Statutory Reports
Corporate Overview
69th Annual Report 2013-14
90
Financial Statements
a significant portion of Revenue, Income and assets / liabilities.
Accordingly, we have given below key opportunities and risks.
OPPORTUNITIES:
The new Government at the centre has expressed a mandate of
infrastructure oriented spending for national development. The
resultant fiscal spending will give a boost to transport & mining
sectors. Lifting of mining bans is also expected to ramp up through
the year. Demand for trucks, tippers as well as last mile transport
solutions will go up as economic activity revives. The changes are
however expected towards the later part of the financial year, given
the time taken to form and execute policies.
FDI is also likely to be opened up, albeit cautiously, including in
sectors like Defence. The Company is focusing on increasing their
offerings in defence sector from providing only pure logistics
solutions to tactical and combat solutions. This provides the
opportunity for capturing a larger share in a growing market.
Growing wealth in rural markets in India also provides an added
opportunity to expand sales reach and volumes. The sales reported
out of areas earlier considered rural is growing year on year. The
overall gap of automobile purchase between rural and urban areas
is narrowing in India. The Company is focusing on reaching rural
target market to address the latent need, in cost effective ways
With increasing awareness and education of the Indian customer,
a range of non-vehicular products and services like spares, after
sales, annual maintenance contracts etc are also gaining popularity
in demand. The Company is poised to address this growing need,
thereby providing additional sources of revenue, which are non-
cyclical in nature, to hedge for otherwise cyclical demand in the
auto industry.
The growing demands and sensibilities of customers in the ILCV
segment is also something Tata Motors is poised to address with
its new range of vehicles. The evolving infrastructure in India will
change the way transportation industry matures, with demand
for better quality and more comfortable vehicles. The company
has already invested in new platforms to cater to such evolving
demands.
India has emerged as a major hub for global manufacturing with
its advantage of lower input costs, availability of local supplier
base and high domestic demand. As an established domestic
manufacturer, the Company is ideally placed to take advantage for
targeting lucrative international markets, either through the fully
built export or CKD route.
In addition to the above, the Company also has the advantage of a
strong in-house design and development facility and professionals.
Thus the Company’s R &D group is capable of developing solutions
for different regulatory and emission norms as per market
specifications in minimal time.
The Company is focusing on increasing its global presence, as an
effective hedge against domestic downturn as well as a growth
opportunity. While the company is already present in Africa and
some parts of ASEAN, it is focusing on increasing presence in more
key markets in ASEAN and LATAM. 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.
Jaguar Land Rover Opportunities through products and
markets:
JLR offers products in the premium performance car and
all-terrain vehicle segments, and intends to grow the business by
diversifying the product range within these segments. For instance,
the Range Rover Evoque defined the market segment for smaller,
lighter and more“urban” off road vehicles, complementing the more
mature Range Rover, Freelander and Discovery markets. Similarly
for Jaguar, the 2.2L Diesel XF caters well for a wide customer
base, notably including the corporate market segment, and theXF
Sportbrake adds a premium estate model to the portfolio, and of
course the Jaguar F TYPE, available in both soft top and now coupé,
provides a vivid representation of the confidence and ambition of
thebrand. As well as the core product family, various options, such
as long wheel base, smaller engine and all-wheel drive derivatives,
help to strengthen overall product offering.
JLR also has ambitious but robust plans to continue to develop the
product range. Including the Jaguar XE, the eagerly anticipated mid-
sized sedan, and Jaguar crossover based on the C X17 concept and
for Land Rover, the announcement of the Discovery Sport, available
