Nano Strategy Presented By, Pratik Purav P-29 Aditi Sabaria C-31 Rohit Mundhara P-21 Saurabh Shinde P-35 Strategic Manageme
Sep 12, 2014
Nano Strategy
Presented By,
Pratik Purav P-29
Aditi Sabaria C-31
Rohit Mundhara P-21
Saurabh Shinde P-35
Strategic Management
• Automobile industry in India
• An embryonic automotive industry emerged
• Japanese manufacturers entered
• Industry today
• Major Players in India
INTRODUCTION
To develop TATA into a world class
Indian car brand for innovative
and superior value vehicles
VISION
• To be the most admired multi-national Indian
company producing vehicles that people love to buy
• To create an organization that people enjoy
working for doing business with and investing in
Mission
“I saw families ridding around on scooters with kids standing up and mother carrying a baby
and sitting Pillion and decided to do something about . It started as an quest for an
affordable transportation solutions.”
.
Idea Generation Of Nano
Source – Business Standard
TATA’s NANO
Why
Nano ?
A Promise is
A Promise – Ratan Tata
SWOT Analysis
Strengths
PriceMileageStyleBrand NameFirst Innovation
Fiber Body Low Suspension Light Weight Not Suitable for Hilly Areas Delay due to Singur
Weakness
• Bikers can be motivated
• Auto rickshaw & second hand market
• Other competitors
• Traffic Congestion
• New Regualtions
Opportunities
Threats
Strategy
• Time honored International strategy• Effectively used parliamentary politics as business strategy• Politics shaping Nano’s future• Earlier less reliance on states
• Considered government as a regulator• Ratan Tata changed the group’s attitutde• Involved the state as partner• Relationship between state and group improved
Location of Manufacturing Plant
• TML intending to set manufacturing plant• Considered locating plants in various states• Accurate understanding of :– Political interests Compulsion of State Government
Contd..
• Exploited such weakness to its advantage• Incentive package in Uttarakhand/Himachal Pradesh a)100% exemption from excise duty for 10 years b)100% exemption from Corporate Income tax• WB out of desperation walked into the trap
Singur - Tata
• Govt. WB keen for rapid industrialisation• Approached Tata Motors• Tata Motors showed interest in locating the plant in WB• Chose Singur a small town in Hoogly district of WB• Govt. WB provided TML a loan of 200 crores at 1%
interest
Tata enjoying the most of incentives!!!
• A comprehensive package of incentives• Electricity Clause – Electricity at Rs.3kwh• Loan Repayment – Loan with interest repayable in annual installments• Lease rental
Why Tata Nano pulled out of Singur?
Political Battlefield
Land Controversy
• Acquired Land• Compensation
• Misunderstanding
• Admitted Mistake
“Great agitation and
great aggression”
“You cannot run a plant where the wall is being broken; you cannot
run a plant where bombs are being thrown from all the sides; you
cannot run a plant where the people have been intimidated or
threatened. This is only during the construction, what happens
when we actually start running the plant!”- Ratan Tata
Chairman,Tata Motors Ltd
FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
Corporate Rivalry ?
Destructive Politics...
“I once mentioned that if somebody puts a gun to my head, you
either pull the trigger or take the gun away because I will not
move my head. I think Ms.Mamta Banerjee has pulled the
trigger,”- Ratan Tata
Chairman,Tata Motors Ltd.
FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
Effects on West Bengal
• Brand Image• Damages to the Public property• Losses beared •Unemployment
Effects on Tata Motors
• Tata Gained a Seven Crucial Months - Commodity Prices declined - Advances - Mobilise the Funds
Fight for Nano Begins – Again• West Bengal’s loss another State’s gain
• Karnataka 1st to offer
• Gujarat offered 3 strategic locations
- Mundra in Kutch district
- Charodi in Sanand
- Surat
• Orissa offered land at Gopalpur
• Maharashtra, Andhra Pradesh, Uttarakhand also made an offer
Winner - Gujarat
• Reliable Infrastructure• Locations - Government owned land• Charodi and Chharal villages in Sanand the ultimate choice
“You are stupid if you are not in Gujarat” - Ratan Tata
Vibrant Gujrat
Benefits to Loan of Rs 9,570 crores
THE DEAL
Rs 2,900 cr for Nano plant
Rs 6,670 cr for Infrastructure development
Repayment of Rs 9,570 cr loan @ 0.1% over 20 years
• 100% exemption on electricity duty
• Concessional power tariff
• 1,100 acre land comes cheap
• No stamp duty, Registration and transfer charges
• Payment for land in 8 equal annual instalments
THE SWEETNERS
• Benefits to Component manufacturers and Vendors• New Investment opportunities and positive sentiment in Gujarat • Benefit to Real estate market• Additional jobs and training opportunities
Benefits to Gujarat
Win-win situation
Bibliography/Webliography
• "Specifications of Tata's Nano". indiatimes.com. 2008-01-10.
• "Nano Mania". Autocar India. February 2008.
• "Specifications of Tata's Nano". cardesignnew.
• "Review of Tata Nano" TechWebToday.
• Falling Rain Genomics, Inc - Singur
• "Census of India 2001: Data from the 2001 Census, including cities, villages and towns (Provisional)". Census Commission of India. Archived from the original on 2004-06-16. http://web.archive.org.
• The Hindu Business Line, 26 November 2006
• The Hindu Business Line, 13 December 2006
Questions ?
Thank You