COST ANALY T A T SIS
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nt 2016Presented by: Accou 18 by: Avinash Jaiswal Jaiswal nting Deepak Rohilla Rajat Singhal Subhrajyoti Sarkar Tanu Tanu Rani Rani Chander Vivek Sinha
About … T at aMo t o r swa ses t a bl i s h edi n1 94 5a sTa t aEn gi n ee r i ngan d L oc o mo t i v e Co .L t d .t o ma nu f a c t u r el o c omo t i v e sa nd o t h er engi neer i ngpr oduc t s .No wt hec ompan yi st hewor l d' sf our t h l ar ges tt r uc kmanuf ac t ur er ,andt hewor l d' ssec ondl ar ges tbus manuf ac t ur er . Th ec o mp an y ' s68 , 0 89e mp l o y e esar eg ui d edb yt h ev i s i o nt o ' T a t aMo t o r s 'ma nu f a c t u r i n gb as ei nI n di ai ss p r e ada c r o s sJ a ms h ed pu r( J h ar k h an d) ,Pu ne ( Ma ha r a s ht r a ) ,L uc k no w( Ut t a rPr ad es h ) ,Pa nt n ag ar( Ut t a r a k ha nd )a ndDh ar wa d( Ka r n at a ka ) . Fol l owi ngas t r at egi cal l i anc ewi t hFi ati n2005,i thass etupani ndus t r i al j oi ntv ent ur ewi t hFi at Gr o upAut o mo bi l e satRa nj a ng ao n( Ma ha r a s ht r a )t opr o du cebo t hFi a ta ndT at ac ar sa ndFi a t po we r t r a i n s .Th ec omp an yi ses t a bl i s hi n gane wp l a nta tSa na nd( Gu j a r a t ) .Th ec ompa ny ' s deal er s hi p,s al es ,s er v i c esands par epar t sne t wor kc ompr i s eso v er3500t ouc hpoi nt s ;T at a Mot or sal s odi s t r i but esandmar k et sFi atbr andedc ar si nI ndi a. T at aMot or si sal s oex pandi ngi t si nt er nat i onal f oot pr i nt ,es t abl i s hedt hr oughex por t ssi nc e1961. Th ec o mp an y ' sc o mme r c i a la nd p as s e n ge rv e h i c l e sa r ea l r e ad yb ei n g ma r k e t e di ns e v e r a l c ount r i esi nEur ope,Af r i c a,t heMi ddl eEas t ,Sout hEas tAs i a,Sout hAs i aandSout hAmer i c a.I t hasf r a nc hi s ee/ j oi ntv ent ur eas s embl yoper at i onsi nKen y a,Bangl ades h,Uk r ai ne,Rus s i aand Se ne g al . Th ef o un da t i o no ft h ec o mp an y ' sg r o wt ho v e rt h el a s t5 0y e a r si sad ee pu nd er s t a nd i n go f ec onomi cs t i mul iandc us t omerneeds ,andt heabi l i t yt ot r ans l at et hem i nt oc us t omer –des i r ed o ffe r i n gst h r o ug hl e adi n ge dg eR&D.Wi t ho v er2 , 0 00e ng i n ee r san ds c i e nt i s t s ,t h ec omp an y ' s En gi n ee r i n g Re se ar c hCe nt r e ,e s t a bl i s he di n1 96 6,h ase na bl e dp i o ne er i n gt e ch no l o gi e sa nd p r o du c t s .Th ec o mp an yt o da yha sR&Dc e nt r e si nPu ne ,J a ms h ed pu r ,L uc k n ow,i nI n di a ,a ndi n So ut hKo r e a,Sp ai n ,a ndt h e UK.I twa sT at aMo t o r s ,wh i c hd ev e l o pe dt h efi r s ti n di g en ou sl y dev el opedLi ghtCommer c i alVehi c l e,I ndi a' sfi r s tSpor t sUt i l i t yVehi c l eand,i n1998,t heT at a I ndi c a,I ndi a' sfi r s tf ul l yi ndi genouspas s engerc ar .Wi t hi nt wo y ear sofl aunc h,T at aI ndi c a b ec a meI n di a ' sl a r g es ts el l i ngc a ri ni t ss eg me nt .I n2 00 5,T at aMo t o r sc r e at e dan ew s e gme nt b yl aunc hi ngt heT at aAc e,I ndi a' sfir s ti ndi genous l ydev el opedmi ni –t r uc k . I nJ anuar y2008,T at aMot or sun vei l edi t sPeopl e' sCar ,t heT at a Na no ,wh i c hI n di aa ndt h ewo r l dh av ebe enl o ok i n gf o r wa r dt o . Th eT a t aNa noh asb ee ns u bs e qu en t l yl a un c he d,a spl a nn ed ,i n I n di ai nMa r c h2 00 9.A d ev e l o pme nt ,whi c hs i gn i fi e safi r s tf o r t hegl obalaut omobi l ei ndus t r y ,t heNanobr i ngst hec omf or tand s af e t yo fac arwi t hi nt her eac ho ft hous andso ff ami l i es .The s t a nd ar dv e r s i o nh asbe enp r i c eda t 1 00 , 0 00( e x c l u di n gVAT andt r ans por t at i onc os t ) .
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I nc u r r e ntt oc o op er a t ec o s tc on t r o ls y s t e m- Th e Co mp an y ’ sa bi l i t yt ol e v e r a ge i t s t ec hnol ogi c alc apabi l i t i esandt hemanuf ac t ur i ngf ac i l i t i esamongi t sc ommer c i alv ehi c l eand pas s engerv ehi c l ebus i nes s esenabl esi tt or educ ec os t s . Asane x amp l e ,t h ed i e s ele ngi n eu se di nt h eI n di c ap l a t f o r m wa smo di fi edf o ru s ei nt h eAc e p l a t f o r m, wh i c hh el pe d t or e du ce d ev e l o pme nt c os t s . Si mi l a r l y ,p l a t f o r m s h ar i n g f o r manuf ac t ur i ngofpi c k upt r uc k sandut i l i t yv ehi c l esenabl est hec ompan yt or educ ec ap i t al i nv es t mentt hatwoul dot her wi s eber equi r ed,whi l eal l owi ngi tt oi mpr ov et heut i l i z at i onl ev el s ati t smanuf ac t ur i ngf ac i l i t i es . The c ompan y' sv endorr el at i ons hi psal s oc on t r i but et oc os tr educ t i ons .Fore x ampl es ,t he c ompan ybel i ev est hatt hev endorr at i onal i z at i onpr ogr am t hati ti sunder t ak i ngwi l lpr ov i de e c on omi e sofs c al et oi t sv e ndo r s ,wh i c hwo ul dbe ne fi tt h ec o mp an y ' sc o s tp r o gr a mme s . Th ec ompa nyi sa l s ou nd er t a k i n gv a r i o usi n t e r n ala nde x t e r n alb en c hma r k i n ge x er c i s est h at wou l de na bl ei tt oi mp r o v et h ec o s te ffe ct i v e ne ssofi t sc omp on en t s ,s y s t e ma nds u bs y s t e ms . Th ec o mp an yh asi n t e ns i fi e de ffo r t st or e v i e wi t sc os ts t r u ct u r et h r o ug han umb ero fme as ur e s, s u cha sr e du ct i o no fma np owe rc o s t sa ndr a t i o na l i z a t i o no fo t h erfi x e dc o s t s .Anda l s oh as under t ak en i ni t i at i v es ,s uc h as i nc r ea sed s our c i ng ofmat er i al sf r om l o wc os tc ount r i es , r educ t i oni nt henumberofs uppl i er s ,t her at i onal i z at i onofi t smar k et i ngeffor t s ,ar educ t i onof ma np owe rc os t st h r o ug hi n c r e as e de mp l o y e efl e x i b i l i t yb et we en s i t e sa nd s e v e r a lo t h er
Cos tAna l y si sofT at aMot or sf ort hey ea r2 01 51 6 I nt hefinanc i aly ear201516TAT AMo t or sl i mi t edhasmadet o t als al eof 2, 75, 561cr or e.T at a Mo t o r sh asu s eds pa r epa r t sa ndac c es s or i e sof 1 28 50 . 2 7c r o r e .T at aMo t o r s 'ma nu f a c t u r i n g b as ei nI n di ai ss p r e ada c r o s sJ a ms h ed pu r( J h ar k h an d) ,Pu ne( Ma ha r a s ht r a ) ,L uc k n ow ( Ut t a r Pr a de s h) ,Pa nt n ag ar( Ut t a r a k ha nd )a nd Dh ar wa d( Ka r n at a k a) .T o t a l6 8, 0 89 e mp l o y e es a r e wo r k i n gwi t ht h em a c r o s sI n di af o rwh om T a t aMo t o r sh a sp ai d 1 4, 0 47c r o r ea swa ge sa nd 1 40 48 . 5 1c r o r eass a l a r y .Mo r e ov e rT at aMo t or sh av ei n cu r r e dd i r e c te x pe ns e sof 3 55 49 . 5 1 c r or e.Ar epor ts ho wst hatt he yha v eus edRa w mat er i al of 152445. 39c r or ei nt hei rf ac t or yf or t h efi n an c i a ly e a r2 01 51 6a ndpr o c es s i n ge x pe ns e swa sof 1 , 1 10 . 6 8c r o r e .Th e Fa c t o r y managergi v est hedet ai l soff ol l owi ngex pendi t ur e St or e s ,s pa r ep ar t s&t o ol sc on s ume d Fr ei ght ,t r ans por t at i on,por tc har ges Repai rt oBui l di ng Repai r st opl ant ,mac hi ner y Power&Fuel
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