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TELCO
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Introduction 1945-Established for mfg of Steam Locomotives
1954-Telco started mfg automotive vehicles in technical collaboration with Daimler-Benz.
1962-Mfg of construction equipments.
1998-First indigenously designed small car was launched
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They Own TELCO A Promoter's holding (Percentage)
Principal Promoter - Tata Sons Ltd. 14.33 Promoter Group - Tata Companies 11.32
Sub total 25.65 B Non-promoters Holding (Percentage)
Institutional Investors a. Mutual Funds and UTI 6.74 b. Banks, FIs, Insurance Cos 17.48 c. FIIs 9.38
• Sub total 33.60 C Others (Percentage)
a. Private Corporate Bodies 1.83 b. Daimler Chrysler A.G. 10.00 c. Indian Public 20.18 d. NRIs/OCBs/FFIs 1.27 e. Citibank NA as Depository for GDR holders 7.47
• Sub total 40.75
• GRAND TOTAL 100.00
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Board of Directors Board of Directors As on 29th May 2000
Ratan N Tata-Executive ChairmanN A PalkhivalaN A SoonawalaJ J IraniJ K SetnaP K M Fietzek-Alternate Director to Mr Helmut PetriV R MehtaR GopalakrishnanN N WadiaF K Kavarana-Executive Director - Resigned w.e.f. 31-03-2001Helmut Petri
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Line Of Business
Commercial Vehicles Utility Vehicles Passenger Vehicles Spares and Others
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Plant locations Jamshedpur
Pune
Lucknow
Dharwad
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Market share
Light Commercial Vehicle 63% Medium & Heavy Commercial Vehicle 66% Utility vehicle (UV) 26% Passenger car industry. 19%
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Commercial Vehicles
Loads ranging from 2 to 40 tns. Mini buses that can seat 12 people Buses that can accommodate as
many as 60. Tippers, tractors trailers, and 4x4
off road vehicles
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Commercial Vehicles Light Commercial Vehicles
Medium/ heavy Commercial Vehicles
Buses
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Light Commercial Vehicles
Tatamobile207 - Pick up
SFC 407 Turbo Truck
LPT 407 Turbo Truck
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….Light Commercial Vehicles
SFC 709 E Aerial lift turbo Truck
LPT 709 E Turbo Container truck
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Medium / Heavy CV LPT 1109 Turbo Truck
with a high deck for bulky loads
SE 1613 TC Turbo Truck
ideal vehicle for construction
LPT 1613 TC Turbo Truck
Powerful and efficient truck for long distance
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...Medium / Heavy CV SK 1613 TC Turbo Tipper
Reliable, efficient tipper for construction and mining
LPK 1615 TC Turbo Two-way Tipperuseful for road or bridge constr.
LPT 2515 TC Turbo TruckCost-effective to transport heavy cargo
LPT 2516 TC Intercooler Turbo TruckEasily negotiates roughterrain and slushy area
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...Medium / Heavy CV LPT 2516 TC Turbo Heavy-duty
Truck
LPO 1613 TC Turbo Car CarrierEasily transports all cars, tractors and multi-utility vehicles.
LPS 3516 TC Turbo LPG tankerEfficient and Powerful tractor Trailer for transporting
LPS 4021 TC Turbo TractorPowerful vehicle for transporting heavy cargo
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Buses LP / LPO 1510 Euro-I Bus
Powerful, efficient and reliable bus with many uses
LP / LPO 1512 TC Turbo BusPowerful, efficient and reliable bus for best returns
LPO 1615 TC RE Semi Low Floor BusEntry and exit made easy
LPO 1616 TC Luxury BusHigher Power, Better style and greater comfort
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...Buses SFC 407 Turbo Mini- bus
Powerful passenger vehiclefor any terrainLP 407 Turbo Mini- busWell- styled, spacious passenger vehicle
LP 709 E Turbo BusPowerful, spacious vehicle for multi applications
LPO 1510 CGS bus (CNG bus)Low-emission, environment friendly bus
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Commercial Vehicles – Initiatives & GainsCommercial Vehicles – Initiatives & Gains
Improving Improving Operating Operating
EfficienciesEfficiencies
Cost Reduction
Global Benchmarking
Outsourcing
ERP
Product Launches
HCV – LPT 2515 TC (already the largest selling in its class)
ICV – LPT 1109
697 to complement Cummins
CNG Buses
Responding to Responding to Evolving Evolving
Customer NeedsCustomer Needs
Enhancing Enhancing Distribution & Distribution &
Service NetworkService Network
Addition of 576 Tata certified garages
Supply Chain Management
Gearing up to maintain dominance in the Gearing up to maintain dominance in the automobile industryautomobile industry
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Utility Vehicles SUMO 9 Variants
SE,EZI,4x4,SA,DLX,SPACIO,TOURIN,CARRIER,AMBULANCE
Safari 3 Variants 4X2 LX , 4X2 EX , 4X4 EX
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Passenger Cars
Indica V2 Indica 2000 Indica CNG
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Indica Strategy on Track...Improving Improving Operating Operating
EfficienciesEfficiencies
Significant improvement in the Indica financials
Successful Launch of V2 – Jan ’01
Euro II compliant MPFI
Additional variants slated for launch in FY02
Responding to Responding to Evolving Evolving
Customer NeedsCustomer Needs
32% growth in service network
Full-fledged dealers up from 56 to 79
18-month extended warranty
Warehouses at Delhi, Kolkata, Bangalore & Dighi
Centralised Toll Free number
Enhancing Enhancing Distribution & Distribution &
Service NetworkService Network
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Rising Exports
S America 3%
Europe & Australia
38%
SE Asia20%
S Asia22%
W Asia5%
Africa4%
M/HCV29%
LCV48%
CARS3%
MUV20%
•India’s largest exporter of engineering goods•Increasing acceptance in European Markets•Growth of 19%
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Financial Performance Loss of Rs. 500 cr as against a profit of Rs. 75 cr
EBIDTA declined from Rs. 786 crores to Rs. 498 croresLower VolumesUncovered Cost of Emission ComplianceLower Other Income
2000-01 (Rs. in crs.)
1999-00 (Rs. in crs.)
EBIDTA 498 786 Depreciation (347) (342) Interest (Net) (444) (420) Amortisation (137) (83) Extra Ordinary Items (70) 134 (500) 75
2000-01 (Rs. in crs.)
1999-00 (Rs. in crs.)
EBIDTA 498 786 Depreciation (347) (342) Interest (Net) (444) (420) Amortisation (137) (83) Extraordinary Items (70) 134 (500) 75
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Period ended 01/06 00/06 Growth No. of months (3) (3) (% yoy) Sales 16,973.8 17,976.6 (5.6) Other income 66.6 284.6 (76.6) Total income 17,040.4 18,261.2 (6.7) Expenditure (15,711.3) (16,714.8) (6.0) Profit after tax (908.9) (743.4) 22.3 EPS (Rs) (14.2) (11.6)
Quarterly Results - 06/2001 (3 months) (Rs mn)
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Period ended 01/09 00/09 Growth No. of months (3) (3) (% yoy)
Sales 20544.8 19005.8 8.1
Other income 137.1 259.1 (47.1)
Total income 20681.9 19264.9 7.4 Profit after tax (525.8) (941.1) (44.1)
EPS (Rs) (9.7) (22.9)
Quarterly Results (Q2) - 09/2001 (3 mth) (Rsmn)
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Segment Aug 01 Indica 5157 Utility Vehicles 2052 Medium/Heavy C V 4293 Light Commercial Veh 2310
(Apr-Aug)01 = 14,399 (Apr-Aug)00 = 13,108
Sales Figures (Units)
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Strategy for
Sustainable
Growth
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Strategic Corporate Initiatives
Cost Reduction22Catering to Business Challenges33Flatter & More Responsive Organisation44
Becoming Globally Competitive55
Asset Management & Revenue Growth11 Initiatives to retain and enhance leadership to ensure long term growth
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Focus on core activities Disinvestment of non-core businesses Rationalisation of investments
Expanding revenue opportunities Non-cyclical businesses: Spare parts,
Financing Sale of 697 engines for stationary applications Thrust on exports – from 8% to 20% of
turnover Downstream value addition – AMC, fleet
management Total transport solutions
Asset Management & Revenue Growth
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Cost Reduction Programme Total savings of Rs 255 crore achieved through
Reduction in fixed, material & other variable costs
Increase in operating efficiency
Manpower reduction ( 3,400 in FY01)
Savings in gross interest outflow : Rs. 41 crore
Cost Reduction…
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Robust Product Development Process A detailed market segmentation study Formation of project teams for different
segment wise needs
Think Customer Improve Customer Focus To cover entire organisation and dealer
network
Catering to Business Challenges...
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Organisational Restructuring Rightsizing
Reduction of 3400 in FY01 Reduction of 11,500 over last three years
De-layering of Organisation Aggressive Cost Reduction Programme
Kaizen Initiatives
...Catering to Business Challenges
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The Indian auto sector has the potential to become the engine of economic growth
Low per capita car ownership National Highway
Development Project -- investment of Rs.54,000 cr
Highway of Opportunities
0%
2%4%
6%8%
10%
12%14%
16%18%
US Mexico Brazil India
Auto sector output as % of industrial output: India vis-a-vis North & South America
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Telco Construction Equipment Company Limited. Tata Technologies Limited. (TTL) Tata Technologies, USA Sheba Properties Limited. Telco Dadajee Dhackjee Limited. Minicar (India) Limited. HV Transmissions Limited. (HVTL) HV Axles Limited. (HVAL) Telco Automation Limited. (TAL)
Subsidiary companies of Tata Engineering
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ThAnK YoUArti Saxena IIC 4