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Shareholding Info
  • Promoters
    46.38 %
  • Foreign institutions-FII
    18.4 %
  • Other domestic institutions
    7.7 %
  • Retail and other
    17.7 %
  • Mutual Funds
    9.82 %

About Tata Motors


Tata Motors is one of the largest leading global automobile manufacturing organisations worth over $37 billion. The company manufactures an extensive range of cars, trucks, buses, sports utility vehicles and defence vehicles. It is also one of India’s biggest OEMs that offers a large and varied range of integrated, smart and e-mobility solutions. Jamsetji Tata founded the Tata Group in 1868, of which Tata Motors was born in 1945 when they first started manufacturing locomotives. It is amongst the world’s leaders in the manufacturing of automobiles. The Company motto is ‘connecting aspirations’, by which they stand by offering innovations in mobility solutions which are in sync with customers’ aspirations. They are shaping the Indian commercial vehicle landscape by introducing leading-edge powertrains as well as electric solutions that are packaged for powerful performance while being user compatible and that too at low costs. They are known for being the safest automobiles and are based on impact design that offers a superior mix of driveability, performance as well as connectivity. Their mission is to be passionate throughout their globally dispersed company, in anticipating as well as providing the best vehicles as well as experiences that are designed to excite all the customers from around the world. Apart from their own products and services, Tata Motors has a strong network of subsidiaries which include Jaguar Land Rover in the United Kingdom as well as Tata Daewoo in South Korea. Their global footprint was first established in 1961, with their first export. Today, they have 104 subsidiaries, both direct and indirect, 4 joint ventures, 9 associate companies as well as 2 joint operations, across the world. They boast a strength of over 75,000 employees and have managed to sell more than 8,37,000 cars and have thousands of sale and service points across the world.

Core Activities & Products


All of the products and services offered by the company promises their 3 keeps - Design, Connectivity & Safety. Their products can be divided into 3 broad categories:
  1. Cars and Sports Utility Vehicles: Including the latest Altroz and Punch, Tata has many cars that have the architecture of performance, design and safety. They believe in cars that feel new, feel different.
  2. Trucks and Buses: There are 3 segments within this - Load Transportation Solutions - which include Ace, Yodha, ICV, LCV, ILCV, and more (almost every kind of truck you see on the highway!), the Passenger Transportation Solutions - which include various buses like Starbus, Electric Bus, Winger and Magic Express. The third category, called Tata OK is a service based subsidiary that allows one to buy, sell and exchange trucks with the help of financial solutions provided by the company.
  3. Defence: Ever since the 1940s, the group has supplied military grade vehicles. It supplied armoured steel even, during the World War 2. Behind the ACV - IP, better known as the ‘Tatanager’, is a Tata Motors creation. Now, the company offers aerospace solutions, land systems, homeland security and more as they are backed by their strength in advanced grade material.
 Apart from the various products listed above, the company has various subsidiaries, both in India as well as around the world.
1. Jaguar Land Rover Automotives (JLR) acquired from Ford in 2008
2. Tata Motors Passenger Vehicles Ltd (TMPV)
3. Tata Motors Electric Mobility Ltd (TPEM)
4. Tata Motors European Technical Centre PLC (TMETC) based in UK
5. Tata Motors Insurance Broking and Advisory Service Ltd (TMIBASL) for insurance services
6. TMF Holdings Ltd (TMFHL) for vehicle financing
7. TML Distribution Company Ltd. (TDCL)
8. TRILIX Srl is a commercial art and graphic design company in Italy
9. Tata Technologies Limited which is headquartered in Singapore
10. Tata Marcopolo Motors - a joint venture with Marcopolo S.A. Brazil
11. TML Holdings Pte. Ltd.
12. Tata Daewoo - one of the nation’s leading commercial vehicle manufacturers
 

Board of Directors


 Mr. Natarajan Chandrasekaran: Non-Executive Director & ChairmanMr. O P Bhatt: Non-Executive Independent DirectorMs. Hanne Sorensen: Non-Executive Independent DirectorMs. Vedika Bhandarkar: Non-Executive Independent DirectorMr. Mitsuhiko Yamashita: Non-Executive Non-Independent DirectorMr. K V Chowdary: Non-Executive Independent DirectorMr. Al-Noor Ramji: Non-Executive Independent DirectorMr. Thierry Bollore: Non-Executive DirectorMr. Girish Wagh: Executive Director 

Key Executives


 Mr. P B Balaji: Group Chief Financial OfficerMr. Shailesh Chandra: Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric MobilityMr. Rajendra Petkar: President and Chief Technology OfficerMr. Thomas Flack: President and Chief Purchasing OfficerMr. Ravindra Kumar G P: President and Chief Human Resource OfficerMr. Girish Wagh: Executive Director 

Presence


With retail in every corner of the country and even globally, Tata Motors can be found anywhere. Internationally, their products are sold in Africa, Latin America, APAC and the Middle East markets, with a total of 125 countries in its cache.International Business: A Block, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai.Domestic Business: Tata Motors Ltd. 4th Floor, Ahura Centre, 82 Mahakali Caves Road, MIDC, Andheri East, Mumbai. 

Strengths


Having been around for over 75 years, Tata Motors has a long list of strengths. Some are:
  1. It is a globally well recognised automotive brand. It owns various well known luxury automotive brands like JLR, Hitachi, Daewoo, Marcopolo and more. They are successfully managing business in over 125 countries.
  2. The estimated market cap was 4.5 billion dollars in 2021.
  3. They have a global network of over 1600 workshops and an active supply chain system.
  4. The market penetration is very good and has given the company a well deserved competitive edge.
  5. The company spends over 23% of its entire budget on the research and development which shows their dedication to its product, service and growth.
 

CSR and Sustainability


The Tata Motors Corporate Social Responsibility initiatives focus on the improvement of the quality of life of the underprivileged communities based around the business operations. Keeping up with the United Nations declared Sustainability Development Goals (SDGs), the company focuses on the health, employment, education as well as environment of the communities and puts special emphasis on the historically and socially deprived SC and ST communities. In 2020-21, the CSR interventions touched 7.5 Lakh human lives in India, of which 41% belonged to the SC and ST community.The enterprise has a six-pronged CSR strategy. These 6 tenets are:
  1. Adopting Human Life Cycle Approach
  2. Upstream and Downstream Linkages
  3. Philosophy of More From Less for More
  4. Leveraging all Stakeholders
  5. Measuring Social Capital
  6. Leveraging Technology
  With these, the CSR strategy not only attends to the societal needs of prenatal care and education, it also ensures help with both high school and professional education and employability. Furthermore, there are in place sustainable initiatives for community engagement, social upliftment, environmental transformation, healthcare and sanitation, household income incrementation, self-reliance of women and more.Some programmes started include:
  1. Aarogya: Malnutrition awareness and preventive healthcare (impacted 3,82,888 lakh human lives)
  2. Kaushalya: Employability through skill development, vocational training as well as supplementing income and women empowerment (impacted 17,661 human lives)
  3. Amrutdhara: Water relief (impacted 8,153 human lives)
  4. Seva: Employee volunteering programme (10,232 employees and 29,011 hours clocked)
  5. Vidyadhanam: Holistic education and financial support (impacted 1,16,893 human lives)
  6. Vasundhara: Plants and awareness (1,10,101 saplings planted, touched 90,575 human lives)
  7. Aadhaar: Integrated development action based approach (impacted 3,18,000 human lives)
In 2020-21, the company also took up COVID response initiatives that impacted 1,36,800 human lives. The company has won various awards and have been consistently recognised for their efforts in benefitting the Indian society.


Criticism


In 2008, Tata Motors had just launched the Nano in Singur and West Bengal in India. At the time, the West Bengal government controlled the land under the Land Acquisition Act of 1894, and helped the automobile company to acquire land post much interference as they wanted the Nano to be released in the state first. The organisation got backlash and was criticised for this. Another criticism that the company has received from its customers is the lack of foothold in the luxury car segment. The company has subsidiaries like Jaguar and Land Rover, but these were only successful in the initial year and now have greater operational costs, while the profits have fallen low. 

COVID-19 Impact


The growth of the company was definitely impacted by the subdued demand for new vehicles as the public faced economic slowdown, the low freight travel due to transport restrictions as well as various supply chain disruptions. But due to the sheer size of the company, the impact was not serious enough to stop the growth curve that Tata Motors is on. The company recovered quickly with the launch of the Altroz. 

Future Prospects


Tata Motors responded immediately with quick action to the pandemic by firstly implementing a temporary lock down for all its plants, factories and offices. They instituted big costs and put control on investments to conserve all their cash flow as much as they could. The sales have already been going up again, with a 51% increase in just July 2022. As a matter of fact, it has been awarded the safest automobiles company in the world and is on the verge of making many profitable bargains. A stakeholder, in an interview, even promised that the company will be absolutely debt-free by 2023, though that may be a stretch.

 

Did You Know!


What we bet you didn’t know is that Tata Motors is present in over 125 countries globally and launched the very first SUV into the market - the Sierra. Indica was India’s first indigenously built car. The company also built a car fitted with the entire playstation. They are also the backbone of the Indian army vehicles. They own a British launched luxury automobile brand - Jaguar Land Rover, but JLR is the main reason they have not gotten debt free yet. 

Initial Public Offering


The IPO of the organisation was released on the National Stock Exchange (NSE) on 3rd January, 2000, as well as listed on BSE and New York Stock Exchange, where the base Tata Motors share price was set at Rs. 38.64 per share. The enterprise is ranked at 287th largest corporation in the world by the 2014 Fortune Global 500 ranking of the biggest companies. In 2011, there was astock split by the company and 1 stock was split into 5 stocks. Since the IPO, in 22 years, the Tata Motors share price has driven up 58 times. So, for anyone who may have invested Rs. 1L in 2000, the share value would now be Rs. 58L. 

Equity Shares


Tata Motors equity shares are available on the NSE, BSE and New York Stock Exchange where they were listed in 2000. Since then, the share price has increased by 58 times. Recently, the company was credited with making and selling the safest automobiles in India, leading to a boom in sales. This has put the shares of the company on an all time high, with great returns and high yields. Just in the month of July, 2022, the sales went up by 51% while the share price rose by 7%. Another highlight is that the brand is promising investors that they will be a no-debt company by 2024, but the possibility is still questioned by investors due to the poor performance of Jaguar (JLR). In the latest report of June 2022, the company showed automotive debt levels at Rs. 60,700 crore which has in fact risen from March 2022, when it was Rs. 48,700 crores. The finance has been erratic for sure, but the company is set to set things right. 

Annual Financial Summary


 
BALANCE SHEET (in Rs. Cr.)MAR 22MAR 21MAR 20MAR 19MAR 18
12 mths12 mths12 mths12 mths12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital765.88765.81719.54679.22679.22
TOTAL SHARE CAPITAL765.88765.81719.54679.22679.22
Reserves and Surplus19,171.8818,290.1616,800.6121,483.3019,491.76
TOTAL RESERVES AND SURPLUS19,171.8818,290.1616,800.6121,483.3019,491.76
TOTAL SHAREHOLDERS FUNDS19,937.7619,055.9718,387.6522,162.5220,170.98
NON-CURRENT LIABILITIES
Long Term Borrowings14,102.7416,326.7714,776.5113,914.7413,155.91
Deferred Tax Liabilities [Net]173.72266.50198.59205.86154.61
Other Long Term Liabilities1,212.341,786.931,646.56404.11502.37
Long Term Provisions1,474.111,371.941,769.741,281.591,009.48
TOTAL NON-CURRENT LIABILITIES16,962.9119,752.1418,391.4015,806.3014,822.37
CURRENT LIABILITIES
Short Term Borrowings9,129.915,421.956,121.363,617.723,099.87
Trade Payables6,102.108,115.018,102.2510,408.8314,225.63
Other Current Liabilities11,152.7411,671.0510,180.467,765.576,030.53
Short Term Provisions608.061,043.541,406.751,148.69862.92
TOTAL CURRENT LIABILITIES26,992.8126,251.5525,810.8222,940.8124,218.95
TOTAL CAPITAL AND LIABILITIES63,899.8765,059.6662,589.8760,909.6359,212.30
ASSETS
NON-CURRENT ASSETS
Tangible Assets12,065.8919,922.0619,540.2518,316.6118,192.52
Intangible Assets2,009.876,501.045,667.733,970.223,411.23
Capital Work-In-Progress585.211,400.821,755.512,146.961,371.45
Other Assets0.000.000.000.000.00
FIXED ASSETS15,543.0029,429.5629,702.7828,573.4226,800.35
Non-Current Investments29,256.3916,114.9115,730.8615,434.1914,260.79
Deferred Tax Assets [Net]0.000.000.000.000.00
Long Term Loans And Advances48.4372.39138.46143.13143.96
Other Non-Current Assets3,432.443,588.213,449.013,529.593,035.54
TOTAL NON-CURRENT ASSETS48,280.2649,205.0749,021.1147,680.3344,240.64
CURRENT ASSETS
Current Investments5,143.081,578.26885.311,433.182,502.78
Inventories3,718.494,551.713,831.924,662.005,670.13
Trade Receivables2,111.782,087.511,978.063,250.643,479.81
Cash And Cash Equivalents2,605.434,318.943,532.191,306.61795.42
Short Term Loans And Advances139.37184.49232.14200.08140.27
OtherCurrentAssets1,901.463,133.683,109.142,376.792,383.25
TOTAL CURRENT ASSETS15,619.6115,854.5913,568.7613,229.3014,971.66
TOTAL ASSETS63,899.8765,059.6662,589.8760,909.6359,212.30
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities3,353.043,694.204,737.197,246.045,269.63
CIF VALUE OF IMPORTS
Raw Materials0.000.000.000.000.00
Stores, Spares And Loose Tools0.000.000.000.000.00
Trade/Other Goods0.000.000.000.000.00
Capital Goods0.000.000.000.000.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency1,983.682,159.772,946.640.003,079.76
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency----------
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods----------
Other Earnings4,006.602,181.663,144.88--5,422.47
BONUS DETAILS
Bonus Equity Share Capital111.29111.29111.29111.29111.29
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value718.49446.23140.96270.17--
Non-Current Investments Unquoted Book Value620.45521.42407.61393.21310.19
CURRENT INVESTMENTS
Current Investments Quoted Market Value------0.91303.84
Current Investments Unquoted Book Value5,143.081,578.26885.311,174.461,517.03
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