The Tata Engineering & Locomotive Company (commonly known as Telco), is India’s largest private sector company in terms of revenues and market capitalisation. It is also one of the 6 largest manufacturers of commercial vehicles in the world. Telco is a part of Tata Enterprises, which is the largest industrial group in India, employing assets of Rs.267 million (US$7.6 billion) in a wide range of businesses including Automobiles, Steel, Information Technology, Telecommunications, Energy, Chemicals, Hotels and Tea Telco was incorporated in 1945, to manufacture steam locomotives. Today it has a domestic market share of 68% in the MCV/HCV segment, 64% in the LCV segment and 32% in the multi-utility segment. Telco has been exporting its products since 1969 and currently exports about a tenth of its output. Export markets include the Middle East, Africa and Southeast Asia, as well as developed countries in Europe like France, UK and Spain. It is intended that exports should account for 20% of the automobiles sold by the Company. The analysis of the macroeconomic environment can be done by PEST model: A rigid and closed system has always been the main hurdle for growth of industry in India, which is virtually plagued by legislation and legal procedures.
The complex bureaucratic style of working in this otherwise democratic country has always been a handicap for automobile industry. The stringent laws especially regarding foreign investments had deprived India from global technology and services. The early nineties liberalisation saw some major policy changes of the government- Depreciation of the rupee and promoting foreign trade. Exim scrips to be replaced by partial and later full convertibility of the rupee on trade account. Liberalisation of trade policies. Opening up of a number of areas to the private sector. Deregulating the banks’ and financial institutions’ lending rates. Reduction of statutory liquidity ratios. Freeing of the capital market from government control. Abolition of the office of the Controller of Capital Issues. Implementation of the National Renewal Fund. Slashing of fiscal duties on a number of items meant for industrial production. The international exposure led to a general increase in the awareness level of the masses. The demand for quality and environmentally friendly automobiles led to strict legislation.
The Essay on Analytics Companies In India Top Analytics Companies In India
Top Analytics Companies in India (Using SAS/SPSS):In Analytics what we try is make clusters for the people to deccide on their own, These clusters ,on analytic companies will help you a lot Branded Analytics Cluster 1( These companies are struggling hard to mark their name in the market place,not a easy task to get the advanced analytic work outsourced to india, but still their confidence and ...
Certain states of the union passed legislation against polluting vehicles and banned the trade of inferior quality vehicles. The new legal and political order is directly effecting TELCO. The positive effects are: Direct foreign investment has led to new and valuable business partners. Cost of importing technology is less. New era of exports has dawned. Growth in the market and international exposure. The foreign carmakers are entering the huge Indian market thus making it very competitive for TELCO. The expertise of TELCO in diesel engines is facing threats from the new- found environmental awareness and new legislation. The cost effective TELCO is facing a new threat in form of new found quality measures. Spearheading the ?swadeshi? aspect of the Indian automobile industry TELCO is trying to restrict the slaughter of the Indian industry in the hands of the foreign giants. It is through societies and pressure groups like Society of Indian Automobile Manufacturers that TELCO is raising a voice against anti ?swadeshi? legislation. Despite some bouts of recession in the recent past, the macro fundamentals of the Indian economy are sound.
The Essay on China a Threat to Indian Industry?
1) Are Japanese products a threat to US industries? Are Eastern EU products a threat to Western EU industries? 2) Is the Chinese Auto industries a threat to India? Dont know. Is the Chinese Food Product better than India? Dont think so. Is the Chinese Manga Books better than India? Dont think so. Is the Chinese textile industries a threat to India? Yes. Is the Indian software industries a threat ...
Gross Domestic Product growth has averaged more than 7% for the last three years. The rate of inflation has remained low. The nation’s foreign exchange reserves are brimming with nearly US$ 30 billion. Even in the face of such crises like the currency depreciation in Southeast Asian countries and the stock market crashes in various countries, the Indian economy has stood firm. Industry observers believe that largely cyclical factors and industrial have driven the general slowdown growth will pick up again. In the first six months of the 1997-98, the corporate sector registered a 11% growth in net profit. Advance corporate tax payments jumped by16%, indicating a better profit performance by companies. In the dynamics of transition of the Indian economy, the automobile industry is emerging as a leading industry. The large volumes of investment including foreign direct investment in the automobile manufacturing ventures and technical collaboration are propelling a quantum jump in upgradation of technology. Domestic demand for passenger cars and multi utility vehicles is projected at 800,000 cars by 2000 A.D. With increased production and capacity creation in the passenger car sector, substantial growth in exports is envisaged.
This tremendous growth in the vehicle sector, is geared as well to accelerate the continuous growth of the auto-component industry. TELCO is feeling the heat of the new found economic liberty and freedom. The automobile sector is The figures defy human imagination. India, in all her diversity, encompasses one of the largest highway and road networks on the planet. In fact, it is second only to the road network of the United States. Take a look at the statistics. The total length of roads in the country exceeds 3.01 million kilometres. This labyrinthine network consists of 34,608 km of national highways, 128,622 km of state highways, and an informal network running to an astounding 2,737,080 km. And surprisingly enough, the road network growth has not kept pace with the mushrooming vehicle population. A study conducted by the National Highway Authority of India (NHAI) shows that the vehicle population has increased hundred-fold. Whereas, the network length of roads has increased only seven-fold. To illustrate, in 1948, Chennai, (with an area of 172 sq.km.) had a vehicle population of 6,000 cars and 810 two-wheelers. Today, 50 years down the road, Chennai’s roads are choked with 3,00,000 cars and 4,00,000 two-wheelers.
The Essay on How Has the Personification of India and the Indian Woman Been Reflected in the Various Paintings of Mother India?
“I am India. The Indian nation is my body. Kanyakumari is my foot and the Himalayas my head. The Ganges flows from my thighs. My left leg is the Coromandal Coast, my right is the Coast of Malabar. I am this entire land. East and West are my arms. How wondrous is my form! When I walk I sense all India moves with me. When I speak, India speaks with me. I am India. I am Truth, I am God, I am Beauty.” ...
Elsewhere, in Mumbai and Delhi, traffic snarls enable vehicles to travel at top speeds of 12 kmph and 22 kmph respectively! During the last week of October 1998, the Ministry of Surface Transport announced its ambitious plan to link Srinagar to Kanyakumari and Silcher to Saurashtra. This unprecedented 7,000 km, four-lane expressway project is expected to cost a whopping Rs. 28,000 crores. The plan of action ensures that there will be no overlapping with the segments in the 7,000 km-long golden quadrangle between Delhi-Mumbai-Calcutta-Chennai. The NHAI is pursuing this objective with assistance from multilateral agencies. Since these world-class expressways will be independent of India’s existing highways, an estimated Rs. 15,000 crores is being allotted for land acquisition alone. Yet, national highways are estimated to carry 40 per cent of the total road traffic but account for only 2 per cent of the total network. The growth in general buying power and more urban population is making cars a necessity rather than luxury. The automotive industry’s strong linkages with the capital equipment and the services industry, and, the potential for earning foreign exchange through exports also acted as an impetus for its growth.
The new liberal economic regime, the immense market potential and the presence of stable and cost competitive manufacturing base has led to a quantum jump in the rate of growth of the automobile industry in recent years 1993-1997 at an average rate of above 20%. TELCO is adapting to the new economic order and is trying to have a better share of the pie. It has emerged as a major player in the automobile export market and is trying to capture the Indian middle class through its new range of cars. The opening of India to the world brought in among other things new technology. The Indians with there instinctive scientific nature have adapted to the new advancements very well. India having a very large pool of scientific and engineering talent in the world has marched forward in critical areas of development – be it space or electronics. This pool of knowledge has enabled India to attain high levels of achievement in diverse high tech areas. Automobile industry especially giants like TELCO and Bajaj Auto have adapted to new technologies well. But advent of new foreign companies and the pace of technological changes make the future highly aqueous to predict. The nineties phenomenon has had far reaching implications on the social order of the country.
The Essay on U S Auto Industry Market Share And Fluctuations
U. S Auto Industry's Market Share and Fluctuations The U. S. auto industry's share of the market has experienced fluctuations over the past 50 years. These fluctuations have been caused by many reasons, but some of the main reasons include quality, price, and foreign competition. The Ford Motor Company, General Motors Company, and the Chrysler Corporation, a. k. a. 'The Big Three', are the three ...
The emergence of the great new middle class and the birth of the new generation Indians are the two most important facets of this social order affecting the consumer market. The global reach, awareness and overall affluence have resulted in birth of the new consumerist Indian. The depravity of ages has resulted in a virtual eruption of new age of flashy cars and phones. Gandhi is pass? and Uncle Sam is the order of the day. The stylish Indian took an initial toll on the automobile Industry and few giants who were not able to adapt to the style collapsed. But now the Indian companies have adapted to the western style phenomenon and are competing as well. TELCO has responded to the changing tastes quite well with a new range of produce. The vastness of the country and different social orders have resulted The fluidity of the market and complexity of its nature are quite evident by the pest analysis. The in depth analysis of the automobile sector in India is still more complex and debateable topic. The Automotive Industry in India is now working in terms of the dynamics of an open market. Many joint ventures have been set up in India with foreign collaboration, both technical and financial with leading global manufacturers..
Also a very large number of joint ventures have been set up in the auto-components sector and the pace is expected to pick up even further. The Government of India is keen to provide a suitable economic, and business environment conducive to the success of the established and prospective foreign partnership ventures. The new liberal economic regime, the immense market potential and the presence of stable and cost competitive manufacturing base has led to a quantum jump in the rate of growth of the automobile industry in recent years 1993-1997 at an average rate of above 20%. The industry has achieved tremendous growth in the 1990’s. It achieved a turn-over of Rs. 450 bn and contributed RS.297.8 bn to the State Exchequer in 1996-97. It gives direct employment of 200,000 and indirect employment to about 10 mn. people. The Indian automobile industry is characterized by a very high percentage (75%) of production in the 2/3 wheeler sector. India ranks as the second largest producer of 2/3 wheelers in the world, next only to Taiwan. India today is the largest manufacturer of tractors, as well. The world automobile leaders have evinced keen interest in India and are making their entry through joint ventures and technology cooperation agreements.
The Business plan on Alpha Audio Product Market Industry
ALPHA AUDIO Executive Summary ALPHA Audio, a leading global electronics manufacturer, is going to produce the innovative and exciting car audio compact disk recorder and receiver. This product will be capable of recording music off the radio and engraving it onto a compact disk for later listening enjoyment. When the consumer hears a song on the radio that they like, they will press the red, ...
RS.127 bn or US $ 3617 mn is the investment envisaged in the new vehicle projects. If one looks at the joint venture’s list, he or she can observes that the equity participation in the joint ventures indicate a wide variation ranging from 10% to 100% i.e. wholly owned foreign subsidiaries. The equity participation is not regulated by Government but is market driven. It depends upon the market perceptions of the joint venture partners and their business perceptions primarily in terms of technological, financial and market strengths of the partners. The setting up of joint ventures has also led to enhanced capacity creation in the vehicle sector, particularly in the passenger car sector and the additional capacity is expected to mount by 1 mn. passenger cars in the next 4-5 years. The large volumes of investment including foreign direct investment in the automobile manufacturing ventures and technical collaboration are propelling a quantum jump in upgradation of technology. Domestic demand for passenger cars and multi utility vehicles is projected at 800,000 cars by 2000 A.D. With increased production and capacity creation in the passenger car sector, substantial growth in exports is envisaged.
This tremendous growth in the vehicle sector, is geared as well to accelerate the continuous growth of the auto-component industry. The favourable economic policy of the present regime and vast market potential make India an easy target for any foreign company theoretically. But the practical constraints like the huge size of the country and wide variation in the market are major barrier to any new player in the automobile market. Past five years have seen companies like Daewoo have failed to capitalise on the theoretical benefits due to practical barriers like a below average distribution network. Huge financial investments and a vast knowledge of the diverse Indian market can only overcome the practical barrier. TELCO being a local home born company stands at an advantage. Moreover, the envious, TELCO network is the strength of the company. The self-reliance of TELCO is the mantra for its success and the biggest advantage it has over its suppliers. The Company strongly pursues a philosophy of vertical integration, which encompasses the manufacture of sophisticated machine tools, industrial electronics and foundry equipment. The Company also designs, develops and tests new automotive products that incorporate new technology and designs, and manufactures its own tooling, from heavy dies to compact high-precision fixtures.
The Essay on Product and Service
A product is anything that meets the requirements of a particular market, this term involves a lot of dimensions because it is essential to recognize what contributes to the “total product offer”1 in order to be successful in the market or simple to keep our customers satisfy. A service is an intangible economic activity, not stored and does not result in ownership; Services nowadays are becoming ...
The competitors of TELCO have a big weakness in form of bargaining power of suppliers. The suppliers have low switching cost and a huge potential market this gives them even greater power. In 1996-97, the rate of growth in the automobile industry was 14% and there has been a marginal negative growth in 1997-98. This is a short-term set back in production due to slow down in the economy and since the heat of competitive pressures being felt in the industry. But with the expected economic revival in the coming years the industry as a whole is poised for further growth. The mood of the automobile industry is high and it is reflectd in the growth of the number of distributors. TELCO has the most well defined and srong dealer distribution network. The service station facility is the strong point of TELCO distribution network. The buyer bargaining power till the recent past was very low because of lack of alternatives and heavy cost of switching involved. But the new economic boom has made times difficult for TELCO. The increase in bargaining power which dealer-distributors have is though not affecting TELCO only but also its competitors. The relatively new idea of a luxury car, a family car, an economy car has well established itself in the mind of the Indian consumer.
The differentiation on the basis of styling and features is also integral part of the new age buyer. The process of substitution is now faster and is clearly guided by the above principles. The wide range of, cars and other vehicles make substitution a great threat. TELCO is fighting this threat with emphasising on strengths like after sales service and branding. It has also come up for the first time with value addition on the product. Global is the name of the game in the automobile industry in India today. Foreign collaboration and joint ventures are the flavour of the month. This has led to a new market environment in India. The competition is getting more fierce with more global players coming in. TELCO is committed to competing on equal terms with international competition. This is achieved through stringent quality standards and a philosophy of vertical integration. TELCO is thus able to achieve an export performance, which is unequalled among engineering companies in India, and has so far earned Rs.200 billion worth of foreign exchange. At the domestic front Telco faces competition from regional players like Ashok Leyland and Eicher. But weak brand- image and lack of national network dwarfs them in front of TELCO.
The times have changed the view point of TELCO towards the product it is producing for the consumer. Today in the wake of grown awareness among the consumer for his right to demand more TELCO is also acting as a service provider and product developer. We can study the product under the following heads- TELCO is trying to achieve a high level of customer satisfaction by enhancing safety standards and incorporating environmental friendly technologies. Recent launch of the new model Indica saw turnaround of TELCO product strategies in both the tangible and intangible aspects. Indica is designed in Italy, test run in the USA, consumes diesel as well petrol and sold in India on easy finance. The product here is emphasising on both service and product quality. Responding to the growing concern for environment TELCO has taken the following steps: All Telco vehicles meet CMVR emission norms by safe margins. Telco’s new range of vehicles, with Cummins engines, meet Euro I and proposed India norms for year 2000.A number of Telco products meet current European emission norms and are exported to these countries. Telco has absorbed several environmentally sensitive technologies in its manufacturing processes.
Telco possesses some of the world’s most advanced equipment for emission check and control. If TELCO continues its consumer friendly packaging of the product it will surely survive the onslaughts of foreign competitors. Success in today?s competitive environment demands technologies and work processes that are result-oriented. Incorporating these technologies into all manufacturing processes, Telco has focussed its manufacturing strategy on developing world class manufacturing facilities. And achieving a high level of indigenisation. Telco has three manufacturing facilities that utilise state-of-the-art equipment and processes. Located at Pune, Jamshedpur and Lucknow, these facilities cater to the ever-increasing demand for Telco vehicles. Telco?s sophisticated equipment includes high-capacity automatic press and forging lines, high-pressure moulding lines, CNC machine centres, laser-cutting machines, transfer lines, special purpose machine tools, process equipment, software for IT, disk tools etc. Most of these are designed and manufactured by Telco in-house. The Company strongly pursues a philosophy of vertical integration, which encompasses the manufacture of sophisticated machine tools, industrial electronics and foundry equipment.
The Company also designs, develops and tests new automotive products that incorporate new technology and designs, and manufactures its own tooling, from heavy dies to compact high-precision fixtures. Telco retains an ongoing focus towards engineering solutions for Indian conditions. It has created the largest and most comprehensive Design & Development Centre, which is equipped with the latest CAD workstations and testing facilities, and has a wealth of experience which permits it to design products ideally suited for rugged conditions. The Centre has designed a series of LCGs, which have successfully competed with the latest international brands. Telco has also undertaken a major design effort for intermediate commercial vehicles and new passenger car models. Telco?s large Engineering Research Centre employs some of the India’s finest automotive engineers, who utilise Telco?s extensive R&D facilities, including computer?aided design systems to develop new vehicles, aggregates and manufacturing equipment. Quality Control is not a system ? but rather a way of life at Telco. It is the essence of Telco?s corporate philosophy, based entirely on international norms.
This, along with a policy of customer-driven quality, enables Telco to maintain its focus on minute detail, at every stage of production. Quality control starts at the root level ? from raw materials, which are procured from approved sources and have to fulfill Telco?s stringent quality norms. Bought-out components are inspected both dimensionally and metallurgically. First piece approval, line inspection and final inspection of aggregates, followed by vehicle testing are the key inputs for quality control. At predetermined intervals, all gauges used by production and inspection centres are recalibrate in a climatically controlled environment. In order to adhere to the strict tolerances laid down, a variety of state-of-the-art equipment is employ, including such as the Zeiss Multidimensional measuring machine, Centel, Telyrond machine and the Cyclop profile projector. In addition to these in-built checks, an Audit Inspection Group is authorised to carry out random checks on components on the manufacturing line which have already been inspected through regular methods. The major strength of TELCO is its motivated work force. The Tata Philosophy of treating the employees as branches of the same tree is very much visible in TELCO.
The growth of Telco and the quality of its products are anchored securely in the skills that have been built in its employees. The training schools run by Telco are acknowledged as being the best training establishments in the engineering industry in India. By giving the highest priority to training, the Company has created an invaluable source of skilled craftsmen, who are periodically retrained, so that their skills are never obsolete. Telco has a pool of highly qualified engineers, whose innovativeness gives the Company its distinct competitive edge. Applying the principles of TQM and blending them with the Tata philosophy has given TELCO an enviable position in corporate world as far as HRM is concerned. With a highly skilled and motivated workforce, coupled with a carefully planned and developed infrastructure, Telco is confidently striding ahead to meet the challenges of tomorrow. Telco is a strong marketing focussed company. It has the largest network of sales, service and parts of its kind in India. The network is expanding at a rapid rate through new dealers, branches, service stations and spare parts franchises. With over 90 main dealers, over 70 dealer branches and over 290 authorised service stations, the network penetrates the deepest interiors of the country.
Backing this network is a backbone network of Telco Sales, Services and Parts offices located all across the country. As part of its marketing thrust the Company has set up various customer service initiatives, such as: Service set-ups at every 100 km 24-hour service facility at service stations Mobile pollution checking units Customised training programmes Jamsetji Tata, at the turn of the century, identified steel, hydroelectric power and higher education as the core areas of strength. In the course of the years, every field that has the potential for promoting national growth has been explored by the Tatas.The emphasis has been on building not just assets but internal resources for the nation. The Tatas have succeeded in inculcating a new paradigm for growth and as a result have infused a new business culture. A culture that is committed to giving value for money as well as to the practice of good corporate citizenship. Social concern has been a prime motivator, as the Tatas believe that the community is the stakeholder. The endeavour towards being India’s most trusted business enterprise has been the soul of the Tatas for over a century. It is also the guiding spirit that will carry the house into the next century and even further. The Tatas in there quest for excellence in quality service and product have become part of the Indian psyche. The omnipresence makes this impact even more. TELCO has always helped in establishing the power of the Tata brand and thus enriching its own resources.
