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CORPORATE OVERVIEW
Dear Shareholders,
When I joined almost a year and a half ago,
there was an immediate need to launch
a transformation journey, setting the
long-term priorities for the organisation,
redefining the MVV (Mission, Values, and
Vision), laying down the blueprint for
CV & PV business strategy till 2020, and
launching our strategic game plan with
high impact projects for bottom-line/
top-line improvement – all leading to a
robust business plan for the FY 16-17. With
this background, we set ourselves towards
aspirational targets in terms of market share
and financials.
On June 20, 2016, we kick-started
our transformation journey to be
'FUTUREADY', to instill a sense of the ‘very
purpose’ for the organisation’s existence,
which immediately caught up with the
organisation.
The ImpACT (Improvement
by Action) projects with full time senior
leaders and dedicated teams having
ownership at ExCom level helped us focus
on four angles of attack – intense top-line
focus, cost optimisation, customer centricity
and structural improvements in processes.
These projects have started to payback and
have created a great change of momentum
in the entire organisation. We have built a
very strong savings potential with positive
effects in FY 17-18 and the years to come.
One of the most important initiatives in
FY 16-17 was the Organisational
Effectiveness (OE) exercise, with the
objective of bringing the much needed
empowerment and accountability within
the BUs, strong functional oversight based
on the key principles of speed, simplicity and
agility. Due to its magnitude and complexity,
the transition of the new management
TML MD'S
MESSAGE
structure w.e.f. April 01, 2017 faced some
challenges, which in the meanwhile are
getting addressed on a case-to-case basis.
Due to the unexpected and unprecedented
changes in the market, we faced a rather
hostile business cycle with headwinds in
the form of demonetisation and the famous
Supreme Court ruling on BS IV transition. As
a matter of fact, it was not only the market
volatility which affected our performance,
but mainly our sluggishness in reading the
market in time, as we were effectively late to
respond.
While we have made great progress as
far as the transformation journey in terms
of setting the missing direction for the
organisation, we are cognisant of the
misses on the operational side where we
have delivered significantly below our
expectations. There is an immediate need for
action in order to refocus the organisation
on regaining market share in commercial
vehicles and bringing accelerated efforts
in cost reduction in order to drive business
profitability. I would like to take this
opportunity to commit to a stretched plan
in FY 17-18 thereby compensating on
our poor performance in FY 16-17 with a
promise of a better year.
Our immediate
priority now is on execution - to address
the top concerns of supply constraints,
to advance the launch time of some of
our new products.
In full alignment with
the board, we have finalised a business
turnaround plan through which we take
upon ourselves to deliver a robust bottom-
line improvement in FY 17-18.
In conclusion, I would say that we have
immense opportunities, and we are
optimistic about the outlook for Tata Motors.
We will keep you posted on our progress
along the journey in this crucial year.
Looking forward to your continued
support, as we put in our best to meet your
expectations!
Best Regards,
Guenter Butschek
Mumbai, May 23, 2017