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CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS
FINANCIALS (123-204)
this, till date about 73% of network has been completed
(including upgradation). This improved connectivity presents
a significant opportunity for the Company with its wide
product range in commercial, utility and passenger vehicles.
The emphasis on road development has seen an increase in
demand for construction equipment, including tippers. Also,
there is positive effect in terms of demand for both Cargo and
Passenger Small Commercial Vehicles from newly connected
rural areas. Further progress in road development work
including sanction of new projects will help to sustain growth
in the Commercial Vehicle industry.
Rural market penetration:
In India, growth in FY 2012-13 is
expected to come from reach and penetration in tier 2 and
tier 3 markets. With growing connectivity and increased rural
affluence, the demand for automobiles in rural areas has
increased significantly. For FY 2012-13 as well, with indications
of a normal monsoon and a robust growth in agriculture, the
demand from the rural segment is likely to sustain. With a
product range catering to even the buyer of smal lest
commercial vehicle or a fun-to-drive yet affordable passenger
car offering, the Company is ideally placed to ride this growth
story. Along with the product range, the Company is working
on increasing reach and penetration of the sales and service
network to be able to serve this market better. During FY
2011-12, the Company increased sales touch points by 35%
and service touch points by 26%. With aggressive plans to
further increase penetration this year, the Company has
potential opportunity to leverage its wide product range and
large distribution network, to accelerate growth.
Non-cyclical business growth:
In order to insulate against
the cyclicality of the automobile industry, specifically in the
M&HCV segment, the Company has focused on lines of business
and customer solutions which are inherently less cyclic in
nature. For example, the sale of spares and the aggregate
business, branded TATA GENUINE PARTS which has grown
by 21% CAGR in the last five years and is poised to grow
further in FY 2012-13. In order to maintain the growth, the
Company has increased distribution reach by 50% over
last year. The Company has a loyalty program for key brand
decision makers like the mechanics and the retailers. A total of
26,000 mechanics and 19,000 retailers across India participate
in these programs. These efforts also help us to serve our
customers and know their needs and requirements on an
ongoing basis. We have also established Rapid Customer Care
centers all over India to deliver aggregates to customer
anywhere in 24 hours. We are also focusing on other
business avenues like Refurbishing, AMC, Reconditioning, etc.
The focus of the Company is to reduce Total Cost of Ownership
for the customers, enhancing their satisfaction with our
products and services.
The Company is also focusing on the Defence business. With
the Government of India opening up different segments of
the Defence sector to private players, the Company is targeting
moving from pure logistics solutions player to tactical and
combat solutions; thus garnering a greater share of this market.
On the back of aggressive plans by the Government in FY
2012-13, the Company is aiming to achieve both its revenue
growth and profitability from this segment.
Exports from India:
India has emerged as a major hub for
global manufacturing with its advantage of lower input costs,
availability of local supplier base and qualified and experienced
resource base. As an established domestic manufacturer, the
Company is ideally placed to leverage the above factors and
pursue lucrative international markets, through the export of
fully built vehicles export or CKD units. The Company also has
the advantage of a strong in-house design and development
team which is capable of developing solutions for different
regulatory and emission norms as per market specifications in
minimal time. Currently, the Company is present in Africa and
ASEAN markets through its manufacturing facilities in some of
the countries. The Company is also actively considering
expanding its global manufacturing footprint in key
international markets to take advantage of import duty
differentials and local sourcing benefits.
FINANCIAL HIGHLIGHTS (32-45)