1 A COMPREHENSIVE PROJECT REPORT ON ANALYSIS OF PROFITABILITY OF TATA MOTORS LIMITED Submitted to Atmiya institute of technology & science IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN Gujarat Technological University UNDER THE GUIDANCE OF Project Guide Prof. (Dr.) Vijay H. Vyas (Prof. & Head) Submitted by MODI TANVIR R. KHORAJIYA MAHMADARIF I. (137870592034) (137870592025) [Batch: 2014-15] MBA SEMESTER III/IV Atmiya institute of technology & science MBA PROGRAMME Affiliated to Gujarat Technological University Ahmadabad
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1
A
COMPREHENSIVE PROJECT REPORT
ON
ANALYSIS OF PROFITABILITY OF TATA MOTORS LIMITED
Submitted to
Atmiya institute of technology & science
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
IN
Gujarat Technological University
UNDER THE GUIDANCE OF
Project Guide
Prof. (Dr.) Vijay H. Vyas
(Prof. & Head)
Submitted by
MODI TANVIR R. KHORAJIYA MAHMADARIF I. (137870592034) (137870592025)
[Batch: 2014-15]
MBA SEMESTER III/IV
Atmiya institute of technology & science
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
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STUDENTS’ DECLARATION
We, Modi Tanvir & Khorajiya Mahmadarif, hereby declare that the report for
Comprehensive Project entitled “ANALYSIS OF PROFITABILITY OF TATA MOTORS
LIMITED “is a result of our own work and our indebtedness to other work publications,
references, if any, have been duly acknowledged.
Place: ……..
Date:
(MODI TANVIR) (KHORAJIYA MAHMADARIF)
3
PREFACE:
In today’s world of globalization, opportunities are plenty and they keep knocking at our
doors all the time. One should be bold and ready to take risk and seek the opportunity
and put them in action.
The last few years we have witnessed of changes and rapid development all over the
business world. The era of knowledge based competition is upon us. Today India has
come out as a globalize country. The process of globalization has highly affected the
corporate world.
M.B.A. is a professional course. Practical study is very important because practical
study is one of the components of the course.
I have great pleasure in submitting our project report. The project report shall provide a
sample amount of information and comprehensive knowledge of the “TATA MOTORS
LTD.”.
The subject ‘practical studies’ particularly helps students to know the actual corporate
world, the anxieties and stress associated with the job which cannot be understood
sitting in a classroom.
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ACKNOWLEDGEMENT:
First of all we would like to thank Gujarat technological university for introducing this
subject in our course which gives us practical knowledge about specified industry. So
we are thankful.
We believe an ocean is filled by drops and each and every drop should count, similarly
we should count favor of all our helpers here but this not possible. So forgive us for the
same.
We also would like to thank Dr.Vikas Arora dean of management department of Atmiya
institute of technology & science.
Especially, we would like to thank prof.(Dr)Vijay H. vyas, H.O.D. of management
department of Atmiya Institute of Science and Technology our mentor who guided us in
our work.
Thanking you,
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TABLE OF CONTENT:
sr. no Topic Page no PART 1: GENRAL INFORMATION 9
1 About of the company 10
2 Overview of world market 11
3 Overview of Indian market 12
4 Major companies in industry 13
5 Major Product of the company 14
PART: 2 PRIMARY STUDY
20
6 Introduction of the study 21
7 Literature review 22
8 Problem statement 24
9 Objectives of the study 25
10 Hypothesis 25
11 Research methodology
11.1 Population 26
11.2 Sampling 26
11.3 Sampling design 26
11.4 Coverage 26
11.5 Data collection 26
12 Data analysis & interpretation 27
13 Result & findings 37
14 Limitation of the study 38
15 Conclusion & suggestion 39
Annexure
Bibliography
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LIST OF TABLE:
Table. no Topic Page no 1 Table for gross profit margin 27
2 Table for operating profit margin 29
3 Table for net profit margin 31
4 Table for return on total asset 33
5 Table for net profit margin & return on net worth 35
List of chart:
Chart. no Topic Page no 1 Relationship between gross profit &net sales 27
2 Relationship between operating profit &net sales 29
3 Relationship between net profit &net sales 31
4 Relationship between net profit &total assets 33
5 Relationship between net profit margin &return on net worth
35
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EXECUTIVE SUMMARY:
TITLE
Study on determining understandability of profitability analysis of TATA MOTORS LTD.
AUTHORIZATION RECOMMENDATION
As a part of Continuous Evaluation for Two Year MBA PROGRAMME complying
to GTU Guidelines we were required to fulfill comprehensive project at an organization
or at an institute. We are glad that we got opportunity to complete this project of TATA
motors ltd. We studied the profitability analysis of TATA motors ltd.
REVIEW
Project was focused on the study of determining understandability of profitability
analysis of TATA motors ltd., for identify the sales ability and profitability of the company
We required details related to project which is helpful us for analysis and
understanding the project which are as under :
To study the profitability analysis of TATA motors ltd.
Annual report of the company for last five years.
Gross profit ratio, net profit ratio, operating profit, return on total assets, net worth
of the last five years of the company.
PROCESS
We were briefed by our mentor on the first day about our project and its requirement. To
fulfill objective of our comprehensive project, we met with project guide and discuss
about our topic. He gave us proper guidelines about our project continuously during
whole project time period and by the help of him we can complete our project
completely and also understand analysis of the company for making to project
effectively
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CONCLUSION
Finally the company is loss making or rather we can say decreasing their profitability but
they have good future opportunities, it has took carefully at controlling the costs of
goods sold and reduce its expenses to avoid facing difficult financial conditions in the
future.
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PART 1:
GENRAL INFORMATION
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ABOUT OF THE COMPANY:
Tata Motors Limited (formerly TELCO, short for Tata Engineering and
Locomotive Company) is an Indian multinational automotive manufacturing company
headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its
products include passenger cars, trucks, vans, coaches, buses, construction equipment
and military vehicles. It is the world's 17th-largest motor vehicle manufacturing
company, fourth-largest truck manufacturer, and second-largest bus manufacturer by
volume.
Founded in 1945 as a manufacturer of locomotives, the company manufactured
its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended
in 1969. Tata Motors entered the passenger vehicle market in 1991 with the launch of
the Tata Sierra, becoming the first Indian manufacturer to achieve the capability of
developing a competitive indigenous automobile. In 1998, Tata launched the first fully
indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the
world's most affordable car. Tata Motors acquired the South Korean truck
manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar
Land Rover from Ford in 2008.
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OVERVIEW OF WORLD MARKET:
Indian Automotive Industry growth decades started in the 1970s. Between 1970
and 1984 cars were considered a luxury product; manufacturing was licensed,
expansion was restricted;
The automotive sector in each country faces a range of varying factors particular
to their individual market conditions, and even the most pronounced growth markets in
recent years are now experiencing contraction, including Brazil (-8.9%), Russia (-7.2%),
India (-0.8%), Thailand (-23%) and Argentina (-34.3%).
These large assembly markets are also the most dominant in terms of sales,
where transaction prices remain high. The lure of additional profit through extended
retail and service networks, and aftermarket / accessories opportunities highlight the
need for sector participants to focus on both emerging areas as well as mature.
The macroeconomic environment in China has remained tepid headed into the
final quarter of 2014, with talk of stimulus measures to help revive the market. Given
this context, the sustained growth in new light vehicle sales is even more impressive,
reaching 13.6 million units through August. MPVs continue to drive much of the
momentum, growing 47.5% year to date when compared to the first eight months of
2013.
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OVERVIEW OF INDIAN MARKET:
The automobile industry is one of the key drivers that boost the economic growth
of the country. Since the de-licensing of the sector in 1991 and the subsequent opening
up of 100 percent FDI through automatic route, Indian automobile sector has come a
long way. Today, almost every global auto major has set up facilities in the country.
The world standing for the Indian automobile sector, as per the Confederation of the
Indian industry is as follows:
Largest three-wheeler market
Second largest two-wheeler market
Tenth largest passenger car market
Fourth largest tractor market
Fifth largest commercial vehicle market
Fifth largest bus and truck segment
However, the year 2013-2014 has seen a decline in the industry’s otherwise smooth-
running growth. High inflation, soaring interest rates, low consumer sentiment and rising
fuel prices along with economic slowdown are the major reason for the downturn of the
industry.
13
MAJOR COMPANIES IN INDUSTRY:
Mahindra & Mahindra
Ashok Leyland
General motors’ India
Bajaj auto
Force motor
Volkswagen group sales India private limited
Audi Ag
Skoda auto
Fiat automobiles
Premier automobiles limited
Tata motors limited
Tata motors
Jaguar cars & land rover
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MAJOR PRODUCTS OF THE COMPANY:
1. TATA NANO:
Announced as the most affordable production car in the world, Tata aimed for a
price of one lakh rupees, or 100,000, Tata Motors announced in 2006 that the Nano
would be manufactured in Singur, West Bengal. Local farmers soon began protesting
the forced acquisition of their land the new factory entailed. Tata first delayed the Nano
launch and later decided to build the car in a different state, Gujarat, instead.
2. TATA BOLT:
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Tata Bolt is a new hatchback created by Tata Motors under its Falcon programme. The
car was revealed at Indian Auto Expo 2014 along with its sedan version, the Tata Zest.
The car is expected to be launched in Indian markets in the latter half of 2014 after the
launch of its sedan version. The diesel version of Tata Bolt will be fitted with 1.3-litre
quadrajet diesel engine which is already being used on Indica Vista and Manza where
as the petrol version of Tata Bolt will be powered by a new 1.2-litre turbocharged,
89 bhp engine. The new car is based on existing platforms on which Vista and Manza
are built. Tata Bolt will be built at Tata Motor's Pimpri-Chinchwad plant alongside the
Tata Vista and the Tata Indica.
3. TATA VISTA:
The Tata Indica Vista can be considered as the new, improved version of this really
popular car. Tata Indica has sold a lot of units in the country, and the country's premium
car manufacturer realized that it was high time that they improved the car, so that the
net is cast wider. The Tata Indica Vista managed to cater to a wider range of consumers
and it come fitted with lot of different features as well.
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4. TATA INDICA:
The Tata Indica is a supermini car produced by the Indian manufacturer Tata
Motors since 1998. It is the first passenger car from Tata Motors and it is also
considered India's first indigenously developed passenger car. As of August 2008, more
than 910,000 units were produced and the platform had spawned off close to 1.2 million
vehicles. The annual sales of Indica has been as high as 144,690 units in 2006–07. As
of July 2009, monthly sales of Indica were around 8000 units. The models have also
been exported to Europe, Africa and other countries since late in 2004.
5. TATA MANZA:
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Tata Manza is next generation sedan from the Indian car company Tata
Motors Limited. The Tata Manza is also known as The Club Class Sedan.[2] There are
eight variants available currently, four each in petrol and diesel.
Manza was first launched on 14 October 2009. It was made available in 4 variants
namely Aqua, Aura, Aura ABS and Elan, Aqua being the entry level variant and Elan
being the top most variant. In October 2012, Manza was re-launched as Manza Club
Class.
6. TATA WINGER
The Winger is offered in six variants and two seating configuration: long or short
wheelbase, high and low roof versions and also specialised ambulance and school bus
versions, as well as the plain panel van. The top of the range is a flat roof, air-
conditioned variant is a ten-seater, while the remaining five versions are offered as
either 13 or 14 seaters, taking the total number of variants to 11.
The Winger is powered by a modified version of the 2.0 litre diesel engine that is
currently offered on the Tata sumo. This 1948 cc engine comes with a turbo-charged,
inter-cooled (TCIC) version in all the variants, except in the smaller length, entry-level
Winger van. The non-turbo-charged version of the engine develops a peak power of
68 PS (50 kW) compared to the 90 PS (66 kW) that the TCIC version puts out. The
Winger meets Bharat Stage III emission standards, except for the base variant, which is