MAY 2, 2022

By Jay Raval
21bba04006

INTERNSHIP REPORT
Industry report
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1.INDUSTRY STUDY
1.1 Growth and Evolution of industry in India
The Indian automobile industry has evolved into a massive market with lots of
potential over the last decade. All the car manufacturing kingpins have come to India
and invested in the Indian market. There’s obviously a reason behind it, the Indian
automobile industry is booming. And all the international car giants are trying their
level best to get a strong hold of the Indian market. A little more than a decade ago
the Indian consumer interested in buying a car had just about a handful of options to
choose from, today the choices are vast and mind boggling. It is impossible to come
to a decision as to which would be the perfect car for you. The likes of Honda, Skoda,
Volkswagen, Chevrolet, Nissan, Hyundai and Renault have all entered the Indian
market. And these just add to the already existing local players like Maruti Suzuki,
Tata and Mahindra who for years prior to this rapid development had shared and
enjoyed market dominance.

All these international car manufacturers have set up factories and plants across the
country in order to produce their cars within the country to make for cheaper cars.

All these big brands have realized the potential the Indian market has, and this
potential is only increasing with time. Companies like Toyota, Honda and Chevrolet
produce cars specifically for the Indian market, these cars aren’t manufactured in
other parts of the world as they are designed keeping in mind the Indian traffic and
road scenario. The market today has such a wide variety of cars to choose from.
Every segment has multiple cars. The hatchback segment which is by far the most
selling type of cars has so many cars and car makers battling it out to gain
supremacy and dominance. Within the hatchback segment there are top end and
lower end cars. The top end hatchbacks would include the Skoda fabia, Volkswagen
Polo and the top variant of the Maruti Swift. These are considered to be premium
hatchbacks. The lower level hatchbacks would be cars like the Maruti Alto, wagonr,
and the Hyundai Eon. These are aimed at the common man, who’s looking for a low
maintenance car which gives good fuel economy. The sedan segment has the same
bifurcation where the premium sedans include the Honda Civic and Toyota Corolla,
and the lower level seda

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would include the Maruti Sx4 and the Volkswagen Vento.

Such a surge in the industry shows the potential the Indian market has and hence
global players are trying everything in their power to capture a share of the Indian
market. Even high end premium brands like Rolls Royce Aston Martin and Porche
have opened showrooms across cities in India. Ten years ago one wouldn’t have even
imagined walking into a Rolls Royce showroom in India or having the liberty of test
driving a Jaguar in our own city. Keeping all this in mind it’s a real mystery in judging
which would be the best family car in India

Wagonr is considered amongst the best family car which is a low maintenance car
and gives great fuel economy as well.

1.2 Product Profile

in Automobile industries there are two types of products. One is Passenger vehicle &
another is commercial vehicle. There are many manufacturers of vehicle makes both
types of product. Like TATA, Maruti Suzuki, Renault, Ashok Leyland, Mahindra &
Mahindra, etc.

1.3 Players in the industry

Audi

BMW

Chevrolet

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Fiat

Force

Ford

General

Hindustan

Honda

Lamborghini

Maruti

Mahindra & Mahindra

Mercedes

Mitsubishi

Nissan Motors

Tata Motors

1.4 Future Prospect

Indian automotive industry (including component manufacturing) is expected to reach
Rs. 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. The Indian auto industry is
expected to record strong growth in 2022-23, post recovering from effects of COVID-19
pandemic

1.5 Key Issues and Current Trends

Key Issues

Consumer Sentiment Index

Description: Customer Sentiment Index, 12 month rolling average of the Index;

historical and forecast data and analysis.

End customers are very important to ensure the survival of the Motor Vehicle
Manufacturing industry. Economic downturns and other events can affect the
expenditure decision of households. When customers are not happy or optimistic

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about the future of the economy, they will tend to postpone expenditure until times
are better. In 2008-09, customer sentiment is expected to fall, which will have a brunt
on the augmentation in demand of cars.

Domestic Goods Price – Metal – Iron and Steel

Description: The price of input such as steel.

Steel is a major input used when manufacturing a motor vehicle. Rises in the price of
steel puts cost pressures on manufacturers, which often leads to a fall in profitability.
Over the past five years, the price of steel has been rising rapidly. These rises in price
eventually pass from the manufacturers to the end customers’.

Import and Export Taxes (Duties) – Motor Vehicle Tariffs

Description: Tariff rates applicable to the industry

High taffies may restrict flow of trade but may attract investment if domestic market
is big enough and growing. Over the last few years India’s tariff policies and
conditions of import of vehicles have served the purpose of attracting investments.
Industry is keen that the existing tariff structure roadmap and conditions of import of
vehicles are retained without any modifications because of certain systematic
deficiencies which make manufacturing less cost competitive in India as compared to
some of the neighbouring countries like China, Thailand, Indonesia, etc.

Wold Price – Energy – Crude Oil

Description:  The world price of crude oil, $US/barrel, and price analysis.

The price of oil and petrol affect the driving habits of consumers and the type of car
they buy. Over the past five years, the price of petrol has been influenced the buying
decision of motorists, who are switching more to fuel efficient options. These include
cars that run on liquefied petroleum gas (LPG), diesel and small cars that achieve
better mileage. The trucking sector has also been struggling with the rise in the price
of fuel, which has put enormous pressures on their costs.

Key Success Factors

The Key Success factors in the Motor Vehicle Manufacturing industry are:

Efficiency factor – Improve labour productivity, labour flexibility, and capital efficiency

Resource Availability – Quality manpower availability, infrastructure improvements,

and raw material availability

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Effective cost controls – Close relationship with supplies and goods distribution
channels.

Establishment of export markets – Growth of export markets

Having an extensive distribution/collection network – Goods distribution channels

Successful industrial relations policy – Ethical and tactical industrial relations

Access to the latest available and most efficient technology and techniques – The
degree of investment in technological improvements and product development

Optimum capacity utilisation – The level of plant utilisation

Management of high quality assets portfolio – Understanding implications from

Government policies

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2. COMPANY PROFILE: -

2.1 Name, Registered address

Name: TATA MOTERS
Registered address: Bombay House, 24, Homi Mody
Street, Mumbai

2.2 Brief History

Tata Motors was founded in 1945, as a locomotive manufacturer. Tata Group entered the
commercial vehicle sector in 1954 after forming a joint venter with Daimler Benz of
Germany. After years of dominating the commercial vehicle market in India, Tata Motors
entered the passenger vehicle market in 1991 by launching the Tata Serra, a sport utility
vehicle based on the Tata Mobile platform. Tata subsequently launched the Tata Estate (1992;
a station wagon design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door
SUV) and the Tata Safari (1998).

Tata indica (first generation)

Tata launched the Indica in 1998, a fully indigenous Indian passenger car tailor-made to suit
Indian consumer needs though styled by I.D.E.A, Italy. Although initially criticised by auto
analysts, its excellent fuel economy, powerful engine, and an aggressive marketing strategy
made it one of the best-selling cars in the history of the Indian automobile industries. A
newer version of the car, named Indica V2, was a major improvement over the previous
version and quickly became a mass favourite. Tata Motors also successfully exported large
numbers of the car to South Africa. The success of the Indica played a key role in the growth
of Tata Motors.
In 2004, Tata Motors acquired Daewoo’s South Korea-based truck manufacturing unit,
Daewoo Commercial Vehicles Company, later renamed Tata Daewoo.
On 27 September 2004, , the Chairman of Tata Motors, rang the opening bell at the new York
stoke exchange to mark the listing of Tata Motors.[

2.3 Mission, Vision,

Mission

We innovate mobility solutions with passion to enhance the quality of life.

Vision

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By FY 2024, we will become the most aspirational Indian auto brand, consistently winning, by

 Delivering superior financial returns

 Driving sustainable mobility solutions

 Exceeding customer expectations, and

 Creating a highly engaged work force

2.4 Products
 Cars and Sports Utility Vehicles
I. Tata Tiago
II. Tata Punch
III. Tata Nexon
IV. Tata Safari
V. Tata harrier
VI. Tata Altroz
 Trucks & Buses
I. Ultra MHCV
II. Ace Gold
III. Intra V-10
IV. Yodha Pick-up
V. LCV Truck
VI. ICV Truck
VII. Starbus Ultra
VIII. Winger
IX. Tata Magic Express

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 Defence
I. Defence Fire Tender
II. Defence Prison Van
III. Defence load Carrier
IV. Defence Troop Carrier

2.5 Form of organization, Organization structure

 Forms of Organization

Formerly Tata Engineering and Locomotive Company Ltd. (TELCO)

Type Public

Traded as  BSE: 500570

 NSE: TATAMOTORS
 NYSM: TTM
 NSE NIFTY 50 Constituent

ISIN IN9155A0102D

Industry Automotive

Founded 1945; 77 years ago

Founder Jehangir Ratani Dadabhoy Tata

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Natarajan Chandrasekaran

Products  Automobiles
 Luxury Vehicles
 Commercial vehicles
 Automotive parts
 Pickup trucks
 SUVs

Production output  1.1 Million (approx) (2021)

Services  Automotive finance

 Vehicle leasing
 Vehicle service

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 ₹319,247 crore (US$42 billion) (2021)

Revenue

Operating income  ₹−2,377 crore (US$−310 million) (2021)

Net income  ₹−13,016 crore (US$−1.7 billion) (2021)

 ₹343,125 crore (US$45 billion) (2021)

Total asset
 ₹54,480 crore (US$7.1 billion) (2021)
Total equity

Number of employees 78,906 (2021)

Parent Tata Group

Division Tata Motors Cars

Subsidiaries  Tata Daewoo

 Jaguar Land Lover
 Tata Technologies
 Tata Hispano
 Tata Hitachi Construction Machinery
 Tata Passenger Electric Mobility

Website www.tatamotors.com

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 Organization structure

Shareholder
Audit Committee
Board Directors
Executive
Committee of Board
Management CEO &Managing Director
committee

Managing Director- India operation Remuneration

Operation Committee
committee
Nomination
Committee

Head Chief
(Commercial HEAD
Finance Investors Grievance
Vehicle) (ERC)
Officer Committee

Head (passenger cars) Ethics & complain

Head (Human Resource) Committee

Chief (strategic Sourcing) Chief International Auditor cum Chief

Ethic Counselor Special need based
Committee
Head (passenger cars-operations)
Head (Legal)

Head (PCBU-International Business)

Company Secretory

Head (CVBU-International Business)

Head (Corporate Planning)

Head (Govt. Affairs & collaboration ) Head (Corporate Communication)

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3.PRODUCTION: -
3.1 Classification of Product
3.1.1 passenger product
 Magic
 Winger
3.1.2 Luxury product
 Jaguar
 Land lover
3.1.3 SUVs product
 Harrier
 Safari
3.1.4 Automotive
 Nexon
 Tiago
 Punch
 Altroz
3.1.5 Truck
 LCV Truck
 ICV Truck

3.2 Production Process

 RAW MATERIALS
Raw materials must be complied to transform the car from
an idea to reality. Tata car manufactures is looking for more
sustainable, as well as lightweight and cost effective,
material for their cars to keep up with the demand of
greener products.

 DESIGN & ENGINEERING

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Automobile design must respond to the public needs and desires

for car. Once the design is drafted, it’ll go through many
revisions to perfect it.

The interior and exterior must be fashioned so that it is attractive

to potential buyers while also including innovative technologies that
make the car newsworthy and competitive to the brands.
Small models will made in 2D and 3D forms to test the car’s
design. Engineers will test for aerodynamic, safety, hot and cold
weather, fuel economy, electric functionality, cost analysis and
more.
Once the design and engineering specs have been approved, than
the manufacturing process can begin.

 MANUFACTURING

The sheet metal parts for the body work are created and
stamped by robots. These parts from side frames, doors, hoods,
and roofs, which are latter added onto the main frame of the car.

Once the frame created and the parts are ready to

assembled, the car will be loaded onto a production line.

The car will travel along a moving assembly in a

factory as robots and people work on them.
Manufacturing plant workers will attach part to the
car and may work alongside robots for certain tasks.

Robotic work cell will work alone to weld, solder, screw, and glue
parts onto the car.

Once the parts of the body manufactured onto cars it will undergo
detailing. These include cleaning, layering chemical formulas for
protection against corrosion and scratches, and painting.

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Finally, the engine, transmission, axles, and exhaust system are

installed into the car and the tires are furnished so the car can stand on
its own.

3.3.PRODUCTION CAPACITY: -

The segment wise production is as follows:

Location, Type of vehicle manufactured, Production
capacity (Lakh/PA)
 Pune Passenger Cars (Indica, Indigo, Marina, Indica
vista)2.7 L Pune commercial vehicle (MCVs and
HCVs, LCVs, Utility vehicles)2.5 L

 Jamshedpur Trucks & Special Purpose Vehicle1.08L

 Lucknow Buses 0.6L

 Pantnagar (Uttarakhand ) Mini Truck (Ace),

Passenger carrier (Magic)2.25L

3.4.PLANT LAYOUT: -

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3.5.RAW MATERIALS AND ITS PROCUREMENT: -

 Raw materials
 The components and raw materials in its cars include steel,
aluminium, copper, platinum and other commodities. The Company
has established contracts with certain commodity suppliers to cover
its own and its suppliers' requirements to mitigate the effect of high
volatility in commodity prices.

 Procurement

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Global Sourcing Team- China , a key destination for sourcing

essential items like tires, power steering unit etc., Steel
procured from Belarus

Long term relationship with a stable and loyal pool of

suppliers.

Technology driven procurement – SAP and VCM

Strategic subsidiaries JV’s- TACO group of companies,

Tata Cummins

Centralized Strategic Sourcing for key components-FIP’s

Steel etc.

Group resources- Tata steel and Tata International.

Localized suppliers base at mfg. locations- low inventory level

3.6.WAY TO HANDLE INDUSTRIAL WASTE: -

Tata Motors’ focus on waste management is aligned with the Waste

Management Hierarchy as mandated in the national regulations;
namely – *prevent/eliminate, *minimize, *reuse, *re-cycle, *energy /
material recovery and *safe disposal. The company’s approach to
waste management is cantered on the utilization of waste and its
diversion from landfill / incineration. Tata Motors’ plants are
vertically integrated and carry out a range of manufacturing activities
in-house which result into a wide variety of wastes, which are
disposed in compliance with the regulatory requirements. Some Tata
Motors’ plants have the option of co-processing hazardous waste –
i.e. the utilization of high-calorific value wastes as fuel substitute in

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cement kilns, which is an effective route for energy / material

recovery from hazardous waste.
Through improvements in manufacturing process, waste or scrap
conversions and supply chain optimization, Tata Motors aims to
reduce the environmental burden caused by landfill and incineration.
In order to reduce the waste burden on landfills, TML has taken steps
such as the conversion of paint sludge into secondary paints, which
can be used in-house or in the supply chain for casting and frames.
Additionally, some process modifications have been undertaken such
as recovery and re-use of sealants instead of wiping off the excess,
improved paint transfer efficiencies, reduced tank draining and
scheduling colour-wise painting operations leading to less frequent
set-up changes. Tata Motors has also partnered with a National
Research Institute for the utilization of ETP sludge in the manufacture
of construction products such as paver blocks and bricks. The
proposal is currently in the process of being validated by Regulatory
agencies.
The ‘Value from Hazardous Waste’ initiative has resulted in savings
of INR 20.20 Crore in FY’20 and avoided the disposal of 1976 MT of
hazardous waste in FY20. To minimize use of flexible plastic
packaging in its operations, the company is also working towards
returnable packaging and is deploying this approach at suppliers’ sites
as well. The company’s employees repurposed wooden pallets into
700 desks for students

4.MARKETING: -
4.1Tata Motors Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Tata Motors analyses the brand with the
marketing mix framework which covers the 4Ps (Product, Price,
Place, Promotion). There are several marketing strategies like product
innovation, pricing approach, promotion planning etc. These business
strategies, based on Tata Motors marketing mix, help the brand
succeed.

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Tata Motors marketing strategy helps the brand/company to position

itself competitively in the market and achieve its business goals &
objectives.

TATA MOTORS PRODUCT STRATEGY:

The product strategy and mix in Tata Motors marketing strategy can
be explained as follows:
Tata Motors is involved in manufacturing of vehicles in categories
that include cars Hatchback, Sedan and utility vehicles, Trucks,
Buses, Municipal Solutions, and Defence and homeland security. The
product portfolio in the marketing mix of Tata Motors also covers
brands like Jaguar and Land Rover. The consumers perceive the Tata
Motors brand that produces vehicles that provides reliability, high
quality, and efficiency. Tata Motors ranks in top four passenger
vehicle brands in India. It focuses on innovation and due its vast
industrial experience, they continuously work on developing new
vehicles with robust technical specifications. In addition, Tata Motors
follow stringent Quality norms and abides by the rules laid down by
the regulatory agencies. In its focused developed on innovation, Tata
Motors had unveiled electric versions of Tata Indica car and Tata Ace
commercial vehicle that runs on lithium batteries. During
Commonwealth games, Tata Motors presented CNG – electric hybrid
buses to Delhi Transport Corporation that were part of environment
friendly buses. The Tata 407, of the Light commercial vehicle
category has sold over 5,00,000 units since its initial launch.

TATA MOTORS PRICE/PRICING STRATEGY:

Below is the pricing strategy in Tata Motors marketing strategy:
Tata Motors has a diverse portfolio, which means a diverse pricing
strategy.
In 2008, Tata Motors launched Tata Nano the cheapest passenger car
in the world. It followed penetration-pricing strategy and vehicles
manufactured by Tata Motors are comparatively cheaper than its
competitors are. Due to its low price, it attracted media attention and

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the vehicle reported an increase in sales figure within short time

during the initial days of the launch. The lower pricing of Tata Nano
also resulted in consumers perceiving it as a cheap product. The
penetration pricing strategy can act as entry barrier for new players in
the segment targeting lower income group. The pricing strategy in the
marketing mix of Tata Motors caters to the lower class as well as the
affluent upper class. Tata Motors’ international acquisition Jaguar
Land Rover targets niche customers providing high quality features.

TATA MOTORS PLACE & DISTRIBUTION STRATEGY:

Following is the distribution strategy in the Tata Motors marketing
mix:
Tata Motors has the third largest service and sales network in India.
To distribute its vehicles, it has partnered with various distributors
across India and the service centres are well equipped with the spare
parts and accessories. Tata Motors has extensive distribution network
set up across India, also major launches are displayed in showrooms
to experience the product. To purchase defence vehicles, Tata Motors
has set up regional offices in the states of West Bengal, Maharashtra,
Delhi and Karnataka. It is also involved in the sales of Pre – Owned
Cars and provides features such as extended warranty.

TATA MOTORS PROMOTION & ADVERTISING STRATEGY:

The promotional and advertising strategy in the Tata Motors
marketing strategy is as follows:
Tata Motors has been known to having an aggressive marketing
strategy. To endorse its passenger vehicles globally, Tata Motors
declared Lionel Messi as their brand Ambassador. It also signed film
celebrities as brand ambassador for its commercial vehicle business.
Tata Motors is the prime sponsor of many events and it helped in
creating awareness about its new product Tata Tiago in the minds of
the consumers. The company offers discount to its customers as part
of festival offers in India hence developing interest among consumers.
The promotional strategy in the marketing mix of Tata Motors is
carried out in the form of TV, Newspapers, and electronic media. Tata
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Motors leverages upon Social media marketing to target customers

based on the search results. The Tata brand is considered a trusted
brand hence it uses the same to tap on the customers.

IV.2 Competitors

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IV.3 PACKAGING,BRANDING,LABLING

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IV.4Supplier and Distribution Network

 Typical model of Tata motor’s Supply chain

Tata Motors (TML) is India’s leading automobile manufacturer,

which is established in 1945. It is amongst the top 5 manufacturers of
commercial vehicle in the world. TMS is largest Indian automobile
company with consolidate Revenues of Rs. 92519 crores (USD 20
billion) in 2009-10″ (www.tatamotors.com). It has employed around
24000 employees. Manufacturing base of TML is spread around
various Indian states. TML is not only limited up to Indian market, it
has also started expanding its footsteps into international market.
Today Tata Motors is a global player having markets in several
countries around the world including Europe, Africa etc. In 2008
TMS has purchased British car companies Land Rover and Jaguar and
in 2004 South Korean 2nd largest truck making Daewoo Commercial
Vehicle Company. TMS is the first company to be listed on New
York Stock Exchange from Indian engineering sector. TMS has
recently released Tata Nano which is lowest price car in the world.
(www.tatamotors.com)

Tata Motors dealing in wide range of vehicles such as passenger cars,

utility vehicles, Trucks, Commercial passenger vehicles as well as
defence vehicles.

The main competitors of automobile company such as Tata Motors

are the large manufacturer of commercial and passenger vehicles in
India who are, Ashok Leyland, Eicher Motors, Swaraj Mazda,
Mahindra and Mahindra etc.

Valuable tools, models and theories will give a detail understanding

of issues dealing with supply chain management. Theory around the
issues of operation management, supply chain management, porter’s
five forces, the four V’s and value chain will give a through insight of
the value added in the product and services. Therefore, an analysis of
all above will follow, focusing on the Indian Automobile Industry.

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5.HUMAN RESOURCES: -
5.1 Number of Employee at each Level,Shift

Tata Motors Annual Number of Employees

2021 75,278

2020 78,906

2019 82,797

2018 81,090

2017 79,558

2016 76,598

2015 73,485

2014 68,889

2013 62,716

2012 58,618

2011 52,244

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Tata Motors Annual Number of Employees

2010

2009 49,473

5.2 RECRUTMENT AND SELECFTION PROCESS

Tata Motors Recruitment, Insights and Details

TATA Motors came into being on 1954. Natarajan Chandrasekaran is

the current Chairman of TATA Motors and Guenter Butcher is the
CEO. TML operates worldwide and is India’s biggest car
manufacturer. TATA Motors belongs to the parent TATA Group and
has subsidiaries like Jaguar Land Rover, Tata Daewoo and Tata
Technologies. Starting a job with TATA Motors can be a great boost
for those having passion for automobiles and looking for recruitment
with good compensations and benefits along with career growth.
TML (TATA Motors) offers various internships that help students in
building their careers while pursuing academic
degrees/courses. Those who are interested in HR roles, then TML has
HR positions for candidates who can become future HR leaders. The
nature of job posts ranges from variety of job profiles such as Fitter,
driver, Auto mechanic, Electronic Tester, etc. and TML will release
new vacancies in days to come in areas like Sales & Marketing, HR,
Supervisors, Business Managers, Designer Auto Interiors, Team
Leaders, Sales Executives, and many more. The application process is

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online, where one can choose the job profile and apply for it by
mailing theresume. TML officials will get back to you if your
credentials are considered fit for the job. The TML recruitment
process usually happens in three stages, that is, first the Written
Exam, then GD (Group Discussion), which is followed by the final
HR Round (Interview). After the recruitment is successful, selected
candidates can be offered jobs across India. 

Key Highlight
of Tata Motors

EDUCATIONAL QUALIFICATION:
Graduates or Postgraduates

AGE LIMIT:
Min-18 years Max-33 years

APPLICATION FORM:
Through official website (Off-campus)

HIRING ROUNDS:
1. Online Aptitude Test 2. Technical Interview 3. HR Interview

PLACEMENT DATES:
Throughout the year according to the vacancies

PLACEMENT DATES:
Throughout the year according to the vacancies

 Eligibility

Tata Motors Placement drive selects the candidate with some

requirements for the job post. The interested candidate can apply and
check out the eligibility criteria for the post. The eligibility is
mentioned below:

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 The minimum qualification of a candidate is that he/ she must

have finished the graduation or post-graduation of 2020, 2019
and 2018 batch.
 Only B.E/ B.Tech/ M.Tech/ M.E/ MCA/ MBA streams can
apply with mathematics as an essential subject in the academics.
 A minimum of 60% is required in academics.
 No backlogs at the time of the interview.
 A minimum gap of 1 year in education is allowed.
 The age limit for the post is 18-33 years.
 Tata Motors Limited: Selection Process

The TML recruitment process usually happens in three stages, that is,
first the Written Exam, then GD (Group Discussion), which is
followed by the final HR Round (Interview). After the recruitment is
successful, selected candidates can be offered jobs across India.

 Online Aptitude Test

 Technical Interview
 HR interview

It is crucial for the candidates to ace the written exam to move

forward with the hiring process. Those who will fail the written exam
will be not be called for the next round. Tata Motors
Recruitment Result will be sent by email/call to the selected
candidates.
 Tata Motors Recruitment Test: Exam Pattern

The placement exam pattern can see questions from English

Language, Analytical Ability, Quantitative Ability, and
Technical sections.

 Mode of exam: Online
 Total Questions: 100 or 120 MCQs
 Time Limit: 2 hours

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5.3 TRAINNING INITIATIVES

LEARN EARN AND PROGRESS (LEAP) – B REAKING GENDER BARRIERS

Automobile is considered to be a male dominant industry and girls trained at
Little Flower institute in Kerala are trying to break this notion. These female
trainees are altering the perception that women cannot undertake heavy duty
work especially when it comes to be being a good technician (motor mechanic).
Inspired by them, more girls have started taking admission to this course. These
girls are a part of Learn, Earn and Progress (LEAP) programme which imparts
automation related skills (service technician) to school dropout youth. This is a
one year course jointly run by Tata Motors and dealers. Students get theoretical
inputs in industrial training institutes for three months and are placed with
dealers to get hands-on training through an OJT with Tata Motors dealers and
Tata Authorised Service Stations (TASS) for nine months (and receive monthly
spend as well). Post training completion they are assessed by ASDC
(Automotive Skill Development Council).

Over 80% of the trained youth found employment post training completion with
average salary of ₹ 8000, 4% of the youth have become entrepreneurs
generating additional jobs for over 50 youth from the community. This has led
to the increase in annual household income by nearly 1 lac.

A short duration courses of 3 months each have been added and close to 3000
youth (of which 40% belong to SC/ST category) are trained in partnership with
Pratham and Tata Strive on an annual basis. The placement is over 75% of all
those trained. These programmes generate employment in the Tata Ecosystem
and are a classic case of strategic business connect.

5.4 COMPENSATION

REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL PERSONNEL

AND OTHER EMPLOYEES

The philosophy for remuneration of directors, Key Managerial

Personnel (“KMP”) and all other employees of Tata Motors Limited
(“the Company”) is based on the commitment of fostering a culture of
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Leadership with Trust. The remuneration policy is aligned to this

philosophy.

This remuneration policy has been prepared pursuant to the

provisions of Section 178(3) of the Companies Act, 2013 (“Act”) and
Regulation 19 read with Part D of Schedule II of the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”). In case of
any inconsistency between the provisions of law and this
remuneration policy, the provisions of the law shall prevail and the
Company shall abide by the applicable law. While formulating this
policy, the Nomination and Remuneration Committee (“NRC”) has
considered the factors laid down under Section 178(4) of the Act,
which are as under:

“(a) the level and composition of remuneration is reasonable and

sufficient to attract, retain and motivate directors of the quality
required to run the company successfully;
(b) relationship of remuneration to performance is clear and meets
appropriate performance benchmarks; and
(c) remuneration to directors, key managerial personnel and senior
management involves a balance between fixed and incentive pay
reflecting short and long-term performance objectives appropriate to
the working of the company and its goals”

Key principles governing this remuneration policy are as follows:

 Remuneration for independent directors and non-independent

non- executive directors

• Independent directors (“ID”) and non-independent nonexecutive

directors (“NED”) may be paid sitting fees (for attending the meetings
of the Board and of committees of which they may be members) and
commission within regulatory limits.
• Within the parameters prescribed by law, the payment of sitting fees
and commission will be recommended by the NRC and approved by
the Board.

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• Overall remuneration (sitting fees and commission) should be

reasonable and sufficient to attract, retain and motivate directors
aligned to the requirements of the Company (taking into consideration
the challenges faced by the Company and its future growth
imperatives).
• Overall remuneration should be reflective of size of the Company,
complexity of the sector/industry/Company’s operations and the
Company’s capacity to pay the remuneration. • Overall remuneration
practices should be consistent with recognized best practices.
• Quantum of sitting fees may be subject to review on a periodic
basis, as required.
• The aggregate commission payable to all the NEDs and IDs will be
recommended by the NRC to the Board based on Company
performance, profits, return to investors, shareholder value creation
and any other significant qualitative parameters as may be decided by
the Board.
• The NRC will recommend to the Board the quantum of commission
for each director based upon the outcome of the evaluation process
which is driven by various factors including attendance and time
spent in the Board and committee meetings, individual contributions
at the meetings and contributions made by directors other than in
meetings.
• In addition to the sitting fees and commission, the Company may
pay to any director such fair and reasonable expenditure, as may have
been incurred by the director while performing his/her role as a
director of the Company. This could include reasonable expenditure
incurred by the director for attending Board / Board committee
meetings, general meetings, court convened meetings, meetings with
shareholders / creditors / management, site visits, induction and
training (organized by the Company for directors) and in obtaining
professional advice from independent advisors in the furtherance of
his/her duties as a director.
 Remuneration for managing director (“MD”)/executive directors
(“ED”)/KMP/ rest of the employees1

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The extent of overall remuneration should be sufficient to attract and

retain talented and qualified individuals suitable for every role. Hence
remuneration should be

• Market competitive (market for every role is defined as companies

from which the Company attracts talent or companies to which the
Company loses talent)

• Driven by the role played by the individual,

• Reflective of size of the Company, complexity of the

sector/industry/Company’s operations and the Company’s capacity to
pay,

• Consistent with recognized best practices and

• Aligned to any regulatory requirements.

• In terms of remuneration mix or composition,

- The remuneration mix for the MD/EDs is as per the contract

approved by the shareholders.
In case of any change, the same would require the approval of the
shareholders.

- Basic/ fixed salary is provided to all employees to ensure that there

is a steady income in line with their skills and experience.

- In addition to the basic/ fixed salary, the Company provides

employees with certain perquisites, allowances and benefits to enable
a certain level of lifestyle and to offer scope for savings and tax
optimization, where possible. The Company also provides all
employees with a social security net (subject to limits) by covering
medical expenses and hospitalization through re-imbursements or
insurance cover and accidental death and dismemberment through
personal accident insurance.

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- The Company provides retirement benefits as applicable.

- In addition to the basic/ fixed salary, benefits, perquisites and

allowances as provided above, the Company provides MD/EDs such
remuneration by way of commission, calculated with reference to the
net profits of the Company in a particular financial year, as may be
determined by the Board, subject to the overall ceilings stipulated in
Section 197 of the Act. The specific amount payable to the MD/EDs
would be based on performance as evaluated by the Board or the
NRC and approved by the Board.

- In addition to the basic/ fixed salary, benefits, perquisites and

allowances as provided above, the Company provides MD/EDs such
remuneration by way of an annual incentive remuneration/
performance linked bonus subject to the achievement of certain
performance criteria and such other parameters as may be considered
appropriate from time to time by the Board. An indicative list of
factors that may be considered for determination of the extent of this
component are:
- Company performance on certain defined qualitative and
quantitative parameters as may be decided by the Board from
time to time, Industry benchmarks of remuneration,
- Performance of the individual.

- The Company provides the rest of the employees a performance

linked bonus. The performance linked bonus would be driven by the
outcome of the performance appraisal process and the performance of
the Company.

 Remuneration payable to Director for services rendered in other capacity

The remuneration payable to the Directors shall be inclusive of any
remuneration payable for services rendered by such director in any
other capacity, unless:
a) The services rendered are of a professional nature; and
b) The NRC is of the opinion that the director possesses requisite
qualification for the practice of the profession.

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 Policy implementation
The NRC is responsible for recommending the remuneration policy
to the Board. The Board is responsible for approving and overseeing
implementation of the remuneration policy.

6.TECHNOLOGY: -

Technology in use by the tata motors

Taking a step further in developing comfortable mass transportation

solutions, Tata Motors has also launched Automated Manual
Transmission (AMT) technology in its Starbus and Ultra brand of
buses, ranging from 12m and 9m, developed especially for application
in cities with heavy traffic. The Tata AMT buses are manual as well
as automatic, and come with economy and power modes. In the power
mode, automatic gear detection emphasises sufficient engine torque
capability to maintain agility and drivability even in case of
demanding duty cycles; the economy mode ensures optimal fuel
consumption.

The AMT technology of the bus, coupled with a powerful new

generation engine, automatically engages the vehicle's clutch and
shifts the gear. It also considers the driver's operation, engine torque,
and vehicle load and road inclination, resulting in an optimised gear
shifting and hassle-free driving experience.

7.SOCIAL RESPONSIBILITY: -

Global automobile manufacturer Tata Motors Limited acknowledges

its roots and tirelessly works to address the needs and aspirations of
the community, pushing others onwards to development. We have a
six-pronged CSR strategy that attends to the societal needs starting
from pre-natal care to education, and serves across the spectrum –

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helping with high-school level courses to professional ones, leading to

employability and employment.

SOCIAL INVESTMENT

CSR AT T ATA M OTORS IS INFLUENCED BY ‘M ORE FROM L ESS FOR M ORE ’

PHILOSOPHY .

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Tata Motors CSR Programs

 Aarogya-Health
 Vidyadhanam - Education
 Kaushalya - Employability or Skilling
 Vasundhara - Environment
 Amrutdhara - Drinking Water
 Aadhaar - Affirmative Action
 Seva - Volunteering

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