MANAGEMENT INFORMATION SYSTEMSBatch 2011-13 Academic Year 2011-12 Term Third Program

PGDMPGDM(FS)PGDM(R)

Last Date for submission of project Section A amp B Section C amp D9th April 2012 10th April

2012

Submission of Research ProposalReportProjectAssignment

Group NumberGroup Head Name DEVASHEESH KHAREMobile No9044509077ProjectAssignmentCase TopicComparative analysis of two companies (TATA Motors and Hyundai Motors) of the automobile sector from the perspective of Marketing Finance Human Resource and Information Technology

Section BS No Roll No (in ascending order) Name (in capital letters)

1 JIML_11_050 DEFNI PRASAD

2 JIML_11_051 DEVASHEESH KHARE

3 JIML_11_FS-015 ARMINDER KAUR

Submitted to

Dr Ankit Mehrotra

ACKNOWLEDGEMENT

With a sense of gratitude and respect we would like to extend our heartiest

thanks to all of those who provided help and guidance to make this project

No Project is ever the outcome of single individualrsquos talent or effort This

work is no exception This project would not have been possible without the

whole hearted encouragement support and co-operation of our guide

friends and well-wishers Although it is not possible for us to name and

thank them all individually we must make special mention of some of the

personalities and acknowledge our sincere thanks to them

The successful completion of this project rests on the shoulder of many

persons who have helped us directly or indirectly We wish to take this

opportunity to express to all those without whose help completion of this

project would have been difficult We are indebted and thankful to all the

individuals who have guided advised inspired and supported us in making

this project a success

Our gratitude to our honorable guide ProfAnkit Mehrotra for giving us the

opportunity for developing the project and her able guidance motivation and

constant encouragement throughout our project Without her help this

project would never have been realized in its entirety

TATA MOTORSIntroduction

Tata Motors Limited is an Indian multinational automotive corporation

headquartered in Mumbai India It is the eighteenth largest motor

vehicle manufacturing company in the world by volume Part of the Tata

Group it was formerly known as TELCO (TATA Engineering and

Locomotive Company) Its products include passenger cars trucks vans and

coaches

Tata Motors is South Asiarsquos largest automobile company it is the leader

in commercial vehicles and among the top three in passenger vehicles

Worldwide it is the worlds fourth-largest truck manufacturer and second-

largest bus manufacturer It has auto manufacturing and assembly plants

in JamshedpurPantnagar Lucknow Sanand Dharwad and Pune India as

well as in Argentina South Africa Thailand and the United Kingdom Tata

Motors has produced and sold over 65 million vehicles in India since 1954

Originally a manufacturer of locomotives the company manufactured its

first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG

which ended in 1969 In 2010 Tata Motors surpassed Reliance to win the

coveted title of Indias most valuable brand in an annual survey conducted

by Brand Finance and The

Economic Times

HYUNDAI MOTORS

Introduction

Hyundai Motor India Limited (HMIL) is the largest passenger car

exporter and the second largest car manufacturer in India

HMIL presently markets 8 models of passenger cars across

segments The A2 segment includes the EON Santro i10 and the

i20 the A3 segment includes the Accent and the Verna the A5

segment includes the Sonata Transform and the SUV segment

includes the Santa Fe HMIL has set up a modern multi-million

dollar research and development facility in the cyber city of

Hyderabad It aims to become a centre of excellence for

automobile engineering and ensure quick turnaround time to

changing consumer needs It has done this to provide the Indian

customers with cutting-edge global technology

HMIL is the first automotive company in India to achieve the

export of 10 lakh cars in just over a decade It has been the number

one exporter of passenger car of the country for the sixth year in a

row

Analysis of both the companies

from MARKETING perspective

After more than

two years Tata

Motors has

dislodged Korearsquos

Hyundai Motors

in India from the second spot in monthly domestic passenger vehicle sales

The spurt in Tatarsquos June numbers has primarily been due to a dramatic

increase in sales of the Nano as well as a surge in that of the Indigo Tata

Motors Ltd main is a corporation spread throughout the world but the

headquarters is located in Mumbai India So the marketing strategies of Tata

Motors can be quite a task for their marketing firm This company was

founded in 1945 so Tata Motors already has a well established brand and

reportedly grossed revenue of 2145 billon dollars in 2009 Needless to say

money is not an issue for their marketing campaigns

Jaguar Land Rover TDCV and Hispano Carrocera are all owned and

operated as subsidiary brands of Tata Motors This means they market to not

only the sports car and upper class society but also the blue collar society

Currently Tata Motors has now gotten into the eco-friendly market by

designing the worldrsquos first prototype of a compressed air car The

ldquoOneCATrdquo as they call it has air tanks which can be filled in four hours but

there are plans to speed up the fueling process to a reported three minutes

SALES AND MARKET SHARES

The overall Tata Motors Group sales at 1080994 vehicles crossed the 1

million mark in 2010-11 higher by 242 compared to the previous year

Global sales of all commercial vehicles were at 512731 units while

global sales of all passenger vehicles were at 568263 units

The Company recorded sale of 778540 vehicles in 2010-11 a growth of

228 over the previous year in the Indian domestic market representing

a 243 market share in the Indian industry It exported 58089

vehicles from India a growth of 703 over the previous year

The Company increased its commercial vehicle sales in the Indian market

to an all time high of 458828 vehicles in 2010-11 representing a

market share of 618 A strong product portfolio improved reach and

penetration in the market and focus on customer oriented initiatives

including fi nance enablement ensured a 227 growth in commercial

vehicle sales Some of the key highlights were

- The Company crossed the 4 million cumulative vehicle sales mark for

its commercial vehicles

- Sale of MampHCVs grew by 267 to 196651 vehicles representing a

market share of 601 The Company continued to focus on customer

centric initiatives improved the sales of the Prima and launched

product variants to strengthen its product offerings The Company

introduced its CNG Hybrid city bus range and showcased it at the

Commonwealth Games in Delhi

- Sale of LCVs grew by 199 to 262177 vehicles representing a market

share of 632 The new products launched such as the Ace EX Super Ace

and 407 Pickup helped increase the sales With competition entering the

small commercial vehicles segment the market share in the segment was

lower as against last year

The Companys sales of passenger vehicles in the Indian market

(inclusive of Tata Fiat and Jaguar Land Rover brands) were at its

highest ever at 319712 vehicles representing a market share of 130

in 2010-11 The competition in the passenger car market continued to

increase with more international Automobile manufacturers entering the

market with a variety of product offerings Some of the key highlights

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

With a sense of gratitude and respect we would like to extend our heartiest

thanks to all of those who provided help and guidance to make this project

No Project is ever the outcome of single individualrsquos talent or effort This

work is no exception This project would not have been possible without the

whole hearted encouragement support and co-operation of our guide

friends and well-wishers Although it is not possible for us to name and

thank them all individually we must make special mention of some of the

personalities and acknowledge our sincere thanks to them

The successful completion of this project rests on the shoulder of many

persons who have helped us directly or indirectly We wish to take this

opportunity to express to all those without whose help completion of this

project would have been difficult We are indebted and thankful to all the

individuals who have guided advised inspired and supported us in making

this project a success

Our gratitude to our honorable guide ProfAnkit Mehrotra for giving us the

opportunity for developing the project and her able guidance motivation and

constant encouragement throughout our project Without her help this

project would never have been realized in its entirety

TATA MOTORSIntroduction

Tata Motors Limited is an Indian multinational automotive corporation

headquartered in Mumbai India It is the eighteenth largest motor

vehicle manufacturing company in the world by volume Part of the Tata

Group it was formerly known as TELCO (TATA Engineering and

Locomotive Company) Its products include passenger cars trucks vans and

coaches

Tata Motors is South Asiarsquos largest automobile company it is the leader

in commercial vehicles and among the top three in passenger vehicles

Worldwide it is the worlds fourth-largest truck manufacturer and second-

largest bus manufacturer It has auto manufacturing and assembly plants

in JamshedpurPantnagar Lucknow Sanand Dharwad and Pune India as

well as in Argentina South Africa Thailand and the United Kingdom Tata

Motors has produced and sold over 65 million vehicles in India since 1954

Originally a manufacturer of locomotives the company manufactured its

first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG

which ended in 1969 In 2010 Tata Motors surpassed Reliance to win the

coveted title of Indias most valuable brand in an annual survey conducted

by Brand Finance and The

Economic Times

HYUNDAI MOTORS

Introduction

Hyundai Motor India Limited (HMIL) is the largest passenger car

exporter and the second largest car manufacturer in India

HMIL presently markets 8 models of passenger cars across

segments The A2 segment includes the EON Santro i10 and the

i20 the A3 segment includes the Accent and the Verna the A5

segment includes the Sonata Transform and the SUV segment

includes the Santa Fe HMIL has set up a modern multi-million

dollar research and development facility in the cyber city of

Hyderabad It aims to become a centre of excellence for

automobile engineering and ensure quick turnaround time to

changing consumer needs It has done this to provide the Indian

customers with cutting-edge global technology

HMIL is the first automotive company in India to achieve the

export of 10 lakh cars in just over a decade It has been the number

one exporter of passenger car of the country for the sixth year in a

row

Analysis of both the companies

from MARKETING perspective

After more than

two years Tata

Motors has

dislodged Korearsquos

Hyundai Motors

in India from the second spot in monthly domestic passenger vehicle sales

The spurt in Tatarsquos June numbers has primarily been due to a dramatic

increase in sales of the Nano as well as a surge in that of the Indigo Tata

Motors Ltd main is a corporation spread throughout the world but the

headquarters is located in Mumbai India So the marketing strategies of Tata

Motors can be quite a task for their marketing firm This company was

founded in 1945 so Tata Motors already has a well established brand and

reportedly grossed revenue of 2145 billon dollars in 2009 Needless to say

money is not an issue for their marketing campaigns

Jaguar Land Rover TDCV and Hispano Carrocera are all owned and

operated as subsidiary brands of Tata Motors This means they market to not

only the sports car and upper class society but also the blue collar society

Currently Tata Motors has now gotten into the eco-friendly market by

designing the worldrsquos first prototype of a compressed air car The

ldquoOneCATrdquo as they call it has air tanks which can be filled in four hours but

there are plans to speed up the fueling process to a reported three minutes

SALES AND MARKET SHARES

The overall Tata Motors Group sales at 1080994 vehicles crossed the 1

million mark in 2010-11 higher by 242 compared to the previous year

Global sales of all commercial vehicles were at 512731 units while

global sales of all passenger vehicles were at 568263 units

The Company recorded sale of 778540 vehicles in 2010-11 a growth of

228 over the previous year in the Indian domestic market representing

a 243 market share in the Indian industry It exported 58089

vehicles from India a growth of 703 over the previous year

The Company increased its commercial vehicle sales in the Indian market

to an all time high of 458828 vehicles in 2010-11 representing a

market share of 618 A strong product portfolio improved reach and

penetration in the market and focus on customer oriented initiatives

including fi nance enablement ensured a 227 growth in commercial

vehicle sales Some of the key highlights were

- The Company crossed the 4 million cumulative vehicle sales mark for

its commercial vehicles

- Sale of MampHCVs grew by 267 to 196651 vehicles representing a

market share of 601 The Company continued to focus on customer

centric initiatives improved the sales of the Prima and launched

product variants to strengthen its product offerings The Company

introduced its CNG Hybrid city bus range and showcased it at the

Commonwealth Games in Delhi

- Sale of LCVs grew by 199 to 262177 vehicles representing a market

share of 632 The new products launched such as the Ace EX Super Ace

and 407 Pickup helped increase the sales With competition entering the

small commercial vehicles segment the market share in the segment was

lower as against last year

The Companys sales of passenger vehicles in the Indian market

(inclusive of Tata Fiat and Jaguar Land Rover brands) were at its

highest ever at 319712 vehicles representing a market share of 130

in 2010-11 The competition in the passenger car market continued to

increase with more international Automobile manufacturers entering the

market with a variety of product offerings Some of the key highlights

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

TATA MOTORSIntroduction

Tata Motors Limited is an Indian multinational automotive corporation

headquartered in Mumbai India It is the eighteenth largest motor

vehicle manufacturing company in the world by volume Part of the Tata

Group it was formerly known as TELCO (TATA Engineering and

Locomotive Company) Its products include passenger cars trucks vans and

coaches

Tata Motors is South Asiarsquos largest automobile company it is the leader

in commercial vehicles and among the top three in passenger vehicles

Worldwide it is the worlds fourth-largest truck manufacturer and second-

largest bus manufacturer It has auto manufacturing and assembly plants

in JamshedpurPantnagar Lucknow Sanand Dharwad and Pune India as

well as in Argentina South Africa Thailand and the United Kingdom Tata

Motors has produced and sold over 65 million vehicles in India since 1954

Originally a manufacturer of locomotives the company manufactured its

first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG

which ended in 1969 In 2010 Tata Motors surpassed Reliance to win the

coveted title of Indias most valuable brand in an annual survey conducted

by Brand Finance and The

Economic Times

HYUNDAI MOTORS

Introduction

Hyundai Motor India Limited (HMIL) is the largest passenger car

exporter and the second largest car manufacturer in India

HMIL presently markets 8 models of passenger cars across

segments The A2 segment includes the EON Santro i10 and the

i20 the A3 segment includes the Accent and the Verna the A5

segment includes the Sonata Transform and the SUV segment

includes the Santa Fe HMIL has set up a modern multi-million

dollar research and development facility in the cyber city of

Hyderabad It aims to become a centre of excellence for

automobile engineering and ensure quick turnaround time to

changing consumer needs It has done this to provide the Indian

customers with cutting-edge global technology

HMIL is the first automotive company in India to achieve the

export of 10 lakh cars in just over a decade It has been the number

one exporter of passenger car of the country for the sixth year in a

row

Analysis of both the companies

from MARKETING perspective

After more than

two years Tata

Motors has

dislodged Korearsquos

Hyundai Motors

in India from the second spot in monthly domestic passenger vehicle sales

The spurt in Tatarsquos June numbers has primarily been due to a dramatic

increase in sales of the Nano as well as a surge in that of the Indigo Tata

Motors Ltd main is a corporation spread throughout the world but the

headquarters is located in Mumbai India So the marketing strategies of Tata

Motors can be quite a task for their marketing firm This company was

founded in 1945 so Tata Motors already has a well established brand and

reportedly grossed revenue of 2145 billon dollars in 2009 Needless to say

money is not an issue for their marketing campaigns

Jaguar Land Rover TDCV and Hispano Carrocera are all owned and

operated as subsidiary brands of Tata Motors This means they market to not

only the sports car and upper class society but also the blue collar society

Currently Tata Motors has now gotten into the eco-friendly market by

designing the worldrsquos first prototype of a compressed air car The

ldquoOneCATrdquo as they call it has air tanks which can be filled in four hours but

there are plans to speed up the fueling process to a reported three minutes

SALES AND MARKET SHARES

The overall Tata Motors Group sales at 1080994 vehicles crossed the 1

million mark in 2010-11 higher by 242 compared to the previous year

Global sales of all commercial vehicles were at 512731 units while

global sales of all passenger vehicles were at 568263 units

The Company recorded sale of 778540 vehicles in 2010-11 a growth of

228 over the previous year in the Indian domestic market representing

a 243 market share in the Indian industry It exported 58089

vehicles from India a growth of 703 over the previous year

The Company increased its commercial vehicle sales in the Indian market

to an all time high of 458828 vehicles in 2010-11 representing a

market share of 618 A strong product portfolio improved reach and

penetration in the market and focus on customer oriented initiatives

including fi nance enablement ensured a 227 growth in commercial

vehicle sales Some of the key highlights were

- The Company crossed the 4 million cumulative vehicle sales mark for

its commercial vehicles

- Sale of MampHCVs grew by 267 to 196651 vehicles representing a

market share of 601 The Company continued to focus on customer

centric initiatives improved the sales of the Prima and launched

product variants to strengthen its product offerings The Company

introduced its CNG Hybrid city bus range and showcased it at the

Commonwealth Games in Delhi

- Sale of LCVs grew by 199 to 262177 vehicles representing a market

share of 632 The new products launched such as the Ace EX Super Ace

and 407 Pickup helped increase the sales With competition entering the

small commercial vehicles segment the market share in the segment was

lower as against last year

The Companys sales of passenger vehicles in the Indian market

(inclusive of Tata Fiat and Jaguar Land Rover brands) were at its

highest ever at 319712 vehicles representing a market share of 130

in 2010-11 The competition in the passenger car market continued to

increase with more international Automobile manufacturers entering the

market with a variety of product offerings Some of the key highlights

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

HYUNDAI MOTORS

Introduction

Hyundai Motor India Limited (HMIL) is the largest passenger car

exporter and the second largest car manufacturer in India

HMIL presently markets 8 models of passenger cars across

segments The A2 segment includes the EON Santro i10 and the

i20 the A3 segment includes the Accent and the Verna the A5

segment includes the Sonata Transform and the SUV segment

includes the Santa Fe HMIL has set up a modern multi-million

dollar research and development facility in the cyber city of

Hyderabad It aims to become a centre of excellence for

automobile engineering and ensure quick turnaround time to

changing consumer needs It has done this to provide the Indian

customers with cutting-edge global technology

HMIL is the first automotive company in India to achieve the

export of 10 lakh cars in just over a decade It has been the number

one exporter of passenger car of the country for the sixth year in a

row

Analysis of both the companies

from MARKETING perspective

After more than

two years Tata

Motors has

dislodged Korearsquos

Hyundai Motors

in India from the second spot in monthly domestic passenger vehicle sales

The spurt in Tatarsquos June numbers has primarily been due to a dramatic

increase in sales of the Nano as well as a surge in that of the Indigo Tata

Motors Ltd main is a corporation spread throughout the world but the

headquarters is located in Mumbai India So the marketing strategies of Tata

Motors can be quite a task for their marketing firm This company was

founded in 1945 so Tata Motors already has a well established brand and

reportedly grossed revenue of 2145 billon dollars in 2009 Needless to say

money is not an issue for their marketing campaigns

Jaguar Land Rover TDCV and Hispano Carrocera are all owned and

operated as subsidiary brands of Tata Motors This means they market to not

only the sports car and upper class society but also the blue collar society

Currently Tata Motors has now gotten into the eco-friendly market by

designing the worldrsquos first prototype of a compressed air car The

ldquoOneCATrdquo as they call it has air tanks which can be filled in four hours but

there are plans to speed up the fueling process to a reported three minutes

SALES AND MARKET SHARES

The overall Tata Motors Group sales at 1080994 vehicles crossed the 1

million mark in 2010-11 higher by 242 compared to the previous year

Global sales of all commercial vehicles were at 512731 units while

global sales of all passenger vehicles were at 568263 units

The Company recorded sale of 778540 vehicles in 2010-11 a growth of

228 over the previous year in the Indian domestic market representing

a 243 market share in the Indian industry It exported 58089

vehicles from India a growth of 703 over the previous year

The Company increased its commercial vehicle sales in the Indian market

to an all time high of 458828 vehicles in 2010-11 representing a

market share of 618 A strong product portfolio improved reach and

penetration in the market and focus on customer oriented initiatives

including fi nance enablement ensured a 227 growth in commercial

vehicle sales Some of the key highlights were

- The Company crossed the 4 million cumulative vehicle sales mark for

its commercial vehicles

- Sale of MampHCVs grew by 267 to 196651 vehicles representing a

market share of 601 The Company continued to focus on customer

centric initiatives improved the sales of the Prima and launched

product variants to strengthen its product offerings The Company

introduced its CNG Hybrid city bus range and showcased it at the

Commonwealth Games in Delhi

- Sale of LCVs grew by 199 to 262177 vehicles representing a market

share of 632 The new products launched such as the Ace EX Super Ace

and 407 Pickup helped increase the sales With competition entering the

small commercial vehicles segment the market share in the segment was

lower as against last year

The Companys sales of passenger vehicles in the Indian market

(inclusive of Tata Fiat and Jaguar Land Rover brands) were at its

highest ever at 319712 vehicles representing a market share of 130

in 2010-11 The competition in the passenger car market continued to

increase with more international Automobile manufacturers entering the

market with a variety of product offerings Some of the key highlights

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Analysis of both the companies

from MARKETING perspective

After more than

two years Tata

Motors has

dislodged Korearsquos

Hyundai Motors

in India from the second spot in monthly domestic passenger vehicle sales

The spurt in Tatarsquos June numbers has primarily been due to a dramatic

increase in sales of the Nano as well as a surge in that of the Indigo Tata

Motors Ltd main is a corporation spread throughout the world but the

headquarters is located in Mumbai India So the marketing strategies of Tata

Motors can be quite a task for their marketing firm This company was

founded in 1945 so Tata Motors already has a well established brand and

reportedly grossed revenue of 2145 billon dollars in 2009 Needless to say

money is not an issue for their marketing campaigns

Jaguar Land Rover TDCV and Hispano Carrocera are all owned and

operated as subsidiary brands of Tata Motors This means they market to not

only the sports car and upper class society but also the blue collar society

Currently Tata Motors has now gotten into the eco-friendly market by

designing the worldrsquos first prototype of a compressed air car The

ldquoOneCATrdquo as they call it has air tanks which can be filled in four hours but

there are plans to speed up the fueling process to a reported three minutes

SALES AND MARKET SHARES

The overall Tata Motors Group sales at 1080994 vehicles crossed the 1

million mark in 2010-11 higher by 242 compared to the previous year

Global sales of all commercial vehicles were at 512731 units while

global sales of all passenger vehicles were at 568263 units

The Company recorded sale of 778540 vehicles in 2010-11 a growth of

228 over the previous year in the Indian domestic market representing

a 243 market share in the Indian industry It exported 58089

vehicles from India a growth of 703 over the previous year

The Company increased its commercial vehicle sales in the Indian market

to an all time high of 458828 vehicles in 2010-11 representing a

market share of 618 A strong product portfolio improved reach and

penetration in the market and focus on customer oriented initiatives

including fi nance enablement ensured a 227 growth in commercial

vehicle sales Some of the key highlights were

- The Company crossed the 4 million cumulative vehicle sales mark for

its commercial vehicles

- Sale of MampHCVs grew by 267 to 196651 vehicles representing a

market share of 601 The Company continued to focus on customer

centric initiatives improved the sales of the Prima and launched

product variants to strengthen its product offerings The Company

introduced its CNG Hybrid city bus range and showcased it at the

Commonwealth Games in Delhi

- Sale of LCVs grew by 199 to 262177 vehicles representing a market

share of 632 The new products launched such as the Ace EX Super Ace

and 407 Pickup helped increase the sales With competition entering the

small commercial vehicles segment the market share in the segment was

lower as against last year

The Companys sales of passenger vehicles in the Indian market

(inclusive of Tata Fiat and Jaguar Land Rover brands) were at its

highest ever at 319712 vehicles representing a market share of 130

in 2010-11 The competition in the passenger car market continued to

increase with more international Automobile manufacturers entering the

market with a variety of product offerings Some of the key highlights

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Motors can be quite a task for their marketing firm This company was

founded in 1945 so Tata Motors already has a well established brand and

reportedly grossed revenue of 2145 billon dollars in 2009 Needless to say

money is not an issue for their marketing campaigns

Jaguar Land Rover TDCV and Hispano Carrocera are all owned and

operated as subsidiary brands of Tata Motors This means they market to not

only the sports car and upper class society but also the blue collar society

Currently Tata Motors has now gotten into the eco-friendly market by

designing the worldrsquos first prototype of a compressed air car The

ldquoOneCATrdquo as they call it has air tanks which can be filled in four hours but

there are plans to speed up the fueling process to a reported three minutes

SALES AND MARKET SHARES

The overall Tata Motors Group sales at 1080994 vehicles crossed the 1

million mark in 2010-11 higher by 242 compared to the previous year

Global sales of all commercial vehicles were at 512731 units while

global sales of all passenger vehicles were at 568263 units

The Company recorded sale of 778540 vehicles in 2010-11 a growth of

228 over the previous year in the Indian domestic market representing

a 243 market share in the Indian industry It exported 58089

vehicles from India a growth of 703 over the previous year

The Company increased its commercial vehicle sales in the Indian market

to an all time high of 458828 vehicles in 2010-11 representing a

market share of 618 A strong product portfolio improved reach and

penetration in the market and focus on customer oriented initiatives

including fi nance enablement ensured a 227 growth in commercial

vehicle sales Some of the key highlights were

- The Company crossed the 4 million cumulative vehicle sales mark for

its commercial vehicles

- Sale of MampHCVs grew by 267 to 196651 vehicles representing a

market share of 601 The Company continued to focus on customer

centric initiatives improved the sales of the Prima and launched

product variants to strengthen its product offerings The Company

introduced its CNG Hybrid city bus range and showcased it at the

Commonwealth Games in Delhi

- Sale of LCVs grew by 199 to 262177 vehicles representing a market

share of 632 The new products launched such as the Ace EX Super Ace

and 407 Pickup helped increase the sales With competition entering the

small commercial vehicles segment the market share in the segment was

lower as against last year

The Companys sales of passenger vehicles in the Indian market

(inclusive of Tata Fiat and Jaguar Land Rover brands) were at its

highest ever at 319712 vehicles representing a market share of 130

in 2010-11 The competition in the passenger car market continued to

increase with more international Automobile manufacturers entering the

market with a variety of product offerings Some of the key highlights

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

market share of 618 A strong product portfolio improved reach and

penetration in the market and focus on customer oriented initiatives

including fi nance enablement ensured a 227 growth in commercial

vehicle sales Some of the key highlights were

- The Company crossed the 4 million cumulative vehicle sales mark for

its commercial vehicles

- Sale of MampHCVs grew by 267 to 196651 vehicles representing a

market share of 601 The Company continued to focus on customer

centric initiatives improved the sales of the Prima and launched

product variants to strengthen its product offerings The Company

introduced its CNG Hybrid city bus range and showcased it at the

Commonwealth Games in Delhi

- Sale of LCVs grew by 199 to 262177 vehicles representing a market

share of 632 The new products launched such as the Ace EX Super Ace

and 407 Pickup helped increase the sales With competition entering the

small commercial vehicles segment the market share in the segment was

lower as against last year

The Companys sales of passenger vehicles in the Indian market

(inclusive of Tata Fiat and Jaguar Land Rover brands) were at its

highest ever at 319712 vehicles representing a market share of 130

in 2010-11 The competition in the passenger car market continued to

increase with more international Automobile manufacturers entering the

market with a variety of product offerings Some of the key highlights

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

were

- The Company crossed the 2 million cumulative vehicle sales mark for

its passenger vehicles

- In June 2010 the Sanand plant for the production of the Nano was

inaugurated The Company completed delivery on the bookings of the Nano

and opened sales in various States in a phased manner Nano sales

increased to 70431 vehicles a growth of 129 from 30763 vehicles in

the previous year The Company focused on increasing the reach and

penetration for the Nano and also fi nancing enablement for potential

customer segments The Nano bagged the gold prize in the Best New

Product segment under the transportation category at the 2010 Edison

Award symbolizing persistence and excellence personifi ed as also the

worlds oldest and coveted international award for Good Design in

2010 conferred by the Chicago Athenaeum Museum of Architecture and

Design together with the European Centre for Architecture Art Design

and Urban Studies in the category of transportation

- The sales in the Small Car segment (comprising the Nano the Indica

and the Vista) increased to 180091 vehicles a growth of 139

representing a market share of 117

- The Indigo and the Indigo Manza sales were 87919 vehicles The

Indigo eCS and the Indigo Manza Elan variants launched in the year were

well received in the market and improved the Companys market share in

the mid-size segment to 258 (after taking Jaguar)

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

- In the Multi Utility Vehicles (MUV) segment the Company sold 42741

(including Land Rovers) vehicles a growth of 270 mainly boosted by

sales of the Safari The Aria - a premium crossover and the Venture - a

multi-purpose vehicle in this segment launched during the year

facilitated improvement in market share which stood at 132

TATA MOTORS

SWOT ANALYSIS

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

TATA motors is one of the leading motor vehicle producer in the world

TATA motors has strong background and reputation in the market The

company is working to strengthen its position in automobile industry

by adopting different strategies Following are the strengths weaknesses

opportunities and strengths of TATA motors

Strengths

One of the leading company in automobile industry with more than 70 years

of experience During this period it had produced more than 3

million vehicles which is huge achievement for the company

TATA motors has been expanding its business which is obviously require

more workforce Currently TATA motors employee base is 23000

Approx

One of the strengths which is very visible in the industry and also

beneficial for TATA motors revenue are low price vehicles and low fuel

consumption

Due to TATA motors strong brand and quality vehicles it has good

reputation in the industry

It is India largest automobile company with revenues of Rs 3565148

crores (USD 88 billion) in 2007-08

TATA motors is expanding its network in International market by

aggressively acquiring foreign companies

TATA motors has been famous to introduce new vehicles this is possible

just because of the strong research and development

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

TATA motors also play active role in corporate and social responsibility

Weaknesses

Shareholders of TATA motors are not getting much from their

investments due to low ROI on shares

The thing which customer not like about TATA motors vehicles is weak

safety standards

Domestic sales are not impressive

TATA always followed the low cost advantage strategy although the

other segment such as luxury car are still untapped

Opportunities

As it is low cost vehicle product so it can take the advantage of this

strength to exploit the opportunity by entering into the third world

countries

Incorporate safety features in the vehicles to gain more customer

satisfaction and allow the safety cautious people to become the

customer of TATA motors

Manufacturing luxury vehicles to attract corporate segment

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Joint venture and acquisition in other countries

Threats

The prices of material such as steel plastic rubber is rising which also

raise the total production cost of vehicle

TATA motors has cost advantage over its competitorsIf the competitors

will follow the same strategy then it may reduce the sales of TATA

motors

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol diesel and CNG

HYUNDAI MOTORS

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

SWOT ANALYSIS

Strengths -

Hyundai India has such a brand equity that it is almost assumed to be

an Indian brand with lot of good accolades for being Indiarsquos second

most selling brand next to MUL in market share

Hyundai Motor India limited is the largest car exporter from Asian

Market which showed a 10 growth compared to last FY

The domestic sales is increasing at an average rate of 191

HMIL is known for its quality products which has better performance

and it has constantly been ahead in the race with Maruti Udyog

limited in many parameters

The product length includes around 8 cars starting from new Eon in

small car segment to SUV segment Santa Fe

Among the automobile players only HMIL is known for its CSR

activities

Hyundai products never fail to win laurels in each segment from

various automobile ratings ever since its operations in India

Hyundai has the largest network of showrooms and service station

next to Maruti in India

An article in Economic times quoted that ldquoHyundai Eon launched

treads on Alto territoryrdquo indicated that Eon will act as a threat to

reduction in Altorsquos market share

Weaknesses -

HMIL took a long time to gain the market share as its not the first

mover in India

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

In terms of most reliable and trusted brand Maruti is more strong in

Indian subcontinent

Spare parts of Hyundai vehicles are comparatively priced higher and

spare parts do not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make

a major impact

Increase in commodity prices such as steel aluminium and ancillary

parts has affected margins

Since HMIL concentrates on both domestic and International sales

there are higher risks of exchange rate fluctuations

As Hyundai majorly concentrates on quality most of its product are in

premium category in each segment Hyundai is still struggling to

make a better impact in small car segment in terms of cost efficiency

like other manufactures

Hyundai doesnrsquot have any product match to compete in Corporate

orders like Tata Indica V2 Tata Sumo Tata Indigo Chevy Tavera

Ford Fiesta etc These vehicles are most preferred in both cab segment

and government booking for bulk orders

Opportunities -

SIAM ndash Society of Indian automobile Manufacturers have stated that

there is steady increase in Car sales both Domestic and Indian

contributing a valuable share in Indiarsquos Gdp

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

The export markets growth rate is 2230 compared to last fiscal year

The saving consumption pattern of India is an added advantage for

any segment doing business in India This was one of the major

reason for Indian market to survive amidst global recession

There is more scope of HMIL to enter into small car segment as its

has dedicated RampD plant in Hyderabad India Hyundai is one of the

very few companies that has widest RampD network across the world

located in Korea Europe India US Japan

Hyundai has very good opportunity in entering into commercial

vehicles and Recreational vehicles as they are already doing well

outside India Currently HMIL has its focus only on Passenger car

segment

Threats-

Though Hyundai claims itself to have no direct competitors other than

MUL there are Indian players like Tata Mahindra imposing a strong

threat for Hyundai Motors India to expand its product category

Foreign Direct Investments flowing in Indian automobile space are

not good signs for already existing Giants like MUL and Hyundai

Almost all major automobile players have started invading India to

open up their market and their manufacturing plant in IndiardquoChennairdquo

is referred to as the Detroit of Asia

Hyundai faced a slight decline in market share due to tough

competition from Fordrsquos Figo and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment

as an alternative to Nano These will slowdown the expected sales of

Eon

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Analysis of both the companies

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

from FINANCIAL perspective

Financial Analysis TATA MOTORS

(Rs in crores)

Company Tata Motors Group

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

(Standalone) (Consolidated)

2010-11 2009-10 2010-11 2009-10

Profit After Tax 181182 224008 922079 251689

Share of Minority

Interest and Share of

Profit in respect of

invest - - 5283 5417

ments in associate companies

Profit for the

year 181182 224008 927362 257106

Balance Brought

Forward from Previous

Year ndash Profit(Loss) 193413 168599 (101785) (155366)

Amount Available

for Appropriations 374595 392607 825577 101740

B APPROPRIATIONS

(a) Debenture Redemption

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Reserve - 50000 - 50000

(b) General Reserve 20000 50000 22878 52032

(c) Other Reserves - - 8420 1308

(d) Dividend

(including tax) 146703 99194 148130 100185

(e) Balance carried to

Balance Sheet 207892 193413 646149 (101785)

Current Ratio 053 044Quick Ratio 054 044Debt Equity Ratio 080 112Long Term Debt Equity Ratio 052 080

DIVIDEND

Considering the Companys financial performance the Directors have

recommended a dividend of Rs20- per share on the increased capital of

538322483 Ordinary Shares of Rs10- each (previous year Rs15- per

share) and Rs2050 per share on 96386471 A Ordinary Shares of Rs10-

each (previous year Rs1550 per share) fully paid-up and any further

Ordinary Shares andor A Ordinary Shares that may be allotted by the

Company prior to July 21 2011 (being the book closure date for the

Inventory Turnover Ratio 1386 1350Debtors Turnover Ratio 1920 1792Investments Turnover Ratio 1386 1350Fixed Assets Turnover Ratio 222 195Total Assets Turnover Ratio 135 114Asset Turnover Ratio 222 195

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

purpose of the said dividend entitlement) for 2010-11 and will be paid

on or after August 16 2011 The said dividend if approved by the

Members would involve a cash outfl ow of Rs146703 crores (previous

year Rs99194 crores) resulting in a payout of 81 (previous year 44)

of the standalone Profits of the Company

OPERATING RESULTS AND PROFITS

After a good year 2009-10 during which economies across the world

showed signs of recovery the economic conditions globally continued to

be strong and positive in 2010-11 resulting in a strong growth for the

automotive sector The Indian economy continued to do well driven by a

good performance from the agricultural and the industrial sector with a

GDP growth of 86 The automotive sector recorded a growth of over

26

in India on the back of a robust economy

Supported by its strong distinct product offerings in both the

commercial vehicle and passenger vehicle ranges the Company recorded a

turnover of Rs52136 crores a growth of 359 over the previous year

While the Company maintained a strong focus on cost control and market

pricing the increase in raw -material cost and fixed marketing

expenses resulted in a lower EBITDA margin of 99 as compared to

117

in the previous year The Profit Before Tax and Profit After Tax for

2010-11 was Rs2197 crores and Rs1812 crores respectively as compared

to Rs2830 crores and Rs2240 crores in the previous year It may be

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

noted that the previous year Profit included a net positive impact of

Rs958 crores mainly on account of Profit on certain divestments which

was partly set off by a loss on redemption of preference shares in a

subsidiary company

Jaguar Land Rover results for 2010-11 showed a signifi cant improvement

with increase both in volumes and revenue better product mix

favourable exchange rates and higher margins The introduction of the

new Jaguar XJ growing momentum of the Range Rover and Range Rover

Sport and in particular the strengthening of the Jaguar Land Rover

business in China where it opened a National Sales Company (NSC) in

mid 2010 were the main drivers In addition Jaguar Land Rover

continued to benefit from cost effi ciencies and effective cash

management initiatives adopted in response to the challenging operating

conditions in 2008 and 2009

As the global markets recovered coupled with a strong focus on product

and market initiatives particularly at Jaguar and Land Rover the Tata

Motors Group turnover in 2010-11 grew by 331 to Rs123133 crores

Tata Motors Group recorded its highest ever Consolidated Profit Before

Tax of Rs10437 crores (Rs3523 crores in 2009-10) and the Consolidated

Profit for the Year of Rs9274 crores (Rs2571 crores in 2009-10)

CUSTOMER FINANCING INITIATIVES

The vehicle financing activity in India under the brand Tata

Motor Finance (TMF) of Tata Motors Finance Limited - a wholly owned

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

subsidiary company has shown improvements in disbursements as well as

net interest margins driven mainly by the overall economic recovery

coupled with a strong focus by TMF on controlling costs improving

quality of fresh acquisitions and micro-management of collections TMF

financed 160781 vehicles during the year as compared to 144806

vehicles in the previous year Total disbursements at Rs7908 crores

grew by 18 as against Rs6697 crores in the previous year The

disbursals for commercial vehicles were Rs6041 crores (94446 units) as

compared to Rs5123 crores (96593 units) and for passenger cars were

Rs1867 crores (66335 units) as compared to Rs1454 crores (48213

units) in the previous year The market share in terms of the Tata

vehicles financed by TMF declined from 26 in Commercial vehicles to

21 and increased from 21 to 22 in passenger cars TMFs strategy on

managing non-performing assets (NPA) improving collection efficiencies

improvements in the Risk Scored Pricing Model approach and

thrust on customer relations through a branch based re-organized field

structure has in the last 2 years turned around and improved its

operations and Profitability setting a robust platform to enable

future growth

Jaguar Land Rover have entered into arrangements with financial

service providers to make vehicle fi nancing available to customers in

12 countries worldwide covering the largest markets by volume

including Chase Auto Finance in the US and FGA Capital (a joint

venture between Fiat Auto and Credit Agricole) in the UK and the rest

of Europe

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Financial Analysis HYUNDAI MOTORS

Particulars 2010 (Amount in

crores)

2009 (Amount in

crores)

Profit after tax 39915 35046

Net sales 401541 494291

Cash amp Cash

equivalents end of year

380 412

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

The PAT ie profit after tax stood declined from Rs 39915 to Rs 35046 for

the reason as Tata due to Costs also increased due to introduction of Bharat-

IV norms and higher spending on research and development At the same

time competition continued to grow stronger Several India-specific cars

were launched by competitors These were priced aggressively As a

consequence the ability to pass on the rising costs was constrained to an

extent

Total Sales increased from 3106000 units to 3614000 units compared

from previous year As compared to the revenue collected the sales declined

due to some increased costs as inflation

Interpretation-

If we compare the profit (PAT) and the net sales of both the companies

Hyundai is at higher profits as compared to Tata in the last financial year

As for the Customers to purchase a car sales of Hyundai are at higher

power as compared to Tata Both the companies produce quality product

which are beneficial for the public Therefore this financial data is not of

much use for the customers as from these facts they will not be able to make

their decision to purchase the car from which of the companies Both the

companies manufacture high quality products with true value Thus a

marketing analysis will be more appropriate for the customer to purchase the

car from which of the company Therefore this is just a knowledge for the

customer but not for any use for him to help him in his decision to purchase

which car

The borrowings of the Company as on March 31 2011 stood at Rs15899

crores (previous year Rs16595 crores) Cash and Bank balances and

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs2514 crores (previous year Rs2273 crores)

Tata Motors Groups borrowings as on March 31 2011 stood at Rs32791

crores (previous year Rs35108 crores) Cash and Bank balances and

current investments in Liquid Liquid Plus schemes of Mutual funds

stood at Rs12071 crores (previous year Rs9808 crores) The key

highlights were- - The Company issued rated listed securedunsecured

non-convertible debentures of Rs900 crores with maturities of 10 ndash 15

years as a step to raise long term resources and optimize the loan

maturity profi le

- In October 2010 the Company raised funds aggregating Rs3351 crores

(US$ 750 million) by an issue of 32165000 A Ordinary Shares at a

price of Rs764- per share and 8320300 Ordinary Shares at a price of

Rs1074- per share to Qualified Institutional Buyers (QIBs) under a

qualified institutional placement The said issue was well received by

the investors and the Company availed of the opportunity to price it at

the mid-upper band This milestone in the financing strategy enabled

it to come closer to its objective of balance sheet de-leveraging

- Consequent upon the holders of Foreign Currency Convertible Notes

(FCCNs) of US707 million and JPyen 30 million exercising their option

to convert their FCCNs to Ordinary Shares the Company allotted

23570426 Ordinary Shares

The Company redeemed the 0 JPyen 720 million Convertible Notes as per

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

the terms of the issue which were remaining outstanding out of the 0

JPyen 11760 million Convertible Notes issued in 2006 the balance 939

of the said Notes being previously converted repurchased

Tranche 1 of the secured rated credit enhanced listed 2 coupon non

convertible debentures aggregating Rs800 crores was redeemed as per the

terms of issue out of the 4 tranches of debentures aggregating Rs4200

crores issued in 2009-10

With a turnaround in the business and continuing strong Profitability

in 2010-11 the net debt at Jaguar Land Rover reduced to GBpound 233

million During the year Jaguar Land Rover took steps to establish

hedging lines in order to reduce risks to the business from foreign

exchange fl uctuations and establishing long term funding facilities in

order to strengthen the capital structure

Tata Motors Finance Ltd have raised Rs361 crores by an issue of

unsecured non-convertible subordinated perpetual debentures towards

Tier 1 and 2 Capital to meet its growth strategy and improve its

Capital Adequacy ratio

Tata Motors Groups gross DebtEquity ratio as at March 31 2011 at

117 was significantly lower as compared to 428 as on March 31 2010

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Analysis of both the companies from HUMAN RESOURCE

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Perspective

TATA MOTORS

Recruitment Process

- Determine the present and future requirements of the organization

inconjunction with its personnel-planning and job-analysis activities

- Increase the pool of job candidates at minimum cost

- Help increase the success rate of the selection process by reducing

thenumber of visibly under qualified or overqualified job applicants

Steps involved in selection process

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

- Resumes

- Initial screening interview

- Analyze the application blank

- Conducting tests and evaluating performance

- Preliminary interview

- Core and departmental interviews

- Reference checks

- Job offer

- Medical examination

- Placement

Training programmes at TATA MOTORS

All employees are evaluated based on performance and merit The company

has customized the Performance Management System (PMS) for the

requirements of different categories of employees-managerial supervisors

and bargainable employees All employees have the opportunity of moving

to higher levels This is based on their personal preparation and desire to

move

- Target setting at individual level

- Mid year review amp feedback to employees

- Mid course correction in line with business needs

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

- Annual review amp feedback

- Performance based ratings

- Rewards compensation career planning

HUMAN RESOURCES

The overall employee relations were peaceful and harmonious throughout

the year The Company continued to create a productive learning and

caring environment by implementing robust and comprehensive HR

processes 2010-11 saw the Company attracting substantial talent to fi

ll some key Senior Leadership positions The permanent manpower

headcount also increased by 7 to 26214 This increase in headcount

supported the production and sales of over 8 lakh vehicles The

productivity in terms of the turnover per employee has gone up by

193 to Rs96 lakhs employee The Commercial Vehicles Business Unit

showed consistent improvement over the years and is better than its

competitors on all of the 8 HR Management parameters as rated by A C

Nielsen

The long term wage settlements were signed between the management and

its unions at locations where the settlements were due for

negotiations The bonus settlements at all our plant locations were

signedannounced in the month of SeptemberOctober The Tata Motors

Employees Union elections at Pune CVBU and PCBU were conducted

peacefully on March 9 2011 with new representatives being elected

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

Jaguar Land Rover have generally enjoyed cordial relations with

employees at their factories and offices and have not had any strikes

in the last eight years More than 96 of manufacturing shop floor

workers and approximately 45 of salaried staff in the UK are members

of a labour union Jaguar Land Rover signed a landmark settlement deal

with the Unions which would lead to the creation of new jobs in the

next decade including 1500 jobs at its Halewood facility Liverpool

in 2011 Jaguar Land Rover is recognised as a preferred employer in the

UK and has won recognition in The Times Top 100 Graduate Employers

for 2011 has won entry into The Times Top 50 Employers for Women and

one to note as a first time entry in The Times Best Companies

survey

SAFETY amp HEALTH - PERFORMANCE AND

INITIATIVES

All of the Companys operating plants in India have been certifi ed to

OHSAS - 18001 and ISO - 14001 standards and all the CVBU units have

been conferred with the Golden Peacock Award on Safety amp Health

Jamshedpur plant was adjudged first and was awarded by CII

(Confederation of Indian Industry) Eastern Region in Safety Health amp

Environment Practices The Company took steps towards ensuring that

every single individual working within its plant premises is protected

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

from any harmful impact of hisher working and the inherent risks

Towards this end the Company recently completed a diagnostic of the

existing safety systems through DuPont and is taking steps to raise the

safety standards to world class levels ZAP (Zero Accident Plan)

meetings are held all across plants and the defi ned bay owners in

these plants champion these meetings Tata Marcopolo Motors Limited

would be implementing IMS ndash 18001140019001 in both their plants in

2011-12 and other initiatives to increase focus on safety including

conducting of periodical audits to measure and ensure safety A host of

initiatives on health and wellness were taken across all plants in

India Specifi cally a Health Index was initiated in the Pune plant

and Ergonomics study carried out to improve workplace environment

HYUNDAI MOTORS

Hyundai Motor Co formed in 1967 was a part of the large South Korean

Chaebol - the Hyundai Group - until the group split in September 2000 In

the last four decades Hyundai managed to establish itself all over the world

as a company producing reliable technically sound and stylish automobiles

In the 90s the company started aggressive overseas expansion programs By

the late 90s when Southeast Asian crisis struck the company like all the

other chaebols faced serious financial problems To survive it had to cut its

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

labor force The company offered various retirement schemes unpaid leave

for two years etc to workers and expressed its inability to support its entire

workforce in the slack period The unions refused to compromise and the

management too held its ground Finally the government intervened to force

a negotiated settlement between the union and the management

Issues

raquo Damage that unhappy management-labor relations can cause to an organization

The Hyundai Motor Co (Hyundai) was in the midst of acute labor problems

in the late 1990s and early 2000s Until the mid 1990s Hyundai had been

successful in handling South Koreas traditionally disruptive labor unions It

had kept strikes at bay with nearly double-digit pay hikes and other benefits

But the Southeast Asian crisis3and the general slump in the automobile

industry in the late 1990s forced the company to restructure and cut down

jobs However the Hyundai labor union and workers rebelled against the

managements efforts to restructure the organization and the company faced

strikes and worker unrest repeatedly from late 1990s to early 2000s

Members of the Hyundai group4 such as the Hyundai Construction and

Engineering and Hynix Semiconductor were also facing financial troubles at

the time and were on the brink of insolvency Founder chairman of the

Hyundai Group Chung Ju-yung commented We are losing our

international competitiveness5 Regretting the continuous labor unrest he

said Wages have doubled in three years and productivity has gone down6

The labor problems Hyundai faced were not an isolated case in South Korea

By the late 1990s the chaebols had grown into large mismanaged structures

with many having several unprofitable units During the economic slump of

the late 1990s most of these chaebols felt the need to downsize There was

also mounting pressure from the IMF on the South Korean government to

undertake strict economic reforms and restructuring measures The labor

unions which have traditionally been very strong and influential in South

Korea felt threatened

Since jobs were being cut social unrest and a feeling of insecurity among

the labor class was rising The unions resorted to extreme measures in an

effort to establish their authority Although all over South Korea companies

were facing labor unrest Hyundai was among those that were hit the most

Labour Problems in the Late 1990s

The slump in the South Korean economy in late 1990s was bound to have an

effect on Hyundai also The automobile segment was among the first to be

hit by the downslide in the economy The domestic automobile sector had

negative growth of almost 55 in 1998 compared to the previous year

Hyundai was responsible for almost 50 of total automobile production in

South Korea and was therefore badly hit The domestic sales of the company

fell by 55 in the year 1998 and its exports crashed by 74 percent to only

15056 units Hyundai recorded a 200 billion won loss in 1998

According to company officials Hyundais six assembly plants with a yearly

production capacity of 165 million vehicles were operating at only 40

percent of their capacity In May 1998 Hyundai reacted to this grim

situation by announcing plans to lay off 27 percent of its 46000 workforce

in South Korea and to cut pay bonuses and benefits in a bid to save 230

billion won

Unfortunately for the management of the company Hyundai had one of the

most powerful and militant unions The decision of the company to lay off

workers sparked off agitations not only in Hyundai but in other companies

too The unions were particularly offended at the governments approval of

Hyundais decision

In a demonstration in Ulsan where Hyundai has its biggest automobile

plant 32000 employees participated in rallies All across South Korea

almost 120000 employees from about 125 companies participated in

demonstrations against Hyundai and the governments decision The

government had to deploy nearly 20000 riot police to control the

demonstrators

Labour Problems in the Early 2000s

On September 1 2000 Hyundai officially cut ties with the Hyundai Group

and had relocated its head office to Yangjae-dong Seoul Korea - a move

that was seen as symbolic of its rebirth as an independent automotive

business group In December 2001 Hyundai forecasted its highest profits

ever - $900 million for the year

In the same year it posted 234 percent growth in unit sales and a 745

percent improvement in net income Most importantly Hyundai vehicles

were being accepted as a technologically advanced stylish and reliable in

overseas markets like the US and Europe In the United States the worlds

largest auto market Hyundai recorded a 42 percent sales increase in 2001

This was an era of growth reorganization and new market exploration But

the success story was marred by another strike threat in Hyundai

Workers at the Ulsan plant went on a two-day strike in December 2001

demanding higher wages and higher bonuses They also demanded a 30

share in the profits that year as a performance bonus

The management clarified that though the company had done well that year

it could not afford performance bonuses to the tune of 30 of profit The

reasons given were firstly the increased influx of imported cars into South

Korea was bound to hurt Hyundais market share and margins in South

Korea

Secondly General Motors purchase of Daewoo was a threat that could not

be ignored or taken lightly and the company had to gear itself up to be able

to compete with General Motors and lastly the most important reason

stated was that due to the appreciation of the Korean won Hyundai cars

were becoming less competitive in international markets and profitability

consequently would be hurt

Analysis of both the companies

from TECHNOLOGICAL

Perspective

TATA MOTORS

INFORMATION TECHNOLOGY INITIATIVES

Tata Motors Group continues to lead in the use of Information

Technology as an integral part of its strategy and goes beyond the

organisations boundaries to cover suppliers dealers and customers

The Company won an Architecture Excellence Award in the IT Service

Management category at the ICMG World Conclave The Companys

competitive advantage includes a world class Customer Relations

Management solutions (CRM) with integrated Dealer Management System

(DMS) used by more than 2500 channel partners CRM capabilities are

now being replicated in its international operations Major highlights of the

year are-

- Enhancement of the Call Center operations capabilities to get

benchmark customer interaction performance addition of Key Accounts

Portal and deployment of Used Vehicle and Customer Loyalty solution

- Strengthening of IT support through distributed warehouse management

and spares planning systems for its after market operations

- Implementation of ERP for large and complex maintenance operations

for the Delhi Transport Corporation

- Supplier self service with design collaboration solution extended to

additional 550 vendors with more than 2500 vendors

- Use of manufacturing automation systems to run lean production

operations with advanced systems in plants for Nano and Ace

- Expanded analytics and planning solutions to all key business

functions with plans to embrace advanced analytical capabilities

- Jaguar Land Rover completed IT transition from Ford and launched

multiple strategic ERP programs

- Jaguar Land Rover has commenced IT enhancements with the

implementation of SAP ERP software in the UK and SAP all in one in

the National Sales Companies Jaguar Land Rover is also transforming

its product development capabilities with new toolsets including

Product Life Cycle Management (PLM)

- TDCV Korea started its own sales and marketing operations which

went through the ERP implementation to support retail sales and

initiated centralized IT procurement to leverage common contracts and

terms

The Tata Motors Group companies are collaborating on various fronts in

the use of Information Technology including deployment of

state-of-the-art video conferencing system The Tata Technologies Group

continues to be a strategic partner in strengthening the Tata Motors

Group IT capabilities

NEW PRODUCT TECHNOLOGY AND ENVIRONMENT

FRIENDLY INITIATIVES

The Company strives to be at the forefront of innovation and works to

launch products aimed at the emerging needs of its customers It

continues to develop and build on its in-house capabilities and works

with the right partners to ensure that it has competitive product

offerings Some of the Companys key products and initiatives for the

year include

- Showcased the Tata Pixel - a concept for a future city car at the

Geneva Motor Show

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

situation by announcing plans to lay off 27 percent of its 46000 workforce

in South Korea and to cut pay bonuses and benefits in a bid to save 230

billion won

Unfortunately for the management of the company Hyundai had one of the

most powerful and militant unions The decision of the company to lay off

workers sparked off agitations not only in Hyundai but in other companies

too The unions were particularly offended at the governments approval of

Hyundais decision

In a demonstration in Ulsan where Hyundai has its biggest automobile

plant 32000 employees participated in rallies All across South Korea

almost 120000 employees from about 125 companies participated in

demonstrations against Hyundai and the governments decision The

government had to deploy nearly 20000 riot police to control the

demonstrators

Labour Problems in the Early 2000s

On September 1 2000 Hyundai officially cut ties with the Hyundai Group

and had relocated its head office to Yangjae-dong Seoul Korea - a move

that was seen as symbolic of its rebirth as an independent automotive

business group In December 2001 Hyundai forecasted its highest profits

ever - $900 million for the year

In the same year it posted 234 percent growth in unit sales and a 745

percent improvement in net income Most importantly Hyundai vehicles

were being accepted as a technologically advanced stylish and reliable in

overseas markets like the US and Europe In the United States the worlds

largest auto market Hyundai recorded a 42 percent sales increase in 2001

This was an era of growth reorganization and new market exploration But

the success story was marred by another strike threat in Hyundai

Workers at the Ulsan plant went on a two-day strike in December 2001

demanding higher wages and higher bonuses They also demanded a 30

share in the profits that year as a performance bonus

The management clarified that though the company had done well that year

it could not afford performance bonuses to the tune of 30 of profit The

reasons given were firstly the increased influx of imported cars into South

Korea was bound to hurt Hyundais market share and margins in South

Korea

Secondly General Motors purchase of Daewoo was a threat that could not

be ignored or taken lightly and the company had to gear itself up to be able

to compete with General Motors and lastly the most important reason

stated was that due to the appreciation of the Korean won Hyundai cars

were becoming less competitive in international markets and profitability

consequently would be hurt

Analysis of both the companies

from TECHNOLOGICAL

Perspective

TATA MOTORS

INFORMATION TECHNOLOGY INITIATIVES

Tata Motors Group continues to lead in the use of Information

Technology as an integral part of its strategy and goes beyond the

organisations boundaries to cover suppliers dealers and customers

The Company won an Architecture Excellence Award in the IT Service

Management category at the ICMG World Conclave The Companys

competitive advantage includes a world class Customer Relations

Management solutions (CRM) with integrated Dealer Management System

(DMS) used by more than 2500 channel partners CRM capabilities are

now being replicated in its international operations Major highlights of the

year are-

- Enhancement of the Call Center operations capabilities to get

benchmark customer interaction performance addition of Key Accounts

Portal and deployment of Used Vehicle and Customer Loyalty solution

- Strengthening of IT support through distributed warehouse management

and spares planning systems for its after market operations

- Implementation of ERP for large and complex maintenance operations

for the Delhi Transport Corporation

- Supplier self service with design collaboration solution extended to

additional 550 vendors with more than 2500 vendors

- Use of manufacturing automation systems to run lean production

operations with advanced systems in plants for Nano and Ace

- Expanded analytics and planning solutions to all key business

functions with plans to embrace advanced analytical capabilities

- Jaguar Land Rover completed IT transition from Ford and launched

multiple strategic ERP programs

- Jaguar Land Rover has commenced IT enhancements with the

implementation of SAP ERP software in the UK and SAP all in one in

the National Sales Companies Jaguar Land Rover is also transforming

its product development capabilities with new toolsets including

Product Life Cycle Management (PLM)

- TDCV Korea started its own sales and marketing operations which

went through the ERP implementation to support retail sales and

initiated centralized IT procurement to leverage common contracts and

terms

The Tata Motors Group companies are collaborating on various fronts in

the use of Information Technology including deployment of

state-of-the-art video conferencing system The Tata Technologies Group

continues to be a strategic partner in strengthening the Tata Motors

Group IT capabilities

NEW PRODUCT TECHNOLOGY AND ENVIRONMENT

FRIENDLY INITIATIVES

The Company strives to be at the forefront of innovation and works to

launch products aimed at the emerging needs of its customers It

continues to develop and build on its in-house capabilities and works

with the right partners to ensure that it has competitive product

offerings Some of the Companys key products and initiatives for the

year include

- Showcased the Tata Pixel - a concept for a future city car at the

Geneva Motor Show

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

were being accepted as a technologically advanced stylish and reliable in

overseas markets like the US and Europe In the United States the worlds

largest auto market Hyundai recorded a 42 percent sales increase in 2001

This was an era of growth reorganization and new market exploration But

the success story was marred by another strike threat in Hyundai

Workers at the Ulsan plant went on a two-day strike in December 2001

demanding higher wages and higher bonuses They also demanded a 30

share in the profits that year as a performance bonus

The management clarified that though the company had done well that year

it could not afford performance bonuses to the tune of 30 of profit The

reasons given were firstly the increased influx of imported cars into South

Korea was bound to hurt Hyundais market share and margins in South

Korea

Secondly General Motors purchase of Daewoo was a threat that could not

be ignored or taken lightly and the company had to gear itself up to be able

to compete with General Motors and lastly the most important reason

stated was that due to the appreciation of the Korean won Hyundai cars

were becoming less competitive in international markets and profitability

consequently would be hurt

Analysis of both the companies

from TECHNOLOGICAL

Perspective

TATA MOTORS

INFORMATION TECHNOLOGY INITIATIVES

Tata Motors Group continues to lead in the use of Information

Technology as an integral part of its strategy and goes beyond the

organisations boundaries to cover suppliers dealers and customers

The Company won an Architecture Excellence Award in the IT Service

Management category at the ICMG World Conclave The Companys

competitive advantage includes a world class Customer Relations

Management solutions (CRM) with integrated Dealer Management System

(DMS) used by more than 2500 channel partners CRM capabilities are

now being replicated in its international operations Major highlights of the

year are-

- Enhancement of the Call Center operations capabilities to get

benchmark customer interaction performance addition of Key Accounts

Portal and deployment of Used Vehicle and Customer Loyalty solution

- Strengthening of IT support through distributed warehouse management

and spares planning systems for its after market operations

- Implementation of ERP for large and complex maintenance operations

for the Delhi Transport Corporation

- Supplier self service with design collaboration solution extended to

additional 550 vendors with more than 2500 vendors

- Use of manufacturing automation systems to run lean production

operations with advanced systems in plants for Nano and Ace

- Expanded analytics and planning solutions to all key business

functions with plans to embrace advanced analytical capabilities

- Jaguar Land Rover completed IT transition from Ford and launched

multiple strategic ERP programs

- Jaguar Land Rover has commenced IT enhancements with the

implementation of SAP ERP software in the UK and SAP all in one in

the National Sales Companies Jaguar Land Rover is also transforming

its product development capabilities with new toolsets including

Product Life Cycle Management (PLM)

- TDCV Korea started its own sales and marketing operations which

went through the ERP implementation to support retail sales and

initiated centralized IT procurement to leverage common contracts and

terms

The Tata Motors Group companies are collaborating on various fronts in

the use of Information Technology including deployment of

state-of-the-art video conferencing system The Tata Technologies Group

continues to be a strategic partner in strengthening the Tata Motors

Group IT capabilities

NEW PRODUCT TECHNOLOGY AND ENVIRONMENT

FRIENDLY INITIATIVES

The Company strives to be at the forefront of innovation and works to

launch products aimed at the emerging needs of its customers It

continues to develop and build on its in-house capabilities and works

with the right partners to ensure that it has competitive product

offerings Some of the Companys key products and initiatives for the

year include

- Showcased the Tata Pixel - a concept for a future city car at the

Geneva Motor Show

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

Analysis of both the companies

from TECHNOLOGICAL

Perspective

TATA MOTORS

INFORMATION TECHNOLOGY INITIATIVES

Tata Motors Group continues to lead in the use of Information

Technology as an integral part of its strategy and goes beyond the

organisations boundaries to cover suppliers dealers and customers

The Company won an Architecture Excellence Award in the IT Service

Management category at the ICMG World Conclave The Companys

competitive advantage includes a world class Customer Relations

Management solutions (CRM) with integrated Dealer Management System

(DMS) used by more than 2500 channel partners CRM capabilities are

now being replicated in its international operations Major highlights of the

year are-

- Enhancement of the Call Center operations capabilities to get

benchmark customer interaction performance addition of Key Accounts

Portal and deployment of Used Vehicle and Customer Loyalty solution

- Strengthening of IT support through distributed warehouse management

and spares planning systems for its after market operations

- Implementation of ERP for large and complex maintenance operations

for the Delhi Transport Corporation

- Supplier self service with design collaboration solution extended to

additional 550 vendors with more than 2500 vendors

- Use of manufacturing automation systems to run lean production

operations with advanced systems in plants for Nano and Ace

- Expanded analytics and planning solutions to all key business

functions with plans to embrace advanced analytical capabilities

- Jaguar Land Rover completed IT transition from Ford and launched

multiple strategic ERP programs

- Jaguar Land Rover has commenced IT enhancements with the

implementation of SAP ERP software in the UK and SAP all in one in

the National Sales Companies Jaguar Land Rover is also transforming

its product development capabilities with new toolsets including

Product Life Cycle Management (PLM)

- TDCV Korea started its own sales and marketing operations which

went through the ERP implementation to support retail sales and

initiated centralized IT procurement to leverage common contracts and

terms

The Tata Motors Group companies are collaborating on various fronts in

the use of Information Technology including deployment of

state-of-the-art video conferencing system The Tata Technologies Group

continues to be a strategic partner in strengthening the Tata Motors

Group IT capabilities

NEW PRODUCT TECHNOLOGY AND ENVIRONMENT

FRIENDLY INITIATIVES

The Company strives to be at the forefront of innovation and works to

launch products aimed at the emerging needs of its customers It

continues to develop and build on its in-house capabilities and works

with the right partners to ensure that it has competitive product

offerings Some of the Companys key products and initiatives for the

year include

- Showcased the Tata Pixel - a concept for a future city car at the

Geneva Motor Show

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

TATA MOTORS

INFORMATION TECHNOLOGY INITIATIVES

Tata Motors Group continues to lead in the use of Information

Technology as an integral part of its strategy and goes beyond the

organisations boundaries to cover suppliers dealers and customers

The Company won an Architecture Excellence Award in the IT Service

Management category at the ICMG World Conclave The Companys

competitive advantage includes a world class Customer Relations

Management solutions (CRM) with integrated Dealer Management System

(DMS) used by more than 2500 channel partners CRM capabilities are

now being replicated in its international operations Major highlights of the

year are-

- Enhancement of the Call Center operations capabilities to get

benchmark customer interaction performance addition of Key Accounts

Portal and deployment of Used Vehicle and Customer Loyalty solution

- Strengthening of IT support through distributed warehouse management

and spares planning systems for its after market operations

- Implementation of ERP for large and complex maintenance operations

for the Delhi Transport Corporation

- Supplier self service with design collaboration solution extended to

additional 550 vendors with more than 2500 vendors

- Use of manufacturing automation systems to run lean production

operations with advanced systems in plants for Nano and Ace

- Expanded analytics and planning solutions to all key business

functions with plans to embrace advanced analytical capabilities

- Jaguar Land Rover completed IT transition from Ford and launched

multiple strategic ERP programs

- Jaguar Land Rover has commenced IT enhancements with the

implementation of SAP ERP software in the UK and SAP all in one in

the National Sales Companies Jaguar Land Rover is also transforming

its product development capabilities with new toolsets including

Product Life Cycle Management (PLM)

- TDCV Korea started its own sales and marketing operations which

went through the ERP implementation to support retail sales and

initiated centralized IT procurement to leverage common contracts and

terms

The Tata Motors Group companies are collaborating on various fronts in

the use of Information Technology including deployment of

state-of-the-art video conferencing system The Tata Technologies Group

continues to be a strategic partner in strengthening the Tata Motors

Group IT capabilities

NEW PRODUCT TECHNOLOGY AND ENVIRONMENT

FRIENDLY INITIATIVES

The Company strives to be at the forefront of innovation and works to

launch products aimed at the emerging needs of its customers It

continues to develop and build on its in-house capabilities and works

with the right partners to ensure that it has competitive product

offerings Some of the Companys key products and initiatives for the

year include

- Showcased the Tata Pixel - a concept for a future city car at the

Geneva Motor Show

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

- Enhancement of the Call Center operations capabilities to get

benchmark customer interaction performance addition of Key Accounts

Portal and deployment of Used Vehicle and Customer Loyalty solution

- Strengthening of IT support through distributed warehouse management

and spares planning systems for its after market operations

- Implementation of ERP for large and complex maintenance operations

for the Delhi Transport Corporation

- Supplier self service with design collaboration solution extended to

additional 550 vendors with more than 2500 vendors

- Use of manufacturing automation systems to run lean production

operations with advanced systems in plants for Nano and Ace

- Expanded analytics and planning solutions to all key business

functions with plans to embrace advanced analytical capabilities

- Jaguar Land Rover completed IT transition from Ford and launched

multiple strategic ERP programs

- Jaguar Land Rover has commenced IT enhancements with the

implementation of SAP ERP software in the UK and SAP all in one in

the National Sales Companies Jaguar Land Rover is also transforming

its product development capabilities with new toolsets including

Product Life Cycle Management (PLM)

- TDCV Korea started its own sales and marketing operations which

went through the ERP implementation to support retail sales and

initiated centralized IT procurement to leverage common contracts and

terms

The Tata Motors Group companies are collaborating on various fronts in

the use of Information Technology including deployment of

state-of-the-art video conferencing system The Tata Technologies Group

continues to be a strategic partner in strengthening the Tata Motors

Group IT capabilities

NEW PRODUCT TECHNOLOGY AND ENVIRONMENT

FRIENDLY INITIATIVES

The Company strives to be at the forefront of innovation and works to

launch products aimed at the emerging needs of its customers It

continues to develop and build on its in-house capabilities and works

with the right partners to ensure that it has competitive product

offerings Some of the Companys key products and initiatives for the

year include

- Showcased the Tata Pixel - a concept for a future city car at the

Geneva Motor Show

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

Product Life Cycle Management (PLM)

- TDCV Korea started its own sales and marketing operations which

went through the ERP implementation to support retail sales and

initiated centralized IT procurement to leverage common contracts and

terms

The Tata Motors Group companies are collaborating on various fronts in

the use of Information Technology including deployment of

state-of-the-art video conferencing system The Tata Technologies Group

continues to be a strategic partner in strengthening the Tata Motors

Group IT capabilities

NEW PRODUCT TECHNOLOGY AND ENVIRONMENT

FRIENDLY INITIATIVES

The Company strives to be at the forefront of innovation and works to

launch products aimed at the emerging needs of its customers It

continues to develop and build on its in-house capabilities and works

with the right partners to ensure that it has competitive product

offerings Some of the Companys key products and initiatives for the

year include

- Showcased the Tata Pixel - a concept for a future city car at the

Geneva Motor Show

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

- Launched the Aria - a premium crossover with high-end features such

as 4x4 Torque on Demand ESP six airbags

- Launched the BS IV compliant variants of the Indica and the Indigo

CS the Indica eV2 and Indigo eCS with segment leading fuel effi

ciencies These vehicles are powered by the Companys 14L CRAIL

engine

- Launched Elan - a high end variant of the Indigo Manza sedan

- Ace Zip and Magic Iris were test marketed in various parts of the

country and are expected to be formally launched across the country in

May this year This completes the Ace family offerings now spanning

from the Ace Zip and Magic Iris at the lower end and the Super Ace and

Venture on the higher end

- Launched the Venture - a Multi Purpose Vehicle (MPV) on the Ace

platform

- The Prima range launched in the previous year was expanded with the

introduction of the Prima Construck range of tippers in the market

Some Prima trucks were also launched in Korea and some of the tippers

are soon expected to be launched in the international markets

- Jaguar Land Rover launched the all new Jaguar XJ the new 44 V8

diesel Range Rover and the new 22 diesel Land Rover - Freelander

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

- Jaguars Advanced Design Team and the Jaguar Land Rover Technical

Innovation Team created a concept car for the Paris Motor Show to

celebrate 75 years of Jaguar Design and Innovation The resultant - a

stunning Jaguar C-X75 is a radical combination of hyper-car

eco-friendliness and 21st century technology which won Car of the

Show capturing the imagination of millions Jaguar Land Rover recently

announced their partnership with Williams F1 to bring a version of this

concept to the market in 2013

- Tata Hispano Motors Carrocera SA Spain introduced 4 new brand

models of its buses viz Area - an urban bus 2 hybrid urban buses and

Naya - a new deluxe coach This alongwith the Xerus and Intea models

launched last year would expand its product range in high-end

busescoaches

Development of Environment Friendly Technologies

As a responsible automotive manufacturer the Tata Motors Group

continues to develop vehicles and technologies to reduce its carbon

footprint Some of the signifi cant initiativesachievements are

- Showcased its CNG parallel Hybrid low-floor city buses in the

Commonwealth Games in Delhi

- Tata Indica Vista EVX developed by engineers at our European

subsidiary - Tata Motors European Technical Centre Plc bagged the

Most Economic Small Passenger EV and the Most Economical and

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

Environment Friendly Small Passenger EV under the Small Passenger EV

category at the inaugural Royal Automobile Club Brighton to London

Future Car Challenge

- Migrated to meeting the BS IV emission norms by developing BS IV

compliant range of vehicles in particular Indica eV2 and Indigo eCS

with 14L CRAIL engines with segment leading fuel effi ciencies

- Jaguar and Land Rover continue to invest heavily in environmental

innovation to support delivery of the 2012 European Union requirement

for reduction in CO2 The 2010-11 new model launches including the all

new Jaguar XJ the new 44 V8 Diesel Range Rover and the new 22 Diesel

Land Rover - Freelander realised improvements in CO2 performance in

excess of 10 The Jaguar XF and Range Rover Evoque to be launched in

the second quarter of 2011 would continue this trend The Jaguar XF

22 Diesel 8 speed automatic transmission variant with StopStart

technology reduces the entry model CO2 output whilst the Evoque

features a number of lightweight vehicle effi ciency and Powertrain

technologies that make this the most fuel effi cient Range Rover ever

Jaguar Land Rover is working on introducing a new Premium Lightweight

Architecture for its products This has seen a host of environment

friendly technologies including new aluminium alloys down-sized

powertrains Eco HMI sustainable materials best-

CO2 navigation routes electronic power steering aerodynamic features

and many more technologies These technologies enable the delivery of

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

class leading Luxury and Performance combined with low CO2 and lay

the foundation for effi cient hybridization of the platform Jaguar

Land Rovers initial Full-Hybrid programme is also in advanced stages

In 2010-11 some of the Plug-In Hybrid projects of Jaguar Land Rover

were completed and have provided the technical foundation for a

production development programme for Parallel Plug-in Hybrids In

addition Jaguar Land Rover has made signifi cant progress on a number

of ongoing collaborative Research and Development programmes

investigating a wide range of CO2 reduction technologies These include

radical combustion engine downsizingpressure charging alternative

power sources for Series Hybrids Flywheel KERS and waste energy

recovery systems

Tata Hispano Motors Carrocera SA Spain won a prestigious order for

supplying 10 CNG Series Hybrid low-floor city buses to be built on

the Companys chassis to EMT Madrid a Madrid city public

transportation company

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

HYUNDAI MOTORS

Hyundai - New Technology

A voice-activated audio and media devices Automatically repaired surface

nicks and scratches A car that protects its driver when lane deviations and

rear collisions are detected

New Technology for driver safet y and convenience

The most representative infotainment system is telematics created by the

fusion of telecommunication and informatics Featuring a state-of-the-art

communication terminal with built-in GPS that is connected to various other

electronic devices in the vehicle the system offers various useful

information to the driver to promote safer driving HyundaimiddotKia Motors

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

became the first company in Korea to offer an integrated telematics service

called Mozen to enhance the comfort and pleasure of driving

-HOLOGRAM-HUD

Space holographic technology is a progressive technology that displays

various driving and driver convenience information on the front windshield

in the form of a 3D hologram

-DSM(Driven State Monitoring)

DSM employs facial recognition engine technology to determine the driverrsquos

state by monitoring changes in the driverrsquos eye movements and facial

muscles with an infrared camera installed inside the car By measuring the

driverrsquos blinking and facial direction patterns it sounds an alarm sound and

relays strong vibrations to the seat when abnormal states are detected

-Self healing scratch shield

SRC (Scratch Recovery Clear) uses the elasticity of special chemically

composed matters in a clear paint that has selfhealing properties Scratches

are automatically fixed over a period of time

-Solar cell sunroof

Solar cells are a representative form of environmentally-friendly and

renewable energy We are applying solar cells to automobile sunroofs and

using the AC fan operation to reduce the AC load during summertime

while enhancing cooling performance and cooling fuel efficiency

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s

-Pre ndashcrash headrests

Pre-crash headrests help prevent driver neck injuries by detecting possible

rear collisions using a rear-facing radar or camera that is built into the

vehicle When a possible collision is detected the headrest automatically

moves closer to the driverrsquos head for added protection Once the risk has

passed the headrest then returns to its normal position after a certain period

of time

-Nano glass(wiperless vehicles)

Nano technology is utilized to automatically remove water or dust from the

front windshield without the need for wipers

-Honeycomb Tires

The non-pneumatic tires eliminate the possibility of flat tires with its special

honeycomb-shaped tires or wheels that are covered in rubber on the outside

• Strengths
• Weaknesses
• Opportunities
• Threats
• Issues
• Labour Problems in the Late 1990s
• Labour Problems in the Early 2000s