Nano StrategyStrategic ManagementPresented By,PratikPurav P-29Aditi Sabaria C-31RohitMundhara P-21SaurabhShinde P-35
INTRODUCTION  Automobile industry in India
  An embryonic automotive industry emerged
  Japanese manufacturers entered
  Industry today
  Major Players in India
VISIONTo develop TATA into a world class Indian car brand for innovative and superior value vehicles
Mission  To be the most admired multi-national Indian company producing vehicles that  people love to buy   To create an organization that people enjoy working for doing business with and investing in
Idea  Generation Of Nano“I saw families ridding around on scooters with kids standing up and mother carrying a baby and sitting Pillion and decided to do something about . It started as an quest for an affordable transportation solutions.”.Source – Business Standard
A Promise is A Promise – Ratan TataTATA’s  NANOWhy Nano ?
SWOT Analysis
PriceMileageStyleBrand NameFirst InnovationStrengthsFiber Body Low Suspension Light Weight Not Suitable for Hilly Areas Delay due to SingurWeakness
Opportunities Bikers can  be motivated
 Auto rickshaw & second hand marketThreats Other competitors
 Traffic Congestion
 New RegualtionsStrategyTime honored International strategyEffectively used parliamentary politics as business strategyPolitics shaping Nano’s futureEarlier less reliance on states
Considered government as a regulatorRatan Tata changed the group’s attitutdeInvolved the state as partnerRelationship between state and group improved
Location of Manufacturing PlantTML intending to set manufacturing plantConsidered locating plants in various statesAccurate understanding of  :–               Political interests                Compulsion of State Government
Contd..Exploited such weakness to its advantage
Incentive package in Uttarakhand/Himachal Pradesh         a)100% exemption from excise duty for 10 years         b)100% exemption from Corporate Income taxWB out of desperation walked into the trapSingur - TataGovt. WB keen for rapid industrialisationApproached Tata MotorsTata Motors showed interest in locating the plant in WBChose Singur a small town in Hoogly district of WBGovt. WB provided TML a loan of 200 crores at 1% interest
Tata enjoying the most of incentives!!!A comprehensive package of incentivesElectricity Clause –        Electricity at Rs.3kwhLoan Repayment –        Loan with interest repayable in annual installmentsLease rental
Why Tata Nano pulled out of Singur?
Political Battlefield
Land ControversyAcquired LandCompensation MisunderstandingAdmitted Mistake
“Great agitation andgreat aggression”“You cannot run a plant where the wall is being broken; you cannot run a plant where bombs are being thrown from all the sides; you cannot run a plant where the people have been intimidated or threatened. This is only during the construction, what happens when we actually start running the plant!”Ratan TataChairman,Tata Motors LtdFRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
Corporate Rivalry ?
Destructive Politics...     “I once mentioned that if somebody puts a gun to my head, you either pull the trigger or take the gun away because I will not move my head. I think Ms.MamtaBanerjee has pulled the trigger,”Ratan TataChairman,Tata Motors Ltd.FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
Effects on West Bengal Brand Image
Damages to the Public property
 Losses beared
UnemploymentEffects on Tata MotorsTata Gained a Seven Crucial Months - Commodity Prices declined - Advances - Mobilise the Funds
Fight for Nano Begins – AgainWest Bengal’s loss  another State’s gainKarnataka 1st to offerGujarat offered 3 strategic locations 	- Mundra in Kutch district	- Charodi in Sanand	- Surat  Orissa offered land at Gopalpur
 Maharashtra, Andhra Pradesh, Uttarakhand also made an offerWinner - Gujarat
“You are stupid if you are not in Gujarat”   - Ratan TataVibrant GujratReliable InfrastructureLocations - Government owned landCharodi and Chharal villages in Sanand the ultimate choice

Tata Nano

  • 1.
    Nano StrategyStrategic ManagementPresentedBy,PratikPurav P-29Aditi Sabaria C-31RohitMundhara P-21SaurabhShinde P-35
  • 2.
    INTRODUCTION Automobileindustry in India
  • 3.
    Anembryonic automotive industry emerged
  • 4.
    Japanesemanufacturers entered
  • 5.
  • 6.
    MajorPlayers in India
  • 7.
    VISIONTo develop TATAinto a world class Indian car brand for innovative and superior value vehicles
  • 8.
    Mission Tobe the most admired multi-national Indian company producing vehicles that people love to buy To create an organization that people enjoy working for doing business with and investing in
  • 9.
    Idea GenerationOf Nano“I saw families ridding around on scooters with kids standing up and mother carrying a baby and sitting Pillion and decided to do something about . It started as an quest for an affordable transportation solutions.”.Source – Business Standard
  • 10.
    A Promise isA Promise – Ratan TataTATA’s NANOWhy Nano ?
  • 11.
  • 12.
    PriceMileageStyleBrand NameFirst InnovationStrengthsFiberBody Low Suspension Light Weight Not Suitable for Hilly Areas Delay due to SingurWeakness
  • 13.
  • 14.
    Auto rickshaw& second hand marketThreats Other competitors
  • 15.
  • 16.
    New RegualtionsStrategyTimehonored International strategyEffectively used parliamentary politics as business strategyPolitics shaping Nano’s futureEarlier less reliance on states
  • 17.
    Considered government asa regulatorRatan Tata changed the group’s attitutdeInvolved the state as partnerRelationship between state and group improved
  • 18.
    Location of ManufacturingPlantTML intending to set manufacturing plantConsidered locating plants in various statesAccurate understanding of :– Political interests Compulsion of State Government
  • 19.
  • 20.
    Incentive package inUttarakhand/Himachal Pradesh a)100% exemption from excise duty for 10 years b)100% exemption from Corporate Income taxWB out of desperation walked into the trapSingur - TataGovt. WB keen for rapid industrialisationApproached Tata MotorsTata Motors showed interest in locating the plant in WBChose Singur a small town in Hoogly district of WBGovt. WB provided TML a loan of 200 crores at 1% interest
  • 21.
    Tata enjoying themost of incentives!!!A comprehensive package of incentivesElectricity Clause – Electricity at Rs.3kwhLoan Repayment – Loan with interest repayable in annual installmentsLease rental
  • 22.
    Why Tata Nanopulled out of Singur?
  • 23.
  • 24.
    Land ControversyAcquired LandCompensationMisunderstandingAdmitted Mistake
  • 25.
    “Great agitation andgreataggression”“You cannot run a plant where the wall is being broken; you cannot run a plant where bombs are being thrown from all the sides; you cannot run a plant where the people have been intimidated or threatened. This is only during the construction, what happens when we actually start running the plant!”Ratan TataChairman,Tata Motors LtdFRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
  • 30.
  • 31.
    Destructive Politics... “I once mentioned that if somebody puts a gun to my head, you either pull the trigger or take the gun away because I will not move my head. I think Ms.MamtaBanerjee has pulled the trigger,”Ratan TataChairman,Tata Motors Ltd.FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
  • 32.
    Effects on WestBengal Brand Image
  • 33.
    Damages to thePublic property
  • 34.
  • 35.
    UnemploymentEffects on TataMotorsTata Gained a Seven Crucial Months - Commodity Prices declined - Advances - Mobilise the Funds
  • 36.
    Fight for NanoBegins – AgainWest Bengal’s loss another State’s gainKarnataka 1st to offerGujarat offered 3 strategic locations - Mundra in Kutch district - Charodi in Sanand - Surat Orissa offered land at Gopalpur
  • 37.
    Maharashtra, AndhraPradesh, Uttarakhand also made an offerWinner - Gujarat
  • 38.
    “You are stupidif you are not in Gujarat” - Ratan TataVibrant GujratReliable InfrastructureLocations - Government owned landCharodi and Chharal villages in Sanand the ultimate choice
  • 39.
    Benefits to Loanof Rs 9,570 crores THE DEALRs 2,900 cr for Nano plantRs 6,670 cr for Infrastructure developmentRepayment of Rs 9,570 cr loan @ 0.1% over 20 years
  • 40.
    THE SWEETNERS100% exemptionon electricity dutyConcessional power tariff1,100 acre land comes cheapNo stamp duty, Registration and transfer charges Payment for land in 8 equal annual instalments
  • 41.
    Benefits to GujaratBenefits to Component manufacturers and VendorsNew Investment opportunities and positive sentiment in Gujarat Benefit to Real estate marketAdditional jobs and training opportunities
  • 42.
  • 43.
    Bibliography/Webliography"Specifications of Tata'sNano". indiatimes.com. 2008-01-10.   "Nano Mania". Autocar India. February 2008."Specifications of Tata's Nano". cardesignnew."Review of Tata Nano" TechWebToday.Falling Rain Genomics, Inc - Singur"Census of India 2001: Data from the 2001 Census, including cities, villages and towns (Provisional)". Census Commission of India. Archived from the original on 2004-06-16. http://web.archive.org.  The Hindu Business Line, 26 November 2006 The Hindu Business Line, 13 December 2006
  • 44.
  • 45.