STRATEGIC PROFILE

Eco-friendly

Low-cost

Refined the manufacturig

process

Emphasis on

innovation

Target -families with 2 wheeler &

expand the Indian car

market by 65%

• A soft loan and tax paybacks1

• Concessional power2• Subsidy on land3

Nano In West Bengal – Hails CPI Ratan tata meets buddhadev Singur -In libris graecis appetere evmea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. Lorem volumus blandit cu has.Sit cu alia porro fuisset.

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The ECONOMIC Times Monday – xx – xxxx- xxxx - Since 1802

West Bengal welcomes TATA RATAN TATA PLANS TO COME ESTABLISH A NANO PLANT IN WEST BENGALIn libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. Lorem volumus blandit cu has.Sit cu alia porro fuisset.

Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus. Mei eu ubique altera senserit, consul eripuit accusata has ne.

In libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. Lorem volumus blandit cu has.Sit cu alia porro fuisset.

Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus. Mei eu ubique altera senserit, consul eripuit accusata has ne. Ignota verterem te nam, eu cibo causae menandri vim.

CELEBRITY NEWS AND GOSSIP WORLD EXCLUSIVES

THE

SUN SHINE

To Provide Solatium To The Displaced Families

Pay a compensation of Rs 119 Crore.

Provide technical training to people affected by the acquisition

Customized technical training courses on

the shop floor.

GENERAL ENVIRONMENT ANALYSIS

SITUATION• Tata’s dream- Roll out Rs. 1lakh car• Buddhadev Bhattacharjee’s vision of an industrialized state• Marginal farmers- Rehabilitation and Resettlement• Industry, Government and Agriculture come at crossroads• Ensuing turmoil feeds political agitations spearheaded by

Mamta Banerjee adding fuel to the fire

The People

Small Farmers- 635 acres owned by 9020 farmers

Three groups support land transfer-Absentee landownersRegistered share-croppersThose owning a part of land

Three groups oppose land transfer- Unregistered share-croppersDaily wage earners associated

WB Government & Tata Motors

• CM Buddhadev Bhattacharjiya had a vision to industrialize the state and to create jobs for youth

• Ratan Tata promises the nation a 1lakh car for the common man

• Accepts a lucrative proposal by WB Govt. to set up plant in WB which will significantly help lower its cost of production and help make car at lower cost

Issues

Transfer Of Land

• Farmers to company• Agriculture to industry• Government as

intermediary• Voluntary versus forced

Questions Regarding The Deal

• Compensation and pricing

• Employment• Government involvement

Positive Aspects• Industrialization of

State • good employment

opportunities for farmers

• Getting 8lakh per acre of land

• Improve Standard of living

Negative Aspects• Industrialization at the

expense of Agriculture• fertile land was transferred

to co. 83% of the land is irrigated and crop density is 220%

• No daily income except land• Fails to secure children’s

future• Too much involvement of

Govt.

Industrial Analysis

Tata was looking to bring the industrial automobile revolution in India.

• World's cheapest car• Focused on the 75% of the Indian population which

still travels using two-wheelers• The Tata Nano shows the power of vision- setting a

very high bar—to create a Rs1-lakh ($2,000) "people’s car.”

Why Tata wanted to set up their industry in Singur..??

• To do rapidly industrialization of West Bengal• To grow the economic domain of west Bengal• State governments were so eager to invite private

players

Project gave hope to the foundry industry in West Bengal.

• Industrial development of west bengal• Increase in the employment of the local peoples • Enhancement of the economic condition of west Bengal The effect of the issue “Mamta Vs Tata” on industrial

development of west Bengal.• Finally tata announced to go out side the west bengal• Interrupt for state’s future industrialization and good job

opportunities

COMPETITORS’ ANALYSIS

17

Why Tata is facing so many competitors post the Nano project

Only 16% of families have 4 wheeler Tata wanted to hold remaining 84%They made the Cheapest car of the world Almost at half rates they provided all the comforts given by Maruti, Hyundai, Honda Good for Lower Middle Class people- will help raise Standard of living of Indians India's car market is predicted to double to 2 million by 2010, with passenger-car sales growing by18.5% last month

Major Competitors Of The Tata Motors

18

Toyota Motor Corp

Maruti

Honda

Hyundai,

Fiat

• Hyundai was also very cheap when it entered US but, today has one of the best safety ratings of all cars in market-in India they did not launch Ultracheap Car .

• After the launching of Tata nano, India’s top car maker maruti is planning coming into the action to give competition to nano by focusing on fuel-efficient small cars, hybrids, electric and multi-fuel cars

• India races for the world's cheapest car as Toyota Motor Corp, Honda Motor Co, Fiat, and Volkswagen AG also plan economy cars to compete in the Indian, Chinese and Russian markets.

• Motorbike maker Bajaj Auto Ltd is reportedly looking at a slightly higher-end compact car, while reports suggest that Ford India may enter the segment that accounts for 75% of sales in the country

Internal Analysis

Was It Justified To Use The Cultivable Land West Bengal seemed to have reached the carrying capacity of the

farming sector. So, the obvious choice to improve the living standards was to develop the industrial and services sectors, But new ventures means land for factories, roads, bridges etc. As very little land was idle, so some had to come from the cultivable pool which meant sacrificing some farm output given that it would make economic sense.

IT WAS JUSTIFIABLE BECAUSE:

Though it was matter of food security but the land required would have affected the overall output marginally only.

Self sufficiency in food was neither necessary nor desirable if higher returns direct resources to the other sectors.

If the job opportunities had opened outside the farm sector , it would had definitely improved the conditions of the farmers.

Continued… The problem of the overall agricultural productivity being affected by acquisition of the land

by was an insignificant one, the main thing was- the farmers losing their land as well as their livelihood and also the no. of jobs created were not more than 1000 and too many of which were expected to go to outsiders which threatened the local population.

Compensation was important not only because the govt. was grabbing the land in the name of public interest and had the moral responsibility to compensate the loser but also because the likelihood of the loser getting a job in the unit were minimal.

The information regarding the packages would have been made more transparent as to keeping in mind the interest rates, inflation rates etc.. It would have been observed as to whether the price offered was enough to maintain the living standards for a reasonable no. of years.

On the other hand government’s opacity regarding the compensation packages and other financial matters led to the suspicion among the farmers that something vital was hidden and also the “save farmland” movement started by Ms. Mamta Banerjee provoked the farmers more and worsened the situation manifold and ultimately led to the calling off of the project.

Thus it was important for the govt. to understand that a minimum consensus among the citizens was essential before a path to industrialization

SWOT analysis of Tata - Singur case

STRENGTHS:• The 1 lakh car(the biggest strength of the project).• Singur had low operating cost as the project was

very cost effective so it was very helpful.• The WB govt. gave good financial incentives to Tata

motors for their project.• The investors had faith that they would recover their

investment fast.• Logically, Singur was a good location according to

the Tata group.

WEAKNESSES:• The agreement between Tata and the govt. was not

disclosed properly.• The modern car factory hardly require so much of

land then why did Tata.• The Nandigram issue added fuel to fire to Tata

Singur issue.• The use of police force during land acquisation.• There was no transparency between the govt. and

the farmers.

OPPORTUNITIES:• The govt would earn tax revenue up to Rs 500 cr per

year.• The project would help in fast industrialization of

West Bengal.• The project would also build investor conficence.• Jobs will be generated in variety of ways.

THREATS:• As the Tata has now left Singur , thus it would

hamper the industrial growth of the region.• This will also blemish the image of brand Bengal.• Other big companies may not be all that keen to

invest after the singur stand off.• Investors investing in India will also take a step

back.

Alternative Analysis

Maharashtra

UttrakhandOri

ssaHaryanaGujratSri

Lanka

Tata Motors do not want further delaysTata Motors looking for sites where water, land and raw material is available.Tata motors want safe and warm location for their employeesTata Motors need surplus land

ANALYSIS

• Sanand in Gujrat.• As you know that Gujrat is one of India’s

most Industrial friendly state. • Narender modi alloted 1100 acres of land

with only ruppees 1 taken as service tax.• The transfer of land was faster as it was

done within a record time of 10 days.• Tatas were given warm welcome

FINAL CHOICE - GUJRAT

Singur to Sanand – A Journey of Hope

SingurSanand

Strategic Implimentation

Action Plan• Tata’s had to move out of WB.• Alternatives they had were Karnataka,

Andhra Pradesh, Uttarakhand, Gujarat.• Alternative choose by Tata was Gujarat.• Plant will have initial capacity of 2.5L and

can be expanded to 5L.

Benefits of Gujarat• Benefits to component

manufacturers and venders.

• New investment and positive sentiments in Gujarat.

• Benefits to Real Estate Market.

• Additional Jobs and training opportunities.

Benefits to Tata• Climatic conditions are

extremely favourable

• Export options very easy and cost effective

• Agreement from the local people

• Easy availability of Spare Components.

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