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Notice
Board’s Report
Corporate Governance Report
Business Responsibility Report
Management Discussion & Analysis
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frequencies of repair reworking and low productivity levels through
training of front-line team members.
Union Wage Settlements
The Company has labour unions for
operative grade employees at all its plant across India, except
Dharwad plant. The labour union at Sanand plant has recently
been registered and the first settlement is yet to be done. The
Company has generally enjoyed cordial relations with its employees
at its factories and offices and have received union support in the
implementation of reforms that impact safety, quality, cost erosion
and productivity improvements across all locations.
Employee wages are paid in accordance with wage agreements
that have varying terms (typically three to four years) at different
locations. The expiration dates of the wage agreements with
respect to various locations/subsidiaries are as follows:
Location/subsidiaries
Wage Agreement valid
until
Pune commercial vehicles
August 31, 2019
Pune passenger vehicles
March 31, 2016
#
Jamshedpur
March 31, 2016
#
Mumbai
December 31, 2015
#
Lucknow
March 31, 2017
#
Pantnagar
March 31, 2019
Jaguar Land Rover
October 31, 2017
# Under negotiation
An amicable settlement has been arrived at the Pantnagar plant
in May 2016 and in Pune CVBU Plant in March 2017. Negotiations
are underway for new wage agreements at locations where it has
expired. In the interim, the wages set forth in the previous wage
agreements will continue until a new settlement is reached.
The Company’s wage agreements link an employee’s compensation
to certain performance criteria that are based on various factors
such as quality, productivity, operating profit and an individual’s
performance and attendance. The Company has generally received
union support in its implementation of reforms that impact quality,
cost erosion and productivity improvements across all locations.
OUTLOOK
The Company expects to take advantage of being an established
automaker and reap benefits from the expected growth of GDP and
also form the proposed increase in automobile sector impact in GDP.
Also, increase impact in global market is expected with increase
of Indian automobile sector’s global market size. The Company is
preparing to align with National Electric Mobility Mission 2017 and
also with Automobile Mission 2017, in BS5 and BS6 standards.
With government providing financing infrastructure in rural areas,
the Company plans to take better advantage of this opportunity.
Also, improvements in highway infrastructure will benefit the
Company’s subsidiaries like TATA Hitachi.
The Company is prepared with BSIV standard infrastructure and
plans to proactively work for BSV and BSVI standards to be applicable
in 2019 and 2023, respectively.
The Company is preparing itself to be efficient in not only BSIV,
BSV and BSVI, but also plans to take a holistic approach towards
environment regulations and stay ahead in Industry. The emergence
of diverging markets and mis-alignment in production and supply
at global level, will be strategically dealt with the help of wide
network of subsidiaries and Joint ventures. The emergence of digital
platforms for purchasing the Automobiles gives an opportunity to
venture into an unexplored sector.
Continued investment, by Jaguar Land Rover, in new products
and technologies as well as expanding its production capacity in
appropriate strategic locations, while balancing production with
sales, is key for the success of the Company.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing
the Company’s objective, projections, estimates and expectations
may be “forward-looking statements” within the meaning of
applicable securities laws and regulations. Actual results could
differ materially from those expressed or implied. Important factors
that could make a difference to the Company operations include,
among others, economic conditions affecting demand/supply and
price conditions in the domestic and overseas markets in which the
Company operates, changes in government regulations, tax laws
and other statutes and incidental factors.