2. Spring 2006:
Tata Motors, an operating subsidiary of the Tata Group, has announced plans to
manufacture the world’s cheapest car – The Nano, which it envisions to be India’s
Model T, the “People’s Car”.
It has finalized the design, but is running into difficulties procuring land to build a
new factory in Singur, West Bengal.
On Tata’s behalf, the West Bengal government has invoked eminent domain,
compulsory purchase for public good, but some of the occupants are refusing to
leave. The issue is becoming increasingly politicized.
EXECUTIVE SUMMARY
2
5. The Tata Group
5
31%
23%
20%
7%
5%
9%
5%
Engineering (Tata Motors)
Materials
IT and Communications
Energy
Consumer Products
Services
Chemicals
0
20
40
60
80
100
120
140
160
Tata Group GE Citigroup
58%
53%
64%
$101b
$147b
$78b
Gross Revenues
(Exports %)
Founded in 1868
Over 100 Operating Subsidiaries
Largest Indian Conglomerate as of 2011
Background – Tata |
9. “Leadership with Trust”
• Strong Nationalist Roots
• Foremost Corporate Value is “Integrity”
• Fills Institutional Voids
– Competes for talent with foreign MNC
– Brand trusted by Indian public
9
Background – Tata |
Founder Jamsetji Tata
12. Tata ACE
Most Recent Success
(2005)
2.25 Lakhs Rs ($5,100)
“A Real Truck” and safer too
12
The Competition:
3 Wheeled Cargo
Rickshaws
Background – Nano |
13. Motorcycles in India
13
Background – Nano |
Indonesia - 83 Motorcycles
Indonesia - 53 cars
India - 31 Motorcycles
India - 15 cars
Vehicles per 1000 people (2006)
A much larger market
• 19 Million cars
• 39 Million motorcycles
Still lagging in penetration
• Vietnam – 122 per 1000
• Philippines - 66 per 1000
14. The Tata Nano
• Ratan Tata personally oversees project, involved in modifying design
• Analysts expect car market to expand 65%, increase EV 11%
• Passes European standard MIRA crash test, wins multiple awards abroad
14
Background – Nano |
Radically Innovative
High Expectations
Revolutionary
1 Lakh Rs ($2,100)
15. Operational Requirements
• 500,000+ Nano pre-orders
• Tata plans 250,000 unit capacity
expansion in order to avoid
delays
– 1500 crores Rs. investment
• Due to the innovative nature of
product, Tata requires suppliers
to co-locate to planned
production site to cut costs and
maintain quality
• Launch set for early 2008
• Starts bidding war among
Indian states to host factory
15
Background – Nano |