Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and machine tools. The company also used to manufacture pulp and paper making machinery. Company initially manufactured steam locomotives and progressively widened its product range to cover heavy commercial vehicles and light commercial vehicles.
In the starting, Company formed a Collaboration with M/s Daimler -Benz AG, W.Germany, for the manufacture of medium commercial vehicles at Jamshedpur. Company formed a collaboration with M/s Hitachi Construction Machinery Co. Ltd., Japan, for manufacture of hydraulic excavators. In its small car segment has launched "Tata Indica" which evoked an overwhelming response in the Indian market. Company was the first Indian company to manufacture its commercial vehicles meeting euro-I emission norms.
Company has a value chain management (VCM) system designed to enable value-based interaction between business partners and manufacturers. In 2000, Company launched the Indica 2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. Company has tie up with ICICI as a preferred financier for customers buying its range of vehicles. Company launched indica V2 version of its previous indica after some modifications. After this launch Indica considered top selling B-segment car in 2002.
Company has a manufacturing & supply agreement with MG Rover Group of the UK. Year 2003 was the remarking year for the company as it turnaround and posted profit of Rs 300.11 crore as against the loss of Rs 53.73 crore the previous corresponding period. Company name changed from Tata Engineering & Locomotive Company Ltd. (Telco) to Tata Motors Ltd. (TML) with effect from July 29, 2003. Company also signed Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for the acquisition of this company this year only. Along with this, company’s reputed brand “Tata safari” got No 1 Rank in MUV/SUV segment. Company has a marketing tie up with Bharat Petroleum Corporation Ltd (BPCL) for marketing of engine oils as co-branded lubricants for their commercial vehicles.
Tata Motors is the first Indian company from engineering sector to be listed in the New York Stock Exchange. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker.
Products & Services—
Tata Motors Limited is India's largest automobile company; it is the leader in commercial vehicles in each segment, and the second largest in the passenger vehicles market with compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. Company manufactures Passenger Cars, Utility Vehicles, Buses, Trucks & Defense Vehicles. In the passenger car Segment Company manufactures & supply Indica V2, Indigo, Indica V2 Xeta, Indica V2 Turbo, Indigo Marina, Indigo SX & Fiat. In the utility vehicle segment it has a portfolio of Safari Dicor & Tata Sumo.
Tata Globus Coach has been designed to transport long-distance traveller in the very lap of luxury. From the ergonomically designed seats, spacious legroom, special baggage space, and personalized climate control vents to quieter engines, air-suspension and superior braking systems. Tata Starbus is available in a comprehensive range of variants, with seating capacities from 16 to 67 seats. Designed on the concept of optimum functionality and comfort, with economy. Except this, Company is also manufacturing Defence vehicles like Heavy duty trucks for Troops and cargo loading.
Company's manufacturing base is spread across Jamshedpur, Pune and Lucknow, supported by a nation-wide dealership, sales, services and spare parts network of 1,200 centers. Through its subsidiaries, company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Company has set up a Research and Development Center at Jamshedpur for this purpose.
Company would invest over Rs.60 billion in its different plant locations by 2010 for development of its products and assets. Capital expenditure will be made to develop both the cars and commercial vehicles segment. Tata Motors wants to be a dominant player in the heavy commercial vehicle segment and the vehicles would be targeted for the construction and mining sectors. Tata Novus, comprising the tipper, dumpers and tractor models, is a collaborative effort by the engineers of Tata Motors and its wholly owned subsidiary Tata Daewoo Commercial vehicles of South Korea. The Novus manufactured in the Korean plant is already being exported to Europe, New Zealand, Middle East and South Africa and the company is looking at export opportunities in Japan, China and Pakistan.
Company is planning to enter the Chinese market and is looking at the option of setting up an assembling unit in the country. The company's inorganic growth efforts like the acquisition of the Daewoo unit and Hispano in Spain would continue. According to the source, the company would roll out more models in India from the Daewoo fold over the next two years. This would be part of the company's declared strategy to invest Rs 6,000 crore in the next five years in commercial vehicles and passenger cars. The main competitor of Tata Motors in this segment is Volvo. Tata Motors will tap markets in China, Pakistan, Japan, the Middle East and South Africa with Novus. Novus is the 300 horsepower Tipper. With the introduction of the Tata Novus Tipper, the Company is the first Indian manufacturer to offer the highest horsepower heavy commercial vehicle in its class. Tata Novus Tipper is a premium fully built ready to use vehicle fitted with an 8.3 litre, 6-cylinder Cummins diesel engine. Offering superior performance, enhanced economy by ensuring low operating costs and equipped with world-class safety and comfort features, the Tata Novus Tipper is complimented with a stylish and ergonomically designed cabin. Proven in Korea and over 15 countries, the all-terrain Tata Novus Tipper is the ideal vehicle to mining and construction.
Company is setting up an assembly unit in South Africa and a bus-building facility in Turkey, and is scaling up operations in seven countries. Company is planning to boost the presence in overseas markets is a part of a strategy to double the sales revenue in five years.
Company had been doing very well in South Africa. Company entered into South Africa before three years. It has established a leading position in the commercial vehicle market there. Company is considering setting up an assembly unit there. It exports vehicles and pick-ups from its manufacturing facilities in India and makes buses in South Africa. The company found high-growth potential in Turkey where it exported pick-ups, cars, trucks and buses. The other overseas markets where the company will increase its presence include the UK, Russia, Italy, Spain, countries in West Asia and Eastern Europe, and Senegal. In Russia, the company had taken "tentative steps with local parties to export its products. Plans are also on to ramp up the capacity utilisation of Daewoo Commercial Vehicle in South Korea.
Tata Motors is also in the process of expanding its distribution network in the UK. With the deal with Rover ending, the company has shortlisted three distributors to sell its passenger cars. Company and INCAT has acquired CEDIS Mechanical Engineering GmbH, a Stuttgart, Germany-based provider of automotive engineering and design services to some of the world’s leading manufacturers. CEDIS clients list include Johnson Controls, DaimlerChrysler, MAHLE, Modine Europe, Eberspacher, ORIS, Lear Corporation, Mercedes AMG, Alpine Electronics, BOS and others. Company is also exploring the possibility of supplying compressed natural gas (CNG) buses to the Philippines.
Valuation—
Company registered 22% sales growth in February month. Company is having good track record of dividend payout. With Recent cut in excise duty on small cars to 16% from 24% Sales of Tata Motors’ Indica will likely benefit from the excise cut on small cars. This will improve demand for the Indica in FY2006-07. Company is having huge expansion plans, which is going to benefit the company in long run. At cmp, Stock trades at 14.6 X multiple of its FY2007 Estimated EPS of 61 Rs.
Key market
India had the potential of emerging as a key market for the European aerospace industry which was on a cost reduction regime. Though outsourcing aerospace projects to India was hardly a recent phenomenon.
The blueprint-based production outsourcing has given way to a business model where outsourcing involved high-end functions and capabilities—such as structural engineering tasks and cockpit designing of the A-350—that required the partner to share part of the risk for contingencies such as a waning US dollar or cost escalation of mid-project design changes, he said.
“
The industrial landscape in Europe is in a process of radical restructuring.” India had a lot to gain from striking aerospace partnerships for projects that demanded cost-cuts and reduced engineering time cycles.
In the starting, Company formed a Collaboration with M/s Daimler -Benz AG, W.Germany, for the manufacture of medium commercial vehicles at Jamshedpur. Company formed a collaboration with M/s Hitachi Construction Machinery Co. Ltd., Japan, for manufacture of hydraulic excavators. In its small car segment has launched "Tata Indica" which evoked an overwhelming response in the Indian market. Company was the first Indian company to manufacture its commercial vehicles meeting euro-I emission norms.
Company has a value chain management (VCM) system designed to enable value-based interaction between business partners and manufacturers. In 2000, Company launched the Indica 2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. Company has tie up with ICICI as a preferred financier for customers buying its range of vehicles. Company launched indica V2 version of its previous indica after some modifications. After this launch Indica considered top selling B-segment car in 2002.
Company has a manufacturing & supply agreement with MG Rover Group of the UK. Year 2003 was the remarking year for the company as it turnaround and posted profit of Rs 300.11 crore as against the loss of Rs 53.73 crore the previous corresponding period. Company name changed from Tata Engineering & Locomotive Company Ltd. (Telco) to Tata Motors Ltd. (TML) with effect from July 29, 2003. Company also signed Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for the acquisition of this company this year only. Along with this, company’s reputed brand “Tata safari” got No 1 Rank in MUV/SUV segment. Company has a marketing tie up with Bharat Petroleum Corporation Ltd (BPCL) for marketing of engine oils as co-branded lubricants for their commercial vehicles.
Tata Motors is the first Indian company from engineering sector to be listed in the New York Stock Exchange. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker.
Products & Services—
Tata Motors Limited is India's largest automobile company; it is the leader in commercial vehicles in each segment, and the second largest in the passenger vehicles market with compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. Company manufactures Passenger Cars, Utility Vehicles, Buses, Trucks & Defense Vehicles. In the passenger car Segment Company manufactures & supply Indica V2, Indigo, Indica V2 Xeta, Indica V2 Turbo, Indigo Marina, Indigo SX & Fiat. In the utility vehicle segment it has a portfolio of Safari Dicor & Tata Sumo.
Tata Globus Coach has been designed to transport long-distance traveller in the very lap of luxury. From the ergonomically designed seats, spacious legroom, special baggage space, and personalized climate control vents to quieter engines, air-suspension and superior braking systems. Tata Starbus is available in a comprehensive range of variants, with seating capacities from 16 to 67 seats. Designed on the concept of optimum functionality and comfort, with economy. Except this, Company is also manufacturing Defence vehicles like Heavy duty trucks for Troops and cargo loading.
Company's manufacturing base is spread across Jamshedpur, Pune and Lucknow, supported by a nation-wide dealership, sales, services and spare parts network of 1,200 centers. Through its subsidiaries, company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Company has set up a Research and Development Center at Jamshedpur for this purpose.
Company would invest over Rs.60 billion in its different plant locations by 2010 for development of its products and assets. Capital expenditure will be made to develop both the cars and commercial vehicles segment. Tata Motors wants to be a dominant player in the heavy commercial vehicle segment and the vehicles would be targeted for the construction and mining sectors. Tata Novus, comprising the tipper, dumpers and tractor models, is a collaborative effort by the engineers of Tata Motors and its wholly owned subsidiary Tata Daewoo Commercial vehicles of South Korea. The Novus manufactured in the Korean plant is already being exported to Europe, New Zealand, Middle East and South Africa and the company is looking at export opportunities in Japan, China and Pakistan.
Company is planning to enter the Chinese market and is looking at the option of setting up an assembling unit in the country. The company's inorganic growth efforts like the acquisition of the Daewoo unit and Hispano in Spain would continue. According to the source, the company would roll out more models in India from the Daewoo fold over the next two years. This would be part of the company's declared strategy to invest Rs 6,000 crore in the next five years in commercial vehicles and passenger cars. The main competitor of Tata Motors in this segment is Volvo. Tata Motors will tap markets in China, Pakistan, Japan, the Middle East and South Africa with Novus. Novus is the 300 horsepower Tipper. With the introduction of the Tata Novus Tipper, the Company is the first Indian manufacturer to offer the highest horsepower heavy commercial vehicle in its class. Tata Novus Tipper is a premium fully built ready to use vehicle fitted with an 8.3 litre, 6-cylinder Cummins diesel engine. Offering superior performance, enhanced economy by ensuring low operating costs and equipped with world-class safety and comfort features, the Tata Novus Tipper is complimented with a stylish and ergonomically designed cabin. Proven in Korea and over 15 countries, the all-terrain Tata Novus Tipper is the ideal vehicle to mining and construction.
Company is setting up an assembly unit in South Africa and a bus-building facility in Turkey, and is scaling up operations in seven countries. Company is planning to boost the presence in overseas markets is a part of a strategy to double the sales revenue in five years.
Company had been doing very well in South Africa. Company entered into South Africa before three years. It has established a leading position in the commercial vehicle market there. Company is considering setting up an assembly unit there. It exports vehicles and pick-ups from its manufacturing facilities in India and makes buses in South Africa. The company found high-growth potential in Turkey where it exported pick-ups, cars, trucks and buses. The other overseas markets where the company will increase its presence include the UK, Russia, Italy, Spain, countries in West Asia and Eastern Europe, and Senegal. In Russia, the company had taken "tentative steps with local parties to export its products. Plans are also on to ramp up the capacity utilisation of Daewoo Commercial Vehicle in South Korea.
Tata Motors is also in the process of expanding its distribution network in the UK. With the deal with Rover ending, the company has shortlisted three distributors to sell its passenger cars. Company and INCAT has acquired CEDIS Mechanical Engineering GmbH, a Stuttgart, Germany-based provider of automotive engineering and design services to some of the world’s leading manufacturers. CEDIS clients list include Johnson Controls, DaimlerChrysler, MAHLE, Modine Europe, Eberspacher, ORIS, Lear Corporation, Mercedes AMG, Alpine Electronics, BOS and others. Company is also exploring the possibility of supplying compressed natural gas (CNG) buses to the Philippines.
Valuation—
Company registered 22% sales growth in February month. Company is having good track record of dividend payout. With Recent cut in excise duty on small cars to 16% from 24% Sales of Tata Motors’ Indica will likely benefit from the excise cut on small cars. This will improve demand for the Indica in FY2006-07. Company is having huge expansion plans, which is going to benefit the company in long run. At cmp, Stock trades at 14.6 X multiple of its FY2007 Estimated EPS of 61 Rs.
Key market
India had the potential of emerging as a key market for the European aerospace industry which was on a cost reduction regime. Though outsourcing aerospace projects to India was hardly a recent phenomenon.
The blueprint-based production outsourcing has given way to a business model where outsourcing involved high-end functions and capabilities—such as structural engineering tasks and cockpit designing of the A-350—that required the partner to share part of the risk for contingencies such as a waning US dollar or cost escalation of mid-project design changes, he said.
“
The industrial landscape in Europe is in a process of radical restructuring.” India had a lot to gain from striking aerospace partnerships for projects that demanded cost-cuts and reduced engineering time cycles.