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Mr Borwankar is part of a core team (ExCom) and alongwith
the MD & CEO is leading the Company in a major strategic
and operational transformation for significant and sustained
improvement in the overall business and financial performance.
This transformation initiative under their leadership will
comprehensively cover all areas of the Company’s operations -
Company strategy, platformandproduct strategy,manufacturing,
supply chain, employee and managerial productivity, cost
reduction & efficiency improvements, improved effectiveness in
sales & marketing and customer satisfaction / relationships and
breakthrough improvements in achieving world class quality
standards.
The Board proposes to review the agreed actions pertaining to
the turnaround plan on a monthly basis with the management
monitoring the same at various levels on a daily basis. These are
expected to result in substantially improving the Company’s
financial performance–both in terms of revenues andprofitability
as also, market share in various sub segments of the automotive
industry. These steps are being seen by the management as only
a beginning in a deeper and long term strategy for growth and a
sustainable future.
Long term strategy:
As has been reported in the previous year
the Company has embarked upon a transformation journey
which is expected to take another 1 or 2 years which will help the
Company achieve significant growth, improve market share in
all our segments, be amongst the top in India in terms of quality
through cost efficient operations and a highly motivated and
engaged team.
i.
Enhancing the brand perception of Tata Motors- A
comprehensive exercise is being initiated to develop the
brand purpose and positioning of Tata Motors as a brand.
This will be then executed seamlessly across the value
chain to provide consistent and credible experience to the
stakeholders aligned to the Company’s brand promise.
ii. Providing unique and delightful customer experience-
Multiple initiatives right from pre-sales stage to after sales
have been identified to deliver high customer satisfaction
performance.
iii. Excellence in delivery of new products- The initiatives under
this imperative focus on benchmarking with world class
new product development processes in order to ensure
consistency and adherence to the planned time, cost and
quality.
iv. Delivering reliable and high quality products with focus on
world-class quality processes- There are several projects
initiated to deliver high quality products by improving
internal process capabilities and supplier processes.
v. World-class manufacturing – This stream’s focus is to
improve the productivity performance and delivery versus
schedule. There are additional projects undertaken to reduce
manufacturing related costs and yield improvement. The
Company believes that this initiative will enable it to support
and strengthen the‘Make in India Campaign’, for encouraging
India to become a key center for global manufacturing.
vi. Agile and Cost-e ective Supply Chain- This stream’s focus
will be to improve the supply-chain processes like Material
Requirement Planning, strengthen relationshipwith Strategic
suppliers, rationalize the supplier base for agility, improve
manufacturing and quality processes and information
systems. Considering the size and scale of the Company’s
operations and the vast supply chain relationships, this will
again strengthen and support the Government’s aim under
the ‘Make in India Campaign’.
vii. Cost competitiveness – There are more than 50 initiatives,
addressing each and every cost element for cost
competitiveness, with clear targets in cost areas like Direct
Material, Marketing, Fixed Cost, Variable Conversion Cost,
Product Development Costs, etc. These projects will help in
significantly reducing the Company’s cost structure. It will
be relevant to add that this cost reduction initiative will help
not only the Company, but the entire value chain, including
hundreds of vendors and other partners, providing further
strength and support to the ‘Make in India Campaign’.
viii. People processes and organization structure- In this
initiative, projects have been undertaken to drive high-
performance culture, improve functional competencies,
improve employee engagement, achieve benchmark levels
of employee productivity and build a pipeline of talented
workforce.
It will be worthwhile to note that under the above eight
pillars, the Company has over a 100 individual initiatives on
which various cross functional teams of high performers
across the organization have been identified and deployed.
To support the Company in the pursuit of above initiatives,
the leadership team is also drawing upon and will be
drawing upon Mr Borwankar’s vast experience and expertise
in leading transformational programs.
3. Expected increase in productivity and profits in
measurable terms:
With the various initiatives taken to improve performance,
particularly on cost reduction and sales enhancement
as under the Company is confident that with effective
implementation of its turnaround strategy there would
be substantial increase in productivity and profitability to
turnaround the Company within the next 2 years:
Cost reduction: Focused approached on reduced direct
material cost, renegotiating commodity price increases,
major cost reduction drive review of fixed marketing
expenses with the view to drop avoidable events, review
of engineering expenses, improve spares revenue and
Notice
Board’s Report
Management Discussion & Analysis Corporate Governance Report
Business Responsibility Report
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