Tata Motors

Tata Motors Limited

Public
Type (BSE: 500570)
(NYSE: TTM)
Industry Automotive
Founded 1945
Founder(s) JRD Tata
Mumbai, Maharashtra,
Headquarters
India
Ratan Tata, Chairman
Ravi Kant, Vice
Chairman
Carl Peter Foster, CEO
Key people
Prakash Telang, MD
(India Operations)
Ravi Pisharody,
President (CVBU)
• Automobiles
Products
• Engines
Outsourced
Services Engineering and
Design
Revenue $14.250 billion (2009)
Operating
$10.40 billion (2009)
income
Net income $1.198 billion (2009)
Total assets $15.430 billion (2009)
Total equity $763 million (2009)
Parent Tata Group
• Jaguar
• Land Rover
• TDCV
Subsidiaries
• Hispano
Carrocera
Website TataMotors.com

INTRODUCTION
Tata Motors Ltd
IT is a multinational corporation headquartered in Mumbai, India. Part of the
Tata Group, it was formerly known as TELCO (TATA Engineering and
Locomotive Company). Tata Motors has a consolidated revenue of USD 16
billion after the acquisition of British automotive brands Jaguar and Land
Rover in 2008.

It is India's largest company in the automobile and commercial vehicle

sector with upwards of 70% cumulative market share in the domestic
commercial vehicle segment, and had a 0.81% share of the world market in
2007 according to OICA data. The OICA ranked it as the 19th largest
automaker based on figures for 2007and the second largest manufacturer of
commercial vehicles in the world. The company is the world’s fourth largest
truck manufacturer, and the world’s second largest bus manufacturer. In
India Tata ranks as the leader in every commercial vehicle segment, and is in
the top 3 makers of passenger cars. Tata Motors is also the designer and
manufacturer of the iconic Tata Nano, which at INR 100,000 (ex-factory) or
approximately USD 2300, is the cheapest production car in the world

Established in 1945, when the company began manufacturing locomotives,

the company manufactured its first commercial vehicle in 1954 in a
collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors is a
dual-listed company traded on both the Bombay Stock Exchange, as well as
on the New York Stock Exchange. Tata Motors in 2005, was ranked among
the top 10 corporations in India with an annual revenue exceeding INR 320
billion.

In 2004 Tata Motors bought Daewoo's truck manufacturing unit, now known
as Tata Daewoo Commercial Vehicle, in South Korea. It also acquired
Hispano Carrocera SA, now a fully-owned subsidiary. In March 2008, it
acquired the Jaguar Land Rover (JLR) business from the Ford Motor
Company, which also includes the Daimler and Lanchester brands.and the
purchase was completed on 2 June 2008.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur,

Pantnagar, Lucknow, Ahmedabad, Sanand and Pune in India, as well as in
Argentina, South Africa and Thailand
History

Tata Motors is a part of the Tata Group manages its share-holding

through Tata Sons. The company was established in 1935 as a
locomotive manufacturing unit and later expanded its operations to
commercial vehicle sector in 1954 after forming a joint venture
with Daimler-Benz AG of Germany. Despite the success of its
commercial vehicles, Tata realized his company had to diversify
and he began to look at other products. Based on consumer
demand, he decided that building a small car would be the most
practical new venture. So in 1998 it launched Tata Indica, India's
first fully indigenous passenger car. Designed to be inexpensive
and simple to build and maintain, the Indica became a hit in the
Indian market. It was also exported to Europe, especially the UK
and Italy. In 2004 it acquired Tata Daewoo Commercial Vehicle,
and in late 2005 it acquired 21% of Aragonese Hispano Carrocera
giving it controlling rights of the company. It has formed a joint
venture with Marcopolo of Brazil, and introduced low-floor buses
in the Indian Market. Recently, it has acquired British Jaguar Land
Rover (JLR), which includes the Daimler and Lanchester brand
names.

Tata's global operations

Tata Motors has been in the process of acquiring foreign brands to increase
its global presence and currently has operations in the UK, South Korea,
Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. Tata
Motors has also acquired from Ford the rights of Rover. In 2004, it acquired
the Daewoo Commercial Vehicles Company, South Korea’s second largest
truck maker. The rechristened Tata Daewoo Commercial Vehicles Company
has launched several new products in the Korean market, while also
exporting these products to several international markets. Today two-thirds
of heavy commercial vehicle exports out of South Korea are from Tata
Daewoo.In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a
Spanish bus and coach manufacturer,giving it controlling rights of the
company. Tata Motors continued its product line expansion through the
introduction of new products into the market range of buses (Starbus &
Globus) as well as trucks (Novus). These models were jointly developed
with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009
Tata unveiled the Tata World Truck range jointly developed with Tata
Daewoo.They will debut in South Korea, South Africa, the SAARC
countries and the Middle-East by the end of 2009.In 2006, it formed a joint
venture with the Brazil-based Marcopolo to manufacture fully-built buses
and coaches for India and other international markets.Tata Motors has
expanded its production and assembly operations to several other countries
including South Korea, Thailand, South Africa and Argentina and is
planning to set up plants in Turkey, Indonesia and Eastern Europe.Tata also
has franchisee/joint venture assembly operations in Kenya, Bangladesh,
Ukraine, Russia and Senegal.Tata has dealerships in 26 countries across 4
continents.Though Tata is present in many countries it has only managed to
create a large consumer base in the Indian Subcontinent namely India,
Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base
in Italy, Spain and South Africa

Consolidated Net Revenue grows by

64.2% in Q1 FY 2010-11
 Consolidated PAT Rs. 1,988.73 crores
(Loss of Rs. 328.78 crores in Q1 FY 2009-
10)

Consolidated Financial Results for the

Quarter ended June 30, 2010
The Tata Motors Group today reported consolidated
revenues (net of excise) of Rs. 27,055.57 crores, posting a
growth of 64.2% over Rs. 16,472.97 crores in the
corresponding quarter of the previous year, with strong
volume growth globally in all major markets. The
Consolidated Profit before Tax (PBT) (post minority interest
and profit in respect of Associate companies) for the quarter
was Rs. 2,275.44 crores, compared to a Loss before Tax of
Rs. 269.86 crores for the corresponding quarter last year.
The Consolidated Profit after Tax (PAT) for the quarter was
Rs. 1,988.73 crores, a significant turnaround from a loss of
Rs. 328.78 crores in the corresponding quarter last year.

Tata Motors has reported a Basic Earnings Per Share (EPS)

of Rs. 34.80 in Q1 FY2010-11 for its consolidated operations
as against a Loss Per Share of Rs. 6.40 in Q1 FY2009-10.

Tata Motors Stand-Alone Financial Results for

the Quarter ended June 30, 2010
Tata Motors gross revenue for the quarter ended June 30,
2010, was Rs. 11,296.80 crores (quarter ended June 30,
2009: Rs. 6,930.43).

Revenues (net of excise) of Rs. 10,416.26 crores,

represented a growth of 62.7% over Rs. 6,404.02 crores in
the corresponding quarter last year. Volume growth, cost
efficiencies and better realisations have led to a double digit
operating margin of 11.28%, resulting in an Operating Profit
(EBITDA) of Rs. 1,174.67 crores in the quarter (quarter
ended June 30, 2009: Rs. 728.00 crores). The PBT for the
quarter is Rs. 537.65 crores (quarter ended June 30, 2009:
Rs. 548.04 crores, which included profit of Rs. 318.94 crores
on sale of investments, which were not liable to tax) The
PAT for the quarter is Rs. 395.72 crores (quarter ended June
30, 2009: Rs. 513.76 crores).

Overall economic growth, robust IIP and availability of

liquidity led to robust domestic demand during the quarter,
resulting in volume growth comprising both new products
and the existing portfolio. In the domestic market, the
company's commercial vehicles sales increased by 38.7% to
100,186 units. The growth was mainly supported by medium
and heavy commercial vehicles which grew by 62.4% year-
on-year. The company's market share in commercial
vehicles was 61%.

Passenger vehicles, including Fiat and Jaguar and Land

Rover vehicles distributed in India, grew by 56.0% in the
domestic market to 77,858 units driven by continued
overwhelming response to the Tata Indigo Manza, the Tata
Indica Vista and the Tata Nano. The market share for Tata
passenger vehicles for the period stood at 13.3% as
compared to 11.2% in Q1 FY2009-10. Driven by the Manza,
the company's market share in the entry-midsize segment
has increased substantially to 39.5% compared to 25.2% in
Q1 FY2009-10

Subsidiary Highlights

The Jaguar Land Rover business continued to show strong

profitability, with increase in volumes coupled with
significantly favourable currency movement in Q1 FY2010-
11, reporting a Profit before Tax of GBP 233.82 million (Rs.
1,590.25 crores). With the positive market reception of the
enhanced product range in an improved market environment
as well as continued cost reduction efforts, the business was
able to show sustained quarter on quarter improvement
towards solid profitability in the quarter.

Wholesale volumes for Jaguar Land Rover in Q1 FY2010-11

were 57,153 units compared to 35,947 units in Q1 FY2009-
10. Its retail sales too improved favourably in the quarter,
on the back of continued overwhelming response for Land
Rover products and the newly launched XJ. There was a
strong recovery across all the regions, with China standing
out registering a growth of 104%.

Tata Daewoo Commercial Vehicles Company Limited

registered a 20.9% growth in sales in the quarter. Tata
Motors Finance Limited, the company's captive financing
subsidiary, reported a net profit of Rs. 23.52 crores and
improved its NPA performance through better collection
efficiency.