MIRA INFORM REPORT
|
Report Date : |
16.11.2006 |
IDENTIFICATION DETAILS
|
Name : |
TATA MOTORS LIMITED |
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Registered Office : |
Bombay House, 24, Homi Mody
Street, Hutatma Chowk, Mumbai – 400 001, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.09.1945 |
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Com. Reg. No.: |
11-4520 |
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CIN No.: [Company Identification No.] |
L28920MH1945PLC004520 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMT00054F |
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PAN No.: [Permanent Account No.] |
AAACT2727Q |
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Legal Form : |
Public Limited Liability
Company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacture and Seller of
Commercial Vehicles, Passenger Vehicles, Construction Equipments and Machine
Tools. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
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Maximum Credit Limit : |
USD 182000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established, reputed and respectable company of the country’s largest
industrialists viz., The Tata Group. Available information indicates high
financial responsibility of the company and its management. Fundamentals are
strong and healthy. Business is active. It’s payments are always correct and
as per commitments. The company can be
considered for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Bombay House, 24, Homi Mody
Street, Hutatma Chowk, Mumbai – 400 001, Maharashtra, India |
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Tel. No.: |
91–22–66658282/66658282 |
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Fax No.: |
91–22–66657799/66657799 |
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E-Mail : |
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Website : |
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Factory 1 : |
v
Pimpri, Pune – 411
018, Maharashtra v
Jamshedpur Towns Post
Office, Jamshedpur – 831 010, Bihar v
Chinchwad, Pune – 411
033, Maharashtra v
Chinhat – Deva Road,
Lucknow – 227 105, Uttar Pradesh v
KIADB Block – 2, Belur
Industrial Area, Dharwad – 580 007, Karnataka |
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Branches : |
v
503, Barton Centre, 5th
Floor 84,
Mahatma Gandhi Road Bangalore
- 560 001 Tel:
080-25320321, Fax : 080-25580019 e-mail:
tsrlbang@tatashare.com v
Bungalow No.1,"E"Road Northern
Town, Bistupur Jamshedpur-831
001 Tel:
0657-2426616, Fax: 0657 - 2426937 Email
: tsrljsr@tatashare.com v
Tata Centre, 1st
Floor, 43,
Jawaharlal Nehru Road Kolkata
- 700 071 Tel:
033-22883087, Fax : 033 - 22883062 e-mail
: tsrlcal@tatashare.com v
Plot No.2/42, Sant Vihar Ansari
Road, Daryaganj New
Delhi- 110002 Tel:
011 -23271805, Fax : 011 - 23271802 e-mail:
tsrldel@tatashare.com |
DIRECTORS
|
Name : |
Mr. Ratan N. Tata |
|
Designation : |
Chairman |
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Name : |
Mr. N. A. Soonawala |
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Designation : |
Director |
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Name : |
Mr. J. J. Irani |
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Designation : |
Director |
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Name : |
Mr. J. K. Setna |
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Designation : |
Director |
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Name : |
Mr. V. R. Mehta |
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Designation : |
Director |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Director |
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Date of Birth: |
25/12/1945 |
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Date of Appointment: |
22/12/1998 |
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Qualification: |
B.
Technical in Electronics from IIT Kharagpur, Advanced Management Programme,
Harvard Business School |
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Other Directorships: - |
·
Birla-Tata AT & T Limited ·
Castrol India Limited ·
ICI Limited ·
Rallis India Limited ·
Sheba Properties Limited ·
Tata AutoComp Systems Limited ·
Tata Chemicals Limited ·
Tata Honeywell Limited ·
Tata Internet Services Limited ·
Tata Sons Limited ·
Tata Technologies Limited ·
Tata Teleservices Limited ·
The Tata Power Company Limited |
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Name : |
Mr. N. N. Wadia |
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Designation : |
Director |
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Name : |
Mr. Helmut Petri |
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Designation : |
Director |
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Name : |
Mr. S. A. Naik |
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Designation : |
Director |
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Name : |
Mr. Ravi Kant |
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Designation : |
Executive
Director |
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Name : |
Mr. Praveen P. Kadle |
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Designation : |
Executive
Director |
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Name : |
Mr. V. Sumantran |
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Designation : |
Executive
Director |
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Date of Birth: |
27/09/1958 |
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Date of Appointment: |
12/11/2001 |
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Qualification: |
B.
Technical in Aerospace Engineering from IIT, Chennai, Ph. D in Aerospace
Engineering from Virginia Technical (USA) and a Master’s degree of management
of Technology from Renssalaer Polytechnic Institute |
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Name : |
Mr. P. K. M. Fietzek |
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Designation : |
Alternate
Director to Mr. Helmut Petri |
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Name : |
Mr.
Sam M Palia |
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Designation : |
Additional
Director |
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-
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OTHER PERSONNEL: |
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Name : |
Mr. H. K. Sethna |
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Designation : |
Company
Secretary |
KEY EXECUTIVES
|
Name : |
A
P Arya |
|
Designation : |
President
(Jamshedpur & Lucknow Works) |
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Name : |
P
M Telang |
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Designation : |
President
(Pune & Dharwad Works) |
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Name : |
Rajiv
Dube |
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Designation : |
Sr.
Vice President (Commercial) PCBU |
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Name : |
C
Ramakrishnan |
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Designation : |
Vice
President (Chairman's Office) |
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Name : |
Shyam
Mani |
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Designation : |
Vice
President (Sales & Marketing) CVBU |
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Name : |
RT
Singh |
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Designation : |
Vice
President (Manufacturing) |
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Name : |
K
C Girotra |
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Designation : |
Vice
President (Lucknow Works & FBV) |
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Name : |
R
S Thakur |
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Designation : |
Vice
President (Finance) |
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Name : |
R
R Akarte |
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Designation : |
Vice
President (Manufacturing) |
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Name : |
M
V Rajarao |
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Designation : |
Vice
President (Manufacturing) |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
PROMOTER’S HOLDINGS |
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Indian Promoters |
103,007,460 |
32.21 |
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NON PROMOTER’S HOLDINGS |
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Institutional Investors |
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Mutual Funds and UTI |
24,723,736 |
7.73 |
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Banks Fin. Inst. and
Insurance |
39,570,897 |
12.37 |
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FII’s |
43,211,843 |
13.51 |
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Other Investors |
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Private Corporate
Bodies |
35,768,222 |
11.19 |
|
NRI’s/OCB’s/Foreign
Others |
3,118,824 |
0.98 |
|
GDR/ADR |
18,421,064 |
5.76 |
|
General Public |
51,962,341 |
16.25 |
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TOTAL |
319,784,387 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and Seller of
Commercial Vehicles, Passenger Vehicles, Construction Equipments and Machine Tools. |
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Products : |
v
Heavy and medium
commercial vehicles v
Cars v
Light commercial
vehicles |
GENERAL INFORMATION
|
Customers : |
v
AKI Industries Private
Limited v
Abhaya Precision
Industries Private Limited v
Adarsh Engineering
Works v
Auto Knight Private
Limited v
B. B. Electrotechnic v
Bharat Engineering
Works v
Bhalotia Engineering
Works Private Limited v
Calcutta Fan Works
Limited v
Castlewood Brush
Industries Private Limited v
Cotmac Private Limited v
Electro Alloys
Corporation v
Electro Ferro Alloys
Private Limited v
Evercoat Technical
Service India Private Limited v
ARM Controls &
Systems Private Limited v
Auto Turn Industries v
Best Cast IT Limited |
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|
|
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No. of Employees : |
37,527 |
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Bankers : |
v
Bank of America v
State Bank of India v
Central Bank of India v
Bank of India v
Bank of Baroda v
Standard Chartered
Grindlays Bank Limited v
Bank of Maharashtra v
The Hongkong &
Shanghai Banking Corporation Limited v
Union Bank of India v
Citibank N.A. v
Bank of Nova Scotia v
Deutsche Bank v
Bank of America v
Corporation Bank v
HDFC Bank Limited |
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Facilities : |
-- |
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Banking Relations : |
Good |
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Auditors : |
Deloitte
Haskins & Sells Chartered
Accountant |
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Subsidiaries : |
v
Telco Construction
Equipment Company Limited v
Tata Technologies
(India) Limited v
Sheba Properties
Limited v
Minicar (India)
Limited v
HV Axles Limited v
HV Transmissions
Limited v
Tata Technologies,
U.S.A. v
Telco Dadajee Dhackjee
Limited v
TAL Manufacturing
Solutions Limited |
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|
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Associates : |
v
Concorde Motors
Limited v
Float Glass India
Limited v
Haldia Petrochemicals
Limited v
Tata Auto Computer
Systems Limited v
Tata Cummins Limited v
Tata Finance Limited v
Tata Holset Limited v
Tata International
Limited v
Tata Precision
Industries Pte. Limited v
Tata Sons Limited v
Nita Company Limited v
The Tata Iron &
Steel Company Limited v
Tata Project Limited v
Tata Export Limited v
Tata Electric
Companies v
TRF Limited v
Tata Consultancy
Services v
And many other member
companies |
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|
|
|
Membership : |
v
Confederation of India
Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40,00,00,000 |
Equity Shares |
Rs.
10 each |
Rs. 4000.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
382870000 |
Equity Shares |
Rs.
10 each |
Rs. 3828.700 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF
FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
3828.700 |
3617.900 |
3568.300 |
|
2] Reserves & Surplus |
51542.000 |
37496.00 |
32367.700 |
NETWORTH
|
55370.700 |
41113.900 |
35936.000 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
8227.600 |
4898.100 |
9426.500 |
|
2] Unsecured Loans |
21140.800 |
20056.100 |
3171.200 |
|
TOTAL
BORROWING |
29368.400 |
24954.200 |
12597.700 |
|
|
|
|
|
|
Deferred Tax Liability (Net) |
0.000 |
5652.800 |
5141.500 |
|
|
|
|
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TOTAL
|
84739.100 |
71720.900 |
53675.200 |
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
35700.400 |
31576.700 |
29617.100 |
|
Capital work-in-progress |
9511.900 |
5388.400 |
2860.900 |
|
|
|
|
|
|
INVESTMENTS |
20151.500 |
29120.600 |
30567.700 |
|
Deferred Tax Assets |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Interest Accrued on Investments |
0.000 |
61.200 |
0.000 |
|
Inventories |
20122.400 |
16013.600 |
11474.400 |
|
Sundry Debtors |
7157.800 |
8113.200 |
6149.900 |
|
Cash & Bank Balances |
11194.300 |
20050.400 |
7704.900 |
|
Loans & Advances |
59646.100 |
27223.500 |
11627.800 |
|
Total
Current Assets |
98120.600 |
71461.900 |
36957.000 |
|
Less : |
|
|
|
|
Current Liabilities |
66736.100 |
54747.700 |
42243.000 |
Provisions
|
12150.400 |
11260.600 |
4306.400 |
Total Current Provisions
|
78886.500 |
66008.300 |
46549.400 |
|
Net Current Assets |
19234.100 |
5453.600 |
(9592.400) |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
141.200 |
181.600 |
221.900 |
|
|
|
|
|
TOTAL
|
84739.100 |
71720.900 |
53675.200 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
246269.700 |
175852.200 |
132821.200 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
20533.800 |
16519.000 |
12923.400 |
Provision for Taxation
|
5245.000 |
4149.500 |
4820.000 |
Profit/(Loss) After Tax
|
15288.800 |
12369.500 |
8103.400 |
|
|
|
|
|
Export Value
|
NA |
14978.500 |
10166.400 |
|
|
|
|
|
Import Value
|
NA |
6269.800 |
2728.100 |
|
|
|
|
|
Total Expenditure
|
245292.500 |
152480.400 |
138730.600 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 (1ST Quarter) |
30.09.2006 (2nd Quarter) |
|
Sales Turnover |
|
57834.100 |
65717.900 |
|
Other Income |
|
859.100 |
848.300 |
|
Total Income |
|
58693.200 |
66566.200 |
|
Total Expenditure |
|
51574.700 |
58311.600 |
|
Operating Profit |
|
7118.500 |
8254.600 |
|
Interest |
|
725.500 |
955.800 |
|
Gross Profit |
|
6393.000 |
7298.800 |
|
Depreciation |
|
1410.500 |
1434.900 |
|
Tax |
|
1164.000 |
1446.700 |
|
Reported PAT |
|
3818.500 |
4417.200 |
200606 Quarter 1 -
Expenditure Includes (Increase) / Decrease in Stock in Trade & Work in
progress Rs. (3853.300) million Consumption of Raw Materials & Components
Rs. 39530.600 million Purchase of product for sale Rs. 3119.900 million Staff
Cost Rs. 3024.30 million Other Expenditure Rs. 9646.200 million Product
Development expenses Rs. 103.200 million Interest Includes Gross Interest Rs.
854.500 million Interest income/ Interest Capitalised Rs (129.000) million
Depreciation includes Depreciation & Amortisation Tax indicates Tax Expense
Provision & Contingencies Indicates Provision / (reversal) for diminution
in value of Investments (net) EPS is Basic Status of Investor Complaints for
the quarter ended 30.06.2006 Complaints Pending at the beginning of the quarter
03 Complaints Received during the quarter 10 Complaints disposed off during the
quarter 10 Complaints unresolved at the end of the quarter 03 1. Figures for
the previous period have been regrouped / reclassified wherever necessary. 2.
The commercial vehicles sales volumes in the corresponding quarter of the
previous year were mainly impacted by unanticipated difficulties in vehicle
certification and procurement of some critical components. 3. Other expenditure
includes foreign exchange loss of Rs. 783.000 million for the quarter ended
30.06.2006 as against a profit of Rs. 145.000 million in the quarter ended
30.06.2005. The corresponding figure for the year ended 31.03.2006 was a loss
of Rs. 203.500 million. 4. During this quarter, the Company has reversed export
incentive of Rs. 355.700 million that was accrued during the previous year, in
view of reduction with retrospective effect in the incentive rate under Target
Plus Export Incentive Scheme by the Government of India. 5. The Company is
engaged mainly in the business of automobile products consisting of all types
of commercial and passenger vehicles including financing of the vehicles sold
by the Company. These, in the context of Accounting Standard 17 on Segment Reporting,
issued by the Institute of Chartered Accountants of India, are considered to
constitute one single primary segment. 6. Subsequent to the quarter ended
30.06.2006, 8,800 1% Foreign Currency Convertible Notes (FCCN) (2008) and 6,000
Zero coupon FCCN (2009) representing 8.8% and 6% respectively of the said
Notes, have been converted into 16,20,003 and 4,59,076 Ordinary Shares of Rs.
10/- each at a premium as per the terms of issue. 7. The Statutory Auditors
have carried out an audit of the results for the quarter ended 30.06.2006. 8.
The above Results have been reviewed by the Audit Committee of the Board and
were taken on record by the Board of Directors at its meeting held on
27.07.2006.
200609 Quarter
2 - EPS is Basic
Status of Investor Complaints for the quarter ended 30.09. 2006 Complaints
Pending at the beginning of the quarter 03 Complaints Received during the
quarter 62 Complaints disposed off during the quarter 18 Complaints unresolved
at the end of the quarter 47 1. Figures for the previous period have been
regrouped/reclassified wherever necessary. 2. Other expenditure is net of
foreign exchange gain of Rs. 253.900 million for the quarter ended 30.09.2006
as against loss of Rs. 196.000 million included for the quarter ended
30.09.2005. The corresponding figures for six months ended 30.09.2006 and
30.09.2005 and for the year ended 31.03.2006 are losses of Rs. 529.100 million,
Rs. 51.000 million and Rs. 203.500 million ,respectively. 3. During the quarter
ended 30.09.2006, the Company has invested Rs. 3450.000 million towards equity
capital in its subsidiary company TML Financial Services Limited. 4. During the
quarter ended 30.09.2006, 8,800 1% Foreign Currency Convertible Notes (2008)
and 6,175 Zero Coupon Foreign Currency Convertible Notes (2009) have been
converted into 16,20,003 and 4,72,465 Ordinary Shares of Rs. 10/- each at a
premium as per the terms of issue. 5. The Company is engaged mainly in the
business of automobile products consisting of all types of commercial end
passenger vehicles Including financing of the vehicles sold by the Company.
These in the context of Accounting Standard 17 on Segment Reporting, issued by
the Institute of Chartered Accountants of India, are considered to constitute
one single primary segment. 6. The Statutory Auditors have carried out an audit
of The results stated in (B) above for the quarter and half year ended
30.09.2006.7. The above Results have been reviewed by the Audit Committee of
the Board and were approved by the Board of Directors at its meeting held on
30.10.2006.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.56 |
0.49 |
0.44 |
|
Long Term Debt-Equity Ratio |
0.49 |
0.47 |
0.40 |
|
Current Ratio |
1.08 |
0.87 |
0.76 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.25 |
3.20 |
2.55 |
|
Inventory |
13.10 |
14.66 |
13.15 |
|
Debtors |
31.27 |
28.51 |
19.43 |
|
Interest Cover Ratio |
8.00 |
8.58 |
7.38 |
|
Operating Profit Margin(%) |
12.11 |
11.51 |
12.38 |
|
Profit Before Interest And Tax
Margin(%) |
9.91 |
9.28 |
9.86 |
|
Cash Profit Margin(%) |
8.66 |
8.37 |
7.87 |
|
Adjusted Net Profit Margin(%) |
6.46 |
6.14 |
5.34 |
|
Return On Capital Employed(%) |
31.25 |
32.76 |
33.77 |
|
Return On Net Worth(%) |
31.36 |
32.12 |
26.20 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.756.00/- |
|
Low |
Rs.736.60/- |
LOCAL AGENCY FURTHER INFORMATION
The company is in trade terms with: -
Atlantic Engineering Private
Limited
Auto Plastic Injection
Moulders
Auto Works
Auto Brakes and Ancillaries
Private Limited
Auto Clutches
Auto Feed
Auto Fibre Craft
Auto Knight Private Limited
Auto Lab
Auto Steel and Rubber
Industries
Auto Turn Industries
Auto Window
Autocomp Corporation
Autocomps Engineering (Pune)
Private Limited
Autofeed
The
company’s fixed asset of important value include Land, Building, Leasehold,
Railway Sidings, Plant, Machinery, Equipments, Water System & Sanitation,
Furniture, Fixtures & Office Appliances, Technical Know-how, Vehicles and
Transport, Capital Work-in-Progress.
.
Generic Names of the
Principal Products/Services of the company are as under:-
|
Item Code No. (ITC CODE) |
8702 to 8708 except 8705
and 8707 |
|
Product Description |
Chassis and Vehicles for
transport of goods and passengers, including motorcar and parts thereof. |
History
Tata Motors
(Fomerly known as Tata Engineering and Locomotive Company Limited),Controlled
by the House of Tatas, it is the sixth-largest manufacturer of trucks in the
world. The commercial diesel vehicles, which were called Tata Mercedes Benz,
are now sold under the name Tata after the expiry of the collaboration
agreement with Daimler-Benz, Germany. Apart from manufacturing light, medium
and heavy commercial vehicles, it alsomanufactures passenger cars, utility
vehicles, excavators and machine tools. The manufacturing units are located at
Jamshedpur, Pune, Lucknow and Dharwad.
Major milestones:
1923 Peninsular Locomotive Company started its operations in Tatanagar,
Jamshedpur (Inspired by the availability of steel from TISCO). This is the
location of the Tata Motors Plant of today.
1927 East India Railway took over Peninsular Locomotive Company. The
manufacture of Passenger Carriage Underframes for the Indian Railway commenced.
It contributed to the war effort of the Allied forces during the World War II
when it was called upon to manufacture armored cars for the North African
Campaign (utilizing Tisco Steel).
1945 Tata Sons purchased the Tatanagar shops from the Government of India
on June 1, 1945 for Rs. 25.39 lakhs with the aim of immediately manufacturing
steam locomotive boilers. Later it planned to manufacture complete locomotives
and other engineering products.
1946 Tata Enginering undertook manufacture of 5000 'KC' broad gauge open
wagons for the Indian Railway. The Managing Agency Tata Sons was transferred to
Tata Industries on July 1, 1946. The Managing Agency system continued till it
was abolished by an act of Parliament in 1970.
1947 Manufacture of boilers for imported locomotives commenced. This line
was discontinued in April 1958.
1948 Steam Road Roller introduced in collaboration with Marshal Sons
(UK).
1950 Collaboration signed with M/s Krauss-Maffei, W. Germany formanufacture
of steam locomotives.
1954 Collaboration with M/s Daimler -Benz AG, W.Germany, for the
manufacture of medium commercial vehicles at Jamshedpur. First commercial
vehicle produced within six months of agreement.
1956 Steel foundry set up in collaboration with Usines Emile Henricot of
Court St. Etienne, Belgium.
1959 Research and Development Center set up at Jamshedpur.
1960 The company's name, which was Tata Locomotive & Engineering
Company Limited., was changed to Tata Engineering & Locomotive Company
Limited.
1961 Collaboration with M/s Pawling & Harnischfeger (P&H), U.S.A.
for manufacture of cable type excavators and cranes. First crane produced in
the same year. Commencement of exports - first truck exported to Ceylon, now,
Sri Lanka.
1964 Manufacture of popular 1210 vehicle model (with 7.5 T payload)
commenced.
1966 Acquisition of Investa Machine Tool Co. Setting up of Machine Tools
Division at Pune.Engineering Research Centre set up at Pune to cater to
automobile research and development.
1967 Press Tool Division set up at Pune. Vehicle manufacture facilities
steadily built up at Pune.
1968 Collaboration with M/s Hueller Hille Gmbh, W. Germany, for the
manufacture of unit construction special purpose machines.
1969 The "T" replaces the three-pointed Mercedes Star.
1970 Last locomotive produced. (Cumulative production 1155 nos.)
1971 DI engines introduced.
1977 First commercial vehicle produced at Pune.
1983 HCVs, including articulated vehicles, introduced.
1984 Collaboration with M/s Hitachi Construction Machinery Co. Limited.,
Japan, for manufacture of hydraulic excavators. Expansion of capacity at
Pune.
1985 First hydraulic excavator produced under Hitachi collaboration.
Broad banding of licence (to manufacture only commercial vehicles above 8 Ton
GVW) to include manufacture of all medium, heavy and light commercial vehicles,
jeep type vehicles and passenger cars. Broad banding of excavator licence to
manufacture all types of earthmoving machinery. Broad banding of machine tool
licence to manufacture all types of machine tools. Collaboration with Niigata
Engineering Co. Limited, Japanfor NC / CNC Horizontal Machining Centers and
with Nachi-Fujikoshi Corp., Japan for NC /CNC In line Machining Centers and
flexible manufacturing systems.
1986 First Light Commercial Vehicle - TATA 407 produced. This was a
completely indigenous design with minimal import content. Also met fuel
efficiency norms specified by the government.
1987 Second model of completely indigenously designed LCV - TATA 608
produced. LPT 2416 a multi-axled vehicle introduced.
1989 Third model of LCV - Tatamobile 206 produced Collaboration with M/s
Kloth-Senking Metalligessari, Gmbh, W.Germany, for know-how of manufacturing
aluminium castings. Collaboration with Hitachi, Japan, for manufacture of a new
generation EX series hydraulic excavator.
1990 First EX model hydraulic excavator produced. Indigenously designed
front-end wheel loader - TWL 3036 introduced.
1991 Introduction of indigenously designed passenger cars - Tata Sierra
and Tata Estate. TAC 20 crane produced. One-millionth vehicle rolled out.
1992 Production of MCV's commenced at Lucknow. LPT 2213 - a multi-axled
vehicle launched. Collaboration with Nachi-Fujikoshi Corp., Japan, for
manufacture of robots.
1993 Joint Venture Agreement signed with Cummins Engine Co. Inc.to
manufacture high horsepower and emission-friendly diesel engines for medium and
heavy commercial vehicles. Tata Cummins Private Limited incorporated in
Jamshedpur, Bihar, on 0ctober 20, 1993.
1994 Tata Sumo - a multi-utility vehicle launched. LPT 709 - a full
forward control, light commercial vehicle launched. Joint Venture Agreement
signed with M/s Daimler - Benz / Mercedes - Benz for manufacture of Mercedes -
Benz passenger cars in India. Joint Venture Agreement signed with Tata Holset
Limited., U.K. for manufacturing turbochargers to be used on Cummins engines.
Mercedes-Benz (India) Limited. incorporated in Pune, Maharashtra, on November
22, 1994. Tata Holset Private. Limited. incorporated in Dewas, Madhya Pradesh,
on December 20, 1994. Collaboration with Schaudt Maschinenbau GmbH, for
manufacturing CNC cylindrical grinding machines. The Company was restructured
into two Strategic Business Units:Automobile Business Unit (ABU), and
Construction Equipment Business Unit (CEBU).
1995 Collaboration with Hitachi, Japan, for the manufacture of mini
excavator models EX 40 and EX 60. Production of robots in collaboration with
Nachi-Fujikoshi Corp., Japan commenced. Mercedes Benz car E220 (W124) launched.
Tata Cummins engine plant inaugurated.
1996 First engine produced by Tata Cummins in January 1996. LPT 2516
vehicle fitted with Tata Cummins engine launched on March 4, 1996.Tata Sumo
Deluxe launched. Tata Holset's turbo charger plant inaugurated on November 25,
1996. 688 acres of land at Dharwad (Karnataka) were allotted for Auto and CEBU
Units, in Dec 1996. Concorde Motors Limited., a Joint Venture was established
between Tata Engineering and Jardine International Motors (Mauritius)
Limited.
1997 Industrial Entrepreneurs Memorandum was filed for taking up
manufacture of special purpose vehicles and construction equipment at Dharwad
in Jan 1997. Management Services Division of the Company was transferred to the
wholly owned subsidiary of Tata Engineering - Tata Technologies (I) Limited, in
Apr 1997. Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out. The
commercial vehicle, LPT 909 introduced.
1998 Tata Safari - India's first Sports Utility vehicle launched in Jan
1998. Concorde Motors Limited., a Joint Venture between Tata Engineering and
Jardine International Motors (Mauritius) Limited. was appointed as dealer for
the Company's passenger cars in several cities across the country, in Feb 1998.
Two millionth vehicle rolled out.Collaboration with Hitachi, Japan, for
manufacture of Series V excavators to replace Series I & III machines, in
Mar 1998. Indica, India's first fully indigenous car, launched in Dec 1998.
Telco Construction Equipment Company Limited. (TELCON) came into being as a
subsidiary of Tata Engineering, in Dec 1998.
1999 An overwhelming 115,000 bookings for Indica were made against full
payment within a week, in Jan 1999. New TATA Logo unveiled.The company would
hereafter be called " Tata Engineering". Commercial production of
Indica begins and first car is sold. Construction Equipment Business Unit is
transferred to TELCON. In Oct 1999, the Company won the National award for
R&D Efforts in Development of Indigenous Technology in the Mechanical
Engineering Industries Sector instituted by Department of Scientific and
Industrial Research, Ministry of Science and Technology for the year 1999.
2000 Order for 500 Nos. of Tata Indica received for Malta. First batch of
160 Nos. exported in Jan 2000. Indica with Bharat Stage II (Euro II) compliant
diesel engine launched in Feb 2000. Machine Tools and Growth Divisions, Axle
Division and Transmission Division of Tata Engineering transferred to newly
formed subsidiaries Telco Automation Limited., HV Axles Limited. and HV
Transmission Limited. respectively on March 31 2000. The Automobile Business
Unit was restructured into Commercial Vehicles Business Unit and Passenger Car
Business Unit, in Mar 2000. Tata Engineering bagged the National Award for
successful commercialization of indigenous technology by an industrial concern
for the year 2000, for the indigenous development and commercialization of Tata
Indica, in Mar 2000. Utility vehicles with Bharat Stage II (Euro II) compliant
engine launched, in Mar 2000. Indica 2000, Bharat Stage II (Euro II) compliant
with Multi Point Fuel Injection petrol engine launched, in Apr 2000.Hitachi
inducted as an equity partner for TELCON under shareholder's agreement with
Tata Engineering.2001 The next generation of Indica, Indica V2 launched in
January, along with 2 new models- DLS in Diesel and LSI in the Indica 2000
range. 100,000th Indica rolled out in March.Launch of CNG Indica in June.
The Indica has been recognised as the "most improved car in the
industry" and the Indica brand has emerged as one of the strongest Indian
brands to have been created of late as well established and renowned global
brands. At the Auto Expo 2002 held in Delhi in January 2002, the company
unveiled the new three box Sedan offering on the Indica platform and the same
was successfully launched in the fag end of 2003 in the name of Indica Sedan as
its first offering in the entry midsize segment. A seven seater Multi-purpose
vehicle, Tata Indiva was unveiled at Geneva Auto Show in March 2002.
As per plans, the company came out with rights issue in Oct. 2001 raising
Rs 6710.000 Millions . The issue was of simultaneous but unlinked convertible
debentures with warrants and non-convertible debentures with warrants.
Convertible portion of Rs 4157.700 Millions
has been converted on 31st March 2002 at Rs 65 per share. Hence share
capital increased to Rs 3198.200 Millions from Rs 2559.000 Millions . Equity
will rise to Rs 3445.700 Millions
between 6th June 2003 to 30th Sept. 2004 if all warrants issued are
converted into shares at the exercise price of Rs 120. The non-convertible
portion of Rs 2558.600 Millions bears interest rate of 11%. In 2002-03 the
company made a turnaround,which was planned vigorously since 2001-02. The
various initiatives which focused on cost reduction,right sizing the
organisation,volume/market share gains,product quality and the launch of new
products hav enabled the same company a turnaround one. During 2003 the company
entered into a manufacturing & supply/distribution agreements with M G
Rover Group UK for export of cars to UK and Europe. In order to reflect its
core business of design, development and marketing of automobiles the Board has
decided to change the name of the company to 'Tata Motors Limited'.
The subsidiaries of Tata Motors Limited are Tata Daewoo Commercial
Vehicle Company Limited, Telco Construction Equipment Company Limited, Tata
Technologies Limited, TAL Manufacturing Solutions Limited, HV Transmissions
Limited, HV Axles Limited, Sheba Properties Limited, Concorde Motors (India)
Limited, Concorde Motors Limited and Telco Dadajee Dhackjee Limited.
During the year 2003-04 the Company acquired Daewoo Commercial Vehicle
Company Limited for a price of Rs.4650.000 Millions at Gunsan in Republic of
South Korea.
The BODs have considered and approved the proposal for the merger of its
two subsidiaries,Telco Dadajee Dhackjee Limited & Suryodaya Capital &
Finance(Bombay) Limited with the company at the meeting held on
10.01.2005.Considering that 100% of the paid up capital of the two subsidiaries
is held by Tata Motors,thus no shares of Tata Motors Limited are contemplated
to be issued under the proposed Scheme of Amalgamation.
The BODs have also considered and approved at the meeting held on
10.01.2005,the merger of Tata Finance Limited with the company. According to
the scheme of Amalgamation,all Equity Shareholders of Tata Finance Limited will
be entitled to receive Eight Equity Shares of Rs.10/- each of Tata Motors
Limited for every Hundred Equity Shares of Rs.10/- each held in Tata Finance
Limited.
The company has enhanced its installed capacity of Motor Vehicles for
transport of ten or more persons including the driver, Motor cars and other
motor vehicles for transport of persons, motor vehicles for transport of goods,
Chassis fitted with engine for motor vehicles at Pune by 94500 Nos and with
this expansion total installed capacity of Motor Vehicles for transport of ten
or more persons including the driver, Motor cars and other motor vehicles for
transport of persons, motor vehicles for transport of goods, Chassis fitted
with engine for motor vehicles has increased to 424500 Nos in 2005.
During 2004-05 the company has launched Tata Sumo Victa, Tata Spacio Gold
& Tata Indigo Marina in Passenger Vehicles segment and Tata Globus &
Starbus in Commercial Vehicles segment.
DIVIDEND
Considering the Company's financial performance, the Directors have
recommended payment of a dividend of Rs.13/- per share on 38,30,78,588 Ordinary
Shares and any further shares that may be allotted by the Company on conversion
of Notes prior to June 27, 2006 (being the book closure date for the purpose of
dividend entitlement) for the year 2005-06 (previous year - Rs.10/- per share
plus a special dividend of Rs. 2.50 per share for the Diamond Jubilee Year,
making a total dividend of Rs. 12.50 per share).
OPERATING RESULTS AND PROFITS
This year was an outstanding year for the Company, which recorded peak
performance on all major financial parameters. Overall Sales volume at 454,129
and turnover at Rs.24,2932.300 Millions were higher at 14% and 18%,
respectively than in FY 2004-05 and the Company retained its position as the largest
Indian automobile company in terms of revenue. It continued to be the largest
commercial vehicle manufacturer and the second largest passenger vehicle
manufacturer in India with market shares of 61.3% and 16.5%, respectively.
Export volumes at 50,223 vehicles, the highest exports ever, were 65% higher
than the previous year. EBIDTA margin at 13.7% was higher than 13.3% achieved
in FY 2004-05. Inspite of the significant cost increase pressures, the Company
maintained its operating margin at 12.5% through its continuous cost reduction
drive. The Profit Before Tax was Rs.2,0533.800 Millions , higher by 24% as
against Rs.1,6519.000 Millions in FY 2004-05. After providing for current and
deferred taxes, the Profit After Tax was Rs.1,5288.800 Millions (FY 2004-05
Rs.1,2369.500 Millions), an increase of 24%
over the previous year.
COMMERCIAL
VEHICLES
The Company reported a record sale of 245,022 commercial vehicles in the
domestic and overseas market in FY 2005-06, representing a 16.9% growth over the
last fiscal.
The Company's commercial vehicle sales in the domestic market also stood
at a record high of 214,836 nos. With a 13.1% growth, the Company outperformed
the industry and strengthened its market leadership with a 61.3% market share.
The Company created a new segment in the domestic commercial vehicle market by
launching India's 1st Mini Truck -TATA ACE in May 2005 and recorded impressive
sales of nearly 30,000 vehicles in the fiscal. The Company further strengthened
its sales and service network and opened over 300 exclusive sales outlets for
the TATA ACE. The Company also launched the TATA Novus range of heavy vehicles
in December 2005 which has been well received in the market.
The Company's commercial vehicle sales in the overseas market grew by 54%
and were at an all time high of 30,186 vehicles. LCV exports grew by 61%. M
& HCV exports grew by 39% to reach a new peak of 8,261 vehicles.
Revenue from non-vehicular business of the Company grew by 24% mainly due
to a growth in the Spare Parts business.
The Company continued pursuing aggressive cost reduction, productivity
improvement and aesthetic/visual quality improvement programs during the year.
The Company established a new assembly factory for the TATA Novus vehicles at Jamshedpur.
The Company is also undertaking an expansion programme to increase the
manufacturing capacity of the TATA ACE to meet the growing demand in the
domestic and international markets.
Tata Daewoo Commercial Vehicle Limited. (TDCV) - South Korea, acquired in
March 2004 recorded a 26% growth in its overall vehicle sales (billing) to
5,734 nos. TDCV sold 3,131 HCVs in the domestic market to achieve a 28% market
share. TDCV also entered the South Korean MCV market in January 2006 and
achieved a 13.5% market share in the January-March 2006 period. TDCV exports
continued to grow during the year and represented over two-thirds of South
Korea's total heavy truck exports.
The Company's associate - Hispano Carrocera reported a record sale of 365
units in FY 2005-06. Hispano launched a new bus face in October 2005 and
received a major order for replacing all buses in Casablanca city over the next
4 years. Hispano's order position is strong and volumes are expected to double
in the current year.
In May 2006, the Company entered into a 51:49 Joint Venture with
Marcopolo, Brazil (recognised worldwide for its mass production technology for
buses, offering the 'best value for money' proposition) to address high
quality, mass manufacturing of buses in India. This strategy would enable the
Company to increase its market share in the Indian bus market and also address
a larger segment of the global bus market. The Company received several awards
for its commercial vehicle business, the notable being JRD QV Award for
Business Excellence, CII - EXIM Award for Business Excellence in 2005, Best
Commercial Vehicle Design Award by BBC Top Gear to TATA ACE, CII's 'Excellent
Energy Efficient Unit' trophy to CV Pune plant in 2005 and the Gargi Huttenes
Albertus Green Foundry of the Year (2004-05) Award to Foundry division, Pune
plant. The Company's Pune Works was declared as the 'National Best
Establishment' by DGET, Ministry of Labour, Govt. of India
PASSENGER VEHICLES
The Company achieved record sales of 209,107 passenger vehicles in the domestic
and overseas markets (including sale of 209 Fiat Cars) in the FY 2005-06,
representing a 10% growth over the last fiscal. Dearing the year, the Company
crossed the '1 Million Production and Sales' milestone since the start of the
Passenger vehicle operations in 1991. The Car plant's capacity was expanded to
produce 225,000 vehicles per annum.
The Company's domestic passenger vehicle sales grew by 5.6% to a record
high of 189,070 vehicles (including sale of 209 Fiat cars). The Company
continues to be the 2nd largest player in the domestic passenger vehicle market
with a 16.5% market share. The Company also achieved record exports of 20,037
passenger vehicles representing an 83.8% growth with South Africa emerging as
the biggest market with exports of over 11,000 passenger vehicles. The Company
continued to grow its presence in Spain, Italy, Sri Lanka, Nepal and
Bhutan.
The TATA Indica recorded its highest ever sale at 111,574 units and
maintained its position as the 2nd largest selling model in the industry. The
launch of a Turbo-diesel version and the eXtra fuel Efficient Torque Advantage
(XETA) petrol engine model in the second half of the fiscal enabled Indica to
stay ahead of competition. The TATA Indigo range including the estate version
achieved sales of 39,377 units, maintaining its leading position in the Entry
mid-size segment. A more premium trim level (Indigo SX series) was launched on
the sedan version which has been accepted well in this market. The Company's
Utility Vehicles sales at 37,910 units were the highest since FY 1998-99. The
TATA Sumo achieved a sale of 33,218 units - a growth of 6.9% and remained a
favorite of the market, despite grooving competition. The TATA Safari achieved
its highest ever sale of 4,692 units based on the launch of the face-lifted
version with the Company's first common rail diesel engine.
In September 2005, the Company signed an MOU with FIAT S.p.A. to explore
strategic alliance opportunities of mutual interest culminating in the first
initiative of the Company becoming the distributor of FIAT Products for the
Indian Market.
The Company's Car plant at Pune received the National Energy Conservation
Award at the hands of His Excellency, The President of India in March 2006. The
Company's advertising continued to get recognition at various industry forums,
while its brands figure among the most trusted brands in the Indian market
place amongst consumer durables and FMCGs.
The Company displayed a range of new products under development and
concepts at the Auto Expo in Delhi and the Geneva Motor Show in early 2006.
Notable among these were the Indigo XL - a Premium version of the Indigo with a
longer wheelbase, the Tata Cliffrider - a 4 door life style pick-up concept on
the new crossover platform under development.
TATA MOTOR FINANCE - CUSTOMER FINANCING INITIATIVES
Pursuant to the Hon'ble High Court's
order, Tata Finance Limited amalgamated with the Company with effect from April
1, 2005. Tata Motor finance (TMF), the vehicle financing business has achieved
significant growth on account of synergies derived from this amalgamation. TMF
financed 96,247 new vehicles, a growth of 43% over 67,360 in the previous year.
With disbursals of Rs.54.790 Millions , a growth of 60% over Rs.3,4150.000
Millions in the previous year,TMF has emerged as the third largest vehicle
financier in the domestic market. During the year TMF extended support to the
Company's vehicle sales by financing 23.8% of the total domestic sales,
compared to 18.2% in the previous year. Given this growth TMF is on course to
become a strong captive financing arm to support the vehicle sales business as
well as to de-risk the cyclical revenue stream of this business. The extensive
network of TMF will also complement the dealer network of vehicle sales thus
augmenting the reach of the Company.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company entered into a 3 year wage settlement with its Union at Lucknowo A
cordial industrial relations environment prevailed in all the manufacturing
units of the Company. The permanent employee strength of the Company as on
March 31, 2006 was 22349, while that of the Company's subsidiaries was 7257.
The HR-Training Division in Pune was awarded the National Best Training
Division award for the 8th time from the Government of India. The Company's
Suggestion Scheme received the Excellence Award conferred by the Indian
National Suggestion Schemes' Association (INSSAN). The Confederation of Indian
Industry (CII) recognized the Company's significant achievements in Corporate
Sustainability Reporting.
FINANCE
On February 16, 2006, the Company issued Foreign Currency Convertible
Notes ('Notes') aggregating to JPY 11.76 Billion ('Issue') which are listed on
the Singapore Stock Exchange. The Notes are convertible into either Ordinary
Shares or American Depository Shares of the Company, at the option of the Note
holders. The Notes will be convertible at a price of Rs.1001.39 per share,
which was at a premium of 30% to the Company's closing share price on the
Bombay stock Exchange Limited on the issue date. The Notes are zero coupon and
will be redeemable at a discount of 0.15% at the end of five years. The Company
has are option to redeem the Notes after three years, subject to receipt of
relevant approvals.
The Company's ratings for local as well as foreign currency borrowings
have been upgraded by Moody's from Bat to Bat, BB with stable outlook (Standard
and Poor) and maintained at AA+ by ICRA and CRISIL. The Board of Directors
propose to explore ways of raising additional long term resources upto
Rs.3,0000.000 Millions by issue of appropriate securities in the
domestic/international market for financing the Company's growth plans. Members
are requested to refer to Item Nos. 11 and 12 of the Notice and the Explanatory
Statement thereto of the Annual General Meeting.
INFORMATION TECHNOLOGY INITIATIVES
The Company continued to upgrade its Computer Aided Design capabilities
which have improved productivity in their design areas. Digital manufacturing
initiatives were also started to improve manufacturing process planning
capabilities. Their ongoing CRM initiatives, now cover 225 dealers and
encompasses 80% of customer facing transactions by volume which will enable the
Company to gain customer insight by exploiting the huge customer database. In
the ERP area, SAP was rolled out at some of the foreign subsidiaries. The
Supplier Relationship Management module was rolled out during the year,
covering approximately 1500 suppliers seamlessly networked with the Company.
Supplementing their ERP initiatives, manufacturing execution support
applications for shop floor operations for all Plants were initiated during the
year.
CORPORATE
GOVERNANCE
A separate section on Corporate Governance forming part of the Directors'
Report and the certificate from the Company's auditors confirming compliance of
Corporate Governance norms as stipulated in Clause 4.9 of the Listing Agreement
with the Indian Stock Exchanges is included in the Annual Report.
Business
Overview
The Indian economy witnessed an 8.4% growth in FY 2005-06, compared to
7.5% in the previous year. Whilst growth in the country's GDP and ongoing road
development program had a positive impact on vehicle sales, FY 2005-06 proved
to be a difficult year for the Indian Automobile Industry as growth of domestic
four wheeler sales slowed down to 8.5% from 18.6% in FY 2004-05.
Towards the beginning of this fiscal, the Auto Industry witnessed
confusion over application of emission norms in some states. Severe floods in
northern, western and southern parts of the country impacted demand and
distribution of vehicles. Upward movement in prices of input materials mainly
steel, copper, aluminum, rubber, engineering plastics and compliance with new
CMVR regulations added to the cost of products, which was partially offset by a
modest price increase. Difficult liquidity position from Oct'05 onwards and
increase in interest rates in the latter half of the year also impacted vehicle
sales. The growth in the commercial vehicle industry was due to the new product
TATA ACE launched by the Company, without which growth would have been almost
flat at 0.7%. Passenger vehicle sales in the domestic market also slowed down
to 7.7% from 17.8% in FY 2004-05.
Amidst this challenging situation, the Company's sales grew by 13.6% as
compared to the industry sales growth of 8.6%. The Company recorded highest
ever sales of Commercial and Passenger Vehicles in domestic and international
markets. In Passenger vehicle business, new product launches in domestic market
and overseas market, strengthening of marketing activities and expansion of
distribution network, enabled the Company to outperform the industry with a 10%
growth, and increased its overall Market Share in 4 wheelers to 26.5%. The
Company recorded its highest ever exports of over 50,000 vehicles.
Opportunities
Road Development: The ongoing road development program would improve
connectivity to ports, cities and villages through a network of highways and
interconnecting roads by 2010-11. Improved road network would help in faster
movement of goods between various cities and towns. The Company launched TATA
Novus range of vehicles in the heavy segment and TATA ACE for last mile
distribution. The Company has plans to further strengthen its position in these
segments. The improved road network would also facilitate faster and
consequently increased movement of people by small, medium sized buses and
luxury coaches. The Company would strengthen its Starbus and Globus range of
buses and coaches for getting maximum benefit from this opportunity.
Improved road network would also lead to more people driving out in cars.
Life style vehicles are also expected to grow due to the ongoing road
development program.
Car penetration in India: Car penetration in India is 7 cars per 1,000
persons. The Government's announcement of 8% reduction in Excise Duty on 'Small
Cars' (i.e. cars not more than 4,000mm in length and having <1,200 cc Petrol
engine or <1,400 cc Diesel engine) is expected to increase penetration of
cars in the country. With improvement in infrastructure, increase in disposable
income and easy availability of finance, the outlook for growth of passenger
car sales remains positive.
International: The Company's strategy to grow sales in focused markets by
making entry in select segments with appropriate products enabled it to achieve
record sales of commercial and passenger vehicles in overseas markets this
year, on top of high growth rates witnessed in the previous two years. In FY
2005-06, the Company increased share of its overseas vehicle sales from 7.6%
last year to record high of 11.1% (as % of its total sales) and has planned
further increase in coming year.
Threats
Global Competition: India is increasingly attracting global players to
set up manufacturing facility for producing cars, especially small cars. Global
automobile manufacturers are also entering India in commercial vehicle segment
to leverage India's low cost production advantage to their favor. The Company
plans to remain competitive by bridging the technology gap between its products
and foreign offerings while maintaining its low cost product development and
manufacturing / sourcing advantage.
Fuel Prices: During last year, international crude prices touched
unprecedented levels and were mainly in the range of US$ 60-70 per barrel. The
continuing fuel price increase in the domestic market could significantly
impact demand of commercial and passenger vehicles.
Input costs: Commodity items particularly steel, non-ferrous metals,
rubber and engineering plastics have witnessed huge price increases in the
past. These prices are expected to increase further affecting the Company's
profitability.
Interest rate hardening and other inflationary trends: With interest
rates hardening and liquidity crunch in the system, growth in sales may be
adversely impacted.
Government Regulations: Stringent emission and safety requirements could
bring new complexities for automotive and component manufacturers impacting the
Company's business. WTO, Free Trade Agreements and other similar policies can
potentially open the Indian market to more imports at far lower cost.
Outlook
Commercial vehicle industry being a cyclic industry showed signs of slow
down during FY 2005-06. Continuous growth in GDP, ongoing infrastructure
activity, enforcement of overloading norms/emission regulations and softening
of interest rates could put the industry back on high growth track. However,
increasing fuel and input material prices remain a cause of concern.
In FY06-07, the Company has planned further increase in commercial
vehicle sales by launching suitable products in cargo as well as passenger
segments. Industry outlook for passenger vehicles is double digit growth. The
Company's growth is likely to be better due to presence ire small car segment
which have got excise duty benefit and healthy product pipeline. The Company
has also planned further volume growth free overseas markets in the coming
year.
Financial Performance as a measure of Operational Performance
The Company's financial performance continued to improve in this
Financial Year owing to a good volume growth of 13.7% and continued efforts by
the Company to maintain its margins, driven mainly by cost reduction efforts.
The following table sets forth the breakup of the Company's expenses as part of
the net revenue.
Risks and
Concerns:
Interest Rates: FY 2005-06 started with favorable interest rate regime
and comfortable liquidity position in the economy. However, the later part of
the year witnessed tightening of liquidity position and firming up of interest
rates in the country (especially short term). Increasing interest rates could
further affect vehicle demand which could have an adverse impact on the
Company's revenues and profits.
Exchange rates: The Company exports vehicles to many countries and
exchange rate fluctuations in the order execution period could impact the
Company's business.
Freight rates: In FY 2005-06, freight rates in road transport sector
moved up mainly due to surge in construction activity, ongoing road development
projects and severe restriction on over-loading. Demand for commercial vehicles
could be impacted by further change in freight rates and/or change in fuel
prices.
Railways: The Railways launched new schemes to attract goods movement and
offered aggressive freight rates. A nationwide rail freight corridor connecting
major cities is being planned, which could impact demand for commercial
vehicles for movement of goods.
Domestic market: The commercial vehicle industry is cyclic in nature. The
Company plans to reduce the impact of this cyclicality on its business, by
strengthening its less cyclical businesses like buses, light trucks, small
commercial vehicles and passenger cars and also by growing share of overseas
sales in its overall sales pattern.
Overseas market: In overseas markets, the Company competes with global
players which have multiple vehicle platforms, larger financial capability and
global branding. These factors might impact demand for Company's offerings in
these markets. The Company's ability to comply with vehicle regulations related
to Emksion, Safety, Noise, etc. may also affect Company's competitiveness in
overseas markets.
Manufacturing: The Company manufactures vehicles at multiple locations
and given the geographical dispersion of its suppliers, the Company's supply
chain could get affected due to natural calamities and work stoppages at its
suppliers' end.
New Competition: Competitive activity is expected to increase in
commercial vehicle and passenger vehicle domestic market in coming year.
Commercial vehicle business could witness entry of new foreign players through
JVs or technological tie-ups. Passenger vehicles could witness strengthening of
competition in diesel powered car segment. The Company is aware of the
increasing competition and is taking measures to remain competitive in market place.
New projects: The Company currently is in midst of executing many new
projects ranging from launch of new car platforms to development of new Truck
models. Though the Company uses sophisticated techniques and processes to
forecast demand, the same is subject to margin of error which could affect its
business. Managing complexity of operations, introducing products in a timely
manner and product acceptability in market place could also impact the
business.
Total vehicle sales at
33,018 nos., up 9.4%
Commercial vehicle sales up 16.9%; Passenger vehicle sales up 2.1%
Exports grow by 83%
Tata
Motors reported a total sale of 33,018 vehicles (including exports) for the
month of June '05, a growth of 9.4% over 30183 vehicles sold in June last year.
Cumulative sales for the Company at 87496 nos. are growing by 3% this fiscal.
The Company's sales in June '05 in the domestic market stood at 29,981 nos. as
against 28,522 vehicles sold last year, an increase of 5.1%.
Commercial vehicles
The Company's sales of commercial vehicles in June '05 in the domestic market
stood at 15,530 nos., an increase of 15.5% over 13,445 nos. sold in June last
year. M&HCV sales at 9574 nos. grew 2.3% and LCV sales at 5956 nos. grew
45.6% over the corresponding period last year.
Cumulative sales of commercial vehicles for the fiscal stood at 37,231 nos.
Passenger vehicles
The passenger vehicle business reported a sale of 14,451 vehicles in June '05
in the domestic market. The Indica registered a sale of 8700 nos., while the
Indigo registered a sale of 2937 nos. Utility vehicles accounted for sales of
2814 vehicles in June '05.
Cumulative sales of passenger vehicles for the fiscal stood at 41,192 nos.
Exports
Total vehicle sales at
30,589 nos., up 2.7%
Exports up 96.9%
Tata Motors reported a total sale of 30,589 vehicles (including exports) for
the month of May '05.
Commercial Vehicles
Total sales of commercial vehicles were 15,387 nos. in May '05, of which 13,333
nos. were in the domestic market and 2,054 nos. were in the export market.
Domestic M&HCV sales were 7,171 vehicles and LCV sales stood at 6,162
vehicles for May '05. Shortage of certain critical items continued in May '05
and the Company is working closely with the suppliers to improve the situation.
The new mini-truck Tata ACE was introduced in the month of May '05. Initially
available across the states of Maharashtra, Karnataka, Andhra Pradesh, Kerala,
Tamil Nadu and the Union Territory of Pondicherry, the ACE has evoked an
enthusiastic response in these markets.
Cumulative sales of commercial vehicles stood at 25,546 nos. for the fiscal, of
which 21,701 vehicles were in the domestic market and 3,845 vehicles were in
the export market.
Passenger Vehicles
The passenger vehicle business reported a total sale of 14,005 vehicles in May
'05 in the domestic market. Cumulative sales for the fiscal at 26,741 nos. are
up by 4%.
The Indica registered a sale of 8,480 nos., while the Indigo registered a sale
of 3,031 nos. The Sumo and the Safari accounted for sales of 2,494 nos. in the
month.
Exports
The Company exported 3,251 vehicles in May '05, an increase of 96.9% over 1,651
vehicles in May '04.
The Company's sales from exports were 3037 vehicles in June '05 as compared to
1661 vehicles in June '04, an increase of 82.8%. The cumulative sales from
exports in the current period at 9073 nos. have recorded a 113% growth over the
corresponding figures for the previous period.
Released on : 3rd July, 2006
Total vehicle sales at 45,223 nos., up 37%
Exports up 71%
Tata Motors reported a total sale of 45,223 vehicles (including exports) for
the month of June 2006, a growth of 37% over 33,018 vehicles in June last year.
Cumulative sales for the Company at 126,152 nos. are growing by 44.3%.
Commercial Vehicles
The Company's sales of commercial vehicles in June 2006 in the domestic market
were 21,565 nos., an increase of 38.9% over 15,530 vehicles sold in June last
year. M&HCV sales stood at 11,808 nos., a growth of 23.3% over June 2005
while LCV sales were 9,757 nos., a growth of 63.8% over June 2005. The monthly
sales of the newly launched Ace crossed the 5,000 sales mark for the first
time.
Cumulative sales of commercial vehicles in the domestic market for the fiscal
were 63,140 nos., an increase of 69.5% over last year. Cumulative M&HCV
sales stood at 36,606 nos., an increase of 59.1% over last year, while LCV
sales for the period were 26,534 nos., an increase of 86.4% over last year.
Passenger Vehicles
The passenger vehicle business reported a total sale of 18,463 vehicles in the
domestic market in June 2006, an increase of 27.8% over June 2005. The Indica
sold 12,271 nos., a growth of 41% over June 2005. The Indigo family registered
sales of 2,885 nos., a decline of 1.7% over June 2005. The Sumo and Safari
accounted for sales of 3,307 nos., a growth of 17.5% over June 2005. The new
Safari range launched in the latter part of the month enabled the model to
cross the 1,000 sales mark in a month for the first time, at 1011 nos.
Cumulative sales of passenger vehicles in the domestic market for the fiscal
were 49,906 nos., an increase of 21.2% over last year. Cumulative sales of
Indica at 33,173 nos. registered a growth of 32.7% over last year while
cumulative sales of the Indigo family at 8,316 nos. registered a decline of 6%
over last year. The entry mid-size segment continues to see a decline which
started in 2005-06, and the Indigo range has increased its market share in a
declining segment. Cumulative sales of Sumo and Safari were 8,417 nos., a growth
of 14.6% over last year.
Exports
The Company's sales from exports were 5,195 vehicles in June 2006 as compared
to 3,037 vehicles in June 2005, an increase of 71%. The cumulative sales from
exports in the current period at 13,106 nos. have recorded 45.8% growth over
the corresponding figures for the previous period.
Released on : 13th June, 2006
Large Bus Exports order for Tata Motors;
To help Revamp Urban Transport System in Kinshasa, Democratic Republic of Congo
Tata Motors has further expanded its Bus Exports operation by entering the
Democratic Republic of Congo, where it has received and is executing a large
order valued at about Rs.550.000 Millions , to revamp the urban transport
system of Kinshasa, the capital city. As a major part of this order, 228 nos.
of buses have been delivered so far. The buses are being supplied under the
Indian Government's Line of Credit to the Democratic Republic of Congo, through
the EXIM Bank of India.
In 2005-06, Tata Motors exported over 6,000 buses, registering an impressive
growth of about 45% over the previous year. The company exports buses to
several countries in Africa, the Middle East, Russia, Ukraine, Malaysia,
besides the SAARC countries. Tata buses have a strong presence in most African
countries like South Africa, Senegal, Algeria and the Middle East countries
like UAE, Kuwait and Qatar.
The 228 buses for Congo were presented in a special public ceremony in
Kinshasa. Mr. Muthu Kumar, Special Envoy of the Government of India, handed
over the keys to Mr. Herodia Ndombasi, Democratic Republic of Congo's Vice
President, who is also in charge of Reconstruction & Development, in the
presence of senior government officials and representatives of Tata Motors.
Mr. P.G. Shankar, Tata Motors' Head – International Business for Commercial
Vehicles, said, “In addition to vehicles, the company is setting up a complete
services network in Kinshasa. They are proud to partner with the Government of
the Democratic Republic of Congo in its endeavour to revamp the urban transport
system.”
About Tata Motors
Tata Motors, the flagship company of the Tata Group, is India's largest
automobile company, with revenues of US$ 5.5 billion in 2005-06. With over 3
million Tata vehicles plying in India, it is the leader in commercial vehicles
and the second largest in passenger cars. It is also the world's fifth largest
medium and heavy truck manufacturer and the second largest heavy bus
manufacturer. Tata cars, buses and trucks are already being marketed in several
countries in Europe, Africa, the Middle East, South Asia, and South East Asia
and in Australia. The company acquired the Daewoo Commercial Vehicles Company,
Korea's second largest truck maker, in 2004. In 2005, it acquired a 21% stake
in Hispano Carrocera, the reputed Spanish bus and coach manufacturer. In 2006,
the company set up a joint venture with Marcopolo, the Brazil-based global
leader in body-building for buses and coaches Besides India, Tata Motors has
R&D centres in South Korea, Spain and the UK.
Released on : 19th June, 2006
Tata Motors introduces new range of Safari vehicles
Tata Motors today announced the launch of a new range of its premium SUV brand,
the Tata Safari. The range sports two exciting new colors – Pearl White and
Cherry Red, in addition to the existing colors, and is available in 3 engine
options – 90PS Turbo Charged Inter-cooled (TCIC) Diesel, 115 PS Direct
Injection Common Rail (DICOR) Diesel, and 127 PS, Multi-point Fuel Injection
(MPFI) Petrol.
The Safari range benefits from the result of an aggressive cost-reduction plan,
which has been undertaken by the company as part of its business plans. The
entry-level TCIC offering is available at a price point of Rs.0.640
Millions (ex-Showroom Delhi) in only
the 4x2 option. The Safari DICOR range starts at Rs.0.699 Millions (ex-Showroom
Delhi) and is available in three trim levels in both 4x2 and 4x4 executions,
and the Safari petrol range starts at Rs.79.900 Millions (ex Showroom Delhi) in
both the 4x2 and 4x4 executions. The top end versions of the Safari have ABS,
dual Airbags, reverse guide system and DVD/MP3 system with dual LCD screens as
standard fitment, besides a host of luxury, comfort and entertainment features.
The Tata Safari was the first indigenous, thoroughbred 4-door SUV launched in
India in 1998, and has been the largest selling premium SUV for the last 2
years. The vehicle had its best ever year in 2005-06 with a sale of 4692 nos.,
growing by 48% over the previous financial year. The trend has continued in the
current fiscal with a 240% growth in April-May 2006 compared to the
corresponding period of the last fiscal. The company believes that the new
range announced today will enable the volumes and market share of the brand to
grow significantly in its segment.
Released on : 1st June, 2006
Tata Motor finance posts 60% growth in 2005-06;
Emerges as one of the leading vehicle financiers of the country
Tata Motorfinance, the auto financing arm of Tata Motors, has emerged as one of
the leading vehicle financing operations of the country. Tata Motorfinance has
achieved this milestone, while financing mainly Tata Motors vehicles. The
overall vehicle financing done by Tata Motorfinance in the year 2005-06 was
about Rs.55000.000 Millions , a 60% increase over Rs. 34000.000 Millions n the
previous fiscal.
2005-06 highlights
- A total of about 113,000 contracts booked, including refinance and
Construction Equipment (CEQ)
- 96,247 new vehicles financed, a 43% increase compared to 67,356 vehicles in
2004-05
- Refinance business grew by 110%
- CEQ business grew by 165%
Mr Aubrey .I. Rebello, Chief, Tata Motor Finance, says, "Their goal is to
be the preferred financier for Tata Motors customers and channel partners. They
are looking at capturing customer spending over the vehicle life-cycle, by
extending value added products combining financing offerings with insurance,
fleet management, operating leases, re-finance, and other products"
About Tata Motorfinance
Tata Motorfinance is the auto financing arm of Tata Motors, providing finance
primarily for Tata Motors vehicles. It was established in June 2003, through
the joint marketing arrangement, between Tata Motors' Bureau for Hire Purchase
and Credit (BHPC) division, and Tata Finance's Asset Financing arm. It became a
division of Tata Motors in April 2005, with the merger of Tata Finance with
Tata Motors. Tata Motorfinance has 70 offices in India.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No exist designating
subject or any of its beneficial owners, controlling shareholders or senior
officers as terrorist or terrorist organization or whom notice had been
received that all financial transactions involving their assets have been
blocked or convicted, found guilty or against whom a judgement or order had
been entered in a proceedings for violating money-laundering, anti-corruption
or bribery or international economic or anti-terrorism sanction laws or whose
assets were seized, blocked, frozen or ordered forfeited for violation of money
laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to
suggest that the property or assets of the subject are derived from criminal
conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal Records
No available information exist that suggest that
subject or any of its principals have been formally charged or convicted by a
competent governmental authority for any financial crime or under any formal
investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any director or
indirect owners, controlling shareholders, director, officer or employee of the
company is a government official or a family member or close business associate
of a Government official.
9] Compensation Package :
Our market survey revealed that the amount of
compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.17 |
|
UK
Pound |
1 |
Rs.85.24 |
|
Euro |
1 |
Rs.57.89 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses
an extremely sound financial base with the strongest capability for timely
payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses
adequate working capital. No caution needed for credit transaction. It has
above average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors
will not cause fatal effect. Satisfactory capability for payment of interest
and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse
factors are apparent. Repayment of interest and principal sums in default or
expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute
credit risk exists. Caution needed to be exercised |
Credit not recommended |