STRATEGIC GROUP MAPS

INTERNAL ANALYSIS

The basic premise is the Customer. So whenever a new product development plan comes into picture, the idea is to look for ways to offer the customer the best value for his money. And the way we define value, the word covers all the possible and not so possible ways to customer satisfaction.

STRATEGIC INTENT Leadership with Trust

Purpose

Being a part of the Tata Group, Telcos corporate purpose is to improve the quality of life of the communities that it serves, through leadership in sectors of national economic significance, to which the group brings a unique set of capabilities. This requires aggressive growth in its focused areas of business.

The Tata Groups heritage of returning to society what it earns evokes trust among consumers, employees, shareholders and the community. Formalizing the high standards of behavior expected from employees and companies continuously enriches this heritage.

The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance group synergy and becoming globally competitive is the route to its sustained growth and long-term success.

5 Core Values

The Tata Group has always sought to be a value-driven organization. These values continue to direct the group's growth and businesses. The five core Tata values underpinning the way it does business are:

1Integrity - we must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.

2Understanding - we must be caring, show respect, compassion and humanity for our colleagues and customers around the world and always work for the benefit of India.

3Excellence - we must constantly strive to achieve the highest possible standards in our day-to- day work and in the quality of the goods and services we provide.

4Unity - we must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance,

understanding and mutual cooperation.

5Responsibility - we must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

MANUFACTURING UNITS OF TELCO

Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation. This focus has driven the company to set up world-class manufacturing units with stateof-the-art technology. Every stage of product evolution - design, development, manufacturing, assembly and quality control, is carried out meticulously. Its manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.

Jamshedpur:

This was the first unit of the company established in 1945 and is spread over a area of 822 acres. It consists of 3 divisions - Truck, Engine (including the Gear Box division) and Axle. The divestments in March 2000 hived off the Axle and Engine plants into independent subsidiaries. The Truck Division boasts of two assembly lines. The main assembly line, measuring 180 metres in length, has 20 stations with a vehicle rolling out every 8 minutes while the other line is dedicated to Special Purpose Vehicles (SPVs). State-of-the-art facilities like a Centralized Paint and Press Shop with a set-up of a 5000 tonne Siempelkamp press line and a cut-to-length line for strip preparation purchased from M/s. Kohler of Germany makes it a fairly advanced production outfit.

This is supported by a fully equipped Foundry which supplies high-grade SG Iron castings for automobile components and excavators and is rated as one of the cleaner, better and highly automated foundries in the world. The Foundry has a sophisticated Kunkel Wagner high pressure moulding line, which has a rated production capacity of 90 pairs of moulds every hour. The Foundry has its own melting shop, core shop and sand plant. Other advanced facilities include Channel Furnaces, Computerized Testing Equipment etc. In 1993, the Foundry was ISO 9002 certified by the Bureau Veritas Quality International and later followed it up with the more stringent QS 9000 certification from the BVQI in the year 2000.

The unit is also equipped with a semi-automated forging line, with 40,000 mkg Beche hammer and stateof-the art presses from Kurimoto of Japan and is one of the most modern forging set- ups in the country. It produces critical forging like crankshafts, front axle beams and steering parts for the automobile plant. The new forging line, installed on April 20, 1984, has the capability to forge front axle beams at 90 sec per piece and crankshafts at 120 sec per piece. Mechanical presses help produce a variety of heavy forging. The sophisticated FIDIA Digit 165 CC graphite milling machine links shop floor machines to the design workstation. The Forge has been certified as ISO 9002 and QS 9000 by the BVQI.

Pune:

The Pune unit is spread over 2 geographical regions Pimpri and Chinchwad and has a combined area of around 510 acres. It was established in 1966 and has a Production Engineering Division, which has one of the most versatile tools making facilities in the Indian sub-continent. It houses a Vehicle manufacturing complex which is one of the most integrated automotive manufacturing centers in the country producing a large variety of individual items and aggregates. It is engaged in the design and manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as models for the development of new ranges of automobile products. Its capabilities have enabled Tata Motors to introduce new products and improve existing ones without resorting to imports of dies or fixtures.

Over the years, this division has developed expertise in design and manufacture of automated dies, fixtures and welding equipment. Its large design group is fully conversant with state-of-the- art CAD facilities and manufacturing facilities comprising of light and heavy CNC machine shops, jigs boring room, plastic template shop, wood pattern and model pattern shop, five axis precision machine tools and laser control machines. To cope with such a diverse range, four assembly lines have been established, one each for MCVs and HCVs, LCVs, multi-utility vehicles and one for Passenger Cars (Indica).

The Passenger Car Division in 'K' block executes the entire process of car manufacture over five shops the engine shop, the transmission shop, press and body shops, paint shop and the trim and final assembly shop. The shops are fully automated ensuring that there is minimal chance for error in the manufacturing processes. After the car is completely assembled, it goes through several checks like wheel alignment, side slip test, brake test, shower test, and a short test run before it is ready for dispatch. All systems such as materials management, maintenance and other activities are computerized, enabling smooth operations and minimum inventory needs.

The Electronics Division is engaged in the production of a wide variety of Machine Tool Controllers, PLCs, and Test rig instrumentation, Servomotors, Proximity Switches. In addition, it has developed a number of components such as flashers, horns, timers that are used in Tata Motors vehicles. Industry experts rate the fully automated Foundry at Chinchwad among the best, worldwide. The Iron Foundry produces 16,000 tonnes of high precision castings per year with the help of 450 employees. These include Cylinder Blocks, Cylinder Heads, Gear Box Housing, etc. To dispense with the need for outsourcing, an Aluminium Foundry with an annual capacity of 700 tonnes has also been established.

Lucknow:

Lucknow Plant is the latest in Tata Motors 's manufacturing facilities. Established in 1991 and covering an area of 600 acres, it was primarily started to assemble Medium

Commercial Vehicles (MCVs) to meet the demand in the Northern Indian market. However, in

1995, the unit started manufacturing bus chassis of Light Commercial Vehicles (LCVs) and SUMO's. The unit is equipped with facilities to manufacture spare parts. Subsequently, G-16 and G-18 Gear Parts were added in 1998. The plant started to assemble G -16 Gearboxes in 2000 to meet the in-house requirement for SUMO vehicle