The Tata conglomerate is now the oldest company in India and represents over 93 companies with more than 289,500 employees worldwide, with a turnover of more than $28 billion and a market capitalization of 77.5 billion dollars (recorded as per January 2008). This group is one of the most successful companies in the world.
Established in the mid-19th century (under the British rule) by Jamsetji Tata, the group has contributed in a lot of ways in building the nation. This company also represents a family, a culture and a philosophy which are associated with ethical values, integrity and quality.
It is present in 7 areas of activities: automobiles, steel, energy, chemistry, computers, services and consumer products. However, we will focus on the automotives sector in our document.
The company was established in 1945 but is now one of the largest Indian manufacturers of automobiles and is leading in commercial vehicles in each market segment and stands second in the segment of passenger vehicles. It is also the fifth largest producer of heavy industrial vehicles.
[...] - Qualified: 3000 engineers and scientists - Inexpensive: the average salary of an Indian is 100 rupees per day, or 1.49 euros (according to the daily The Indian Express) Important infrastructures placed in strategic locations, in the form of joint ventures, subsidiaries and partnerships Ex: - Manufacturing units in India: Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka) - Joint venture with Fiat Ranjangaon (Maharashtra): Production of Fiat brand cars and Tata cars. - Subsidiaries in the United Kingdom, Spain, South Korea, Thailand and other places. [...]
[...] III) Links between activities Identification of synergies and diversification measures Tata Motors is a branch of an Indian industrial giant, the Tata Group, which enables it to benefit from synergies. Although the Tata group has many managerial synergies present in all segments of India, many of its activities are of no benefit to Tata Motors. It is clear that Tata Motors does not carry out the economies of scale within the same sector as Jaguar and Land Rover as their objectives and ranges differ in every way. [...]
[...] Tata Motors is able to compete with all global manufacturers in this segment, and much more with the arrival of its new product, the Nano car at 2000 euros, an unbeatable offer price. The segment "Entry level" may be through which Tata Motors may be known in international markets given that its dynamism and quality of its products have already proven themselves in the national market. Tata Motors ultimately places great hope in these three segments, and thinks it's interesting for it to keep a fairly large range in each category to be protected from any risk and to be responsive to customer requests at the same time. [...]
[...] External financing It essentially results in debt and an increase in capital Indebtedness It must be said that the indebtedness of the company has accelerated with the acquisition of Jaguar and Land Rover but it remains relatively controlled justifying the notation from Moody's Corporation and even has managed to reduce the debt ratio (see figure). Tata Motors booted a 750 million dollar financial market in January 2010 which shows the confidence of investors in the company despite the downturn of the automobile sales. [...]
[...] The same thing is happening to the car that Tata Motors should be out with soon, a car that is low-cost hybrid-powered supercar”, ultra innovative and would position itself at the height of cars such as Porsche and Lamborghini (800ch). So here we still see the company's capacity for innovation and project development, proof that its labs are very efficient and able enough in all directions (low-cost Nano and low-cost Supercar) but still with the idea to be competitive on prices. [...]
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