TATA MOTORS

Global Footprint
OTHER COLLABORATIONS/M&A &
JVs
Tata Daewoo Commercial
Vehicle
Hispano in Spain & Marcopolo
In Brazil
JV with Jardine Matheson for
ConcordeMotorsNorth Africa
Technology Tie Ups
at
Egypt
Spain,Italy

West Europe
U.K.
Italy

Russia*
Ukraine*
Central Asia
Afghanistan East Asia
Uzbekistan
China
South Korea*
South Asia
Bangladesh *
Nepal, Sri Lanka

West Africa
Senegal
LATAM
Brazil

West Asia
Saudi Arabia
Iraq, Iran
South Africa
South Africa*

East Africa
Kenya*

* Assembly Operations also

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South East Asia

Malaysia*
Thailand

Product Range
TATA Motors: Commercial Vehicles

Technological Resources
R & D establishments at Jamshedpur, Pune &
Lucknow over 1400 engineers.
Indias only certified crash test facility for cars and
hemi anechoic chamber for testing of noise and
vibration.
Tata Motors European Technical Centre (TMETC) set
up in 2005 primarily involved in design
engineering and development of products,
supporting Tata Motors skill sets.
Tata Daewoo Commercial Vehicle Co. has its R&D

Organizational Resources
Process Approach EPM (derived from APQC
processes and TBEM model.

The Enterprise Process Model

 Sound leadership JRD, Sumant Moolgaokar, Ratan

Tata
Ethical business practices guided by the Tata
Code of Conduct
Successful handling of integration issues Tata
Daewoo, Jaguar Land Rover
Reputation and recognition Tata brand.
CSR initiatives
Adaptability to the changing business dynamics.
7

Financial Resources
Stable cash flows for the past five years
Cash rich corporate parent Tata Sons
Strong reputation access to capital markets

Value Chain & Value System

Transporters, Convoy
Drivers Association

Dealer Network,
Marketing Research
Firms, Vehicle
Financing

SAP , VCM
Inbou
nd
Logist
ics

Operatio
ns

Outbou
nd

Marketing Servi
ce

Logisti
cs
SAP , CRM - DMS

Suppliers , Contractors

Regional Warehouses,
Dealer Workshops,
Distributors, TASS

Strategic Alliances
9

Inbound Logistics
Long term contract with service providers
transporters and agents.
Personnel at regional offices for over seeing the
smooth transit of goods.
Transparency and monitoring through deployment
of IT all transactions through SAP.
DTL supplies for critical high value items.
Efficient storage facilities easy storage and
retrieval.

10

Operations

Capital Equipment Manufacturing division tooling

development capabilities of global standard.

Apprentice Trainee Course ensuring stable source
of skilled manpower.
Kaizen & TPM team continuous drive to improve
efficiencies.
Automated manufacturing processes.
Distributed manufacturing Assembly units at
South Africa, Thailand, Bangladesh, Brazil etc.
Maintenance technical competence.
Capacity Utilization Mercedes Benz cars make use
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Outbound Logistics

Stockyards, all across the country.

Long term contracts with transporters higher

volume of business to transporters ensures
competitive price.
Regional Sales Office and Vehicle Dispatch Section
linked through SAP.
Efficient security system for prevention of any kind
of pilferage.

12

Marketing
&
Sales

Structured approach to understanding the

requirements of individual customers QFDs
conducted at regular intervals.
Clear identification of product requirements, leading
to development of innovative products Tata 207 DI,
Tata Ace
Pan India presence and global footprint.
Independent teams for addressing the requirements
of institutional customers Defense, State Transport
Units
Helping to augment the scarce resources Fiat selling
vehicles through Tata dealerships, in return Tata has
access to Fiats technology and unutilized
13 capacity.

Service
Easy availability of spare parts.
Efficient collection of data from field and
communication to the respective plants.
Pan India presence, as well as global presence.
Large network of workshops Dealer workshops
and TASS.
Training facilities for dealer end and TASS
personnel.

14

Procurement
E procurement initiative.
Global Sourcing Team China , a key destination for
sourcing essential items like tires, power steering
units etc., Steel procured from Belarus
Long term relationships with a stable and loyal pool
of suppliers.
Technology driven procurement SAP and VCM.
Strategic subsidiaries & JVs TACO group of
companies , Tata Cummins
Centralized Strategic Sourcing for key components
FIPs, Steel etc.
Group resources Tata Steel and Tata International .
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Localized supplier base at mfg. locations
low

Technology Development
Approximately 2% of the annual profits of the
company invested in research and development.
Knowledge portal helps employees keep abreast
with the latest technologies.
Extensive prototype building and testing facilities.
Strategic partnerships MDI (France), Fiat etc.
Formal benchmarking process.
Technology Day organized across all plant
locations.
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Human Resource
Vast pool of technically competent engineers and
managers.
Focus on development of technical capabilities
Technical Training Centers, Alliance with technical
Institutes
Focus on development of managerial capabilities
MTCs , TMTC, executive training programs at premier
business schools
Career advancement schemes ESS, FTSS
17

Firm Infrastructure
Multi Location facilities
Strong leadership under the aegis of Tata Sons
Best in class prototype building facilities
Technology SAP
Large product portfolio

18

Dynamic Capabilities
NPI Process reduced time to market
Tata Motors Vehicle NPI Process Conceptual Overview

Project
Initiation

PIPI

Concept
Development
Phase

Concept
alternatives
QFD
Styling themes
Packaging
Manf. Feasibility
Cost targeting

DR0
DR0

Product
Product
Strategy
Strategy
Review
Review
9BOX &
supporting
docs

Performance &
Weight analysis
Style & Spec
devmt. & Freeze
Vehicle &
Aggregate plans
Product costing
Financial analys

DR1
DR1

Concept
Concept
Selection
Selection
DR1 Sign-offs
Product Profile &
tech targets
Recommended
style theme
Prelim. Cost / wt
targets
Prelim. Biz case

Product
Design and
development
Phase

Design Validation
&
Productionisation
Phase

PreProduction
Phase

Ramp-up
Phase

Design analysis
& simulation
Alpha proto
tests
Aggregate tests
Crash tests
Manf. Planning
Detail costing

Full design
validation
Beta proto tests
Production tooling
Vendor parts dev.
Install & comm.
Facilities

Quality Proving
& Process
validation
P0 & PP Builds
Vendor parts
approval
Homologation

Ramp-up
PL Build

DR2
DR2

Concept
Conceptand
and
Project
Project
Approval
Approval
DR2 Sign-offs
Product spec &
Features list
Vehicle Test Plan
Style & packaging
sign off
Time & res. plan
Full Biz. case

DR3
DR3

Design
Design
Release
Release
DR3 Sign-offs
Design release
Long lead tooling
signed off
Component
reliability plan
Biz. Case
validation

DR4
DR4

Production
Production
Release
Release
DR4 Sign-offs
Critical issues
brochure
Vehicle test
requirements met
Control plans
signoff
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DR5
DR5

Project
Project
Review
Review

LL
Launch

(Indicative)

Concept
Evaluation
Phase

Market
analysis
Competitor
assessment
Explore Prod.
Options
Product
planning

(Partial)

Gateway
Deliverables

Gateways

Activities

Phases

Product
Strategy &
Planning
Phase

DR5 Sign-offs
Launch volumes
QP build
completion
Vendor parts
fully approved
Ramp up plan

Leveraging the resources

How did TATA create initial resource complement to
overcome the disadvantage of being newcomers in
passenger car business?
STRATEGY

INSTITUTIONS

R&D
Strategic
partnerships
Joint ventures
Acquisitions
Intensive
management
development

Government support
(10Year
Plan) for
New
institutions
trade promotion,
technology upgradation, quality
enhancement (ACMA:
Automotive
Component
Manufacturers
Association, SIAM:
Society of Indian
Automobile
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Manufacturers
)

Key Strategies
International strategy based on the competitive
advantage:
New product (eg. Tata Nano, the cheapest car in the World).
Acquisitions (eg. Land Rover and Jaguar brands from Ford
Motors).
Partnership with established companies (eg. Alliance with Fiat
since 2006) to enhance the product portfolio and knowledge
exchange.
Facilities for learning from other companies.
Developing programmes for intensive management development.

Consolidate position in India by exploiting

opportunities:
New mobility of young Indians.
Governments substantial road-building program
GDP growth

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Process Benchmarking
Optimize the value chain using distributed
Manufacturing
The power of IT has been extensively leveraged
State-of-the-art CAD and CAM services integrated
design across multiple disciplines
IT helped the company shrink the design cycle time
BSM tools from BMC Software played a key role
TML decided to adopt IT service management
concepts outlined in the ISO 20000:05 international
standards, as well as best practices outlined in the
IT Infrastructure Library (ITIL) Version 3
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Process Benchmarking
service-oriented management architecture that
treated services as assets and managed them on
a life cycle basis.
In-house manufacturing capability with CNC
manufacturing operations
have implemented Six-sigma, Kaizen & TPM.

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Strategic Benchmarking

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Strategic Benchmarking
Objective:

Innovation across the value

chain leading to affordable products that
can grow the market

Product innovation needs to be

complemented with innovation in
other parts of the value chain

Co- location of suppliers

On- line bidding by suppliers
Reduction in the number of suppliers
Partnerships with vendors
Dedicated Suvidha service network
in
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small towns

Achievements
The sole winner of the JRD QV Award 2005 was
the commercial vehicle business unit, or CVBU, of
Tata Motors
PCBU's business excellence initiative has come
into its own.
Serious Adoption Award in 2004
Active Promotion Award in 2005
Tata Motors have crossed the level of 60% to win
the JRD-QV award in 2001, 2004 & 2005
respectively
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Stretch and Leverage

Vision : best in the manner in which we operate,
best in the products we deliver, and best in our
value system and ethics
Engineering, construction and automotive
solutions
R&D focus on environment-friendly
technologies in emissions and alternative
fuels
Maintain cost competitiveness through
continuous improvements in control over
key inputs and enhanced asset utilization
Best in class human capital that are
constantly in touch with the industry,
competitors, customers and the 27
suppliers

Stretch and Leverage contd..

Tata Nano: The innovative small
car for the urban middle class
Fulfill the requirements of its customer
value proposition
Deliberately created a young team with
good leadership capabilities who think
differently
Excellence in outsourcing
Reconceived its supplier strategy - 85%
of the Nanos components
Fewer supplier (<60%)
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Stretch and Leverage contd..

Acquisition : Land Rover and Jaguar for $2.3
billion - Complementing Resources Blending & Balancing

High Replacement cost

Complimentary to Tata Motor in the
upstream business
Access to global markets
Transfer of knowledge, technology from
high end market
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Stretch and Leverage contd..

Overall ..
Strong product development
capability
Manufacture products or deliver
services of highest quality at lowest
prices
Sufficiently widespread distribution
and service network
working around offering more
affordable, more value-oriented
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Technological Framework
Attribute:
Innovation around cost
globally recognized technological
capabilities
'50s and '60s technical collaboration with
Mercedes Benz to design and manufacture
its chosen line of projects
Strong R&D at ERC
Possess capability to develop and test
durability, engine performance, emission,
safety, design and style, noise, hydraulics,
tracks, and instrumentation.
Opportunity to experiment and learn
from
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Technology Capability
Hierarchy

32

Achievements
The company has the only world-class
crash facility in Asia outside Korea and
Japan
Developed an A-ECU (Electronic Control
Unit) and low-cost accessories that would
effectively manage critical engine and
vehicle systems without calling for a fullfledged and expensive conventional ECU
Striding towards new emission standards
Equipping vehicles of the future with
technologies for improving
communication, navigation and
entertainment- OneCat conceptual car
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with fiber glass powered by air and

Diversification
1977 First CV from Pune plant.
1983 First HCV rolled out.
1986 First LCV (Tata 407) launched
followed by Tata 608.
1991 First passenger car Tata Sierra
launched.
1992 Tata Estate launched.
1994 Launch of Tata Sumo.
34

Diversification
1995 Mercedes Benz car E220 launched
1997 Tata Sierra Turbo launched.
1998 Indias first SUV launched.
1998 Indias first indigenous Passenger
Car Indica launched.
2001 Second Generation Indica v2
launched.
2008 Launch of Suma Grande
2008 Launch of Nano at ninth Auto Expo
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But, the war is on

Maruti Vs Tata Motors

36

The Preparations
Proper utilization of assets
Motivating people to work hard
Selective hiring
Job fitting
Training program
Better working environment

37

To create.
Firms
Resource
s

Rent
Generati
ng
Potential

Resource
Gaps

Strategy
to best
use the
capabiliti
es

38

HR Philosophy
Caring, show respect, compassion and
humanity for colleagues
Work cohesively with colleagues across the
group
Encourages self-sufficiency
Employees' relatives at Pune have been
encouraged to form various industrial cooperatives
The Tata Motors Grihini Social Welfare Society
caters to employees' women dependents'
39

HR Policies
Executive Selection Scheme (ESS) fast track programme for accelerated
growth
In-house vocational training and
apprenticeship programme trains the
technicians
Rotational assignments and crossfunctional mobility allow employees
to grow
40

All said and donea new

strategy is required
The Blue Ocean Strategy

41

Blue Ocean
Strategy
Red Ocean

Blue Ocean

Compete in the existing market

place

Create unconsolidated market

space

Beat the competition

Make the competition irrelevant

Exploit existing demand

Create and capture new

demand

Make the value cost trade off

Break the value-cost trade off

Differentiation or Low cast

Differentiation and Low Cost

42

Focus on the non-customers

43

Corporate strategy, parenting

and synergies
To buy premium vehicle brands such as
Land Rover and Jaguar bolster Tata Motors
image as a global company and increase
its global reach and scale
Overall, the Tata group has spent around
$15.5 billion in acquiring foreign
companies
The Tata name is a unique asset
representing leadership with trust
Leveraging this asset to enhance group
synergy and becoming globally
competitive
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Corporate strategy, parenting

and synergies contd..
synergy developed as a result of the strengths of
domestic and foreign market share, congregating
under the umbrella of Tata group
The Tata Group as a whole has over 20 publicly
listed enterprises and operates in more than 80
countries world-wide - lots of experience and
resources to draw from for research and
development purposes
Strong corporate governance based on rich
legacy of fair, ethical, and transparent governance
practices to ensure that its employees act
ethically and the business continues to run
smoothly
45

Corporate Advantages from

Diversified Business
Sharing of Activities/Resource
Tata
Steel

Tata
Motor

TCS

Tata
Cummins

Sharing of Skills/Core Competence

Tata
Steel

Tata
Cummins
Core
Competence

TAML

TACO
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Thank
you
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