Assignment On Tata Motors Ltd.

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FINANCIAL & COST ACCOUNTING ASSIGNMENT

MBA 2023-25 (SEMESTER 1ST)


SECTION - A
GROUP NO. – 8
NAME OF GROUP MEMBERS – Kartik(58), Aakash
Shukla(09), Himanshu Yadav(50), Chirag Jain(36), Hayena
Gupta(47), Jatin Mitra(55), Mansi Sinha(70).
ABOUT THE COMPANY:-

 Tata Motors Limited is an Indian multinational automotive manufacturing company


headquartered in Mumbai, India, which is a part of the Tata Group.
 Tata Motors was founded in 1945 as a manufacturer of locomotives. The company
manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-
Benz AG, which ended in 1969.
 The company produces passenger cars, trucks, vans, coaches, and buses.
 The company has a manufacturing presence in India, the United Kingdom, South
Korea, and Thailand. Tata Motors also has sales and service operations in over 100
countries.
 The company's brands include Tata Motors Cars, Jaguar Land Rover, Tata Daewoo,
Tata Marcopolo, Tata Technologies, Tata Hispano, and Tata Hitachi Construction
Machinery.
 In 1964, Tata Motors entered the passenger car market with the introduction of the
Tata Motors Standard.
 In 2008, Tata Motors acquired Jaguar Land Rover from Ford Motor Company. Jaguar
Land Rover is now a subsidiary of Tata Motors.
 Tata Motors is a publicly traded company listed on the Bombay Stock Exchange and
the National Stock Exchange of India.
MANAGEMENT OF THE COMPANY:-

 The management of Tata Motors is responsible for the overall direction and
performance of the company. The management team is responsible for setting the
company's strategic direction, overseeing the execution of its plans, and managing its
financial performance. The management team also plays a key role in developing and
maintaining the company's culture and values.
 The management team of Tata Motors is a diverse group of experienced professionals
with a strong track record of success. The team is committed to building a world-class
automotive company that creates value for its customers, employees, shareholders,
and the communities in which it operates.
 Departments of Tata Motors Ltd. :-

TATA MOTORS’ MANAGEMENT TEAM :-

Name Designation

Al-Noor Ramji Ind. Non-Executive Director

Girish Wagh Executive Director

Hanne Sorensen Ind. Non-Executive Director

Kosaraju V Chowdary Ind. Non-Executive Director

Maloy Kumar Gupta Co. Secretary & Compl. Officer

Mitsuhiko Yamashita Non Exe.Non Ind.Director

N Chandrasekaran Chairman & Non-Exe.Director

Om Prakash Bhatt Ind. Non-Executive Director

Pathamadai Balachandran Balaji Group Chief Financial Officer

Ratan N Tata Chairman Emeritus


Usha Sangwan Ind. Non-Executive Director

Vedika Bhandarkar Ind. Non-Executive Director

MISSION & VISION OF COMPANY :-


 Mission :- Tata Motors’ mission is to innovate mobility solution with passion to
enhance quality of life.
 To deliver value through our products and services and to be the most trusted global
network for our customer and suppliers.
 To be a responsible value-creation partner for all stakeholders.
 To innovate mobility solutions with a passion to enhance the quality of life.
 Customer satisfaction
 Based on core competencies
 Realistic and clear
 Motivational and inspirational.

 Vision :- The company’s vision is to become the most aspirational Indian auto brand
by 2024. Tata Motors aims to achieve this by delivering superior financial returns,
driving sustainable mobility solutions, exceeding customer expectations and creating
a highly engaged workforce.
 Delivering superior financial returns
 Driving sustainable mobility solutions
 Exceeding customer expectations, and
 Creating a highly engaged workforce.

SHAREHOLDING PATTERN ANALYSIS:-


The shareholding pattern of Tata Motors is considered to be well-diversified, with no single
group of shareholders holding a majority stake. This is seen as a positive for investors, as it
reduces the risk of a takeover or other event that could adversely affect the share price.

The shareholding pattern of Tata Motors Ltd. as of June 30, 2023 is as follows:

 Promoters: 46.39%
 Foreign Institutional Investors (FIIs): 17.72%
 Domestic Institutional Investors (DIIs): 19.23%
 Mutual Funds: 8.69%
 Others: 7.97%

 The promoters are the largest shareholders in Tata Motors, with a holding of 46.39%.
FIIs are the second largest shareholders, with a holding of 17.72%. DIIs are the third
largest shareholders, with a holding of 19.23%. Mutual funds are the fourth largest
shareholders, with a holding of 8.69%. Others are the fifth largest shareholders, with a
holding of 7.97%.

 Here is a brief analysis of each of the major shareholder groups:-

 Promoters: The promoters of Tata Motors are the Tata family, which is one of the
most prominent business families in India. The Tata family has a long history of
involvement in the Indian automotive industry, and they continue to be the largest
shareholders in Tata Motors.
 FIIs: Foreign institutional investors are investors who are based outside of India. FIIs
are a major source of investment in the Indian stock market, and they play an
important role in determining the share price of Tata Motors.
 DIIs: Domestic institutional investors are investors who are based in India. DIIs
include mutual funds, insurance companies, and pension funds. DIIs are also a major
source of investment in the Indian stock market, and they play an important role in
determining the share price of Tata Motors.
 Mutual Funds: Mutual funds are investment vehicles that pool money from
individual investors and invest it in a variety of assets. Mutual funds are a popular
investment option for retail investors, and they play an important role in the Indian
stock market.
 Others: The "Others" category includes individuals, trusts, and other entities that
hold shares in Tata Motors. This category accounts for a relatively small percentage
of the total shares outstanding.

 Overall, the shareholding pattern of Tata Motors is considered to be well-diversified,


with no single group of shareholders holding a majority stake. This is seen as a
positive for investors, as it reduces the risk of a takeover or other event that could
adversely affect the share price.
BUSINESS MODEL:-
The business model of Tata Motors Ltd. is based on the following key components:

 Product innovation and new product development: Tata Motors focuses on


developing innovative products that meet the needs of its customers. The company
has a strong track record of introducing new products, such as the Nano, the world's
cheapest car, and the Tiago, a hatchback that has been well-received in India.
 Excellence in manufacturing: Tata Motors has a strong focus on operational
excellence and continuous improvement in its manufacturing processes. The company
has a number of state-of-the-art manufacturing facilities in India and around the
world.
 Global reach: Tata Motors has a global presence, with operations in over 100
countries. The company exports its products to over 50 countries.
 Financial strength: Tata Motors is a financially strong company with a strong
balance sheet. The company has a history of profitable growth.

Some of the key highlights of Tata Motors' business model include:

 The company's focus on innovation has helped it to develop a wide range of products
that meet the needs of its customers in different markets.
 Tata Motors' strong focus on operational excellence has helped it to achieve high
levels of efficiency and productivity in its manufacturing operations.
 The company's global reach has helped it to expand its market share and achieve
economies of scale.
 Tata Motors' financial strength has provided it with the resources to invest in new
products, technologies, and markets.

Overall, Tata Motors has a strong business model that is based on innovation, operational
excellence, global reach, and financial strength. These factors have helped the company to
achieve sustained growth and profitability over the years.

Here are some additional details about each of the key components of Tata Motors'
business model:

 Product innovation and new product development: Tata Motors has a dedicated
team of engineers and designers who are constantly working on new products. The
company has a number of innovation centers located around the world.
 Excellence in manufacturing: Tata Motors has a number of state-of-the-art
manufacturing facilities located in India and around the world. The company is
committed to continuous improvement in its manufacturing processes.
 Global reach: Tata Motors has a global presence, with operations in over 100
countries. The company exports its products to over 50 countries.
 Financial strength: Tata Motors is a financially strong company with a strong
balance sheet. The company has a history of profitable growth.

Tata Motors' business model is well-positioned for future growth. The company is focused on
developing innovative products that meet the needs of its customers in different markets. Tata
Motors is also committed to operational excellence and continuous improvement in its
manufacturing processes. The company's global reach and financial strength provide it with
the resources to invest in new products, technologies, and markets.

SUBSIDIARY & ASSOCIATES OF TATA


MOTORS LTD. :-
Tata Motors Limited has a number of subsidiaries and associates. Some of its key
subsidiaries include:

 Tata Passenger Vehicles: This is Tata Motors' passenger vehicle arm. It


manufactures cars, SUVs, and vans under the Tata brand name.

 Tata Motors European Technical Centre: This is Tata Motors' European research
and development center. It is located in the United Kingdom and employs over 2,000
people.
 Tata Daewoo Commercial Vehicles: This is a joint venture between Tata Motors and
South Korea's Daewoo Motors. It manufactures commercial vehicles in India and
South Korea.

 Tata Technologies: This is Tata Motors' engineering and design services arm. It
provides services to customers in the automotive, aerospace, and defense sectors.

 Tata Motors Finance: This is Tata Motors' financial services arm. It provides a range
of financial products and services to Tata Motors customers.
Some of Tata Motors' key associates include:
 Jaguar Land Rover: This is a British automotive company that was acquired by Tata
Motors in 2008. It manufactures luxury cars and SUVs under the Jaguar and Land
Rover brands.

 Marcopolo: This is a Brazilian bus manufacturer that was acquired by Tata Motors in
2012. It manufactures buses for the Latin American market.

 Tata Daewoo Commercial Vehicles (China): This is a joint venture between Tata
Motors and China's SAIC Motor. It manufactures commercial vehicles in China.

 Tata Elxsi: This is an Indian technology company that provides engineering, design,
and IT services to the automotive, aerospace, and defense sectors.
 Tata AutoComp Systems: This is an Indian automotive components manufacturer. It
supplies components to Tata Motors and other automakers.

 Tata Motors also has a number of joint ventures and partnerships with other
companies. For example, it has a joint venture with Germany's Daimler AG to
manufacture trucks in India. It also has a partnership with China's Chery Automobile
to manufacture cars in China.
 Tata Motors' subsidiaries and associates play an important role in the company's
operations. They provide Tata Motors with access to new markets, technologies, and
capabilities. They also help Tata Motors to reduce its costs and improve its efficiency.

SWOT ANALYSIS OF TATA MOTORS LTD. :-


Here is a SWOT analysis of Tata Motors Limited:

Strengths:

 Strong brand reputation: Tata Motors is a well-known and respected brand in India
and around the world.
 Diverse product portfolio: Tata Motors offers a wide range of vehicles, including
passenger cars, commercial vehicles, buses, and electric vehicles.
 Global presence: Tata Motors has a presence in over 100 countries.
 Strong financial performance: Tata Motors has a strong financial performance with
a healthy balance sheet.
 Commitment to innovation: Tata Motors is committed to innovation and has a
strong track record of introducing new products and technologies.

Weaknesses:
 High debt levels: Tata Motors has high debt levels, which could impact its financial
performance in the future.
 Inconsistent quality: Tata Motors has been criticized for inconsistent quality in some
of its products.
 Lack of focus in some markets: Tata Motors has been criticized for not having a
clear focus in some markets, such as the United States.
 Competition from foreign automakers: Tata Motors faces increasing competition
from foreign automakers, such as Toyota and Honda.

Opportunities:

 Growing demand for electric vehicles: Tata Motors is well-positioned to benefit


from the growing demand for electric vehicles.
 Expansion into new markets: Tata Motors has the opportunity to expand into new
markets, such as Africa and South America.
 Development of new technologies: Tata Motors has the opportunity to develop new
technologies, such as self-driving cars.

Threats:

 Economic slowdown: A global economic slowdown could impact the demand for
Tata Motors' products.
 Trade wars: Trade wars could disrupt Tata Motors' supply chain and increase its
costs.
 Technological advancements: Technological advancements could make some of
Tata Motors' products obsolete.
 Changing consumer preferences: Changing consumer preferences could make some
of Tata Motors' products less appealing to customers.

Overall, Tata Motors is a strong company with a bright future. However, the company faces
some challenges that it needs to address in order to continue to grow and succeed.

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