MIRA
INFORM REPORT
|
Report Date : |
21.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TATA MOTORS LIMITED |
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Registered Office : |
Bombay House, 24, Homi Mody Street, Hutatma Chowk, Mumbai – 400 001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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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 |
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RATING |
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 270000000 |
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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
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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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Corporate Office: |
Durga Expressway P O Singer B O Via Singur S O H 712409, West Bengal, , India |
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Mobile No.: |
91-9820615882 / 3982 |
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Fax No.: |
91-22-25705042 |
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Factory : |
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:
91-80-25320321, Fax : 91-80-25580019 e-mail: tsrlbang@tatashare.com v Bungalow
No.1,"E"Road, Northern Town, Bistupur, Jamshedpur-831 001 Tel: 91-657-2426616, Fax: 91-657 -
2426937 Email : tsrljsr@tatashare.com v Tata Centre, 1st Floor, 43,
Jawaharlal Nehru Road, Kolkata - 700 071 Tel: 91-33-22883087, Fax : 91-33 -
22883062 e-mail : tsrlcal@tatashare.com v Plot No.2/42,
Sant Vihar, Ansari Road, Daryaganj, New Delhi- 110002 Tel: 91-11 -23271805, Fax : 91-11 -
23271802 e-mail: tsrldel@tatashare.com |
DIRECTORS
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Name : |
Mr. Ratan N. Tata |
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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/Age : |
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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OTHER PERSONNEL: |
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Name : |
Mr. H. K. Sethna |
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Designation : |
Company Secretary |
KEY EXECUTIVES
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Name : |
Mr. A P Arya |
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Designation : |
President
(Jamshedpur & Lucknow Works) |
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Name : |
Mr. P M Telang |
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Designation : |
President (Pune
& Dharwad Works) |
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Name : |
Mr. Rajiv Dube |
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Designation : |
Sr. Vice
President (Commercial) PCBU |
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Name : |
Mr. C
Ramakrishnan |
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Designation : |
Vice President
(Chairman's Office) |
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Name : |
Mr. Shyam Mani |
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Designation : |
Vice President
(Sales & Marketing) CVBU |
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Name : |
Mr. RT Singh |
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Designation : |
Vice President
(Manufacturing) |
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Name : |
Mr. K C Girotra |
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Designation : |
Vice President
(Lucknow Works & FBV) |
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Name : |
Mr. R S Thakur |
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Designation : |
Vice President
(Finance) |
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Name : |
Mr. R R Akarte |
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Designation : |
Vice President
(Manufacturing) |
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Name : |
Mr. M V Rajarao |
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Designation : |
Vice President (Manufacturing) |
SHAREHOLDING
PATTERN
|
Names of Shareholders (as on 31.12.2007) |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group2 |
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Indian |
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Bodies Corporate |
128462429 |
39.15% |
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Trust |
354976 |
0.11% |
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Public Shareholding |
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Institutions |
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Mutual Funds / UTI |
12625354 |
3.44% |
|
Financial Institutions / Banks |
1158327 |
0.43% |
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Central Government / State Government(s) |
407181 |
0.12% |
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Insurance Companies |
51804238 |
12.82% |
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Foreign Institutional Investors |
67378437 |
21.16% |
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Foreign Institutional Investors - DR |
162340 |
0.00% |
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Foreign Bodies - DR |
345257 |
0.01% |
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Foreign Nationals DR |
700 |
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Non-Institutions |
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Bodies Corporate |
4136901 |
1.21% |
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Individuals |
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Individuals - i. Individual shareholders holding nominal
share capital upto Rs.0.100 Million |
38071972 |
11.63% |
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ii. Individual shareholders holding nominal share capital
in excess of Rs. 0.100 Million |
2091503 |
0.68% |
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Directors & their relatives |
117227 |
0.04% |
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Non Resident Indians |
2420420 |
0.74% |
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Clearing Member |
483064 |
0.05% |
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Trusts |
98630 |
0.03% |
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Overseas Corporate Bodies |
98 |
0.00% |
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Foreign Corporate Bodies (including FDI) |
27476173 |
8.38% |
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Shares held by custodians against which depository receipts have been issued |
47908727 |
12% |
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Total |
385503954 |
100.00% |
BUSINESS DETAILS
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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
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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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No. of Employees : |
22349 |
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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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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Deloitte Haskins & Sells Chartered Accountant |
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Memberships : |
Confederation of Indian Industry |
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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 and many other member companies |
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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 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
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 |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
3854.100 |
3828.700 |
3617.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
64843.400 |
51542.000 |
37496.00 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
68697.500 |
55370.700 |
41113.900 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
20220.400 |
8227.600 |
4898.100 |
|
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2] Unsecured Loans |
19871.000 |
21140.800 |
20056.100 |
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TOTAL BORROWING |
40091.400 |
29368.400 |
24954.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
5652.800 |
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TOTAL |
108788.900 |
84739.100 |
71720.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
38812.600 |
35700.400 |
31576.700 |
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Capital work-in-progress |
25133.200 |
9511.900 |
5388.400 |
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INVESTMENT |
24770.000 |
20151.500 |
29120.600 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
25009.500 |
20122.400 |
61.200 |
|
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Sundry Debtors |
7821.800 |
7157.800 |
16013.600 |
|
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Cash & Bank Balances |
8267.600 |
11194.300 |
8113.200 |
|
|
Other Current Assets |
0.000 |
0.000 |
20050.400 |
|
|
Loans & Advances |
62085.300 |
59646.100 |
27223.500 |
|
Total
Current Assets |
103184.200 |
98120.600 |
71461.900 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
69568.800 |
66736.100 |
54747.700 |
|
|
Provisions |
13643.200 |
12150.400 |
11260.600 |
|
Total
Current Liabilities |
83212.000 |
78886.500 |
66008.300 |
|
|
Net Current Assets |
19972.200 |
19234.100 |
5453.600 |
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MISCELLANEOUS EXPENSES |
100.900 |
141.200 |
181.600 |
|
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|
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|
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TOTAL |
108788.900 |
84739.100 |
71720.900 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
314869.700
|
236734.300
|
201520.300
|
|
|
Other Income |
6983.500
|
6939.200
|
5602.900
|
|
|
Stock Adjustments |
3496.800
|
2569.100
|
1440.000
|
|
|
Total Income |
325350.000 |
246242.600 |
208563.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
25731.800
|
20533.800
|
16519.000
|
|
|
Provision for Taxation |
6597.200
|
5245.000
|
4149.500
|
|
|
Profit/(Loss) After Tax |
19134.600
|
15288.800
|
12369.500
|
|
|
|
|
|
|
|
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Export Value |
NA |
NA |
14978.500 |
|
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|
|
|
|
|
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Import Value |
NA |
6269.800 |
2728.100 |
|
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Expenditures : |
|
|
|
|
|
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Raw Materials |
193749.300
|
142638.600
|
119294.800
|
|
|
Excise Duty |
44254.400
|
33801.300
|
30634.400
|
|
|
Power & Fuel Cost |
3274.100
|
2585.100
|
2378.100
|
|
|
Other Manufacturing Expenses |
14860.900
|
11419.200
|
10171.100
|
|
|
Employee Cost |
13612.000
|
11414.800
|
10379.300
|
|
|
Selling and Administration
Expenses |
13258.200
|
9857.400
|
7950.300
|
|
|
Miscellaneous Expenses |
12831.800
|
8936.600
|
6737.800
|
|
|
Interest & Financial Charges
|
3685.100
|
2934.900
|
2178.100
|
|
|
Depreciation |
5862.900
|
5209.400
|
4501.600
|
|
Total Expenditure |
305388.700 |
228797.300 |
194225.500 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
60568.200 |
66726.500 |
72518.300 |
|
Other Income |
2941.800 |
1015.100 |
1805.000 |
|
Total Income |
63510.000 |
67741.600 |
74323.300 |
|
Total Expenditure |
55298.400 |
58967.400 |
64467.700 |
|
Operating Profit |
8211.600 |
8774.200 |
9855.600 |
|
Interest |
815.600 |
964.900 |
1529.500 |
|
Gross Profit |
7396.000 |
7809.300 |
8326.100 |
|
Depreciation |
1474.700 |
1597.400 |
1675.100 |
|
Tax |
1253.700 |
943.500 |
1660.500 |
|
Reported PAT |
4667.600 |
5268.400 |
4990.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.56 |
0.56 |
0.49 |
|
Long Term Debt-Equity Ratio |
0.36 |
0.49 |
0.47 |
|
Current Ratio |
1.07 |
1.08 |
0.87 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
3.77 |
3.25 |
3.20 |
|
Inventory |
13.95 |
13.10 |
14.66 |
|
Debtors |
42.02 |
31.27 |
28.51 |
|
Interest Cover Ratio |
7.98 |
8.00 |
8.58 |
|
Operating Profit Margin(%) |
11.20 |
12.11 |
11.51 |
|
Profit Before Interest And Tax Margin(%) |
9.34 |
9.91 |
9.28 |
|
Cash Profit Margin(%) |
7.94 |
8.66 |
8.37 |
|
Adjusted Net Profit Margin(%) |
6.08 |
6.46 |
6.14 |
|
Return On Capital Employed(%) |
30.52 |
31.25 |
32.76 |
|
Return On Net Worth(%) |
30.98 |
31.36 |
32.12 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was (Formerly known as Tata Engineering and
Locomotive Company Limited), Controlled by the House of Tatas, is the
fifth-largest manufacturer of medium and heavy commercial vehicle and the
second largest medium and heavy bus manufacturer 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 also manufactures passenger cars, utility vehicles, excavators and machine
tools. The manufacturing units are located at Jamshedpur, Pune, Lucknow and
Pant Nagar in Uttarakhand.
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 Under frames 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
1st June 1945 for Rs. 2.539 Millions with the aim of immediately manufacturing
steam locomotive boilers. Later it planned to manufacture complete locomotives
and other engineering products.
1946 Tata Engineering was undertaken manufacture of 5000 'KC' broad gauge open
wagons for the Indian Railway. The Managing Agency Tata Sons was transferred to
Tata Industries on 1st July 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, West Germany for manufacture
of steam locomotives.
1954 Collaboration with M/s Daimler-Benz AG, West 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 Centre set up at Jamshedpur.
1960 The company's name, which was Tata Locomotive and Engineering Company
Limited, was changed to Tata Engineering and Locomotive Company Limited
1961 Collaboration with M/s Pawling and Harnischfeger (PandH), 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 Company 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, West Germany, for the
manufacture of unit construction special purpose machines.
1969 The 'T' trade mark symbol 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 Company 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 Tonnes,
includes 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 Company
Limited, Japan for NC / CNC Horizontal Machining Centres and with
Nachi-Fujikoshi Corp., Japan for NC/CNC In line Machining Centres 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, West 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 Company Inc. to
manufacture high horse power 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 turbo chargers 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 and III machines in Mar'
1998. Indica, India's first fully indigenous car, launched in Dec' 1998. Telco
Construction Equipment Company Limited (TELCON) came into 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 was transferred to
TELCON. In Oct' 1999, the Company won the National award for RandD 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 plat form 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 March2002.
As per plans, the company came out with rights issue in Oct' 2001 raising Rs.
6710 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 Millions. Equity will rise to Rs 3445.700 Millions between 6th
Jun' 2003 to 30th Sep' 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 have enabled the company
a turnaround one. During 2003 the company entered into a manufacturing and
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'.
In 2003-04, the Company acquired Daewoo Commercial Vehicle Company Limited for
a price of Rs.4650 Millions at Gunsan in Republic of South Korea.
The Board of directors have considered and approved the proposal for the merger
of its two subsidiaries, Telco Dadajee Dhackjee Limited and Suryodaya Capital
and 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 Board 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
In 2004-05, the company launched Tata Sumo Victa, Tata Spacio Gold and Tata
Indigo Marina in Passenger Vehicles segment and Tata Globus and Starbus in
Commercial Vehicles segment.
In 2005-06, the company created a new segment in the domestic commercial
vehicle market by launching India's 1st Mini Truck - TATA ACE in May 2005. The
company also launched the TATA Novus range of heavy vehicles in December 2005.
The company also introduced two new model of Tata Indica, Turbo-diesel version
and the extra fuel efficient torque advantage petrol engine model during the
year. The styling and design of the new small car have been completed and
prototypes are being tested within the plant. It will be a rear-engine, 4-5
seat, 4-door car with about a 30 horsepower engine. The car is expected to be
launched in early 2008.
In 2006-07, Tata Motors initiated steps for establishing a Small Car plant in
Singur, West Bengal with a capacity of 250,000 vehicles per annum. The company
remains committed to launching its new small car in the first half of 2008. The
company also setting up a green-field manufacturing facility in Uttarakhand.
This plant will have manufacturing capacity of 225,000 vehicles per annum.
During the year, Tata Motors entered a 70:30 Joint Venture with Thonburi
Automotive Assembly Plant Company, Thailand to manufacture pick-up trucks in
Thailand. The joint venture will facilitate the company to address the Thailand
market, which is the second largest pickup market in the world, as also address
other potential markets in that region. The company also entered into a 51:49
Joint Venture with Marcopolo, Brazil to address high quality, mass
manufacturing of buses in India. This strategy would enable the company to
increase its market share in Indian bus market and also address a larger
segment of the global bus market.
In August 2006, Tata Motors has set up a new subsidiary for its vehicle
financing operations. The new entity, TML Financial Services Limited (TMLFSL),
is a 100% subsidiary and will function as an NBFC (Non Banking Finance
Company), for which it has received the necessary approval from the Reserve
Bank of India. TMLFSL will support and enhance the vehicle financing activities
of Tata Motor finance.
In October 2006, Tata Motors crossed the four million sales mark in India,
since the first vehicle was rolled out in 1954. Inclusive of exports, the
company had crossed the four million sales mark in March 2006.
In November 2006, the company has acquired a South African manufacturing plant
from Japanese auto giant Nissan. This plant was acquired through Tata Africa
Holdings, a part of the company. It will be utilized for assembling and
manufacturing of vehicles.
In December 2006, Tata Motors entered an agreement with Fiat Auto S.p.A., Italy
for the formation of a Joint Venture at Ranjangaon in Maharashtra to produce
cars both for Fiat and the company as well as engines and transmissions. The
new plant will have production capacity of 100,000 cars and 200,000 engines and
transmissions per annum.
OPERATING
RESULTS AND PROFITS:
Financial year 2006-07 was another outstanding year for the
Company, which recorded peak performance on almost all major financial
parameters. The Company retained its position as the largest automobile company
in India in terms of revenue. Overall sales volume at 580,280 vehicles was
higher by 28% as compared to previous year, crossing the half a million mark
for the first time and turnover at Rs.318850 Millions was higher by 33% than in
Financial years 2005-06. The Company strengthened its position in the domestic
commercial vehicle market with a 2.6% points gain in its market share to 63.8%,
and also retained its position as the second largest player in the domestic
passenger vehicle market with a 16.5% market share. Export volumes at 53474
units grew by 6.5% as compared to the previous year. The EBIDTA at 12.9% were
lower than 13.9% achieved in FY05-06, mainly due to input price increase which
could not be fully absorbed from the market. The Profit Before Tax at
Rs.25731.800 Millions was 25% higher than Rs.20533.800 Millions in FY05-06.
After providing for current and deferred taxes, the Profit After Tax was
Rs.19134.600 Millions (FY 2005-06: Rs.15288.800 Millions), an increase of 25%
over the previous year.
The Company was conferred with the Golden Peacock Global Award for Corporate
Social Responsibility - 2007 in the 'Large Business' category by the Institute
of Directors, the international body of company directors. The Company also
received 'CII-ITC Sustainability Award 2006' based on Corporate Governance
practices and Economic, Environmental and Social performance - the Triple
Bottom Line concept as per guidelines of the Global Reporting Initiative
(GRI).
COMMERCIAL
VEHICLES:
The Company reported a sale of 334,238 commercial vehicles
in the domestic and overseas markets, representing a growth of 36.4% over the
last fiscal.
The Company outperformed the industry and strengthened its market leadership
with a 39% growth in domestic commercial vehicle sales to an all time high of
298,586 nos. In the M and HCV segment, the Company recorded a 34.4% growth in
sales and increased its market share by 0.7% points to 62.7%. The overall
growth in the MandHCV market was mainly due to growing shift towards higher
tonnage vehicles like haulage tractors and multi axle vehicles as also the
Company's buses and coaches which found greater acceptance.
In the LCV segment, the Company recorded a 45.8% growth in sales and increased
its market share by 5.3% points to 65.4%. The overall growth in the LCV market
was mainly due to the impressive performance by the Company's mini truck - TATA
Ace. The Company rolled out the 100,000 th TATA Ace in a record time of 22
months since its launch in May 2005. The TATA Ace also won the Business World -
Marico's 'Business Innovation 2006' award.
Commercial vehicle exports grew by 18.1% to reach a peak of 35,652 vehicles
with MandHCV at 12,155 units, recording a 47.1% growth and LCVs at 23,497 units
recording a negative growth of 7.2% over the previous year. Revenue from the
non-vehicular business witnessed a 21% growth in the fiscal, mainly due to the
growth in spare parts business.
During the year, the Company worked towards setting up a green-field
manufacturing facility in Uttarakhand. The Company entered into a 70:30 joint
venture with Thonburi Automotive Assembly Plant Company, Thailand to
manufacture pick-up trucks in Thailand. The joint venture will facilitate the
Company to address the Thailand market, which is the second largest pickup
market in the world, as also address other potential markets in that
region.
To further strengthen its position in the passenger carrier segment, the
Company formed a 51:49 Joint Venture with Marcopolo S.A., Brazil, a global leader
in building bodies for buses and coaches, to manufacture and assemble fully
built buses and coaches in India.
The Company also signed a Memorandum of Understanding with IVECO, a company of
the Fiat Group to evaluate the feasibility of co-operation, across markets, in
the area of commercial vehicles, which encompasses a number of potential
developments in engineering, manufacturing, sourcing and distribution of
products, aggregates and components.
PASSENGER
VEHICLES:
The Company sold 246,042 passenger vehicles (including sale
of 1,328 Fiat cars) in the domestic and overseas markets, recording a growth of
17.7%. The Company achieved its highest ever domestic sales of 228,220
vehicles, recording a growth of 21%.
The Company continues to be the second largest player in terms of domestic
sales, with a 16.5% market share of the overall Indian passenger vehicle
market. Exports at 17,822 passenger vehicles declined by 11% over the previous
year mainly due to the appreciating rupee and certain production constraints.
South Africa continued to be the biggest market outside India for the
Company.
The TATA Indica's sales at 144,690 nos. were the highest for any year in the
domestic market with a growth of 30%, mainly due to the wide acceptance of the
new petrol (XETA) range and a facelift introduced in the last quarter of the
fiscal. The Company also launched a 1.2 Litre petrol version in November 2006
on the Indica range which is eligible for excise duty concessions under the
Government's small car definition.
The TATA Indigo range was expanded with the launch of the country's first
stretched sedan concept - the Indigo XL in the last quarter. With a total sale
of 34,310 vehicles, the TATA Indigo range continues to be the best seller in
the entry mid-size segment, although the segment has been declining for the
past two years. The Company introduced a new 1.4 Litre 101PS petrol and a 70PS
common rail diesel (DICOR family) engine on the Indigo range as well as a
facelift during the year.
The Company's sales and market share were slightly impacted due to a fire in
September-06 in the paint shop of the Car Plant at Pune disrupting
manufacturing operations. The Company ensured minimum loss of production by
taking various steps on priority and operations were gradually restored during
the year. The Company is fully insured against the loss arising due to
fire.
The TATA Sumo and the TATA Safari recorded the highest ever sales of 47,892
vehicles in the utility vehicle segment, recording a 26% increase over last
year. Price re-positioning of the TATA Safari range helped the model achieve a
growth of 237% over last year.
In December 2006, the Company signed an agreement with Fiat Auto S.p.A., Italy
for the formation of a joint venture at Ranjangaon in Maharashtra to produce
cars both for Fiat and the Company as well as engines and transmissions. The
new plant is expected to have a capacity of 100,000 cars and 200,000 engines
and transmissions per annum. The Company has been distributing Fiat branded
cars through the Tata-Fiat dealer network as per the arrangement already in
place since March 2006. The Company has sold 1,328 Fiat cars during the year
through 44 joint dealerships. The Company also entered into an agreement with
Fiat to enable Fiat to manufacture a pickup at its Cordoba plant in Argentina
from 2008 onwards under licence from the Company.
During the year, the Company initiated steps for establishing a Small Car plant
in Singur, West Bengal with a capacity of 250,000 vehicles per annum The
Company's Car Plant received the 'National Energy Conservation Certificate of
Merit' at the hands of the President of India, for the second consecutive year.
The Plant also bagged the IMEA (India Manufacturing Excellence Awards) 2006
Overall 'Super Platinum 1st Runner up Award' in the 'Large Enterprise Category'
for sustained manufacturing excellence. The manufacturing activities were
ISO/TS 16949:2002 certified by Bureau Veritas during the year.
The Company's brands continued to be recognized at various forums. The TATA
Indica was ranked as one of India's top 10 Power Brands in a survey conducted
by the Indian Council of Marketing Research (ICMR). The Company's advertising
was recognized at the 'CNBC TV18 - Autocar Auto Awards' while the TATA Indica
was recognized as the best small diesel car by the 'TNS Voice of the Customer
Awards'. The TATA Cliffrider, a 4-door life style pickup won the 'Top Gear'
Design of the Year Award, in the category of Concept Vehicles in India. During
the year, the entire dealership network of the Company was covered under a
comprehensive CRM program - the largest initiative of its kind in the
country.
The Company celebrated its 10th year at the Geneva Motor Show with the
unveiling of the Tata Elegante concept, a sedan based on the new platform under
development, highlighting styling cues likely to be seen on the Company's new
generation of cars.
TATA
MOTOR FINANCE - CUSTOMER FINANCING INITIATIVES:
The vehicle financing division of the Company and its wholly
owned subsidiary company, TML Financial Services Limited operate under the
brand name 'Tata Motor finance (TMF)'. TMF financed 1,65,376 new vehicles, a
growth of 71.8% over 96,247 in the previous year. With disbursals of Rs.94150
Millions, a growth of 71.8% over Rs.54790 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 31.4% of the total domestic sales, compared to 23.8% 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.
In the Commercial Vehicle financing segment, TMF achieved a market share of
37.7%, with total disbursements for FY 06-07 at Rs.61220 Millions, recording a
66% growth. TMF financed 100,088 units, an increase of 63% over the previous
year. The Passenger car financing arm of TMF continued to grow at a CAGR of
70%, thus supporting the Tata Motors Passenger Car sales, by financing 28.8% of
its total domestic sales. During the year, TMF financed 65,288 units,
disbursing Rs.20680 Millions and posting a growth of 79% over last year. The
Construction Equipment finance grew by 292% (Rs.6630 Millions) against Rs.2260
Millions in the previous year, recording a CAGR of 164% and emerged as the No.1
financer to Telco Construction Equipment Company Limited, a subsidiary of the
Company, with an aggregate market share of 32% (22% in 2005-06).
FINANCE:
In spite of significant increase in the Company's capital
expenditure spending on its new projects, the Company could maintain overall
borrowings of Rs.40091.400 Millions as on March 31, 2007 at a Debt: Equity
ratio of 0.58. In fact, net of its vehicle financing portfolio, the Company is
a debt free company as on March 31, 2007.
The Company's rating for foreign currency borrowing has been upgraded by
Standard and Poor from BB to BB+ and the same is under review with Moody's. For
borrowing in local currency, the same was maintained at AA+ by ICRA and
CRISIL.
The Company has been successful in effective management of currency risks
amidst sharp increase in volatilities in the past years. On account of this and
further due to significant appreciation of Rupee in the current year, the
Company recorded a net exchange gain of Rs.1304.800 Millions as compared to a net
exchange loss for the previous year of Rs.185.300 Millions.
IT AND
RESEARCH AND DEVELOPMENT INITIATIVES:
The Company focused on aligning IT objectives with business
goals and made significant investments to enhance IT capabilities. On product
and process design, the Company invested Rs.550 Millions in areas of CAD and
Digital Manufacturing. A number of new Knowledge Based Engineering (KBE) tools
were developed to improve productivity and throughput of design activities. All
new vehicle platforms were founded on the 'Teamcentre' Product Lifecycle
Management (PLM) solution which enables vastly improved CAD Integration,
Project Management and collaborative product development with Vendors. The
solution also provides low cost visualization of CAD data and digital mock up.
Using their SAP ERP Global templates, the ERP infrastructure required for
Uttarakhand operations was provided and preparatory work of the Small Car and
for the joint ventures was initiated. The Company's Oracle based Customer
Relations Management programme has now been deployed to 1000 locations and over
15,000 users in the domestic and international channel. Real time data on the
customer and the vehicle is now available across the Company and the
distribution channel. Data warehousing is now being used extensively across the
organization both on SAP and CRM.
The Company continued its focus on research and development activities in
product development, environmental technologies and vehicle safety through its
Engineering Research Centre based in Pune and Jamshedpur and alongwith Tata
Motors European Technical Centre, plc, Tata Daewoo Commercial Vehicle Company
Limited and Hispano Carrocera S.A. are developing world-class products which
would open various international markets in the future. In addition, the
Company's RandD activities also focus on developing vehicles running on
alternative fuels, including CNG, LPG and bio-diesel, besides pursuing
alternative fuel options such as ethanol blending and development of vehicles
fuelled by hydrogen. In electronics, the Company has taken initiatives such as
engine management systems, in-vehicle network architecture, telematics for
communication and tracking and other emerging technological areas.
SUBSIDIARY
AND ASSOCIATE COMPANIES:
Subsidiary
Companies:
For the Financial Year ended March 31, 2007, the Company's
subsidiaries, on an aggregate basis, have significantly improved their
financial performance and profitability. A brief profile of the subsidiary
companies and their main financial parameters for FY 2006-07, are in this
Annual Report. Brief details of the Company's existing subsidiaries is given
below:
Tata Daewoo Commercial Vehicle Company Limited (TDCV): Korea is a 100%
subsidiary of the Company. TDCV is in the business of manufacture and sale of
heavy commercial vehicles. During the year under review, TDCV witnessed 46%
growth in its total CV volumes to 8630 units and improved its market share by
8.5% to 26.1%, TDCVs heavy vehicle exports were 2/3rd of South Koreas total
heavy commercial vehicle exports. TDCV recorded a turnover of KRW 493.66
billion (Rs.22488.100 Millions at exchange rate prevailing in the year 2006-07)
which was higher by 35% compared to KRW 364.94 billion (Rs.16466.600 Millions
at exchange rate prevailing in the year 2005-06) in 2005-06. The Profit before
Tax at KRW 29.26 billion (Rs.1333.100 Millions) registered an increase of 63%
compared to KRW 17.94 billion (Rs.809.700 Millions) in 2005-06. After providing
for tax, the profit was KRW 21.39 billion (Rs.974.600 Millions) against KRW
13.46 billion (Rs.607.500 Millions) in the previous year, an increase of 59%.
TDCV declared a maiden dividend of 20% on Common Shares for the year 2006-07.
Telco Construction Equipment Company
Limited (Telcon):
Telco Construction Equipment Company Limited (Telcon) is
engaged in the business of manufacturing and sale of construction equipment and
allied services in which the Company has a 60% holding with the balance 40%
being held by Hitachi Construction Machinery Company Limited, Japan. With the
increase in economic activity especially in the infrastructure sector, Telcon
recorded its best performance to date having sold 5360 machines (3674 machines
in 2005-06) with a gross revenue of Rs.18141.600 Millions, a Profit After Tax
of Rs.1838.600 Millions, i.e. an increase of 112% and a dividend of Rs.4/- per
share (Previous Year: Rs.2.50 per share).
Tata Technologies Limited (TTL):
Tata Technologies Limited (TTL) is a subsidiary of the
Company and has a holding 84.76% of TTL's equity capital. Through its operating
companies, INCAT and Tata Technologies iKS, the Tata Technologies group
provides specialized Engineering and Design Services (E and D), Product
Lifecycle Management (PLM) and product-centric IT services to leading manufacturers.
It responds to customers' needs through its 17 subsidiary companies having
operations in 45 cities across 12 countries on three continents and through its
offshore development centers in India and Thailand. Its customers are among the
world?s premier automotive, aerospace and consumer durable manufacturers.
INCAT - founded in 1989 and acquired by Tata Technologies in October 2005, is
the world's leading independent provider of EandD, Product and Information
Lifecycle Management, Enterprise Solutions and Plant Automation. INCAT focuses
on enabling manufacturers to improve revenue and profit by realizing superior
products. INCAT's services include product design, analysis and production
engineering, Knowledge Based Engineering, PLM, Enterprise Resource Planning and
Customer Relationship Management systems. INCAT also distributes, implements
and supports PLM products from leading solution providers in the world such as
Dassault Syst ms, UGS and Autodesk. With a combined global work force of more than
3,000 employees, the Company has operations in the United States (Novi, Mich.),
Germany (Stuttgart) and India (Pune).
Tata Technologies iKS:
Tata Technologies iKS is a global leader in engineering
knowledge transformation technology. For over 15 years, iKS has enabled
engineering knowledge transformation through 'i get it', which is the only web
application in the world offering 100,000 hours of engineering knowledge for
AutoCAD, INVENTOR, Solid Works, Solid Edge, UG/NX, Teamcenter, COSMOS Works, and
CATIA on a single delivery platform application.
TTL had 17 subsidiary companies as at March 31, 2007. A few companies out of
these subsidiaries are being woundup, liquided or merged as also various
restructing initatives are being taken with the objective of bringing in
operating and tax efficiencies by sharpening focus on its services and product
business, fixing territorial responsibility for top and bottom line growth and
establishing a global delivery centre supporting the overall business.
Outlook:
Fiscal 2007-08 marks the beginning of the Eleventh Five Year Plan
which targets average annual growth rate of 9% as compared to 7.6% achieved in
the Tenth Five Year Plan. The automobile industry has deep forward and backward
linkages with the economy and stands to benefit from the economic growth.
Continued focus on road and infrastructure development, increase in industrial
activity and launch of new models, would enable the Indian automotive industry
to move on the higher growth trajectory. However, slow down in the construction
activity, adverse liquidity position, upward movement in consumer interest
rates and increase in fuel and input material prices, remain a cause of concern
and would adversely impact industry sales.
The Industry outlook for commercial and passenger vehicles remains positive
albeit with lower growth from the previous year. Further, interest rates growth
and tightening of liquidity, would deteriorate this position. The Company has
planned to further fortify its position in the coming fiscal by launching new
products in various segments of the automotive market. The Company's presence
in various segments and across geographies would help it to offset some of the
shrinkage/slow growth in the domestic market. The Company is also expanding its
manufacturing footprint to meet its higher growth aspirations.
Financial Performance as a measure of
Operational Performance:
The Company's financial performance continued to improve in
this Financial Year owing to an impressive volume growth of 27.8% 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.
Business
Overview:
The Indian economy witnessed an accelerated GDP growth of
9.2% in FY06-07 as compared to 7.5% in FY04-05 and 9% in FY05-06. Economic
growth, road and infrastructure development, sustained freight availability and
buoyant freight rates had a positive impact on commercial vehicle sales. The
passenger vehicle sales were favorably impacted by reduction in excise duty on
small cars, growth in disposable income and launch of new models. The domestic
commercial and passenger vehicle sales witnessed a 23.7% growth during the
year, in spite of increase in consumer interest rates, tightening of liquidity
position in the last quarter and peaking of fuel prices in the first few months
of the fiscal with a gradual decline during the year. Vehicle exports continued
to grow and witnessed a 14.8% growth over last year.
With a growth of 28%, the Company outperformed the industry and recorded its
highest ever sales of 580,280 (334,238 commercial; 246,042 passenger) vehicles.
The Company's exports witnessed a growth of 6.5% to 53,474 nos.
The Company increased its overall market share in four wheelers to 27.7% by
launching new products and variants, strengthening its marketing activities and
expanding the distribution network.
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.
AS PER WEBSITE:-
Press Releases
Tata Motors statement on raising of additional long term resources –
Rs.40000.000 millions
The Board of Directors of Tata Motors, at its meeting held today, has in
principle approved, subject to other approvals as may be required, raising of
additional long term resources upto Rs.40000.000 millions crores by issue of
appropriate securities in the foreign and/or domestic market in one or more
tranches on terms to be decided by the Board/Committee of Directors in due
course as also the consequent increase in the Authorised Capital of the
Company.
The Company has major growth plans for expanding its position in the
domestic and global markets in both the commercial vehicle and passenger
vehicle business. This will be achieved by upgrading and enhancing the
Company’s product portfolio, expanding manufacturing facilities in India and
strategic acquisitions/alliances in India and abroad. Whilst this may require
incurrence of expenditure for organic growth over the next 3-4 years, the
acquisition opportunities will have to be financed upfront. The said funds are
being raised to part-finance overall funding requirements to meet some of the
strategic plans.
Issued by:
Debasis Ray
Head (Corporate Communications)
Tata Motors Limited
Phone: 00 91 22 66657209;
E-Mail: debasis.ray@tatamotors.com
www.tatamotors.com
Released on : 4th July, 2007
Tata Motors bags National Award for Excellence in Cost
Management
Tata Motors has won the National Award for Excellence in Cost Management for
the year 2006, conferred by the Institute of Cost and Works Accountants of
India (ICWAI).
Tata Motors bagged the first prize in the ‘Manufacturing’ category in the
private sector.
A high profile 17-member jury led by the former Chief Justice of India, Mr J S
Verma, chose the winners after a comprehensive selection process. The criteria
for selection were i) better practices for resource management ii) efficient
utilisation of capacity and working capital iii) quality augmentation programme
and R&D efforts and iv) precise information on performance.
About Tata Motors
Tata Motors is India's largest automobile company, with revenues
of US$ 7.2 billion in 2006-07. With over 4 million Tata vehicles plying in
India, it is the leader in commercial vehicles and the second largest in
passenger vehicles. 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 being marketed in several countries in Europe, Africa, the
Middle East, South Asia, and South East Asia and in Australia. Tata Motors and
Fiat Auto have formed an industrial joint venture in India to manufacture
passenger cars, engines and transmissions for the Indian and overseas markets;
Tata Motors also has an agreement with Fiat Auto to build a pick-up vehicle at
Córdoba, Argentina. The company already distributes Fiat-branded cars in India.
Tata Motors’ international footprint include Tata Daewoo Commercial Vehicle
Company Limited in South Korea; Hispano Carrocera, a bus and coach manufacturer
of Spain in which the company has a 21% stake; a joint venture with Marcopolo,
the Brazil-based body-builder of buses and coaches; and a joint venture with
Thonburi Automotive Assembly Plant Company of Thailand to manufacture and
market pickup vehicles in Thailand. Tata Motors has research centres in India,
the UK, and in its subsidiary and associate companies in South Korea and Spain.
Issued
by:
Debasis Ray
Head (Corporate Communications)
Tata Motors Limited
Phone: 022 66657209;
E-Mail: debasis.ray@tatamotors.com
Website: www.tatamotors.com
Sarika Kapoor/Suresh Rangarajan
Vaishnavi Corporate Communications
Tel: 022-66568787/8759/8741/8713
Fax: 022-66568788
E-mail:skapoor@vccpl.com
Released on : 2nd July, 2007
Total vehicle sales at 44,317 nos.
Year-on-Year and Month-on-Month sales flat
Tata Motors reported a total sale of 44,317 vehicles (including
exports) for the month of June 2007, a decline of 2% over vehicles sold in June
last year. Cumulative sales for the company at 1,27,361 nos. are growing by 1%.
The domestic market continues to be sluggish, due to the high interest rate
regime severely affecting retails.
Commercial Vehicles
The company’s sales of commercial vehicles in June 2007 in
the domestic market were 21,417 nos., a decline of 0.7% over 21,565 vehicles
sold in June last year. M&HCV sales stood at 11,763 nos, a decline of 0.4%
over June 2006, while LCV sales were 9,654 nos., a decline of 1% over June
2006.
Cumulative sales of commercial
vehicles in the domestic market for the fiscal were 61,699 nos., a decline of
2.3% over last year. Cumulative M&HCV sales stood at 32,655 nos., a decline
of 10.8% over last year, while LCV sales for the fiscal were 29,044 nos., an
increase of 9.5% over last year.
Passenger Vehicles
The passenger vehicle business
reported total sales of 17,418 vehicles in the domestic market in June 2007, a
decline of 5.7% over June 2006. The Indica reported sales of 11,727 nos., a
decline of 4.4% over June 2006. The Indigo family registered sales of 2,354
nos., a decline of 18.4% over June 2006. The Sumo and Safari accounted for
sales of 3,337 nos., an increase of 0.9% over June 2006.
Cumulative sales of passenger
vehicles in the domestic market for the fiscal were 51,840 nos., an increase of
3.9% over the previous year. Cumulative sales of the Indica were at 34,599
nos., an increase of 4.3%. Cumulative sales of the Indigo family were at 7,201
nos., a decline of 13.4%. Cumulative sales of Sumo and Safari were 10,040 nos.,
an increase of 19.3%.
Exports
The company's sales from exports at 5,482 vehicles in June 2007 grew by 5.5% as
compared to 5,195 vehicles in June 2006. The cumulative sales from exports in
the current period at 13,822 nos. have recorded a 5.5 % growth over the
previous year.
Issued
by:
Debasis Ray
Head (Corporate Communications)
Tata Motors Limited
Phone: 66657209; E-Mail: debasis.ray@tatamotors.com
www.tatamotors.com
Released on : 31st July, 2007
Tata Motors Consolidated Net Revenue grows by 13% to
Rs.76312.800 Millions in 1st Qtr, 2007-08 Consolidated PAT up by
30% to Rs.4972.200 Millions
Tata Motors today reported Consolidated Revenues (net of excise)
of Rs.76312.800 Millions for the quarter ended June 30, 2007 of the financial
year 2007-08, an increase of 13% over Rs.67333.200 Millions in the
corresponding quarter of 2006-07. The Consolidated PAT was Rs.4972.200
Millions, compared to Rs.3816.700 Millions in the corresponding quarter last
year.
The company’s Standalone Revenues (net of excise) was Rs.60568.200 Millions, an
increase of 5% compared to Rs.57495.600 Millions in the corresponding quarter
last year. Profit Before Tax (PBT) was Rs.5921.300 Millions, an increase of 19%
over Rs.4982.500 Millions in the corresponding quarter last year, while Net
Profit increased by 22% to Rs.4667.600 Millions, compared to Rs.3818.500
Millions in the corresponding quarter last year. Steep increase in input costs
and drop in the volumes of medium & heavy trucks impacted the operating
margin of the company (net of foreign exchange gain) in this quarter.
The sales volume for the quarter (including exports) at 1,28,095 vehicles grew
by 1% over 1,26,394 vehicles in the corresponding period last year. Vehicle
sales in the domestic market were impacted, in varying degrees between the
commercial and passenger vehicles segments, due to the high interest rate
regime affecting retails. Domestic sales of commercial vehicles decreased by 2%
to 61,633 units, while domestic sales of passenger vehicles at 52,573 units
grew by 5%.
Tata Motors exported 13,889 vehicles during the quarter, a growth of 6% over
13,161 units in the corresponding quarter last year.
During the quarter, Tata Motors launched several new vehicles. In passenger
vehicles, the company has introduced the Indigo LS, an entry level common rail
diesel (DICOR) offering in the sedan range, expanded the long wheel base Indigo
XL’s range with the Indigo XL Classic, and launched an upgraded range of Tata
Spacio, its entry level utility vehicle. The company also introduced a new
range of commercial vehicles for passenger transportation, the Magic and the
Winger, which are expected to create new segments. The mini-truck, Ace, has
been introduced in Nepal. Tata Motors has also received an order from the Delhi
Transport Corporation to supply 500 state-of-the-art low-floor CNG-propelled
buses, which will begin to be delivered from the second half of the financial
year.
The audited financial results for the quarter ended June 30, 2007, are
enclosed.
Issued by:
Debasis Ray
Head (Corporate Communications)
Tata Motors Limited
Phone: 00 91 22 66657209; E-Mail: debasis.ray@tatamotors.com
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.40.45 |
|
UK Pound |
1 |
Rs.81.20 |
|
Euro |
1 |
Rs.63.48 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|