managerial economics - production function case study - xerox corp

7/29/2019 Managerial Economics - Production Function Case Study - Xerox Corp

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PRODUCTION

Production is the act of converting and transforming input into outputs. Every firm carried out

the act of production. In the production process, a firm combines various inputs in different quantities

and proportions to produce different levels of outputs. This act of production leads to the product

differentiation and monopolistic competition in market. Input refers to anything that is used by the

firm in the process of production. Thus input include every type of productive resourceLand,

Labour, capital, times, human energy as well as knowledge which are employed by the firm for

producing a commodity.

PRODUCTION FUNCTION

Production function is technological-physical relationship between inputs and outputs. Production

function shows technique of production output that can be obtained from various levels of factor

inputs. Types of production functions:

1. The Law of Diminishing Marginal Returns.2. The Law of Variable Proportions.3. The Law of Returns to Scale.

MONOPOLISTIC COMPETITION

Monopolistic competition is commonly found in many fields, especially in retail trade, in the

service industries, and in some branches of manufacturing. In the manufacturing field, the Fastmoving consumer goods industry, automobile industry etc monopolistic competition is common. In

the distribution field (retail business), monopolistic competition prevails in such trades as cloth stores,

chemist and drug stores, electrical appliances stores, liquor stores, grocery stores etc.

PRODUCT DIFFERENTIATION

Product differentiation is the unique feature of monopolistic competition. Through product

differentiation each seller acquires a limited degree of monopoly power. Product differentiation

relating to quality and characteristics of the product. There are many ways of making products

different from one another. Branding: Branding is the most common and essential aspect of unique

identification of product .Products of different firms may have physical differences in their functional

features-The mode of use and operations etc .Size, design and style, strength and durability,

differences in the quality of materials, chemical composition, workmanship, cost of inputs etc. There

may be differences relating to trademarks and brand names, colour and packing etc. By resorting to

product improvement and giving a new brand name to it, the producer hopes to have more inelastic

demand for his product as well as a demand curve.


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PHARMACEUTICAL INDUSTRY

The pharmaceutical industry develops, produces, and markets drugs licensed for use asmedications. Pharmaceutical companies are allowed to deal in generic and/orbrand medications andmedical devices. They are subject to a variety of laws and regulations regarding the patenting, testing

and ensuring safety and efficacy and drugs. The main aim of a particular Pharmaceutical Industry is todevelop research and distribute drugs in order to provide health care for the people in the society.

PRODUCTION OF PHARMACEUTICALS

Production of pharmaceuticals in developing countries may be seen as helping to stimulateindustrial policy and/or as stimulating pharmaceutical access to needed medicines.However, if a developing country with manufacturing facilities is able to finish off bulk activeingredients sourced from developed or other countries at high costs, such manufacture may have noimpact whatever on patient access to needed medicines. There has been some critical thinking in thepast regarding whether or not small developing countries should make their own pharmaceuticals, but

no recent comprehensive summary of the issues and policy options.

Schematic block diagram of a pharmaceutical manufacturing process
http://en.wikipedia.org/wiki/Drughttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Drug


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NEED FOR PRODUCING PHARMACEUTICAL PRODUCTS IN ECONOMIC

PERSPECTIVE

Why a manufacturer would want to make something rather than buy it: the desired quality isnot available; the need to maintain design and process secrecy; the fact that suppliers are unreliable;

the desire to control ones own production scheduling (it being easier to adjust to shiftingsupply/demand); the desire to develop a local employment base; the need to increase technologytransfer; the wish to become self sufficient in medicines; the need to reduce reliance on imports andmanage foreign exchange flow; and the desire to produce medicines for export.

LEADING PRODUCERS

JOHNSON AND JOHNSON

With fortune 500 ranking of 103 is worlds most respected business in pharmaceuticals with a

Total Revenue of $63,747 billion. Johnson & Johnson's brands include numerous household names of

medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand

line ofbandages, Tylenol medications, etc.

Product Portfolio

The Pharmaceutical segment's broad portfolio focuses on unmet medical needs across several

therapeutic areas: oncology; infectious disease; immunology; neuroscience; cardiovascular and

metabolism.

It includes products in the anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology,

gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and

virology fields.

Consumer Products

Baby Care

Products for the ones you love.

JOHNSONS JOHNSONS BEDTIME JOHNSONS HEAD-TO-TOE FRAGRANCE FREE BABY LOTION DESITIN NATUSAN PENATEN PRIMAG
http://en.wikipedia.org/wiki/First_aidhttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Band-Aidhttp://en.wikipedia.org/wiki/Bandagehttp://en.wikipedia.org/wiki/Tylenolhttp://openlinkinnewwindow%28%22http//sleep.johnsonsbaby.com/%22)http://openlinkinnewwindow%28%22http//sleep.johnsonsbaby.com/%22)http://openlinkinnewwindow%28%22http//www.johnsonsbaby.com/product.do?id=74%22)http://openlinkinnewwindow%28%22http//www.johnsonsbaby.com/product.do?id=74%22)http://openlinkinnewwindow%28%22http//www.johnsonsbaby.com/product.do?id=74%22)http://openlinkinnewwindow%28%22http//sleep.johnsonsbaby.com/%22)http://en.wikipedia.org/wiki/Tylenolhttp://en.wikipedia.org/wiki/Bandagehttp://en.wikipedia.org/wiki/Band-Aidhttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/First_aid


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Skin & Hair Care

Care for your skin and hair.

BEBE CLEAN & CLEAR PURPOSE ROC VENDOME NEUTROGENA JOHNSONS SHOWER TO SHOWER skin ID ROGAINE AVEENO LUBRIDERM AMBI SKINCARE PIZ BUIN

Wound Care & Topical

Care for cuts, scrapes, rashes and itching.

BAND-AID Brand Adhesive Bandages BENGAY CALADRYL NEOSPORIN CORTAID SAVLON

Oral Health Care

Care for your whole mouth.

LISTERINE REMBRANDT LISTERINE WHITENING REACH
http://openlinkinnewwindow%28%22http//www.bebe.de/%22)http://openlinkinnewwindow%28%22http//www.cleanandclear.com/%22)http://openlinkinnewwindow%28%22http//www.purposeskincare.com/%20%22)http://openlinkinnewwindow%28%22http//www.rocskincare.com/%22)http://openlinkinnewwindow%28%22http//www.peaux-sensibles.com%22)http://openlinkinnewwindow%28%22http//www.neutrogena.com/%22)http://openlinkinnewwindow%28%22http//www.johnsonsforyou.com/%22)http://openlinkinnewwindow%28%22http//www.johnsonsforyou.com/%22)http://openlinkinnewwindow%28%22http//www.showertoshower.com/%22)http://openlinkinnewwindow%28%22http//www.skinid.com%22)http://openlinkinnewwindow%28%22http//www.skinid.com%22)http://openlinkinnewwindow%28%22http//www.rogaine.com/%22)http://openlinkinnewwindow%28%22http//www.aveeno.com/%22)http://openlinkinnewwindow%28%22http//www.lubriderm.com/%22)http://openlinkinnewwindow%28%22http//www.ambiskincare.com/%22)http://openlinkinnewwindow%28%22http//www.pizbuin.com/%22)http://openlinkinnewwindow%28%22http//bandaid.com/%22)http://openlinkinnewwindow%28%22http//www.bengay.com%22)http://openlinkinnewwindow%28%22http//www.caladryl.com%22)http://openlinkinnewwindow%28%22http//www.neosporin.com/%22)http://openlinkinnewwindow%28%22http//www.cortaid.com/%22)http://openlinkinnewwindow%28%22http//www.savlon.co.uk/%22)http://openlinkinnewwindow%28%22http//www.listerine.com/%22)http://openlinkinnewwindow%28%22http//www.rembrandt.com/%22)http://openlinkinnewwindow%28%22http//www.listerinewhitening.com/%20%22)http://openlinkinnewwindow%28%22http//www.reachbrand.com/%22)http://openlinkinnewwindow%28%22http//www.reachbrand.com/%22)http://openlinkinnewwindow%28%22http//www.listerinewhitening.com/%20%22)http://openlinkinnewwindow%28%22http//www.rembrandt.com/%22)http://openlinkinnewwindow%28%22http//www.listerine.com/%22)http://openlinkinnewwindow%28%22http//www.savlon.co.uk/%22)http://openlinkinnewwindow%28%22http//www.cortaid.com/%22)http://openlinkinnewwindow%28%22http//www.neosporin.com/%22)http://openlinkinnewwindow%28%22http//www.caladryl.com%22)http://openlinkinnewwindow%28%22http//www.bengay.com%22)http://openlinkinnewwindow%28%22http//bandaid.com/%22)http://openlinkinnewwindow%28%22http//www.pizbuin.com/%22)http://openlinkinnewwindow%28%22http//www.ambiskincare.com/%22)http://openlinkinnewwindow%28%22http//www.lubriderm.com/%22)http://openlinkinnewwindow%28%22http//www.aveeno.com/%22)http://openlinkinnewwindow%28%22http//www.rogaine.com/%22)http://openlinkinnewwindow%28%22http//www.skinid.com%22)http://openlinkinnewwindow%28%22http//www.showertoshower.com/%22)http://openlinkinnewwindow%28%22http//www.johnsonsforyou.com/%22)http://openlinkinnewwindow%28%22http//www.neutrogena.com/%22)http://openlinkinnewwindow%28%22http//www.peaux-sensibles.com%22)http://openlinkinnewwindow%28%22http//www.rocskincare.com/%22)http://openlinkinnewwindow%28%22http//www.purposeskincare.com/%20%22)http://openlinkinnewwindow%28%22http//www.cleanandclear.com/%22)http://openlinkinnewwindow%28%22http//www.bebe.de/%22)


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Service Differentiation

Delivering HIV Education: This program was intended for boys and girls play soccer and who are

suffering with AIDS

Hope against Cancer: A campaign meant for cancer patients.

Serving Farmer Community: Introducing products benefiting the small and marginal farmers.

PFIZER

Fortune 500 ranking of 152, Pfizer was founded by cousins Charles Pfizer and Charles Erhart in

1849, our pharmaceutical company has remained dedicated to discovering and developing new, and

better, ways to prevent and treat disease and improve health and well being for people around the

world

Product Portfolio

Pfizer produces Lipitor(atorvastatin, used to lower blood cholesterol); the neuropathic

pain/fibromyalgia drug Lyrica (pregabalin); the oral antifungal medication Diflucan (fluconazole), the

antibiotic Zithromax (azithromycin), Viagra (sildenafil) forerectile dysfunction, and the anti-

inflammatory Celebrex (celecoxib) (also known as Celebra in some countries outside the USA and

Canada, mainly in South America).

Consumer Products

Anti-infectives

Oxytetracycline 500mg Capsules (Oxytetracycline) TERRAMYCIN SF Capsules (Oxytetracycline)

Anti-fungal

FUMYCIN (Fluconazole)Cardiovascular

Multi-vitamin BECOSULES Capsules (B-Complex with Vitamin C) BECOSULES Syrup (B-Complex with Vitamin C) BECOSULES-Z Capsules (B-Complex with Vitamin C and Zinc)
http://en.wikipedia.org/wiki/Atorvastatinhttp://en.wikipedia.org/wiki/Pregabalinhttp://en.wikipedia.org/wiki/Fluconazolehttp://en.wikipedia.org/wiki/Azithromycinhttp://en.wikipedia.org/wiki/Sildenafilhttp://en.wikipedia.org/wiki/Erectile_dysfunctionhttp://en.wikipedia.org/wiki/Celecoxibhttp://en.wikipedia.org/wiki/Celecoxibhttp://en.wikipedia.org/wiki/Erectile_dysfunctionhttp://en.wikipedia.org/wiki/Sildenafilhttp://en.wikipedia.org/wiki/Azithromycinhttp://en.wikipedia.org/wiki/Fluconazolehttp://en.wikipedia.org/wiki/Pregabalinhttp://en.wikipedia.org/wiki/Atorvastatin


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RANBAXY LABORATORIES LIMITED

It is a pharmaceutical company that was incorporated in India in 1961. The company went public in

1973 and Japanese pharmaceutical company Daiichi Sankyo gained majority control in 2008. Ranbaxy exports

its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries


Ranbaxy Laboratories Inc. (RLI) is committed to developing a distinguished brandedpharmaceutical business. The foundation for establishing the branded business rests on threestrategic pillars:

Licensing/acquisitions In-house product development Marketing Alliance

Consumer Products

Acne - Desquam-X Anti-fungal Anti-itch Dry Skin Tropical Steriods

o Ultravateo Halogo Kenalog Spray

BIOCON LIMITED

It is an Indian pharmaceutical company, with products and research services ranging from pre-

clinical to clinical development through to commercialization. Within biopharmaceuticals, the

Company manufactures generic active pharmaceutical ingredients (APIs) like Statins and

Immunosuppressants that are sold in the developed markets of the United States and Europe. It also

manufactures biosimilar Insulins, which are sold in India as branded formulations and in both bulkand formulation forms. Established in 2004, Biocon Foundation has been working in Karnataka, to

improve access to healthcare services at costs that are within the reach of poorer

communities. Biocons portfolio consists of 36 key brands across the four therapeutic divisions of

Diabetology, Nephrology, Oncology and Cardiology.


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Diabetology

In 2009, the division launched its first insulin analog, BASALOGTM, in the Indian market. It can beused just once a day and is effective for 24 hours. Both INSUGEN and BASALOGTM are beingdeveloped for registration in Europe and USA between 2012 and 2016. BLISTO-MFTM and

METADOZE-IPR

are Biocons oral anti-diabetic formulations while OLISATTM is an oral anti-obesity formulation.

Nephrology

ERYPRO safeTM (erythropoietin) is among the top 5 brands in the 30-brand EPO market.RENODAPT, Biocons premium immunosuppressant, mycophenolatemofetil ranks 4th among 25brands, while the newly introduced immunosuppressant, tacrolimus branded TACROGRAFTM is 3rdamong 20 brands. Biocon has newly launched dosage forms like TACROGRAFTM 3 mg,RENODAPT 750 mg, RENODAPT-S 540 mg and RAPACANTM 2 mg to suit Indian patient needsthrough ideal dosage, enhanced compliance and reduced pill burden. In 2009, Biocon launched a

specially formulated protein supplement, NARITA+TM

in the renal nutrition segment, for dialysispatients suffering from malnutrition.

Oncology

This divisions BIOMAb EGFR, approved in 22 countries, is a successful formulation forindications like head-and-neck cancers, both adult and paediatric glioma, and nasopharyngealcarcinoma. Abraxane, launched in July 2008, is being used to treat metastatic breast cancer and alsoother tumors such as pancreatic cancer, non-small cell lung cancer and ovarian cancer. It is a first-in-class, innovative treatment regimen designed to address unmet needs associated with solvent-basedpaclitaxel such as hypersensitivity reactions, increased myelosuppression and axonal degeneration.

NUFIL safeTM for the treatment of chemotherapy-induced neutropenia is among the top 10 brands inthe filgrastim segment.

Cardiology

With major brands like STATIX (anti-cholesterol) and TELMISAT (anti-hypertensive), Bioconscardiology division is now ranked number 22nd in its representative market. Biocons CLOTIDETMis the leading eptifibatide brand in India and MYOKINASETM (met-free streptokinase) is a life-saving injectable. Other brands like ACTIBLOKTM-IPR (metoprolol) and the newly launchedBESTOR (rosuvastatin) and BRADIATM (ivabradine) are also from this division.


Biocons integrated health care initiative works along three levels:

Level 1Preventive Health

Level 2Primary Health Care Through Arogya Raksha Yojana (ARY) Clinics

Level 3Tertiary & Secondary Care (Hospitalization)
http://www.bioconfoundation.org/bfound-health-preventive.asphttp://www.bioconfoundation.org/bfound-health-preventive.asphttp://www.bioconfoundation.org/bfound-health-preventive.asphttp://www.bioconfoundation.org/bfound-health-ARYclinics.asphttp://www.bioconfoundation.org/bfound-health-ARYclinics.asphttp://www.bioconfoundation.org/bfound-health-ARYclinics.asphttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://www.bioconfoundation.org/bfound-health-ARYclinics.asphttp://www.bioconfoundation.org/bfound-health-preventive.asp


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Arogya Raksha Yojana (ARY)

Micro Health Insurance

GLAXO SMITH KLINE

It is the world's third-largest pharmaceutical company measured by revenues (afterJohnson &Johnson and Pfizer). GSK has a portfolio of products for major disease areas including asthma,

cancer, virus control, infections, mental health, diabetes and digestive conditions.It also has a large

consumer healthcare division which produces and markets oral healthcare and nutritional products

and over-the-counter medicines including Sensodyne, Boost, Horlicks and Gaviscon.

Product Portfolio

Nutritional

Horlicks Horlicks Ninja Junior Horlicks Mothers Horlicks Horlicks Lite Horlicks Buscuits

Boost

'Boost is the secret of winning energy!'

Maltova

The yummy choco-malt drink'

Viva

Start to a bright and healthy day!'

Viva has VitaHealthTM - a combination of 9 essential Vitamins [Vitamin A, D, B1, B2, Niacin,

Vitamin B6, Folic acid, Vitamin B12 & C], Iron, Calcium and Phosphorous.
http://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://en.wikipedia.org/wiki/Johnson_%26_Johnsonhttp://en.wikipedia.org/wiki/Johnson_%26_Johnsonhttp://en.wikipedia.org/wiki/Pfizerhttp://en.wikipedia.org/wiki/Asthmahttp://en.wikipedia.org/wiki/Mental_healthhttp://en.wikipedia.org/wiki/Diabeteshttp://en.wikipedia.org/wiki/Digestive_diseasehttp://en.wikipedia.org/wiki/Sensodynehttp://en.wikipedia.org/wiki/Boost_%28health_food%29http://en.wikipedia.org/wiki/Horlickshttp://en.wikipedia.org/wiki/Gavisconhttp://en.wikipedia.org/wiki/Gavisconhttp://en.wikipedia.org/wiki/Horlickshttp://en.wikipedia.org/wiki/Boost_%28health_food%29http://en.wikipedia.org/wiki/Sensodynehttp://en.wikipedia.org/wiki/Digestive_diseasehttp://en.wikipedia.org/wiki/Diabeteshttp://en.wikipedia.org/wiki/Mental_healthhttp://en.wikipedia.org/wiki/Asthmahttp://en.wikipedia.org/wiki/Pfizerhttp://en.wikipedia.org/wiki/Johnson_%26_Johnsonhttp://en.wikipedia.org/wiki/Johnson_%26_Johnsonhttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asphttp://www.bioconfoundation.org/bfound-health-ARYHMIP.asp


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ECONOMIC DEVELOPMENT ACTIVITY OF PHARMACEUTICALS

In an ideal world, pharmaceutical companies would devote their vast research resources to

searching for long-shot cures for major scourges such as Alzheimer's disease. They would sponsor

trials to help doctors figure out what treatments work best and are most cost-effective. They would

develop drugs and vaccines against malaria, schistosomiasis, and other Third World diseases, eventhough there's little chance of making money off them. And they wouldn't threaten cuts in research

and development for breakthrough medicines whenever politicians challenged their ability to charge

high prices.

Exportability

In order to analyse the exportability of the pharmaceutical products beside supply related factors one

has to take the following aspects into consideration:

1. The regional demand for pharmaceutical products concerning affordability and

2. Acceptability of drugs and how local producers are able to meet it. This includes geographical andphysical accessibility and standards. In the following the study refers to regional demand including

price sensitivities. Subsequently possible barriers to accessibility will be discussed. The discussion

focuses on prices and price sensitivity, regulation, transportation and storage as well as on trade

barriers.

Prices and price sensitivity

Prices of pharmaceuticals are not entirely derived from the demand and supply mechanism, butdepend on different variables.94 It is difficult to compare drug prices worldwide. Prices vary amongcountries and even in one country the same medicine is sold at different prices to the public, privatenot-for-profit (PNFP) or the private for-profit (PFP)

IMPACT OF GLOBALISATION ON PHARMACEUTICALS

The pharmaceutical industry has taken advantage of the modern trend of globalisation to

increase their assets and influence in medical healthcare across the globe. Companies spend large

amounts of money on advertising, marketing and lobbying (government or parliament i.e. the

decision-making body). The industry spends roughly US$19 billion a year for that sole cause. In

some countries, such as the United State s of America, companies are allowed to promote their firmsor products directly to the public. Consequently, this has allowed some companies to specialize in

data and analytics for pharmaceutical marketing. An example of this phenomenon is Yellowikis, to

name one out of many.

There have also been drastic improvements to the state of third-world countries. In China, the portion

of the population living with a daily income of $1-$2 per day was decreased by 52% in 28 years. This

was due to the countrys participation in the World Trade Organisation and in effect, a direct

participation in globalisation. Under the rules of the World Trade Organisation, a developing country


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has options for obtaining needed medications under compulsory licensing or importation of cheaper

versions of the drugs, even before patent expiration.

There have also been drastic improvements to the state of third-world countries. In China, the portionof the population living with a daily income of $1-$2 per day was decreased by 52% in 28 years. This

was due to the countrys participation in the World Trade Organisation and in effect, a directparticipation in globalisation. Under the rules of the World Trade Organisation, a developing countryhas options for obtaining needed medications under compulsory licensing or importation of cheaperversions of the drugs, even before patent expiration.

EXPORTS AND IMPORTS OF PHARMACEUTICALS

There is the view that in the post-1991 period, Indias exports of drugs and pharmaceuticals

have grown rapidlythereby confirming that India has much to gain by conforming to global drug

patent standards. But a close reading of the data shows that the growth of the main drug exports has

slowed, while that of importsespecially formulationshas accelerated.

This can be explained with the following diagram

CONCLUSION

For the largest three pharmaceutical firms, viz, Ranbaxy, Dr Reddys and Cipla, exports in terms ofvalues were more than half their total sales turnovers. Therefore, for these firms, foreign marketswere relatively more important than the domestic market, and this gave them the impetus to improvetheir operating efficiencies.


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AUTOMOBILE INDUSTRY

The Automotive industry in India is one of the largest in the world and one of the fastest

growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh

largest in the world, with an annual production of more than 3.7 million units in 2010. According to

recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in

the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009,

India emerged as Asia's fourth largest exporter ofpassenger cars, behind Japan, South Korea, and

Thailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million

automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the

second fastest growing automobile market in the world. According to the Society of Indian

Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by

2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car

volumes with approximately 611 million vehicles on the nation's roads.

India's largest car manufacturing industry hub is based in and around Chennai, also known as

the "Detroit of India" with the India operations ofFord, Hyundai, Renault and Nissan headquartered

in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60 per cent of

the country's automotive exports. Gurgaon and Manesarin Haryana are hubs where all of the Maruti

Suzuki cars in India are manufactured. The Chakan corridor nearPune, Maharashtra is another

vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and

Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants

in the area. Ahmedabad with the Tata Nanoplant and planned Ford and Peugeot-Citroenplants, Halol

again with General Motors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan

Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive

manufacturing regions around the country

TWO WHEELERS

Hero HondaSplendor, Passion, Cbz Karizma, Hunk, Etc

YamahaFZ, Fazer, SZ, Yamaha Spark, Etc

SuzukiSling Shot, GS150R, Access, Etc

HondaUnicorn, Shine, Activa, Etc

TVSApache, Flame, Star City and Wego
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Indian_Road_Networkhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Detroithttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Renault_India_Private_Limitedhttp://en.wikipedia.org/wiki/Nissan_Motor_India_Private_Limitedhttp://en.wikipedia.org/wiki/BMW_India_Private_Limitedhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mercedes-Benz_Indiahttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Force_Motorshttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Peugeot-Citroenhttp://en.wikipedia.org/wiki/Halolhttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Audi_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limitedhttp://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limitedhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Honda_Siel_Cars_Indiahttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Audi_Indiahttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Halolhttp://en.wikipedia.org/wiki/Peugeot-Citroenhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Force_Motorshttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Mercedes-Benz_Indiahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/BMW_India_Private_Limitedhttp://en.wikipedia.org/wiki/Nissan_Motor_India_Private_Limitedhttp://en.wikipedia.org/wiki/Renault_India_Private_Limitedhttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Detroithttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Indian_Road_Networkhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/India


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PASSANGER CARS AND UTILITY VEHICLES

MarutiSX4, Swift, Zen, Alto, A Star, Ritz, Etc

HondaCity, Accord, Accent, CRV, Etc

HundaiSantro, I20, Sonata, Verna and Eon

ToyotaCorrola, Innova, Altis, Itios, Liva, Etc

TataIndica, Indigo, Manza, Safari, Aria, And Worlds Cheapest Car Nano

M&MScorpio, Bolero, Verito, Xylo and Sux 500

Other Car MakersFord, Mercedez-Benz, BMW, Audi, Fiat, Renault, Etc

PASSANGER CARRIERS AND TRUCKS

Tata, Ashok Layland, Volvo, Eicher, and Mercedez -Benz.

INDIAN TWO WHEELERS

Hero Honda

Hero Honda is a motorcycle and scootermanufacturer based in India. Hero Honda started in 1984 as

a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest twowheeler manufacturer in India.

Bajaj

Bajaj Auto is a major Indian vehicle manufacturer started by Jamnalal Bajaj from Rajasthan in the

1930s. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (nearAurangabad) and

Pantnagarin Uttaranchal,

Kinetic

Kinetic Engineering Limited is an automotive component manufacturer in India which formerly sold

two-wheelers under the brand names Kinetic Honda and later Kinetic. In 2008, it stopped selling two-

wheelers after entering into a joint venture with Mahindra Automobiles,
http://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Hero_Cycleshttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Vehiclehttp://en.wikipedia.org/wiki/Jamnalal_Bajajhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Kinetic_Hondahttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Kinetic_Hondahttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Jamnalal_Bajajhttp://en.wikipedia.org/wiki/Vehiclehttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hero_Cycleshttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Motorcycle


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TVS

TVS is the third largest two-wheeler manufacturer in India and is among the world's top ten. It is the

flagship company of the parent TVS Group employing over 40,000 people with an estimated 15

million customers. It manufactures motorcycles, scooters, mopeds and auto rickshaws.

PASSENGER CARS AND UVS

Maruti

Maruti It is India's largest passenger car company, accounting for over 45% of the domestic car

market. The company offers a complete range of cars from entry level Maruti 800 and Alto, to

hatchbackRitz, A-Star, Swift, Wagon-R, Estillo and sedans DZire, SX4, in the 'C' segment Maruti

Eeco and Sports Utility vehicle Grand Vitara.

Tata motors

Tata Motors is Indias largest automobile company, with consolidated net profit of 9,274 crore

(US$2.07 billion) in 201011. It is the leader in commercial vehicles and among the top three in

passenger vehicles.

BUS AND TRUCK MANUFACTURERS

Mahindra and Mahindra

The flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai,

India. The company was set up in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C.

Mahindra and J.C. Mahindra and Malik Ghulam Mohammed, etc.

Tata

Tata Motors Limited is Indias largest automobile company, with revenues of 35,651.48 crore(US$7.95 billion) in 200708.[30] It is the leader in commercial vehicles in each segment; trucks

made by Tata can be easily seen on Indian roads.
http://en.wikipedia.org/wiki/TVS_Grouphttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Mopedhttp://en.wikipedia.org/wiki/Auto_rickshawshttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/w/index.php?title=Maruti_A-Star&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/w/index.php?title=Maruti_Estillo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_DZire&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_SX4http://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Grand_Vitarahttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/Mahindra_Grouphttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ludhianahttp://en.wikipedia.org/wiki/Malik_Ghulam_Muhammadhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Tata_Motors#cite_note-tatamotors1-29http://en.wikipedia.org/wiki/Tata_Motors#cite_note-tatamotors1-29http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Malik_Ghulam_Muhammadhttp://en.wikipedia.org/wiki/Ludhianahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mahindra_Grouphttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Maruti_Grand_Vitarahttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_SX4http://en.wikipedia.org/w/index.php?title=Maruti_DZire&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_Estillo&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/w/index.php?title=Maruti_A-Star&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Auto_rickshawshttp://en.wikipedia.org/wiki/Mopedhttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/TVS_Group


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Ashok Leyland

It is a commercial vehicle manufacturing company based in Chennai, India. Founded in 1948, the

company is one of India's leading manufacturers of commercial vehicles, such as trucks and buses.

Swaraj Mazda

Established in 1983, Swaraj Mazda Limited, an Chandigarh, Indiabased automobile company, is

owned by the Sumitomo Corporation of Japan and Punjab Tractors Limited of India, with a technical

collaboration with Isuzu and Mazda ofJapan.

Eicher

Eicher Group is a conglomerate of the firms Eicher Goodearth Ltd., Eicher Ltd., Eicher Motors Ltd.,Eicher International Ltd., and ECS Ltd., based in New Delhi, India. The Eicher Company has around

2500 employees located in four manufacturing facilities and 49 marketing and area offices around

India. The group has around 600 suppliers of components and sub-assemblies

FOREIGN TWO WHEELERS

Honda

Honda motors India Limited is a joint venture between the Honda Motor Company ofJapan and SielLimited for the production, marketing and export of passenger cars in India. It began operations in

December 1995.It operates production facilities at Greater Noida in Uttar Pradesh and at Bhiwadi in

Rajasthan.

Yamaha

Yamaha motors in India have been present in the market of low range economy bikes for a long time.

All bikes in their store were designed for mass market, but with the introduction ofFZ-16, FZ-S,

Fazer, and R15 they have made an impression on the mid range bike market in India.

Suzuki

Suzuki is Japan's 4th largest automobile manufacturer and the 9th largest automobile manufacturer in

the world by production volume. It is operating in india since long back in bike business.
http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Sumitomo_Grouphttp://en.wikipedia.org/wiki/Isuzuhttp://en.wikipedia.org/wiki/Mazdahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Honda_Motor_Companyhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Greater_Noidahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Bhiwadihttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Yamaha_FZ16http://en.wikipedia.org/wiki/Yamaha_FZ-Shttp://en.wikipedia.org/wiki/Yamaha_Fazer_(India)http://en.wikipedia.org/wiki/Yamaha_YZF-R15http://en.wikipedia.org/wiki/Yamaha_YZF-R15http://en.wikipedia.org/wiki/Yamaha_Fazer_(India)http://en.wikipedia.org/wiki/Yamaha_FZ-Shttp://en.wikipedia.org/wiki/Yamaha_FZ16http://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Bhiwadihttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Greater_Noidahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Honda_Motor_Companyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Mazdahttp://en.wikipedia.org/wiki/Isuzuhttp://en.wikipedia.org/wiki/Sumitomo_Grouphttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chennai


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PASSENGER CARS

Toyota

Toyota Kirloskar Motor Private Limited is joint venture between Toyota Motor Corporation and the

Kirloskar Group, for the manufacture and sales of Toyota cars in India. It currently is the 7th largestcar maker in India afterMaruti Suzuki, Hyundai, Tata, Mahindra, Chevrolet, and Ford.

Hundai

Hyundai Motor India Limited was formed in 6 May 1996 by the Hyundai Motor Company ofSouth

Korea. When Hyundai Motor Company entered the Indian Automobile Market in 1996 the Hyundai

brand was almost unknown throughout India. During the entry of Hyundai in 1996, there were only

five major automobile manufacturers in India,

Ford

Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India. Ford

India Private Limited's head quarters are located in Chengalpattu, Chennai, and Tamil Nadu. It

currently is the 6th largest car maker in India afterMaruti Suzuki, Hyundai, Tata, Mahindra and

Chevrolet.

Honda

Honda Siel Cars India Limited (HSCI) is a joint venture between the Honda Motor Company of

Japan and Siel Limited for the production, marketing and export of passenger cars in India. It began

operations in December 1995.It operates production facilities at Greater Noida in Uttar Pradesh and at

Bhiwadi in Rajasthan. The company's total investment in its production facilities in India as of 2010

was over 16.2 billion.

General motors

General Motors India Private Limited is a 50:50 partnership between General Motors and SAIC that

is engaged in the automobile business in India. It is the 5th largest automobile manufacturing

company in India afterMaruti Suzuki, Hyundai, Tata Motors and Mahindra
http://en.wikipedia.org/wiki/Toyota_Motor_Corporationhttp://en.wikipedia.org/wiki/Kirloskar_Grouphttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Hyundai_Motor_Companyhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Automobile_Industry_in_Indiahttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chengalpattuhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Honda_Motor_Companyhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Greater_Noidahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Bhiwadihttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/SAIChttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/SAIChttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Bhiwadihttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Greater_Noidahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Honda_Motor_Companyhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chengalpattuhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Automobile_Industry_in_Indiahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Hyundai_Motor_Companyhttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Kirloskar_Grouphttp://en.wikipedia.org/wiki/Toyota_Motor_Corporation


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Mercedes-Benz

Mercedes-Benz India is a subsidiary ofDaimler AGbased in India. Daimler entered the Indian

market and set up Mercedes-Benz India Ltd in 1994. The company was later renamed

DaimlerChrysler India Private Ltd after the merger of parent company Daimler with Chrysler.

BMW

BMW India Private Limited is a wholly owned subsidiary ofBMW, headquartered in Gurgaon,

Haryana. BMW India made an initial investment of 1.1 billion (US$24.53 million) in its factory in

Chennai, Tamil Nadu, with an initial capacity for 3000 cars.

Audi

Audi India is the wholly owned subsidiary of German automobile manufacturerAudi. Audi's main

competitors in the Luxury vehicles segment in the Indian Automobile Industry are Mercedes-Benz,

BMW, Jaguarand Volvo.

TYPE OF MARKET IN INDIA

There is perfect competition in almost every segment of automobile market.

After entries of number of foreign auto giants, there is more competition in the market.

Due to high competition in the market, companies are trying to produce better products with

decreased price.

Worlds top 2 car makers, Toyota and GM which are known for high end and costly cars are now

introducing cheap cars for Indians.

Market Demand Determinants

Determinants of demand for this industry include vehicle prices (which are determined largely by

wage, material and equipment costs) and exchange rates, preferences, the running cost of a vehicle

(mainly determined by the price of petrol), income, interest rates, scrapping rates, and product

innovation.
http://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Chryslerhttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Audihttp://en.wikipedia.org/wiki/Indian_Automobile_Industryhttp://en.wikipedia.org/wiki/Mercedes-Benzhttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Jaguar_Carshttp://en.wikipedia.org/wiki/Volvohttp://en.wikipedia.org/wiki/Volvohttp://en.wikipedia.org/wiki/Jaguar_Carshttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Mercedes-Benzhttp://en.wikipedia.org/wiki/Indian_Automobile_Industryhttp://en.wikipedia.org/wiki/Audihttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/BMWhttp://en.wikipedia.org/wiki/Chryslerhttp://en.wikipedia.org/wiki/Daimler_AG


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ECONOMIC DEVELOPMENT

The auto industry started in 1991 when government de-licensed the sector.Subsequently, the

sector was made open for 100% FDI.Since then many large companies have set up their facilities in

India. Production was just 2 lakh units in 1991 and now it has rose to 37 lakh units in 2010.Indian

roads are now flooded with cars of different brands.

Automobile industry contributes 4% of the national GDP and accounts for 5% of the

industrial output. This sector provides employment to around 13 million people directly or

indirectly.For instance, around 1 lakh people are employed in more than 100 companies which

produce components forHyundais Chennai plant.Total employment is expected to touch 25 million

by 2016 in auto sector in India. Thus it contributes greatly to the national income.

Automobile industry is currently contributing about 5% of the total GDP of India. Indias

current GDP is about $ 1.4 trillion and is expected to grow to $ 3.75 trillion by 2020. The projected

size in 2016 of the Indian automotive industry varies between $ 122 billion and $ 159 billionincluding USD 35 billion in exports. This translates into a contribution of 10% to 11% towards

Indias GDP by 2016, which is more than double the current contribution.

MARKET TREND

Some 25 Indian and foreign companies are making their presence in India.

Number of vehicles per person has increased from 5 vehicles per 1000 people in 1999 to

around 36 vehicles per 1000 person in 2010.Demand for luxary and costly cars are growing rapidlythan demand for small cars.For instance, Rolls Royes sells 100 cars every year in India.

The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting

about 1.5 million every year. The dominant products of the industry are two wheelers with a market

share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and

three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used

by households and only about 9% for commercial purposes. The industry has attained a turnover of

more than USD 35 billion and provides direct and indirect employment to over 13 million people.


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GOVERNMENT POLICY

Prior to the mid 1990's, the Indian automobile sector comprised of indigenous companies. The

automobile market in India was however, opened up to foreign investors in 1996. International names

like Ford, Hyundai, Toyota, Volvo, Daimler Chrysler and GM Honda were thus, able to make their

foray into the Indian automobile sector.

Government of India is currently providing various tax benefits on production and imports of

components of vehicles. Special benefits are provided for cars less than 3.8 meters in length.

Promotion of R&D is done in the automotive sector to ensure continuous technology upgradation

Emphasis is on low emission fuel auto technologies and encouragement given to construction

of safer bus/truck bodies.

Automatic approval for foreign equity investment up to 100% of manufacture of automobiles

and component is permitted

EXPORTS AND DOMESTIC SALES

India currently imports high end luxary cars like Rolls Royes. Automobile exports have

grown consistently and reached $4.5 billion in 2009.Largest export markets are UK, Italy, Germany,

Netherlands, and SA.

India with 0.23mn units is the 4th largest exporter of vehicles. Automobile exports from India

grew at a robust 29.64 per cent in 2010-11 riding on two-wheelers and commercial vehicles despite a

sluggish demand from Europe, one of the main markets for small cars.

According to the figures released by the Society of Indian Automobile Manufacturers

(SIAM), total exports from the country stood at 23, 39,333 units in last fiscal compared to 18, 04,426

units in the year-ago period.Passenger car exports from India touched 4, 47,403 units in FY'11 as

against 4, 41,709 units in the previous financial year, up 1.29 per cent.

In 2010-11, India's largest exporter Hyundai Motor saw a decline of 18.41 per cent at 2,

33,069 units.Domestic market leader Maruti Suzuki was a distant second, registering 6.93 per cent

fall in overseas sales at 1,36,026 units in 2010-11.


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FOOD INDUSTRY

In Food Industry we are considering two segments. Those are Dairy Industry and Chocolate

and Confectionery Industry

LEADING PLAYERS

Leading players in the category of Milk and Milk products are Amul, Nestle, Mother Dairy,

Britannia, etc.

Leading players in the category of Chocolate and confectionery are Cadbury India Ltd., Nestle India

Ltd., Candico India Ltd., Lotte India Co. Ltd., etc

AMUL

Gujarat Cooperative Milk Marketing Federation Ltd.(GCMMF) is India's largest food productmarketing organization with annual turnover (2010-11)US$ 2.2 billion. Its daily milk procurement isapprox 12 million lit (peak period) per day from 15,712 village milk cooperative societies, 17member unions covering 24 districts, and 3 million milk producer members.

It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', whichaims to provide remunerative returns to the farmers and also serve the interest of consumers byproviding quality products which are good value for money.

Birth of Amul

It all began when milk became a symbol of protest Founded in 1946 to stop the exploitation by middlemen Inspired by the freedom movement

Milk

Amul Lite Rs.44 1 Litre

Amul Taza Rs.38 1 Litre

Amul Shakti Rs.40 1 Litre


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Amul Butter Rs.29 100gm

Amul Lite

Delicious Table Margarine

Amul cooking butter

Amul Cheese Rs. 133 400gm Tin

Amul Gouda Cheese

Amul Processed Cheese

Amul Mozzarella cheese

Amul Masti Dahi Rs.16 200gm cup

Amul Probiotic

Amul Flaavyo

Varities of beverages

Amul cool flavoured milk

Amul cool milk shake

Amul cook lassi

Amul spiced buttermilk


GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House"status. GCMMF has received the APEDA Award from Government of India for Excellence in DairyProduct Exports for the last 13 years.For the year 2009-10, GCMMF has been awarded "GoldenTrophy' for its outstanding export performance and contribution in dairy products sector by APEDA.

Amul products are available in different countries. Those are USA,ST Marteen,Qatar, Kenya, Shri

Lanka, China, Japan, Malasia, Thailand, New Zealand, ect.

The Sale Turnover for the year 2010-2011 is Rs. 9774 Crores (US $ 2.2 Billion).


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NESTLE INDIA

Nestl India is a subsidiary ofNestl S.A. of Switzerland.Nestls relationship with India

dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company(Export) Limited, importing and selling finished products in the Indian market.

After Indias independence in 1947, the economicpolicies of the Indian Government emphasized the

need for local production. Nestl responded to Indias aspirations by forming a company in India and

set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the

milk economy.

In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100

countries and offered over 8,000 products to millions of consumers universally.

After nearly a century-old association with the country, today, Nestl India has presence across India

with 7 manufacturing facilities and 4 branch offices spread across the region.

NESTLE Milk Rs. 43

NESTLE Slim Milk

NESTLE Dahi Rs.15 250gm pouch

NESTLE Slim Dahi

NESTLE Nesvita Dahi

NESTLE Creamy Vanilla

CHOCOLATE

Munch Rs.10

Milky Bar Rs.10

Dark chocolate Rs. 60

Kit Kat Rs.10
http://www.nestle.in/nestlestory.aspxhttp://www.nestle.in/nestlestory.aspx


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BEVERAGES

Nescafe classic

Nescafe sunrise Premium

Nestea

Nescafe 3 in 1


The Sale Turnover for the year 2010 is Rs.63, 765.8 Millions.

Out of this Rs. 60,228.6 Millions is from Domestic and Rs. 3,537.2 Millions is from Export.

CADBURY INDIA LTD.

Cadbury India Ltd. is a part of Kraft Foods. Kraft Foods Inc. (NYSE: KFT) is a global snacks

powerhouse with an unrivaled portfolio of brands people love from 1903.

They are proudly marketing delicious biscuits, confectionery, beverages, cheese, grocery products

and convenient meals in approximately 170 countries.

Cadbury Dairy Milk(CDM) entered the Indian market in 1948. It operates in five categories

Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery

business, Cadbury has maintained its undisputed leadership over the years.

CHOCOLATE

Cadbury Dairy Milk Rs.10

Cadbury Dairy Milk Shots

Cadbury Dairy Milk Silk


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Cadbury celebrations Rs.100

Bourneville Rs.60

Five star Rs.10

Perk Rs. 10

BEVERARAGES

Bournvita Rs. 155 500gm pack

ECONOMIC DEVELOPMENT

DAIRY

Till about year 2000, India was not on the radar screen of most international dairy companies,since India was neither a major importer nor an exporter of dairy products. Through the 70s,

80s and 90s India used to take some milk powder and butter oil as aid. Exports from India wereinsignificantly small. From 2000 onwards, Indian dairy products, particularly milk powder, casein,whey products and ghee started making their presence felt in global markets.

The decade of 2000-10 will be recorded in dairy history as the decade of exports. But the next decadewill be different. Signs of change are already visible. On one hand, India is finding it difficult tosustain exports of dairy products due to low global prices and high domestic prices.On the other hand, some dairy products and companies from India have been able to make their markon international markets leading to increase in their exports even when the overall global marketsentiment has turned negative.

CHOCOLATE AND CONFECTIONERY

The category continued on its growth trajectory unscathed, as despite global economic

slowdown average consumer discretionary spending power continued to rise. Growth was also driven

by ongoing product and brand innovation by manufacturers who sought to increase the consumption

occasions for chocolate confectionery as well as strived to cater to the aspirations and purchasing

power of the various consumer segments through launches in standard as well as premium categories.


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The chocolate confectionery competitive landscape is dominated by Cadbury India and Nestl

India with value shares of 58% and 33%, respectively, in 2008. Both companies were instrumental in

building up chocolate confectionery in India in recent decades, with major investments in advertising

and brand building over the years. Gujarat Co-operative Milk Marketing Federation is the third

largest player and other players are mainly multinationals with a very niche presence in India.Sales of

chocolate confectionery are expected to rise to INR54.98bn in 2014 (127m tones).

GOVERNMENT POLICY

DAIRY

Liberalization of the Dairy Sector, the cornerstone of Indias milk revolution, has been the

cooperative dairy sector which was protected from cheap subsidized imports through quantitative

restrictions and by strict control over exports and imports through the State-owned Indian Dairy

Corporation. The competition from private sector was controlled through licensing under theIndustrial Development and Regulation Act of 1951, which discouraged new entrants into the dairy

processing sector. A suitable price-environment was created and is considered as a key for the

impressive growth in this sector. All this changed in the early nineties when major financial and trade

policy reforms were initiated in all sectors of the Indian economy including the dairy sector. The first

step was to encourage private participation and the dairy industry was de-licensed in 1991. That dairy

is a lucrative business became obvious when within a year of de-licensing, more than 100 privately-

owned milk processing plants came up in the major milk producing states. Despite their numerical

strength, the cooperative sector did not have the capacity to compete against these private players

flush with capital and fortified with modern technology. Realising this, the government had to step in

again and the Milk and Milk Products Order (MMPO) was issued in 1992 under the EssentialCommodities Act (ECA) to regulate production of milk and dairy products. The MMPO reintroduced

licensing and also required private players to set up their own zones of procurement (milk- sheds) that

were beyond the existing milk-sheds of cooperatives. This was done to check private players from

poaching on milk-sheds of the cooperative sector. However, swept by the wave of liberalization, the

government again amended the MMPO in 2001 and allowed State governments to grant a one-time

license to the private sector, and also abolished renewal of license. In 2003, restrictions on setting up

milk processing and milk product manufacturing plants and also the concept of milk- sheds were

eliminated. The amended order emphasized sanitary, hygiene, quality and food safety of milk and

milk products.


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CHOCOLATE CONFECTIONERY

The confectionery market in India has undergone major changes and growth since the opening

up of the economy and liberalization of the investment regime in 1991. India became an attractive

place for foreign investment and several large multinational companies entered the market for

confectionery products. This resulted in its steady growth and gradual transformation from acommodity market to a branded products market dominated by multinational companies.

Over the 1998 - 2003 periods, confectionery retail sales have grown more than 55% in value terms

and 46% in volume terms, at an average annual rate of 9.5% and 8% respectively. There is a clear

trend of faster sales growth in value terms, indicating that consumers are increasingly ready to pay a

premium for higher value products.

MARKET TREND

DAIRY

Indias milk production will continue to grow at about 3 per cent perannum in spite ofdifficulties. The growth of the organized dairy sector is expected to increase rapidly in the next fiveyears reaching values worth US$ 29 Billion by 2016. The reports expect that by 2016 around 26% ofthe dairy market will be organized compared to 19% in 2010.

CHOCOLATE CONFECTIONERY

Polarization of consumers in urban and rural areas as well as manufacturers efforts in

pushing affordable products is driving both the premium and affordable segments for chocolateconfectionery. More premium product offerings such as Cadburys Dairy Milk Silk, Chocolat Stella,

and Lindt were visible in modern grocery retailers, seeking to target urban dwellers whereas the mass

segment saw expanded volume sales as manufacturers aggressively pushed chocolate confectionery

priced at Rs1, Rs2 and Rs5.

The economic situation in smaller cities and towns is also expected to improve and coupled with

increased penetration of affordable chocolate confectionery products priced around Rs2 and Rs5 per

pack, this is projected to improve per capita volume consumption over the forecast period.

CONCLUSION

By considering all these companies we analyzed various factors such as Government Policy, Market

Trend, Economic Development, Price Differentiation, Product Differentiation, etc and how these

factors affect the production process.


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CASE STUDY

Xerox Corporation (Xerox, a popular global brand) is the largest photocopier manufacturer

in the global market. In the year 2000, the profit-making firm suddenly experienced a huge loss. Data

is as follow:

The companys share prices fell down from US $64 in May 1999to US $4.69 in December 2000.The

Companys CEO gave the following reasons for business down swing (especially, the declining

sales):

Customers Y2K fears. Brazils weak economy. Huge sales force reorganization [Taking Knowledge Management in too big a dose].

However, the critics pin pointed the following factors pertaining to internal lines to be the main cause

of the companys bad performance:

Accounting irregularities, particularly in its Mexico operations. Bad Debt provisions.

Solution: Turnaround Strategy

The Companys top official in the management were changed in 2000.Anne Mulcahy, the new CEO

implemented a turnaround strategy. This strategy mainly involved the sales ofassets to raise income

up to US $4 billion & cost cutting up to US $1 billion.

In December 2000, Xerox sold out its Chinese operation to Fuji Xerox for US $550 million. The firm cut-down its work-force by over 30% from 98,000 in 1999 to 67,800 by end

2002.The firm encouraged voluntary retirement.

Year End

DecemberTotal Revenue

(TR)Total cost

(TC)

Gross Profit

()Net Income

(US $ in Mn)

1998 19,593 19,104 597 273

1999 19,567 17,649 1,908 1,339

2000 18,751 19,118 -367 -273

2001 17,008 16,680 328 -94

2002 15,849 15,745 104 91

2003 15,701 15,265 436 360


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The company bears a strong internal culture which responded effectively. The company resorted to outsourcing the manufacturing of office products. This led to cost

reduction of US $600 mn.

Total reorganization & restructuring of manufacturing operations. Maintaining only thethings we do really well, said Anne Mulcahy(the CEO).

Investment in products development, technologies & solutions. In 2003, the firm introduced several new products such as Doculolov 3535 Printer-Copies,

Xerox Copies Assistant, Docu Print 425 & 850, Flow Port; Xerox 20101, etc. Xerox today

provides smart document management to large corporations & graphics arts customers.

Xerox gradually reduced its participation in non-core business. Xerox tried to keep its expenses low.

Overall impact of turnaround strategy was a better performance of the Xerox & revival of its profits:

US $360mn in 2003.

However, as Professor Ram Baliga(2004) of Wake Forest University has commented at present stage,

one does not know how much of the performance improvements in this turnaround strategy is

caused by the rationalization of operations & how much owing to strategy changes.

[Source: Dutta S. and S. Jampani (2004): Xerox Corps Turnaround Strategy Case Folio,

November]


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SUMMARY

Xerox Corporation, a popular global brand suddenly experienced a huge loss. The companys share prices fell down from US $64 in May 1999to US $4.69 in December

2000.

CEO gave the following reasons:o Customers Y2K fears.o Brazils weak economy.o Huge sales force reorganization [Taking Knowledge Management in too big a dose].

However, the critics pin pointed the following factors:o Accounting irregularities, particularly in its Mexico operations.o Bad Debt provisions.

Anne Mulcahy was appointed as the new CEO. She implemented a turnaround strategy. Overall impact of turnaround strategy was a better performance of the Xerox & revival of its

profits.


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What Has Happened?

Decline in Sales

Problems Occurred Post 1999

Thomas Prediction became true. Sales Decline. Drop in Share price. December 2000 stock price fell to its lowest. Customers Y2K Fear. Low economic activity in Brazil. Expenses were increasing. Core businessnearly shifting importance.

-5000

0

5000

10000

15000

20000

25000

1998 1999 2000 2001 2002 2003

Total Revenue

Total Revenue

Gross Profit


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TURNAROUND STRATEGY

Xerox sold out its Chinese operation to Fuji Xerox for US $ 550 million

Cost - Reduction Strategy

Reduction in expenses Reduced participation in non-Core business Work-Force cut down Reduction in outsourcing the production of Office products. (Cost reduction US $ 600

MN)

Development and Improvement Strategy

Invested in products development, technologies and solutions. New products introduced like Xerox 20101, Xerox Copies Assistant, Docu Print 425,

Flow port etc. Provide smart document management to large corporations and graphics

arts customers.

Total reorganization and restructuring of manufacturing operations Bears strong internal culture


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CONCLUSION

By keeping the company steadfastly focused on customers and employees, she was able to leadXerox away from the brink of collapse to become one of the world's most profitable andinnovative technology and service enterprises.

Through a "back to basics" approach and a renewed focus on operational efficiency, the companycut its capital expenditures by 50 percent; reduced its sales, general, and administrative expensesby one-third; and slashed its total debt in half. All the while, Xerox strengthened its core businessby maintaining an organization-wide focus on innovation.

The perspectives Mulcahy gained by actively listening to customers, shareholders, and employeesat all levels of the company allowed her to pinpoint specific hidden weaknesses in the

organization. They were actually focused on the source of the fuel leak, which really became

critically important to fixing the real problems.

If you are a big company, the only way to deliver progress quickly is to get people aligned arounda common set of objectives. Otherwise, it looks good but it doesn't stick. Mulcahy explained that

every executive at Xerox is now tied to specific key accounts they are responsible for and this

builds a culture of customer connectedness. Listening to customers who had a perspective on

what was wrong with the company. One spends as much time listening as talking, that's time well

spent."

Crisis is a very powerful motivator. It forces you to make choices that you probably wouldn't havemade otherwise. It intensifies your focus, your competitiveness, your relentless desire to attainbest-in-class status.


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BIBLIOGRAPHY

www.google.com www. hindustanstudies.com www.just-food.com www.euromonitor.com www.amul.com www.nestle.in www.cadburyindia.com Managerial Economics - Dr. D. M. Mithani
http://www.google.com/http://www.google.com/http://www.just-food.com/http://www.just-food.com/http://www.amul.com/http://www.nestle.in/http://www.nestle.in/http://www.amul.com/http://www.just-food.com/http://www.google.com/

managerial economics - production function case study - xerox corp

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