charge of safety. These officers in turn
identify and train Safety Stewards from amongst the workers. The structure enables the effective
implementation of Poka-Yoke (mistake proofing).
Manpower planning department looks after recruitment, training and performance management at all
levels. Training division at every location is in charge of identifying skill gaps and designing and
organising training programmes for both the blue-collared and the white-collared workers.
The said structure is at every manufacturing location and the Plant Head is in charge for the unit.
Functional Heads function at the corporate level as well and report to the Managing Director or to the
Executive Director.
A. LABOUR PRACTICES AND DECENT WORK
LA 1: Tot al Wor kf or ce by r egion
Total Workforce by Regi on
Category*
Jamshedpur Lucknow Pune Uttaranchal Mumbai Smal l Car Total
Executive 144 34 315 8 166 4
671
Managerial 1092 398 3199 213 1171 51
6124
Supervisory 1060 100 1461 65 165 20
2871
Operatives 3894 626 8841 27 176 0
13564
*The Management team comprises of Executive Grade which represents the senior leadership, the
TM grade which represents Middle Management as well as the various entry points based on
different level of education like graduation, post graduation etc. Operatives refer to workmen who
have requisite technical qualification employed for direct production activities
LA 2: Tot al r at e of employee tur nover
Tata Motors’ Annual Attrition Percentage for various grades is as follows:
Executive 3.4 %
Managerial 10.4 %
LA 3: Benef it s provided t o f ull-t ime employees t hat ar e not pr ovided to temporary or
part -t ime employees
Employee Benefits
(i) Gratuity
The Company has an obligation towards gratuity, a defined benefit retirement plan coveringeligible
employees. The plan provides for a lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary
payable for each completed year of service. Vesting occurs upon completion of five years of service.
The Company makes annual contributions to gratuity fund established as trust. The Company
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60
accounts for the liability for gratuity benefits payable in future based on an independent actuarial
valuation.
(ii) Superannuation
The Company has two superannuation plans, a defined benefit plan and a definedcontribution plan.
An eligible employee on April 1, 1996 could elect to be a member of either plan. Employees who are
members of the defined benefit superannuation plan are entitled to benefits depending onthe years
of service and salary drawn. The monthly pension benefits after retirement range from 0.75% to 2%
of the annual basic salary for each year of service. The Company accounts for the liability for
superannuation benefits payable in future under the plan based on an independent actuarial
valuation. With effect from April 1, 2003, this plan was amended and benefits earned by covered
employees have been protected as at March 31, 2003. Employees covered by this plan are
prospectively entitled to benefits computed on a basis that ensures that the annual cost of providing
the pension benefits would not exceed 15% of salary. The Company maintains a separate irrevocable
trust for employees covered and entitled to benefits. The Company contributes up to 15% of the
eligible employees’ salary to the trust every year. The Company recognizes such contributions as an
expense when incurred. The Company has no further obligation beyond this contribution.
(iii) Bhavishya Kalyan Yojana (BKY): BKY is an unfunded defined benefit plan. The benefits of the
plan accrue to an eligible employee at the time of death or permanent disablement, while in service,
either as a result of an injury or as certified by the Company’s Medical Board. The monthly payment
to dependents of the deceased / disabled employee under the plan equals 50% of the salarydrawn at
the time of death or accident or a specified amount, whichever is higher. The Company accounts for
the liability for BKY benefits payable in future based on an independent actuarial valuation.
(iv) Post-retirement Medicare Scheme
Under this scheme, employees get medical benefits subject to certain limits of amount, periods after
retirement and types of benefits, depending on their grade and location at the time of retirement.
Employees separated from the Company as part of Early Separation Scheme, on medical grounds or
due to permanent disablement are also covered under the scheme. The liability for post-retirement
medical scheme is based on an independent actuarial valuation.
(v) Provident Fund
The eligible employees of the Company are entitled to receive benefits under the provident fund, a
defined contribution plan, in which both employees and the Company make monthly contributions at a
specified percentage of the covered employees’ salary (currently 12% of employees’ salary). The
contributions as specified under the law are paid to the provident fund and pension fund set up as
irrevocable trust by the Company or to respective Regional Provident Fund Commissioner and the
Central Provident Fund under the State Pension scheme. The Company is generally liable for annual
contributions and any shortfall in the fund assets based on the government specified minimum rates
of return or pension and recognises such contributions and shortfall, if any, as an expense inthe year
incurred.
(vi) Compensated absences
The Company provides for the encashment of leave or leave with pay subject to certain rules. The
employees are entitled to accumulate leave subject to certain limits, for future encashment. The
liability is provided based on the number of days of unutilised leave at each balance sheet date on the
basis of an independent actuarial valuation.
Some other benefits advanced to the permanent employees are:
• Allowances like Transport allowance, Education allowance, Sanitation allowance, Leave
travel allowance etc
• Annual Performance linked Payment
• Free Medical facility for family
• Company loans & advances
LA 4: Per cent age of employees cover ed by collect ive bar gaining agr eement
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61
Tata Motors has internal unions at its manufacturing units at Pune, J amshedpur and Lucknow, which
enjoy majority with upto 98%-99% membership. These unions form representative bodies of the
workmen and negotiate with the management and settlements signed with these unions respectively
cover all permanent workmen present. At Uttarakhand, which is our new manufacturing unitlocation,
compensation of the operatives is decided on the basis of industry and region parity and in
consultation with Works Committee formed from time to time.
LA 5: Minimum not ice per iod(s ) r egar ding oper ational changes, including whether it
is specif ied in collect ive agr eement s
For Notice period regarding operational we follow the procedures mentioned in the Industrial Disputes
Act (21 days). This Act was passed by the Central Government of India to make provisions for
investigation and settlement of industrial disputes and came into existence in April 1947.
LA 6: For mal Joint Management -Work er Healt h and Saf et y Commit t ees
Tata Motors has a Safety Health and Environment (SHE) policy, which encompasses all regulatory
norms along with International Labour Organisation recommendations. Tata Motors has a process for
reporting, recording, analysis and action on accidents and unsafe conditions. The safety issues are
addressed through a bipartite (management and union) arrangement as depicted in the table here
below.
Table 1: Various Health and Saf ety committees at plant location
These committees thus cover 100% of the workforce.
LA 7: Injury, accident s , wor k -relat ed f at alit ies
Our practices are in line with the International Labour Organisation (ILO) “Model code of Safety
Regulations for Industrial establishment for the guidance of Government and Industry”. The decision
taken by the Governing body of the ILO conference held in 1948, the model code is not an instrument
involving any binding obligations, and Government and industries are free to make such use of it as
they see fit in framing or in reviewing their own safety regulations. The above guidelines are,
however, incorporated in the Factories Act 1948 and the Company strictly follows the rules and
accordingly the accident reporting or notice of accident or dangerous occurrence is recorded and
communicated to the concerned authorities (CIF) in FORM No. 17A.
LA 8: Ris k-cont r ol pr ogr ammes in place t o as s is t wor k for ce members, their families
or communit y members r egar ding ser ious dis eas es
Tata Motors provides curative and preventive health services to the employees, their families as
well as the community at large. It views its initiatives as a part of its social responsibility and as an
investment in improving social capital. Of these initiatives, some have been highlighted in the
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
62
following paragraphs. The Company has a robust Medical Scheme which covers complete health
care of employees and their dependent family members.
Tata Motors is committed to take initiatives to combat the spread of HIV/AIDS. Tata Motorsis aware
of the social stigma that accompanies the contraction of HIV / AIDS and thus as a conscious decision,
the Company does not make any discrimination, right from employment to retirement of employees.
• During pre-employment medical check-up, no HIV testing is done
• Employees having HIV /AIDS are allowed to work in our Factory until they are able to
continue normal duty
• Company’s Medical Benefit Scheme extends its’ benefits (reimbursement of medical
expenses) to employees who are suffering from HIV / AIDS. These benefits are at par
with any other medical benefits (It is not under exclusion as most of Insurance
Companies are having)
• Total confidentiality is maintained about HIV +ve status of any employee
T ata Motors started i ts AI DS awareness programme wi th the primary ai m to cover all
empl oyees and to make them aware about the causes, symptoms, myths and
preventi on of HI V/AI DS. Company doctors desi gned a 30 mi nutes lecture module and
del ivered i t to all empl oyees on the shop floor, fol l owed by di stribution of informative
bookl et on AI DS. Al l expenses for the desi gni ng and i mplementation of the programme
were borne by the Company.
In addition, Tata Motors supports a hospital in J harkhand state and also runs Mobile Health Clinics in
various villages adopted by the Company in J amshedpur, Lucknow and Pune. Awareness
programmes are extensively organised on various health issues for the community members. The
curative and preventive health services were provided to over 92390 non-employee patientsin 2007-
2008.
Photo: J amshedpur Hospital
Tata Motor s has also tr eated 8,000 lepr osy patients in last two decades thr ough the Nav Jagr at
Manav Samaj (NJMS) in Jamshedpur, Jhar khand. The ser vices extended have contributed towar ds
the reduction of leprosy pr evalence rate in Jamshedpur down fr om 22/1000 to 2.2/1000.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
63
Photo: Mr . Jowahar Ram Paswan, a beneficiar y of the NJMS pr ogr amme and now a full-time volunteer with
NJMS, with a patient at the ashr am
Rehabilitation work for leprosy-affected people is carried out by the Nav J agrat Manav Samaj in
J amshedpur. 8 ashrams situated around the city of J amshedpur, which are self-settled colonies of
people affected by leprosy, are supported with medical and institutional help for making their lives
comfortable and humane. More than 400 children of cured leprosy patients have been helped into
the formal stream of education. Also promoted are savings in banks by these people and adoption of
small business/vocations like rearing of livestock, poultry, cycle-rickshaw, cart and even growing
vegetables and selling them. A temporary hospitalization facility with 28 beds is available for the
treatment of seriously afflicted patients of leprosy. A 30-bedded Old Age Home runby NJ MS caters to
the old and destitute.
LA 9: Healt h and Saf et y t opics cover ed
Safety has been a concern for Tata Motors and the Company is taking steps to reduce the injuries
and accidents. All Tata Motors manufacturing units, including the new manufacturing unit at
Uttarakhand are certified under Occupational Health and Safety Standards 18801 (OHSAS 18001,
2007 version). OHSAS 18001 is an Occupati on Heal th and Safety Assessment Series for health and
safety management systems. It is intended to help an organization to control occupational health and
safety risks. It was developed by the Government of India in response to widespread demand for a
recognized standard against which to be certified and assessed.
In addition, Tata Motors manufacturing unit at Pune has been certified Social Accountability 8000
compliant. Clause No. 3 of the SA 8000 pertains to occupational health and safety. A Zero Accident
Plan was launched in 2007-08, wherein area ownership was developed by teams comprising of
management and supervisory grade workers called Bay Owners. The Bay Owners met twice a week
and conducted cross audits and organised awareness building programmes.
LA 10: Aver age hour s of t r aining per year per employee by employee cat egor y
Average Hours of Training per year per employee
Executive 49
Managerial 52
Supervisory 41
Operatives 23
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64
LA 11: Sk ill Management and Managing Career Endings
LA 12: Employees r eceiving r egular per f or mance and car eer development reviews
All employees are evaluated based on performance and merit. The Company has customized the
PMS for the requirements of different categories of employees-managerial, supervisors and
bargainable employees. In the PMS system, Individual performance plans are cascaded from the
Balance Score Card down to the smallest work unit, bringing business and customer focus to all
levels and teams. Monthly and mid-course half yearly reviews are held to ensure resources; targets
and training are in alignment with business needs. Employees have an opportunity to develop their
own view of their performance and discuss it with their supervisor. Formal evaluation ratings are
assigned at the end of the year. PMS instills a high performance culture in the organisation.
Competencies of successful executives are used as input to project the ‘Pen portrait’ of the ideal
incumbent. To trackthe state of readiness and migration paths, the succession planning process
includes colour coding for potential successors. This helps in arriving at the best fit.
The process is reviewed periodically for status of successors and for process improvements. In case
a successor is not identified from the Department and Talent Pool, an internal advertisement is
released. If the position cannot be filled internally, a suitable candidate is selected throughExternal
Advertisement.
All employees have the opportunity to advance their careers. The Company administers career
progression through the PMS system for managerial employees. All employees have the opportunity
of moving to higher levels. This is based on their personal preparation and desire to move, windows
of opportunity and a fair selection process, as under:
Overall PMS Approach (A) &PMS for TM
Employees (B)
Target setti ng at i ndivi dual
l evel and trai ni ng need
identi fi ed
Mi d year review
& feedback to
employee
Mi d cour se
correcti on in
l ine wi th
busi ness needs
Rewards, Compensati on,
Car eer planni ng &
devel opment and overal l
system feedback
Performance
based Ratings
and
Normal isati on
Annual review
and feedback
Empl oyee & Seni or
Senior Leadershi p and
HR (Inputs to HRPl an)
Employee &Senior
Empl oyee & Seni or Empl oyee & Seni or
Senior Leadership & HR
Target Setting Review Process
Compensation
process and
overall review
A
B
Creating High Performance
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
65
High Pot ent ial
Counseling, skill
matching,
Grooming
St ar s
Challenging growth
opport uniti es, career
planning, mentoring
Non Perf ormers
Deselction
annually
Sol id cit izens
Locat e in steady
f unction, retain and
evaluat e pot ent ial
FTSS
T
a
l
e
n
t
M
g
m
t
P
o
t
e
n
t
i
a
l
?
Per for mance ?
Apart from regular progression, other methods used for Fast track career progression are depicted
below. This helps the Company in building a resource for key areas and challenging assignments.
Career Progression Methods
LA 13: Gender Diver s it y by Employee cat egor y
Gender Diversity by Employee category
Male Female
Executive 658 13
Manager ial 5898 226
Super visor y
2730 141
Oper atives
13270 294
LA 14: Rat io of bas ic s alar y of men t o women by employee cat egor y
The Government of India has passed the Equal Remuneration act in 1976. This is an Act to provide
for the payment of equal remuneration to men and women and for the prevention of discrimination, on
the ground of sex, against women in the matter of employment and for matters connected therewith
or incidental thereto. Even before the Act came into force, Tata Group has followed a non-
discrimination policy in employment and compensation. Remuneration is not basedon gender, social
status or age and is linked to responsibility levels and performance.
Bargainable
Supervisors
TM / EG
SVCVP scheme,Master
craftsman, Mechatronics
scheme
Bargainable
to Sup scheme
Mastercraftsman,
Mechatronicsscheme
Engineer /
Internal officer
trainee scheme
Talent management,
@Fast trackselection
@ Fast Track SelectionScheme is
identifiedas best practice and
learnedby other groupcompanies
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
66
B. HUMAN RIGHTS
The Ethics team at Tata Motors is in charge of the human rights aspects in the Company. The
structure of the Ethics Department is given below.
HR 2: Human Right s Scr eening f or Supplier s and Cont r act or s
Tata Motors Limited has Supplier and Dealer assessment process to take care of issues related to
social aspects before inducting them in organisation. All legal and regulatory requirementsneed to
be fulfilled before final selection into the Tata Motors fold. The company periodically audits the job
contractors for adherence to labour laws and other statutory requirement like minimum wages, PF,
payment of gratuity etc. thereby ensuring prevention of violation of Human rights and employment
malpractices.
HR 3: Employee t raining on Policy and Pr ocedur es concerning Human Right s
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
67
Tata Motors adheres to the Tata Code of Conduct in its business. Tata Code of Conduct hascovered
all the Human Rights principles proclaimed in Universal Declaration of Human Rights. However, to
strengthen and support internationally proclaimed Human Rights within the business of the Company,
it was decided to design exclusive policies on various aspects of Human Rights.
The Policy on Human Rights is as under:
“Tata Motors believes in and respects Human Rights as enunciated by the International Labour
Organisation.
Tata Motors is committed to protect the Human Rights of its employees while dealing with them in all
the activities falling under the relationship of ‘Employer’ and ‘Employee’.
Decision to seek employment rests with the individual only, and it is completely voluntary. Tata
Motors does not and will not allow or encourage Compulsory or Forced Labour in any of its processes
and practices.
Tata Motors respects the right of its eligible employees to organise for the purpose of Collective
Bargaining as well as their right to support or oppose the labour union recognised by Tata Motors.
Tata Motors respects the definition of Child Labour as mentioned in the guidelines of International
Labour Organisation. Tata Motors will not engage any person under the age of 18years (legal age of
employment) for any operations or services (as presented in law) unless it is part of government
approved job training or apprenticeship programme.
Tata Motors honours the right of its employees to choose and decide the extent of their involvement
in Political Activities in their Personal Time.
Tata Motors expects its Channel Partners and Contractors to adhere to business principles consistent
with its own.”
Each new joinee receives a copy of the TCoC. Furthermore, Excerpts from the Code is prominently
displayed at all locations and employees are well aware of its components and adhere to it in letter
as well as in spirit.
HR 4: Incident s of Dis cr iminat ion:
The Company has a “Policy on Equal Opportunity and Non-Discrimination in Employment”, which
states:
“As part of its Recruitment Practices, TATA MOTORS is committed to provide Equal Opportunity to all
eligible applicants for employment without any discrimination against their gender, race, religion,
caste, colour, ancestry, marital status, nationality and disability. Opportunity for employment will be
solely based on eligibility and merit of the applicant. Career growth opportunities will be based entirely
on individual merit.”
There is robust Ethics Counsellor Process to monitor implementation of Tata Code of Conduct. The
Tata Code of Conduct incorporates within its fold, the Human Rights principles, which thus get
monitored during the process of monitoring of the former. Employees, as well as outsiders, have the
liberty to raise concerns if any, related to the Tata Code of Conduct and the Human Rights Policies
thus. Ethics Counsellors, who are present at all locations, address these concerns.
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In relation to the process of managing the business ethics, it is of much avail to talkabout the Whistle
Blower Policy at Tata Motors. This policy is an extension of the Tata Code of Conduct. The Whistle
Blower’s role is that of a reporting party with reliable information. The Policy also defines clearly the
composition and role of investigators or fact-finders and that of arriving at corrective or remedial
action in each given case. The Policy explicitly mentions pre-requisites to ensure that the identity of
the Whistle Blower is kept confidential. All employees of the Company are eligible to make Protected
Disclosures under the Policy.
For the year 2007-08, 95 of the 115 ethical concerns received were resolved the same year. The
remaining 20 are being reviewed.
HR 5: Suppor t t o Fr eedom of As s ociat ion and Collect ive Bar gaining:
In keeping with the spirit of the Constitution of India wherein Right of Association is a Fundamental
Right, Tata Motors respects the right for association of its employees and has constructive
relationship with trade unions at all locations. Employees are encouraged to join the Trade Unions, as
it believes that most individual and collective grievances can be resolved through bipartite forums.
This has led to good industrial relations. With its collaborative approach to company union, Tata
Motors has not faced legal action regarding anti-union practices.
Approximately 15000 of our permanent employees, who come under the unionised category, are
covered by collective bargaining agreements. These agreements include health and safety provisions
along with compensation structures in the form of a Memorandum of Understanding (MoU)between
the management and the representing Union as per the provisions of the applicable labour
legislations. These MoUs are signed every three years after negotiations between representing
committees of the union and the Management.
While the union membership may vary from each location, all eligible employees, irrespective of his
membership, enjoy the benefits as agreed in the MoU. The table below indicates the percentage of
permanent bargainable employees who are members of the recognised union at respective locations.
While the existing grievance handling process takes care of issues of temporary employees, the
recognised Unions also take up their issues.
Pr ocedur es involving infor mation, consultation and negotiation with employees
Interaction Level Frequency
Business Unit Level
Managing Dir ector , Executive Dir ector (Business Unit
Head)
Annual
Plant Head
Senior VP/ Direct Repor ts
Monthly
Per iodically
Divisional Level
GM/ Dir ect Repor ts
Monthly
Factory/Department Level
Divisional Head/ Factor y Head/ HR
Monthly
Weekly
Centr e of Excellence owners / HRO Need Based one-to-one inter action
Issues not resolved in lower levels are appropriately escalated to higher levels.
HR 6: Cont ribut ion t o Eliminat ion of Child Labour
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Tata Motors upholds the Tata tradition of not employing children in any of its Companies. It is bound
by the statutory legislation (Factories Act, 1948) and proper records are maintained in this regard.
The Certified Standing Orders of the Company expressly state that the age of an employee at the
time of recruitment should be 18 years or more.
Moreover, the Company is actively involved in improving both the quality and the access to education
in various regions. Infrastructural support for education helps thousands of children to access primary
and secondary education. Eligible poor students especially from tribal families are given financial
assistance. 1800 students through 33 schools and institutions of social and cultural development are
supported through the Shiksha Prasar Kendra, a Tata Motors society. Quality of education is
improved through special training programs for teachers and students. Vocational guidance programs
are organized so as to help the students in career planning.
Easy access and financial support for education helps in preventing children undertaking child labour.
HR 7: Cont ribut ion t o Eliminat ion of For ced and Compuls or y Labour
Tata Motors strictly adheres to the laws of the land with regard to forced and compulsory labour,
which are prohibited under various acts and statutes. To serve as an audit from time to time, the
Company has implemented Social Accountability standards through SA8000 which audits the
company and its supply chain for forced/compulsory labour, possibility of child labour, minimum
wages, payment of wages, etc.
In addition, the Tata Code of Conduct, referred to earlier, also has clauses on these two principles.
The disciplinary action process at Tata Motors is as per the applicable laws like Model Standing
Orders / Certified Standing Orders that allow the process of natural justice as per statute.
Description of appeal practices
RECEIPT OF REPRESENTATIONS & APPEALS
THROUGH HEAD OFFICE / SR.VP (J SR & LKO) 'S
FORWARDING THE SAME TO APPROPRIATE AGENCY
HRD & C, P & IR
EXAMINATION & VERFICATION OF REPRESENTATION /
APPEALS
PREPARATION OF DETAILED REPORT &
APPROPRIATE REPLY , THE SAME TO BE EXAMINED
BY HO / SR.VP(JSR & LKO)'S OFFICE
MAILED TO RESPECTIVE EMPLOYEES &
EXEMPLOYEES AFTER NECESSARY CORRECTIONS /
MODIFICATION
PROCESS FOR HANDLING
REPRESENTATI ON & APPEALS MADE BY
EMPLOYEES & EXEMPLYEES
Grievance handling Mechanism
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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EMPLOYEES
BARGAI NABLE NON BARGAINABLE
TALK TALK TALK TALK
TAL K
WRITE
WRI TE
UNION
REPRESENTATI VE
SUPERVI SOR / CX
OWNER / DI V HEAD
HR OFFI CERS /
MANAGER
LI STENI NG
POST
ETHI CS
COUNSELLOR
HOTLI NE
COORDINATI NG
AUTHORITY
SR VI CE PRESIDENT
CONCERNED AGENCY / DIVISION
HR 9: Rights of Indigenous People:
Government of India considers all Indians to be indigenous. Thus, this indicator is not quite
applicable while reporting only on the operations of Tata Motors within India.
C. SOCIETY
The Company has a Corporate Social Responsibility structure, which involves the top management
as well the employees and is driven by the objective of “i mprovi ng the qual i ty of life of people”. The
structure catering to the needs of the society, which the Company treats as the very purpose of its
business and not just another stakeholder, is as under:
SO 1: Managing Impact s on Communit ies
Institutionalizing CSR
Donations Committee CSR Committee
Two pillars of the CSR
Activities within
C
Suppor t institutions
thr ough donations on
basis of need and mer it
Review, monitor and guide
the CSR wor k under taken
acr oss all locations
Jamshed
pur
Pune Lucknow Non Plant Pantnagar Small Car
LOCTIONAL CSR
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The Company has constantly strived to mitigate the environment as well associal impacts of itsproducts
and operations. Through its various initiatives, the Company has been able to preserve and protect the
environment and has also contributed to integrated social development.
Through its CSR activities, the Company aims to upgrade the quality of life of the communities
around the Company’s areas of operations. Besides, Tata Motors also encourages employees to
devote time to underprivileged sections through Company projects and non-governmental
organisations to share skills and expertise and assist the needy. This is in line with the Company’s
broader goal of practising and promoting self –sustaining processes and welfare activities for social
and economic development and environmental protection. In a structured approach, the Company’s
CSR Committee guides and reviews the CSR activities. In all its CSR initiatives, the Company
recognises and respects diverse community needs by undertaking specific and need-based initiatives
across locations, while deploying global standards and policies.
A summary of the impact created by several community development initiatives in the year 2007-08 is
detailed in the Annual CSR Report, which can be viewed at the Company’s website at
http://www.tatamotors.com/our_world/we_care.php
SO 2: Analys ing Ris k s r elat ed to Cor rupt ion
All employees, from all ranks and grades, have signed the Tata Code of Conduct, which has a specific
clause pertaining to bribery and corruption. Clause 5 of the Tata Code of Conduct enunciates the
group’s approach towards “Gifts and Donations”. It reads “A Tata Company and its employees shall
neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts,
donations or comparable benefits which are intended to or perceived to obtain business or
competitive favours for the conduct of its business. However, a Tata Company and its employees
may accept and offer nominal gifts which are customarily given and are ofcommemorative nature for
special events”.
The Company, moreover, has drafted a Policy on Gifts, which is reproduced as under:
Gifts and business courtesies may be extended at Tata Motors’ expense, and accepted only if they
meet all of the following criteria:
They are not intended to obtain business or competitive favours;
They are not in contravention of applicable law; and
When publicly disclosed, will not be seen as a bribe or illegal payment.
Gifts, received or offered, will be restricted to items of nominal value, like calendars and diaries,
bouquets, sweets. Business courtesies received or offered should only be meals in the course of a
business meeting.
Any other gifts or business courtesies should be politely declined. Any gifts or business courtesies,
which appear to be given as a bribe, should be firmly rejected and reported to the employee’s
superior.”
Further, the Company also has a Policy on Bribery and Corruption, which states:
“Tata Motors is committed to its core value of Integrity. Towards this commitment, Tata Motors will
ensure that neither the Organisation nor its Employees receive or offer any direct or indirect illegal
payments, remuneration, benefits or favours to obtain business or for the conduct of business. Any
violation will be treated as a punishable offence.”
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All complaints are addressed by the Ethics Counsellor Process, detailed earlier.
SO 3: Tr aining of Employees on Ant i-Cor r upt ion Policies and pr ocedures
As stated earlier, the TCoC training covers all employees and it has within it the clauses on anti-
corruption and bribery. Furthermore, the policies, including the Policy on Gifts andPolicy onBribery
and Corruption are prominently displayed at all locations and all employees are made aware on the
process to redress grievances, if any.
SO 6: Contr ibut ions and Par t icipat ion in Polit ical Par t ies
Tata Motors maintains its neutral stance in terms of politics and has no political alignments and/or
inclinations. Thus, there are no financial or non-monetary grants made to any political party.
SO 7: Legal Act ions f or Ant i-compet itive, Ant i-t r ust and Monopoly Pr act ices
No such legal actions have been filed.
Tata Motors products and services have their own merit and no misleading statements are made
about competitor’s products and services. Any information regarding the competitors is collected
through legally permitted sources and means and is made only in the normal course of business.
The Company does not engage in activities which generate or support the formation of monopolies,
dominant market positions, cartels and similar unfair trade practices.
D. PRODUCT RESPONSIBILITY
PR 1: Cus tomer Healt h and Safet y
Tata Motors has been putting in a lot of effort to improve the safety (active and passive). The
Company always meets all the safety regulations of concerned markets and goes beyond the safety
regulations to provide better safety products – example being ACE has been designed to meet more
stringent crash safety norms that are not applicable to that class of products. There has been a
continuous upgradation of the product safety with new technologies being broughtin – Tata Motors is
the first Indian manufacturer to develop and introduce airbags in our vehicles. The Company is still
the only manufacturer in this country to have a crash test facility.
PR 2: Tot al number of incident s of non-compliance wit h r egulat ions concer ning
healt h and s af et y impact s of pr oducts and ser vices
Our record of compliance with regulatory requirements pertaining to emissions, safety, product
labelling, competition, advertising and other clauses of the Central Motor Vehicle Rules have always
been proactive and exemplary. The Company has never received any sanctions for violation of
regulatory norms.
PR 3 & PR 4: Pr oduct and Ser vice Labelling
Product Development is instituted and structured as a New Product Introduction (NPI) business
process to integrate various functions of the company. NPI is aimed at creating a product that meets
customer expectations in terms of quality and value.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
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New Product Introduction
Engineering Research Centre (Our Research and Development Centre) is adequately equipped with
state of the art facilities to address specifically the issues of customer health and safety. It has
facilities like Crash Test facility for safety and the Hemi Anechoic chamber for NVH and engine
emission testing. These facilities enable development of products meeting safety and environmental
regulations.
Examples of special features used in our products for preserving customer health and safety include
Anti-skid braking systems; Air Bags; Ergonomically designed seating systems with lumbar support;
Euro III complaint engines etc; Non-Chloro Fluro Carbons based vehicle air conditioners.
Tata Motors obtains test certificates for vehicle worthiness and other safety related issues like
emission, brakes, noise etc. before the product is marketed through government authorised agencies.
Tata Motors also obtain Homologation certificates for export markets from authorized test agencies.
Labelling Identification of parts that need to be labelled as per Annex II of EEC directives 2000/53/EC
amended by 2002/525/EC. This directive bans the use of hazardous heavy metals – Lead, Hex-
Chromium, Mercury and Cadmium.
The Company issues certificate of compliance to the above directives based on the declarations
obtained by SQIG from the suppliers.
PR 6: Adher ence t o Regulat ions r egar ding Mar k et ing Communicat ions
Tata Motors has instituted a Policy on Advertising which states:
“Tata Motors honours Advertising as a tool for Healthy Competition within the market. Tata Motors
will ensure that the promotion of its products and services is based only on justifiable or proven facts.
Tata Motors shall not make any misleading statements or use any competitive informationfor unfair
trade practices.”
The Company has embibed the essence of the policy in all its processes pertaining to marketing
communication and no false claims and/or unfair means are used while promotinga product/service.
Tata Motors Ltd. CorporateSustainabilityReport 2007-08
74
PR 8: Complaint s r egar ding violat ion of Cons umer Pr ivacy
No such complaints have been made. The Company respects consumer privacy and has in fact a
written policy stating the same. The Policy on Consumer Privacy is given as under:
“Tata Motors values long term relationship with its customers based on the foundation of Trust,
Integrity and Confidence.
While delivering excellent quality products and services, Tata Motors is committed to protect
Consumer Privacy in managing information and data furnished by its customers for official or
personal purposes. Such data will not be divulged to or shared with other individuals/institutions
without the prior written permission from customers.
Tata Motors is committed to designing processes and practices that ensure continued trust of its
customers.”
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