TELCO

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TELCO
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Introduction

• 1945-Established for mfg of Steam Locomotives
• 1954-Telco started mfg automotive vehicles in
  technical collaboration with Daimler-Benz.
• 1962-Mfg of construction equipments.
• 1998-First indigenously designed small car was
  launched

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They Own TELCO

• A Promoter's holding (Percentage)
• Principal Promoter - Tata Sons Ltd.
  14.33
• Promoter Group - Tata Companies
  11.32
• Sub total 25.65
• B Non-promoters Holding (Percentage)
• Institutional Investors
• a. Mutual Funds and UTI 6.74
• b. Banks, FIs, Insurance Cos
  17.48
• c. FIIs 9.38
• Sub total 33.60
• C Others (Percentage)
• a. Private Corporate Bodies
  1.83
• b. Daimler Chrysler A.G.
  10.00
• c. Indian Public 20.18
• d. NRIs/OCBs/FFIs 1.27
• e. Citibank NA as Depository for GDR holders
  7.47
• Sub total 40.75
• GRAND TOTAL 100.00

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Board of Directors

• Board of Directors As on 29th May 2000
• Ratan N Tata-Executive ChairmanN A
  PalkhivalaN A SoonawalaJ J IraniJ K SetnaP K
  M Fietzek-Alternate Director to Mr Helmut PetriV
  R MehtaR GopalakrishnanN N WadiaF K
  Kavarana-Executive Director - Resigned w.e.f.
  31-03-2001Helmut Petri

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Line Of Business

• Commercial Vehicles
• Utility Vehicles
• Passenger Vehicles
• Spares and Others

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• Plant locations
• Jamshedpur
• Pune
• Lucknow
• Dharwad

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Market share

• Light Commercial Vehicle 63
• Medium Heavy Commercial Vehicle 66
• Utility vehicle (UV)
  26
• Passenger car industry.
  19

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Commercial Vehicles

• Loads ranging from 2 to 40 tns.
• Mini buses that can seat 12 people
• Buses that can accommodate as many as 60.
• Tippers, tractors trailers, and 4x4 off road
  vehicles

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Commercial Vehicles

• Light Commercial Vehicles
• Medium/ heavy Commercial Vehicles
• Buses

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Light Commercial Vehicles

• Tatamobile207 - Pick up
• SFC 407 Turbo Truck
• LPT 407 Turbo Truck

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.Light Commercial Vehicles

• SFC 709 E Aerial lift turbo Truck
• LPT 709 E Turbo Container truck

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Medium / Heavy CV

• LPT 1109 Turbo Truck
• with a high deck for bulky loads
• SE 1613 TC Turbo Truck
• ideal vehicle for construction
• LPT 1613 TC Turbo Truck
• Powerful and efficient truck for long distance

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...Medium / Heavy CV

• SK 1613 TC Turbo TipperReliable, efficient
  tipper for construction and mining
• LPK 1615 TC Turbo Two-way Tipperuseful for road
  or bridge constr.
• LPT 2515 TC Turbo TruckCost-effective to
  transport heavy cargo
• LPT 2516 TC Intercooler Turbo TruckEasily
  negotiates roughterrain and slushy area

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...Medium / Heavy CV

• LPT 2516 TC Turbo Heavy-duty Truck
• LPO 1613 TC Turbo Car CarrierEasily transports
  all cars, tractors and multi-utility vehicles.
• LPS 3516 TC Turbo LPG tankerEfficient and
  Powerful tractor Trailer for transporting
• LPS 4021 TC Turbo TractorPowerful vehicle for
  transporting heavy cargo

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Buses

• LP / LPO 1510 Euro-I BusPowerful, efficient and
  reliable bus with many uses
• LP / LPO 1512 TC Turbo BusPowerful, efficient
  and reliable bus for best returns
• LPO 1615 TC RE Semi Low Floor BusEntry and exit
  made easy
• LPO 1616 TC Luxury BusHigher Power, Better style
  and greater comfort

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...Buses

• SFC 407 Turbo Mini- busPowerful passenger
  vehiclefor any terrainLP 407 Turbo Mini-
  busWell- styled, spacious passenger vehicle
• LP 709 E Turbo BusPowerful, spacious vehicle
  for multi applications
• LPO 1510 CGS bus (CNG bus)Low-emission,
  environment friendly bus

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Commercial Vehicles Initiatives Gains
Improving Operating Efficiencies
Responding to Evolving Customer Needs
Enhancing Distribution Service Network

• Cost Reduction
• Global Benchmarking
• Outsourcing
• ERP

• Product Launches
• HCV LPT 2515 TC (already the largest selling
  in its class)
• ICV LPT 1109
• 697 to complement Cummins
• CNG Buses

• Addition of 576 Tata certified garages
• Supply Chain Management

Gearing up to maintain dominance in the
automobile industry
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Utility Vehicles

• SUMO 9 Variants
• SE,EZI,4x4,SA,DLX,SPACIO,TOURIN,CARRIER,AMBULANCE
• Safari 3 Variants
• 4X2 LX , 4X2 EX , 4X4 EX

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Passenger Cars

• Indica V2
• Indica 2000
• Indica CNG

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Indica Strategy on Track...
Improving Operating Efficiencies
Responding to Evolving Customer Needs
Enhancing Distribution Service Network

• Successful Launch of V2 Jan 01
• Euro II compliant MPFI
• Additional variants slated for launch in FY02

• Significant improvement in the Indica financials

• 32 growth in service network
• Full-fledged dealers up from 56 to 79
• 18-month extended warranty
• Warehouses at Delhi, Kolkata, Bangalore Dighi
• Centralised Toll Free number

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Rising Exports

• Indias largest exporter of engineering goods
• Increasing acceptance in European Markets
• Growth of 19

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Financial Performance

• Loss of Rs. 500 cr as against a profit of Rs. 75
  cr

EBIDTA declined from Rs. 786 crores to Rs. 498
crores Lower Volumes Uncovered Cost of Emission
Compliance Lower Other Income
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Quarterly Results - 06/2001 (3 months) (Rs mn)

• Period ended 01/06 00/06 Growth
• No. of months (3) (3) ( yoy)
• Sales 16,973.8 17,976.6
  (5.6)
• Other income 66.6 284.6 (76.6)
• Total income 17,040.4 18,261.2
  (6.7)
• Expenditure (15,711.3)
  (16,714.8) (6.0)
• Profit after tax (908.9)
  (743.4) 22.3
• EPS (Rs) (14.2)
  (11.6)

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Quarterly Results (Q2) - 09/2001 (3 mth) (Rsmn)

• Period ended 01/09 00/09 Growth
• No. of months (3) (3) ( yoy)
• Sales 20544.8 19005.8 8.1
• Other income 137.1 259.1 (47.1)
• Total income 20681.9 19264.9 7.4
• Profit after tax (525.8) (941.1) (44.1)
• EPS (Rs) (9.7)
  (22.9)

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Sales Figures (Units)

• Segment Aug 01
• Indica 5157
• Utility Vehicles 2052
• Medium/Heavy C V 4293
• Light Commercial Veh 2310
• (Apr-Aug)01 14,399
• (Apr-Aug)00 13,108

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Strategy for Sustainable Growth
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Strategic Corporate Initiatives

• Initiatives to retain and enhance leadership
  to ensure long term growth

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Asset Management Revenue Growth

• Focus on core activities
• Disinvestment of non-core businesses
• Rationalisation of investments
• Expanding revenue opportunities
• Non-cyclical businesses Spare parts, Financing
• Sale of 697 engines for stationary applications
• Thrust on exports from 8 to 20 of turnover
• Downstream value addition AMC, fleet management
• Total transport solutions

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Cost Reduction

• Cost Reduction Programme
• Total savings of Rs 255 crore achieved through
• Reduction in fixed, material other variable
  costs
• Increase in operating efficiency
• Manpower reduction ( 3,400 in FY01)
• Savings in gross interest outflow Rs. 41 crore

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Catering to Business Challenges...

• Robust Product Development Process
• A detailed market segmentation study
• Formation of project teams for different segment
  wise needs
• Think Customer
• Improve Customer Focus
• To cover entire organisation and dealer network

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...Catering to Business Challenges

• Organisational Restructuring
• Rightsizing
• Reduction of 3400 in FY01
• Reduction of 11,500 over last three years
• De-layering of Organisation
• Aggressive Cost Reduction Programme
• Kaizen Initiatives

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Highway of Opportunities

• The Indian auto sector has the potential to
  become the engine of economic growth
• Low per capita car ownership
• National Highway Development Project --
  investment of Rs.54,000 cr

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Subsidiary companies of Tata Engineering

• Telco Construction Equipment Company Limited.
• Tata Technologies Limited. (TTL)
• Tata Technologies, USA
• Sheba Properties Limited.
• Telco Dadajee Dhackjee Limited.
• Minicar (India) Limited.
• HV Transmissions Limited. (HVTL)
• HV Axles Limited. (HVAL)
• Telco Automation Limited. (TAL)

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ThAnK YoUArti Saxena IIC 4