Thursday, July 26, 2007

Stock Exchanges In India
Stock Exchanges are an organised marketplace, either corporation or mutual organisation, where members of the organisation gather to trade company stocks and other securities. The members may act either as agents for their customers, or as principals for their own accounts.Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerised. The trade on an exchange is only by members and stock broker do have a seat on the exchange.



List of Stock Exchanges In India



1 Bombay Stock Exchange
2 National Stock Exchange
3 Regional Stock Exchanges

History of Stock Exchanges In India:In 1860, the exchange flourished with 60 brokers. In fact the 'Share Mania' in India began with the American Civil War broke and the cotton supply from the US to Europe stopped. Further the brokers increased to 250.At the end of the war in 1874, the market found a place in a street (now called Dalal Street). In 1887, "Native Share and Stock Brokers' Association" was established. In 1895, the exchange acquired a premise in the street which was inaugurated in 1899.



A very common name for all traders in the stockmarket, BSE, stands for Bombay Stock Exchange. The oldest market not only in the country, but also in Asia. The early days of BSE was known as "The Native Share & Stock Brokers Association." It was established in the year 1875 and became the first stock exchange in the country to be recognised by the government. In 1956, BSE obtained a permanent recognition from the Government of India under the Securities Contracts (Regulation) Act, 1956.


In the past and even now, it plays a pivotal role in the development of the country's capital market. This is recognised worldwide and its index, SENSEX, is also tracked worldwide. Earlier it was an Association of Persons (AOP), but now it is a demutualised and corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).



BSE Vision: The vision of the Bombay Stock Exchange is to "Emerge as the premier Indian stock exchange by establishing global benchmarks."



BSE Management:Bombay Stock Exchage is managed professionally by Board of Directors. It comprises of eminent professionals, representatives of Trading Members and the Managing Director. The Board is an inclusive one and is shaped to benefit from the market intermediaries participation.The Board exercises complete control and formulates larger policy issues. The day-to-day operations of BSE is managed by the Managing Director and its school of professionsl as a management team.



BSE Network:The Exchange reaches physically to 417 cities and towns in the country. The framework of it has been designed to safeguard market integrity and to operate with transparency. It provides an efficient market for the trading in equity, debt instruments and derivatives. Its online trading system, poularly known as BOLT, is a proprietory system and it is BS 7799-2-2002 certified. The BOLT network was expanded, nationwide, in 1997. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.


Convention HallThe Bombay Stock Exchange provides convention hall for listed companies and other Institutions to hold their Annual/ordinary General Meetings, Listing ceremonies, Analyst and any other important event.


It is centrally located at which can be easily reached from Churchgate or CST (VT) railway stations. It has a capacity of around 700 to 900 persons with state-of-the-art infrastructure. The hall has Projection Equipment, Web-cast facility and a Business Room with Facsimile, Internet, Photocpier and telecom equipment.
BSE Facts
First in India to introduce Equity Derivatives
First in India to launch a Free Float Index
First in India to launch US$ version of BSE Sensex
First in India to launch Exchange Enabled Internet Trading Platform
First in India to obtain ISO certification for Surveillance, Clearing & Settlement
'BSE On-Line Trading System (BOLT) has been awarded the globally recognised the Information Security Management System standard BS7799-2:2002.
First to have an exclusive facility for financial training



BSE HelpdeskBSE has made arrangement for a toll-free numbers which makes it easier for customers to contact. A focussed number helps in providing best support to the customers. The toll-free number is as mentioned below:Toll-Free: 1600 22 6661Members who are not in Mumbai can also call up this number without dialling the area code of Mumbai from there local telephone line (not a STD line). Currently the facility is available to 101 cities in India where MTNL has toll free services.


National Stock Exchange (NSE)
The National Stock Exchange of India (NSE) was incorporated in November 1992 as a tax-paying company. It is recognised under Securities Contracts (Regulation) Act, 1956 in 1993 as a stock exchange. In June 1994, it commenced operations in the Wholesale Debt Market (WDM). In November, the same year, the Capital Market (Equities) segment commenced operations and the Derivatives segment in June 2000.


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NSE Group
National Securities Clearing Corporation Ltd. (NSCCL)


It is a wholly owned subsidiary, which was incorporated in August 1995 and commenced clearing operations in April 1996. It was formed to build confidence in clearing and settlement of securities, to promote and maintain the short and consitent settlement cycles, to provide a counter-party risk guarantee and to operate a tight risk containment system.
NSE.IT Ltd.


It is also a wholly owned subsidiary of NSE and is its IT arm. This arm of the NSE is uniquely positioned to provide products, services and solutions for the securities industry. NSE.IT primarily focus on in the area of trading, broker front-end and back-office, clearing and settlement, web-based, insurance, etc. Along with this, it also provides consultancy and implementation services in Data Warehousing, Business Continuity Plans, Site Maintenance and Backups, Stratus Mainframe Facility Management, Real Time Market Analysis & Financial News.
India Index Services & Products Ltd. (IISL) It is a jointventure between NSE and CRISIL Ltd. to provide a variety of indices and index related services and products for the Indian Capital markets. It was set up in May 1998. IISL has a consulting and licensing agreement with the Standard and Poor's (S&P), world's leading provider of investible equity indices, for co-branding equity indices.
National Securities Depository Ltd. (NSDL)NSE joined hands with IDBI and UTI to promote dematerialisation of securities. This step was taken to solve problems related to trading in physical securities. It commenced operations in November 1996.
DotEx International LimitedDotEx was formed to provide a well structured inter trading platform for the members to further offer online trading facilities to their customers. With this facility, the members can serve a larger clientele with the use of automated risk management features and hence increase the volume. The investors also get comprehensive and updated information through it.
NSE Facts
It uses satellite communication technology to energise participation from around 400 cities in India.
NSE can handle up to 1 million trades per day.
It is one of the largest interactive VSAT based stock exchanges in the world.
The NSE- network is the largest private wide area network in India and the first extended C- Band VSAT network in the world.
Presently more than 9000 users are trading on the real time-online NSE application.
NSE Offices
Corporate Office

National Stock Exchange of India Ltd.
Exchange Plaza
Plot no. C/1, G Block
Bandra-Kurla Complex
Bandra (E)
Mumbai - 400 051
India
Tel: +(91)-(22)-26598100 - 8114
Fax: +(91)-(22)-26598120
E-mail: cc_nse@nse.co.in
Branch Offices
406 Sakar II
Near Ellis Bridge
Ahmedabad - 380 006
India
Tel: +(91)-(79)-26580212, 26580213
Fax: +(91)-(79)-2657 6123
7th Floor, Arihant Nitco Park
90, Dr. Radhakrishnan Salai
Mylapore, Chennai - 600 004
India
Tel: +(91)-(44)-28475100, 28473670
Fax: +(91)-(44)-28473633
"Thapar House" Western Wing
Mezzanine Floor
Janpath Lane, 124, Janpath
Connaught Place
New Delhi 110 001
India
Tel: +(91)-(11)-23344313 - 23344327
Fax: +(91)-(11)-23366658
H No.3-6-322
Mahavir House, IInd Floor
Chamber no.203 & 204
Basheerbagh, Hyderabad : 500029
India
Tel: +(91)-(40)-23227084, 23227085
Fax: +(91)-(40)-23227086
Ideal Plaza
11 / 1, Sarat Bose Road
Kolkata - 700 020
India
Tel: +(91)-(33)-22805950-55, 22801202 - 1205
Fax: +(91)-(33)-22831859, 22805957
NSE Website:
http://www.nseindia.com/

Regional Stock Exchanges (RSE)
There are 23 stock exchanges in India. Among them two are national level stock exchanges namely Bombay Stock Exchang (BSE) and National Stock Exchange of India (NSE). The rest 21 are Regional Stock Exchanges (RSE).
List of Regional Stock Exchanges in India
Ahmedabad Stock Exchange
Bangalore Stock Exchange
Bhubaneshwar Stock Exchange
Calcutta Stock Exchange
Cochin Stock Exchange
Coimbatore Stock Exchange
Delhi Stock Exchange
Guwahati Stock Exchange
Hyderabad Stock Exchange
Jaipur Stock Exchange
Ludhiana Stock Exchange
Madhya Pradesh Stock Exchange
Madras Stock Exchange
Magadh Stock Exchange
Mangalore Stock Exchange
Meerut Stock Exchange
OTC Exchange Of India
Pune Stock Exchange
Saurashtra Kutch Stock Exchange
Uttar Pradesh Stock Exchange
Vadodara Stock Exchange
The Regional Stock Exchanges started clustering from the year 1894, when the first RSE, the Ahmedabad Stock Exchange (ASE) was established. In the year 1908, the second in the series, Calcutta Stock Exchange (CSE) came into exixtance.During the early sixties, there were only few recognized RSEs in India namely Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore. The number remained unchanged for the next two decades. 1980s was the turning point and many RSEs was incorporated. The latest is Coimbatore Stock Exchange and Meerut Stock Exchange.

Saturday, July 21, 2007





Type Public (NSE: RELIANCE)
Founded 1966 As Reliance Commercial Corporation
Headquarters Mumbai, India
Key people Mukesh Ambani, Chairman & Managing Director
Industry Oil Conglomerates,
Products Petrolium Products,Retail Stores,Polymers,Polyesters,Chemicals,Textile.
Revenue Rs 1,10,886 crore (2007)
Employees ~90,358 (2004)


Reliance Industries (NSE: RELIANCE) is India's largest private sector company with a turnover of US $19.976 billion and profit of US $2.033 billion for the fiscal year ending in March 2006 making it India's first and only private sector Fortune 500 company. [3] It was founded by the late Dhirubhai Ambani in the 1966. After severe differences between the two sons of the founder Dhirubhai Ambani, the group was divided between the two feuding sons Mukesh and Anil Ambani in 2006.



  1. Contents
    1 Stock
    2 Products
    3 Subsidiaries
    4 Management
    5 Corporate Rankings
    6 Awards
    6.1 Awards for Managers


    Stock
    According to the company website "1 out of every 4 investors in India is a Reliance shareholder." See. Reliance has more than 3 million shareholders, making it one of the world's most widely held stock. Reliance Industries Ltd, subsequent to its split in January 2006 has continued to grow from strength to strength. Reliance companies have been among the best performing in the Indian stock market

    Products
    Reliance Industries Limited has a wide range of products from petroleum products, petrochemicals, to garments (under the brand name of Vimal).

    Subsidiaries
    Reliance Petroleum Limited. Reliance Engineering Associates (P) Ltd. (REAL) Reliance Infosolutions Pvt Ltd.(RISL)

    Management
    It is headed by Dhirubhai's son, Chairman Mukesh Ambani.

    Corporate Rankings
    RIL emerged as the first and only private sector company from India to feature in the 2006 Fortune Global 500 list (at rank 342) of the world's largest corporations .
    RIL was featured on the Forbes Global 2000 list for 2005 at position 298 .
    RIL was the only Indian private sector company to be listed in the Top-500 companies in the world in terms of market value in Business Week's The Global 1000 List, July 2004.
    Reliance emerged in top positions in Business Barons - TNS Mode Opinion Poll in August 2004


  • Awards
    International Refiner of the Year in 2005 at the 23rd Annual Hart's World Refining and Fuels Conference

    Awards for Managers
    Mukesh D. Ambani was conferred the Asia Society Leadership Award by the Asia Society, Washington, USA, May 2004.
    Mukesh D. Ambani ranked 13th in Asia's Power 25 list of The Most Powerful People in Business published by Fortune magazine, August 2004.
    Mukesh D. Ambani was chosen Telecom Man of the Year 2004 by Voice and Data magazine, September 2004.
    Mukesh D. Ambani is Economic Times Business Leader of the Year

Wednesday, July 18, 2007

Type Public (NYSE: WIT)
Founded1945
HeadquartersFlag of India Bangalore
Key peopleAzim Premji, Chairman and Managing Director
IndustryInformation technology services
Revenue$3.47 billion USD
Net income$677 million USD
Employees68,000+ (2006)
SloganApplied Innovation
Websitehttp://www.wipro.com/

Wipro Technologies (NYSE: WIT) is an information technology service company established in India in 1980. It is the global IT services arm of Wipro Limited (in operation since 1945, incorporated 1946). It is headquartered in Bangalore and is the third largest IT services company in India[citation needed]. It has 68,000 employees as of Apr 2007, including its business process outsourcing (BPO) arm which it acquired in 2002.[1]

Wipro Technologies has over 300 customers across USA, Europe and Japan including 50 of the Fortune 500 companies. Some of its customers are Boeing, BP, Cisco, Ericsson, IBM, Microsoft, Prudential, Seagate, Sony, and Toshiba.[citation needed] It is listed on the New York Stock Exchange and is part of its TMT (technology media telecom) index.

With revenue in the excess of US $3 billion, Wipro is one of India's major IT companies. It has dedicated development centers and offices across India, Europe, North America, Latin America and Asia Pacific. The current Chairman, Managing Director and majority stake owner is Azim Premji, who has headed the software and hardware divisions since Wipro's inception.

Wipro's Tagline is "applied innovation", the ability to infuse newer ideas and newer ways of doing things.

Contents


Services

Wipro Technologies offers end-to-end software solutions. Software services offered include e-commerce, business process re-engineering, system migration, maintenance of legacy systems, system integration and others.

Examples of Wipro's product design work include developing an Internet-browsing phone for a Japanese telecom company in 1998, helping chipmaker Texas Instruments produce digital signal processing software, and creating an automotive display unit for Italian manufacturer Magneti Marelli that combined functions including cell phone capability, global position system technology, a navigation system and a CD player.[citation needed]

Wipro's competitors includeCOGNIZANT,GUN Solutions, Accenture, CA, Capgemini, EDS, KPIT Cummins, IBM, Infosys, TCS , Satyam, S2 Technical Strategies, LogicaCMG, Patni,CTS and HCL.[citation needed]

History

Wipro was set up in Amalner, Maharashtra in 1945. Primarily an edible oil factory, the chief products were Sunflower Vanaspati and 787 laundry soap (a by-product of the Vanaspati operations). The company was called Western India Vegetable Products Limited; it had a minor presence in Maharashtra and Madhya Pradesh.[2][3] In the 1970s and 1980s it began to expand and made forays into computing. In 1975, Wipro marketed India's first homegrown PC. Wipro was the sole representative for Sun Microsystems in India, before the Sun liaison office was set up in India, in the early 1990s.

In 1995, it received ISO 9001 quality certification. In 1997, it received CMM level 3 certification from the Software Engineering Institute of India. In 1998, it was certified at CMMi level 5. In 2001, it was awarded the PCMM level 5 certification. In the same year, Business Today rated it as India's most valuable company. In June 2001, BusinessWeek ranked it among the top 100 best performing technology companies globally, and in November 2002, among the top 10 software services companies. As of 2004, it was the 4th largest company in the world in terms of market capitalization in IT services. Wipro is the highest-ranked Indian IT provider by International Association of Outsourcing Professionals.[citation needed]

Wipro and its success in handling outsourced information technology from US businesses is detailed in Thomas L. Friedman's best-selling book The World Is Flat.

Time line

  • 1945: Western India Products Limited is incorporated
  • 1947: An oil mill and hydrogenated cooking medium plant set up
  • 1966: Azim Premji takes over leadership of Wipro at age 21
  • 1975: Wipro Fluid Power is set up to manufacture hydraulic and pneumatic cylinders
  • 1977: Company is renamed to Wipro Products Limited
  • 1980: Information technology services for domestic market started
  • 1981: Hardware company is launched
  • 1982: Company is renamed to Wipro Limited
  • 1984: Software products subsidiary Wipro Systems Ltd. is established
  • 1985: Toilet soaps manufacture begins
  • 1988: Wipro BioMed is launched. It is a new business unit to market and service bio-analytical and diagnostic instruments
  • 1989: Joint venture with GE for medical systems, Wipro GE Medical Systems Ltd
  • 1990: Product software business discontinued; software services begin
  • 1992: Lighting business and finance arm is established
  • 1994: Merger of subsidiaries Wipro Technologies Ltd. and Wipro Systems Ltd. with Wipro Ltd.
  • 1998: Wipro identity is relaunched with rainbow flower and positioning statement, "Applying Thought"
  • 1999: Brand makeover, with sunflower logo and the tag line "Applying Thought"
  • 1999: Wipro Net is set up by restructuring Wipro Ltd.'s communication services business to address the Internet market
  • 2000: Wipro Ltd.'s American depositary receipts are listed on New York Stock Exchange
  • 2000: Six Sigma initiative begun
  • 2001: Wipro receives a $70 million SI order, the largest ever till overtaken by TCS
  • 2002: Acquires Raman Roy's Spectramind for US$ 175 million to get into BPO industry
  • 2005: Becomes a $2 billion company
  • 2006: Becomes the world's largest R&D service provider[citation needed].
  • 2006: Acquires Saraware, a wireless R&D service provider from Finland
  • 2006: Acquires Quantehc, a mechanical engineering design provider
  • 2006: Joint venture company WMNetServ with Motorola
  • 2006: Net profit for July, August and September rises 48% to $152m (£81m)
  • 2007: Revenues reach $3.5billion[4]
  • 2007: Becomes SOX Compliant.
  • 2007: Wipro-Biomed Divsion sold to Ranbaxy Fine Chemicals [1]
  • 2007: Wipro opens development cente
WIPRO

Monday, July 16, 2007


Tata Group

Type
Private Conglomerat (BSE)
Founded
in 1868 by Jamshedji Tata
Headquarters
Mumba, Maharastra, India
Key people
Ratan Tata Chairman
Industry
EngineeringMaterialsInformation technologyCommunicationAutomotiveChemicalsEnergy
Products
SteelAutomobilesTelecommunicationsSoftwareHotelsConsumer goods
Revenue
USD 21.9 billion (Fy2005)(
3.2%)
Employees
246,000 (2004)
Website
www.tata.com

The Tata Group is India's largest conglomerate, with revenues in 2005-06 of Rs. 967,229 million (US $21.9 billions),he equivalent of about 2.8% of india's GDP, and a market capitalisation of US $57.6 billion now (only 28 of the 96 Tata Group companies are publicly listed). The Tata Group has operations in more than 40 countries across six continents and its companies export products and services to 140 nations. The group takes the name of its founder, Jamshedji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is RatanTata, who took over from J. R. D. Tata in 1991. The company is currently in its fifth generation of family stewardship. [1]
The Tata Group comprises 96 companies in seven business sectors. 65.8% of the ownership of Tata Group is held by the charitable trust of Tata.


Contents
1 History
2 Business and values
3 Environmental Damage
4 Engineering
5 Materials
6 Energy
7 Chemicals
8 Services
9 Consumer Products
10 Information systems and communications
11 The Tata logo
12 Educational institutes opened by Tata Group


History
Jamshedji Tata came from a business family and made his fortune from cloth mills in the interior of Maharashtra. He was well travelled and went in for modern industry for India. He constructed a hotel in Bombay, the Taj Mahal Hotel, in 1903. It was the first large hotel in India, and it was rumoured to have been set up because established hotels of the time were owned by Europeans and did not allow locals. The Indian Hotels Company is a Tata group company that runs the Taj brand of hotels.
TISCO, now Tata Steel was established in 1907 to set up India's first iron and steel plant in Jamshedpur (Named after Tata's founder, Jamshedji Tata) which is often called Tatanagar for the company's significant presence. The plant started production in 1912. It produces steel at one of the lowest costs in the world, assisted by the Group's ownership of its own raw materials (coal and iron), which means that its cost base is far lower than many rival steel producers. In 1910, Tata Hydro-Electric Power Supply Company was set up. In 1917, the Group entered the consumer goods industry with the Tata Oil Mill Company being established to make soaps, detergents and cooking oils. In 1932, Tata Airlines, now Air India, was established. In 1939, Tata Chemicals was established. TELCO, now Tata Motors, was established in 1945 to manufacture locomotive and engineering products.
On January 30, 2007, Tata Steel, part of India's Tata Group, offered to purchase 100% stake in the Corus Group at 608 p. per share in an all cash deal, cumulatively valued at USD 12.04 Billion. This deal was also the biggest acquisition by an Indian company.
Tata surprised the credit default swap segment of the derivative markets by deciding to raise $6.17 billion of debt for the deal through a new subsidiary of Corus called "Tata Steel UK", rather than by raising the debt itself. Tata's security credit rating is investment grade, whereas the new subsidiary may not be. The higher risk associated with raising debt through a subsidiary with a lower credit rating prompted Fitch Ratings to downgrade its rating of the credit swap risks in the takeover to "negative". Fitch also stated that Corus' responsibility for the debt may lead to Corus' own unsecured debt rating being downgraded.

Business and values
Tata Group's aim is to improve the quality of life of the communities it serves. The Tata family of companies shares a set of five core values: integrity, understanding, excellence, unity and responsibility. Tata Group has played a pioneering role in a variety of fields after India's independence. It is widely respected for the initiatives it has taken in different fields for the upliftment of the country. Its contribution to India's education, science and technology is widely documented and appreciated. In fact many of the renowned public sector companies in India and leading research organisations trace their history to Tata, for example Indian Institute of Science (IISc), Tata Institute of Fundamental Research (TIFR), Tata Institute Of Social Sciences(TISS), TERI (Tata Energy Research Institute), Air India (Tata Airlines)

Environmental Damage
On 12 July 2007 The Independent reported that Tata Chemicals plans to build a soda ash plant on the shores of Lake Natron, Tanzania. Such a development would destroy one of the few breeding grounds of the lesser flamingo. Chris Magin of the RSPB said:
"The chances of lesser flamingos continuing to breed at Lake Natron in the face of such mayhem are next to zero. This development will leave lesser flamingos in east Africa facing extinction and should be stopped in its tracks and sunk in water so deep it can never be revived."

Engineering
TAL Manufacturing Solutions
Tata Autocomp Systems Ltd (TACO) is one of the newest addition to Tata Group of Industries. It is one of the fastest growing auto-components companies. TACO has established joint ventures with a number of world renowned auto-component companies.

Tata Motors
Contents
Background
Tata indica
Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), is India's largest passenger automobile and commercial vehicle manufacturing company. It is also the world's 5th largest commercial vehicle manufacturer. It is part of the Tata Group. Tata Motors is widely credited for putting India on the automotive map by designing and developing its own range of cars. Tata Motors date back to 1945 when they started making Trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors had created the wealth Rs 320bn during 2001-2006 and stood among top 10 wealth creators in India. It has its manufacturing base in Jamshedpur, Lucknow, Pune and soon one more plant is going to established at Singur. In 2004 it also bought Daewoo's truck manufacturing unit in South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company. Tata Motors and the Fiat group have signed a new memorandum of understanding (MoU) to establish a 50:50 joint venture to manufacture passenger vehicles, engines and transmission systems for both domestic and export markets
Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is currently headed by Ratan Tata.
The company has the workforce of 22001 employees working in its three plants and other regional and zonal offices across the country.
Tata Motors' range of passenger cars is still not comprehensive by international standards. In commercial vehicles, Tata Motors commands an imposing 65% market share in the domestic heavy commercial market. The company is trying to modernise its range of commercial vehicles. Tata Motors hived off its vehicle finance business into a separate subsidiary, TML Financial Services (TMLFS), in September 2006.
The company plans to build a car that will cost just under Rs 1,00,000 considering that 2 wheelers in India cost Rs 50,000/-.

Time line and milestones
1977-1986 Tata Motors is the largest commercial vehicle maker in India. World over it is the world's fifth largest medium and heavy commercial vehicle manufacturer. It started its journey in 1977 with the manufacturing of first commercial vehicle in Pune. It took five years for the company to begin the commercial production of heavy commercial Vehicles. Considering the road infrastructure of the country the company which does not support the heavy vehicles the company adopted a route for light commercial vehicles (LCV). It came out with its first LCV, Tata 407, in 1986.
1987-1996 Tatamobile introduced in 1989. Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures. In 1993 it signed with Cummins Engine Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines. It was an effort made to reduce the pollution in the existing Tata engines and to produce more environmentally friendly engines. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines.
1997-2006 In 2000, it launched CNG buses and also filled the product line gap through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and is useful for medium tonnage loads. Post 2000, the company introduced a variety of new models. It introduced the Ex- series vehicles with high tonnage capacity and high pick up and also came out with the entirely new LCV (207 DI) with direct ignition technology to cater to the customers' requiring one and same vehicle for commercial as well as personal use.
Tata – Daewoo Merger: In 2004, it acquired the Daewoo Commercial Vehicle Company of Korea.
The reasons behind the acquisition were:
Company’s global plans to reduce domestic exposure The domestic CV market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the LCV segment. Since the domestic CV sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments.
To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project
On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus).
JV with Hispano Carrocera: In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Spanish bus manufacturing company and introduced its high-end inter-city buses in the country. Tata Motors has also formed a 51:49 JV with Marcopolo, a Brazil-based global leader in bus body building. This JV is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The JV will absorb technology and expertise in chassis and aggregates from Tata Motors, and expertise and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.
Tata Ace: The latest hit of Tata Motors is its mini truck Ace. Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. It was an instant hit. Analysts opined that Ace had changed the dynamics of the LCV market in India by creating a new market segment termed the SCV segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, since the launch of Ace, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace.
In 2005, Tata Motors became the only major engine manufacturer in the world (aside from a Briggs & Stratton emissions test) to express any formal interest in the turbulence-boosting cylinder head grooves invented by Somender Singh (Mysore).
2007 onwards: Tata Motors, through its JV with Fiat, is likely to gain access to Fiat’s diesel technology and to the latter’s strong overseas distribution network for its passenger cars. Tata Motors is looking to extend this relationship to other segments like pick-ups and MHCVs. The company also plans to expand its global footprint with the launch of ‘Global Truck’ and ‘Global Pick-up’ in domestic and international markets by 2007-08. Tata Motors plans to launch the new pick-up in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. The launch of the global truck will mark the entry of the company into developed markets like Europe and the USA. The project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the needs of sophisticated European customers. The company has formed a JV with Thailand’s Thonburi,( Exhibit-1) an independent auto assembler, in which Tata Motors will hold a 70% stake. The JV will set up a plant with capacity to manufacture pick-ups a year and will sell them in Thailand, the second largest pick-up market in the world, and in other regional markets. The JV product is likely to be a part of Tata Motors’ ‘Global pick-up’ plans.
Auto policy of Government of India envisions to establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010. GOI policy has rightly recognized the need for modernizing of vehicles to arrest degradation of air quality. The terminal life policy for commercial vehicles and move toward international taxing policies linked to age of vehicles, are steps in the right direction which will lead to increased sales for TATA motors Commercial vehicle division.
Effect of Government Policy on TATA Motors CV Division Commercial Vehicles segment sector has been at the forefront of the strong showing by the automotive industry over the past few years. Following factors have led to growth in sales:
The cut in excise duty that enabled manufacturers like TATA Motors to reduce prices
The attractive financing offers and freebies enabled by low interest rate policies by Government
the need to transport higher volumes of agricultural and industrial goods
Low interest rates
Impact of Indian Budget on Auto Sector The auto industry an engine of growth in India in the past five years has not received direct mention. The mildly positive news concerning automobiles is the cut in tariff on petroleum and diesel from 8 per cent to 6 per cent which has made commercial vehicles more competitive in the export market The government has announced indirect benefits in education and training of the workforce and extension of the benefit of 150 per cent weighted deduction on in-house R&D by another five years. Another indirect benefit to the auto is in provision for the national highway development program. Thus budget will have mild positive effect on commercial vehicles division at TATA Motors, although Government could have done lot more to increase competitiveness of CVD like the industry had expected excise duty on larger passenger vehicles to be cut to 16 per cent from 24 per cent and customs duty on auto parts would be cut to 5 per cent from 12.5 per cent.
Union Budget Highlights on Auto Sector • Setting up of Investment Commission to invite domestic and foreign business to invest in India • Setting up of National Manufacturing Competitiveness Council to provide sector/industry specific policy initiatives to enhance competitiveness. • Announcement of Introduction of VAT from 1st April 2005. A Technical Experts Committee to assists States in VAT implementation. • 2% education cess levied on Income Tax, Corporate Tax, Customs Duty, Excise Duty, Service Tax. • Rs 10,135 crore additional Plan expenditure • No change in rate of interest
Direct Taxes • Requirement of capacity expansion reduced from 25% to 10% to get benefit of additional depreciation of 15% u/s 32 (1) (iia) for capital investment • Benefit of 150% deduction under section 35(2ab) of Income Tax Act extended to the Automobile Industry.
Indirect Taxes Customs • Reduction in Customs Duty on Alloy Steel, Copper, Lead & Zinc from 20% to 15%. Duty on all primary, Semi- finished and finished form of Iron & Steel like Ingots & Billets, Sponge Iron, Hot Rolled & Cold Rolled bars/ Rods /Coils of non-alloy steel reduced from 15% to 10%. • Customs Duty on catalysts (3815) has been reduced from 20% to 15% Excise Duty • Increase in Excise duty on Steel from 8% to 12% • Tractors exempted from Excise Duty. Parts captively used in the manufacture of tractors have been exempted from Excise Duty.
New auto policy considered by GOI India last announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least $50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed.
An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and $2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign CV manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus TATA Motors CV will have to face tough competition in near future, which might affect its growth negatively.
Tata is developing a car it aims to sell in 2008 for about $2,500 USD, which would be considered the cheapest vehicle ever made in real terms.

Global Competition
Tata Motors have some distinct advantages in comparison to other MNC competitors. There is definite cost advantage as labor cost is 8-9 per cent of sales as against 30-35 per cent of sales in developed economies. Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. India is an excellent source for IT based engineering solution for products & process Integration. There are strong supporting industries i.e. auto component industry has world class capabilities. There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of Indian market. There are favorable Government polices and regulations to boost the auto industry i.e. Incentive for R&D.

Present Global Challenge
Volvo, a leading manufacturer of trucks, buses, cars, construction equipment, and aero engines, has entered in India in 1998. Its main focus is in the area of fully built buses. In India, it has focused on providing economical transport solutions in consonance with its values of safety, quality, and environmental care. Its competitive advantage is its high technology which makes the vehicle a very comfortable option to travel through. Its trucks are reputed for their performance and economy and are the flag bearers in their production activities in India. It is still operating in the niche market of high end buses where the TATA compete through its Spanish buses.

Future Challenges
Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA, (parent NAVISTAR), to manufacture commercial vehicles and to bolster its position in the CV business. ITEC is the leader in medium and heavy trucks and buses in North America, and is the world's largest manufacturer of medium-duty diesel engines. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport, cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09.
Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two companies have formed another JV to manufacture buses in India from end-2007.
Ashok Leyland: Acquisition of Czech Republic-based Avia Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities. ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates.

Products

Passenger cars and utility vehicles

Tata concept car
Tata Sierra
Tata Estate
Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Indigo
Tata Indigo Marina

Concept vehicles
2000 Aria Roadster
2001 Aria Coupe
2002 Tata Indiva
2004 Tata Indigo Advent
2005 Tata Xover
2006 Tata Cliffrider
2007 Tata Elegante

Commercial vehicles

Tata heavy trucks in Ladakh, India
Tata Ace
Tata TL/Telcoline/207 DI Pickup Truck
Tata 407
Tata 709 E
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus)
Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata 3015 (Heavy truck)
Tata 3516 (Heavy truck)
Tata Novus (Heavy truck designed by Tata Daewoo)

Military vehicles
Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions
Tata LPTA 713 TC (4x4)
Tata LPT 709 E
Tata SD 1015 TC (4x4)
Tata LPTA 1615 TC (4x4)
Tata LPTA 1621 TC (6x6)
Tata LPTA 1615 TC (4x2)

Tata Motors Subsidiaries
Telco Construction Equipmentis a joint venture between Tata Motors and Hitachi, which focuses on excavators and other construction equipment.
HV Transmission (HVTL) and HV Axles (HVAL): HVAL and HVTL are 100% subsidiary companies of Tata Motors engaged in the business of manufacture of gear boxes and axles for heavy and medium commercial vehicles, with production facilities and infrastructure based at Jamshedpur. The combined revenue of the two companies rose 38.7% yoy for 9MFY07 while the combined PAT rose 50.9%. Tata Motors plans a capex of Rs2bn each for HVAL & HVTL and plans to raise funds for the same, most probably by way of a strategic sale to a technical collaborator. The strategic sale of either HVAL or HVTL or both is likely to be completed in the next one or two quarters.

Tata Technologies Limited (TTL): TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi) and operates in the US and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has a presence in Thailand. Tata Technologies is a software service provider in the IT services and BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a few. It bought over the British engineering and design services company, Incat International Plc for Rs4b in August 2005. Incat specializes in engineering & design services and product lifecycle management in the international automotive, aerospace and engineering markets. With this acquisition, Tata Motors will have closer proximity to its global customers and be able to provide a wider range of services.
Tata Daewoo CV Ltd(TDCV): TDCV is a 100% subsidiary of the Tata Motors based in South Korea, which was acquired in March 2004. TDCV is in the business of manufacture and sale of heavy commercial vehicles.Tata Daewoo is Tata Motors’ 100% subsidiary in Korea, with a market share of 30%.Tata Motors will use the Daewoo technology to introduce higher tonnage trucks in the Indian market and use Tata Daewoo for exports globally. In line with this strategy, it has already introduced the Novus, a high-end tipper developed by Tata Daewoo for the Indian market.

Controversies
Farmers are agitating against the land acquired by the firm in Singur for its ambitious Rs 1,00,000 car project. The protest is being lead by Mamta Banerjee of the Trinamool Congress. Farmers are protesting that the land is fertile land and the government acquired the land without their consent.
(formerly Tata Engineering and Locomotives Ltd (TELCO)) is a company of Tata group of companies which produces automobiles for the Indian Market. Its products range for goods and passenger transport. Seven out of ten medium and heavy commercial vehicles in India bear the Tata mark, widely trusted in India. The Indica V2 – India's only fully indigenously designed and manufactured passenger car – has been a great commercial success.

Contents[hide]
1 Background
2 Time line and milestones
3 Global Competition
4 Present Global Challenge
5 Future Challenges
6 Products
6.1 Passenger cars and utility vehicles
6.2 Concept vehicles
6.3 Commercial vehicles
6.4 Military vehicles
7 Tata Motors Subsidiaries



Background
Image:Tata indica.jpg
Tata indica
Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), is India's largest passenger automobile and commercial vehicle manufacturing company. It is also the world's 5th largest commercial vehicle manufacturer. It is part of the Tata Group. Tata Motors is widely credited for putting India on the automotive map by designing and developing its own range of cars. Tata Motors date back to 1945 when they started making Trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors had created the wealth Rs 320bn during 2001-2006 and stood among top 10 wealth creators in India. It has its manufacturing base in Jamshedpur, Lucknow, Pune and soon one more plant is going to established at Singur. In 2004 it also bought Daewoo's truck manufacturing unit in South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company. Tata Motors and the Fiat group have signed a new memorandum of understanding (MoU) to establish a 50:50 joint venture to manufacture passenger vehicles, engines and transmission systems for both domestic and export markets
Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is currently headed by Ratan Tata.
The company has the workforce of 22001 employees working in its three plants and other regional and zonal offices across the country.
Tata Motors' range of passenger cars is still not comprehensive by international standards. In commercial vehicles, Tata Motors commands an imposing 65% market share in the domestic heavy commercial market. The company is trying to modernise its range of commercial vehicles. Tata Motors hived off its vehicle finance business into a separate subsidiary, TML Financial Services (TMLFS), in September 2006.
The company plans to build a car that will cost just under Rs 1,00,000 considering that 2 wheelers in India cost Rs 50,000/-.

Time line and milestones
1977-1986 Tata Motors is the largest commercial vehicle maker in India. World over it is the world's fifth largest medium and heavy commercial vehicle manufacturer. It started its journey in 1977 with the manufacturing of first commercial vehicle in Pune. It took five years for the company to begin the commercial production of heavy commercial Vehicles. Considering the road infrastructure of the country the company which does not support the heavy vehicles the company adopted a route for light commercial vehicles (LCV). It came out with its first LCV, Tata 407, in 1986.
1987-1996 Tatamobile introduced in 1989. Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures. In 1993 it signed with Cummins Engine Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines. It was an effort made to reduce the pollution in the existing Tata engines and to produce more environmentally friendly engines. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines.
1997-2006 In 2000, it launched CNG buses and also filled the product line gap through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and is useful for medium tonnage loads. Post 2000, the company introduced a variety of new models. It introduced the Ex- series vehicles with high tonnage capacity and high pick up and also came out with the entirely new LCV (207 DI) with direct ignition technology to cater to the customers' requiring one and same vehicle for commercial as well as personal use.
Tata – Daewoo Merger: In 2004, it acquired the Daewoo Commercial Vehicle Company of Korea.
The reasons behind the acquisition were:
Company’s global plans to reduce domestic exposure The domestic CV market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the LCV segment. Since the domestic CV sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments.
To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project
On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus).
JV with Hispano Carrocera: In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Spanish bus manufacturing company and introduced its high-end inter-city buses in the country. Tata Motors has also formed a 51:49 JV with Marcopolo, a Brazil-based global leader in bus body building. This JV is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The JV will absorb technology and expertise in chassis and aggregates from Tata Motors, and expertise and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.
Tata Ace: The latest hit of Tata Motors is its mini truck Ace. Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. It was an instant hit. Analysts opined that Ace had changed the dynamics of the LCV market in India by creating a new market segment termed the SCV segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, since the launch of Ace, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace.
In 2005, Tata Motors became the only major engine manufacturer in the world (aside from a Briggs & Stratton emissions test) to express any formal interest in the turbulence-boosting cylinder head grooves invented by Somender Singh (Mysore).
2007 onwards: Tata Motors, through its JV with Fiat, is likely to gain access to Fiat’s diesel technology and to the latter’s strong overseas distribution network for its passenger cars. Tata Motors is looking to extend this relationship to other segments like pick-ups and MHCVs. The company also plans to expand its global footprint with the launch of ‘Global Truck’ and ‘Global Pick-up’ in domestic and international markets by 2007-08. Tata Motors plans to launch the new pick-up in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. The launch of the global truck will mark the entry of the company into developed markets like Europe and the USA. The project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the needs of sophisticated European customers. The company has formed a JV with Thailand’s Thonburi,( Exhibit-1) an independent auto assembler, in which Tata Motors will hold a 70% stake. The JV will set up a plant with capacity to manufacture pick-ups a year and will sell them in Thailand, the second largest pick-up market in the world, and in other regional markets. The JV product is likely to be a part of Tata Motors’ ‘Global pick-up’ plans.
Auto policy of Government of India envisions to establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010. GOI policy has rightly recognized the need for modernizing of vehicles to arrest degradation of air quality. The terminal life policy for commercial vehicles and move toward international taxing policies linked to age of vehicles, are steps in the right direction which will lead to increased sales for TATA motors Commercial vehicle division.
Effect of Government Policy on TATA Motors CV Division Commercial Vehicles segment sector has been at the forefront of the strong showing by the automotive industry over the past few years.
Following factors have led to growth in sales:
The cut in excise duty that enabled manufacturers like TATA Motors to reduce prices
The attractive financing offers and freebies enabled by low interest rate policies by Government
the need to transport higher volumes of agricultural and industrial goods
Low interest rates
Impact of Indian Budget on Auto Sector The auto industry an engine of growth in India in the past five years has not received direct mention. The mildly positive news concerning automobiles is the cut in tariff on petroleum and diesel from 8 per cent to 6 per cent which has made commercial vehicles more competitive in the export market The government has announced indirect benefits in education and training of the workforce and extension of the benefit of 150 per cent weighted deduction on in-house R&D by another five years. Another indirect benefit to the auto is in provision for the national highway development program. Thus budget will have mild positive effect on commercial vehicles division at TATA Motors, although Government could have done lot more to increase competitiveness of CVD like the industry had expected excise duty on larger passenger vehicles to be cut to 16 per cent from 24 per cent and customs duty on auto parts would be cut to 5 per cent from 12.5 per cent.
Union Budget Highlights on Auto Sector • Setting up of Investment Commission to invite domestic and foreign business to invest in India • Setting up of National Manufacturing Competitiveness Council to provide sector/industry specific policy initiatives to enhance competitiveness. • Announcement of Introduction of VAT from 1st April 2005. A Technical Experts Committee to assists States in VAT implementation. • 2% education cess levied on Income Tax, Corporate Tax, Customs Duty, Excise Duty, Service Tax. • Rs 10,135 crore additional Plan expenditure • No change in rate of interest
Direct Taxes • Requirement of capacity expansion reduced from 25% to 10% to get benefit of additional depreciation of 15% u/s 32 (1) (iia) for capital investment • Benefit of 150% deduction under section 35(2ab) of Income Tax Act extended to the Automobile Industry.
Indirect Taxes Customs • Reduction in Customs Duty on Alloy Steel, Copper, Lead & Zinc from 20% to 15%. Duty on all primary, Semi- finished and finished form of Iron & Steel like Ingots & Billets, Sponge Iron, Hot Rolled & Cold Rolled bars/ Rods /Coils of non-alloy steel reduced from 15% to 10%. • Customs Duty on catalysts (3815) has been reduced from 20% to 15% Excise Duty • Increase in Excise duty on Steel from 8% to 12% • Tractors exempted from Excise Duty. Parts captively used in the manufacture of tractors have been exempted from Excise Duty.


New auto policy considered by GOI India last announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least $50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed.
An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and $2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign CV manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus TATA Motors CV will have to face tough competition in near future, which might affect its growth negatively.
Tata is developing a car it aims to sell in 2008 for about $2,500 USD, which would be considered the cheapest vehicle ever made in real terms

Global Competition
Tata Motors have some distinct advantages in comparison to other MNC competitors. There is definite cost advantage as labor cost is 8-9 per cent of sales as against 30-35 per cent of sales in developed economies. Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. India is an excellent source for IT based engineering solution for products & process Integration. There are strong supporting industries i.e. auto component industry has world class capabilities. There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of Indian market. There are favorable Government polices and regulations to boost the auto industry i.e. Incentive for R&D.

Present Global Challenge
Volvo, a leading manufacturer of trucks, buses, cars, construction equipment, and aero engines, has entered in India in 1998. Its main focus is in the area of fully built buses. In India, it has focused on providing economical transport solutions in consonance with its values of safety, quality, and environmental care. Its competitive advantage is its high technology which makes the vehicle a very comfortable option to travel through. Its trucks are reputed for their performance and economy and are the flag bearers in their production activities in India. It is still operating in the niche market of high end buses where the TATA compete through its Spanish buses.

Future Challenges
Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA, (parent NAVISTAR), to manufacture commercial vehicles and to bolster its position in the CV business. ITEC is the leader in medium and heavy trucks and buses in North America, and is the world's largest manufacturer of medium-duty diesel engines. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport, cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09.
Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two companies have formed another JV to manufacture buses in India from end-2007.
Ashok Leyland: Acquisition of Czech Republic-based Avia Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities. ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates.

Products

Passenger cars and utility vehicles

Tata concept car
Tata Sierra
Tata Estate
Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Indigo
Tata Indigo Marina

Concept vehicles
2000 Aria Roadster
2001 Aria Coupe
2002 Tata Indiva
2004 Tata Indigo Advent
2005 Tata Xover
2006 Tata Cliffrider
2007 Tata Elegante

Commercial vehicles

Tata heavy trucks in Ladakh, India
Tata Ace
Tata TL/Telcoline/207 DI Pickup Truck
Tata 407
Tata 709 E
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus)
Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata 3015 (Heavy truck)
Tata 3516 (Heavy truck)
Tata Novus (Heavy truck designed by Tata Daewoo)

Military vehicles
Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions
Tata LPTA 713 TC (4x4)
Tata LPT 709 E
Tata SD 1015 TC (4x4)
Tata LPTA 1615 TC (4x4)
Tata LPTA 1621 TC (6x6)
Tata LPTA 1615 TC (4x2)

Tata Motors Subsidiaries
Telco Construction Equipment is a joint venture between Tata Motors and Hitachi, which focuses on excavators and other construction equipment.
HV Transmission (HVTL) and HV Axles (HVAL): HVAL and HVTL are 100% subsidiary companies of Tata Motors engaged in the business of manufacture of gear boxes and axles for heavy and medium commercial vehicles, with production facilities and infrastructure based at Jamshedpur. The combined revenue of the two companies rose 38.7% yoy for 9MFY07 while the combined PAT rose 50.9%. Tata Motors plans a capex of Rs2bn each for HVAL & HVTL and plans to raise funds for the same, most probably by way of a strategic sale to a technical collaborator. The strategic sale of either HVAL or HVTL or both is likely to be completed in the next one or two quarters.

Tata Technologies Limited (TTL): TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi) and operates in the US and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has a presence in Thailand. Tata Technologies is a software service provider in the IT services and BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a few. It bought over the British engineering and design services company, Incat International Plc for Rs4b in August 2005. Incat specializes in engineering & design services and product lifecycle management in the international automotive, aerospace and engineering markets. With this acquisition, Tata Motors will have closer proximity to its global customers and be able to provide a wider range of services.

Tata Daewoo CV Ltd(TDCV): TDCV is a 100% subsidiary of the Tata Motors based in South Korea, which was acquired in March 2004. TDCV is in the business of manufacture and sale of heavy commercial vehicles.Tata Daewoo is Tata Motors’ 100% subsidiary in Korea, with a market share of 30%.Tata Motors will use the Daewoo technology to introduce higher tonnage trucks in the Indian market and use Tata Daewoo for exports globally. In line with this strategy, it has already introduced the Novus, a high-end tipper developed by Tata Daewoo for the Indian market.

Tata Projects
TCE Consulting Engineers
Telco Construction Equipment Company
TRF
Voltas

Materials
Tata Advanced Materials
Tata Steel (formerly TISCO, Tata Iron and Steel Company Ltd) is India's first private Iron and Steel Company, and also the first company founded by J.N. Tata (the founder of the Tata Group). Its works are located at Jamshedpur, with headquarters at Mumbai.
On January 30, 2007 the Tata Steel clinched a deal to buy the UK based Corus Group Plc., one of the world's leading steel and aluminium producers, for £6.7 billion, beating CSN in a fast-paced auction to create the world’s fifth largest steelmaker. The company emerged victorious with a bid of 608p a share, topping a 603p a share offer from Brazil’s Companhia Siderurgica Nacional (CSN), after an unprecedented nine rounds of bidding overseen by the UK’s Takeover Panel. The £6.7 billion deal includes £500 million of debt.
The acquisition of Corus steel is recognized as the biggest ever acquisition involving an Indian company.
Tata Tinplate is the most profitably run tinning line in India with a state of the art facilities.

Energy
Tata Power is one of the largest private sector power companies. It supplies power to Mumbai, the commercial capital of India and parts of New Delhi.

Chemicals
Rallis India
Tata Chemicals
Tata Pigments

Services
The Indian Hotels Company
THDC
Tata-AIG General Insurance
Tata-AIG Life Insurance
Tata Asset Management
Tata Economic Consultancy Services
Tata Financial Services
Tata Investment Corporation
Tata Quality Management Services
Tata Share Registry
Tata Strategic Management Group (TSMG) is one of the largest consulting firms in South Asia.
Tata Services

Consumer Products
Tata Ceramics
Tata McGraw Hill Publishing Company
Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea products. It also owns the Tetley brand of tea sold primarily in Europe.
Titan Industries manufacturers of Titan (watches)
Trent (Westside)
Tata Sky

Information systems and communications
Computational Research Laboratories (CRL)
INCAT
Nelco
Nelito Systems
SerWizSol
Tata Consultancy Services Ltd. (TCS) is Asia's largest software company with 2005-06 revenues being over US$ 2.97 bn. Merged with Tata Infotech.
Tata Elxsi is another Software and Industrial design company of the Tata stable. Based in Bangalore. One of the leading companies in the animation industry of India.
Tata Interactive Systems
Tata Technologies Limited
Tata Teleservices
Tatanet
VSNL, the Indian telecom giant, was acquired in 2002. Tata-owned VSNL acquired Bermuda-based (former Canadian crown corporation and Montreal-based) Teleglobe in 2005

The Tata logo
The now ubiquitous blue-coloured Tata logo was designed by the Wolff Olins consultancy. The logo was meant to signify fluidity; it may also be seen as a fountain of knowledge, also as a tree of trust under which people can take refuge.