Corporate Investment

Banking Options
Submitted to: Prof. Berinder Sahni

Presented By:
Siddharth Jain PG-13-10
Mittali Patel PG-13-76

INTRODUCTION
Tata Motors Limited (formerly TELCO, short for Tata

Engineering and Locomotive Company) is an Indian

multinational automotive manufacturing company
headquartered in Mumbai
Tata Motors established in 1945 with presence across the
length and breadth of India
It is a subsidiary of the Tata Group
It is the leader in commercial vehicles and among the top in
passenger vehicles
It is also the world's fifth largest truck manufacturer and
fourth largest bus manufacturer
The foundation of the Companys growth over the last 68
years is a deep understanding of economic stimuli and
customer needs, and the ability to translate them into
customer-desired offerings through leading-edge R&D

PRESENCE OF TATA
MOTORS
Tata Motors
Presence of Tata Motors
Manufacturing
Base in India
1)

Jamshedpur Base (Jharkhand)

2) Pune base (Maharashtra)

3)

Lucknow Base (Uttar Pradesh)

4) Pantnagar Base
(Uttarakhand)
5) Sanand Base (Gujarat)

6) Dharwad Base (Karnataka)

Globally:

1) Operations- UK, South

Korea, Thailand, South Africa

and Indonesia
2) Marketed in- Europe,

Africa, the Middle East, South

East Asia, South Asia, South
America, and Russia
3) Franchisee/Joint

VentureBangladesh, Ukraine, and

PRODUCTS

SHAREHOLDING PATTERN OF
TATA MOTORS
PROMOTER'S HOLDING

34.33

NON PROMOTER'S HOLDING

36.81

OTHER INVESTORS

22.51

GENERAL PUBLIC

6.35

SHAREHOLDING PATTERN
6%
34%
23%

37%

PROMOTER'S
HOLDING
OTHER
INVESTORS

NON
PROMOTER'S
HOLDING
GENERAL
PUBLIC

PUBLIC MARKET
OVERVIEW
52 week high

Rs 532

52 week low

Rs 325

Closing Price as on 15-09-2014

Particulars
Market Capitalization
Add: Total Debt

Rs. 512.25

Rs. in
Crores
164795.67
54,954.47

Less: Cash Balance

-29,711.79

Add: Minority interest

420.65
190,459.0
0

Firm Value

KEY PERSONNEL
Name

Designation
Chairman & NonMr. Cyrus Mistry
Executive Director
Mr. Satish Borwankar Executive Director
Mr. Raghunath
Non-Executive,
Mashelkar
Independent Director
Non-Executive,
Mr. Nasser Munjee
Independent Director
Non-Executive,
Ms. Falguni Nayar
Independent Director

KEY FINANCIALS
Particulars FY 2012
Revenue
% Growth
EBITDA
% Margin
EBIT
EPS

FY 2013 FY 2014

FY 2015 FY 2016
(E)
(E)

166,316.2 189,608.2 233,662.2 273,300. 328,900.

6
8
5
00
00
35.70%
14.00%
23.23% 16.96% 20.34%
47,000.0 58,600.0
0
0
16.10% 15.80% 15.50%

21,563.91 24,110.14 34,022.92

14.30%

14.10%

15,938.53 16,508.86 22,944.76

42.58

31.02

43.51

257,645. 291,631.
00
00
64.20
83.80

ANALYST RECOMMENDATIONS
1
3
Curre Month 2 Month Month
nt
Ago
Ago
Ago
(1)BUY

22

20

20

20

(2)OUTPERFORM

22

21

22

21

(3)HOLD

(4)UNDERPERFO
RM

(5)SELL

1.67

1.77

1.78

1.77

Mean Rating

CHARTS COMPARING SENSEX

AND BSE

INVESTMENT BANKING
OPPORTUNITIES

Joint
Venture
with Tesla
Motors

About Company
An American Company, founded in 2003 by
Elon Musk, Martin Eberhard, and Marc
Tarpenning
A listed company on NASDAQ.
May 2010- Tesla bought former GM factory in
USA.
In 2013, Tesla posted profits for the first time in
history i.e of $11.2 M.
Revenues grown from $413.3 M to $2013.13
M , increased by 5 times.

Why Tesla?
Biggest opportunity for growth
EV market is constantly expanding, Tata-Tesla can
lead the market with no legitimate competitor.
20 million EVs on the road by 2020
Electric car sales have increased 228% in last
year alone
Elon Musks proven leadership (PayPal and
SpaceX)
Prove to transform the market, first to produce
electric cars.
First Luxury car 100% electric
Environment Friendly

Benefits of JV with Tesla

50:50 Joint venture
Entry into Electric Vehicle segment. Tata will
become the first ever Automobile company in India
who will sell high end Electronic Luxury Cars.
Increase market Share in SUV segment and
Passenger utility vehicle Segment.
In PUV segment, Tata Motors share fell down by
25%. Tata may have a good opportunity of taking
over Market.
Tata-Tesla can sell CKD units instead of CBU units.
(CBU is for cars that are build up locally and send over to the target
country and is more expensive, CKD cars are Completely knocked
down, they are infact cheaper cause Cars are knocked down and
reassemble again in the shipped country)

ACQUIRE

About Company
Force motors is an Indian manufacturer of three-wheelers, light commercial
vehicles, tractors, buses and now heavy commercial vehicles. It was originally named
Firodia Tempo ltd. and later after partial acquisition by Bajaj auto as Bajaj tempo ltd.
The company was founded in 1958 by N.K.Firodia. Abhay n. Firodia is the chairman
and Prasan Firodia is managing director.
Force motors has introduced new light commercial vehicles, a facelifted series of
tempo trax utility vehicles, new state-of-the-art tractors, and a new range of threewheelers.
The company which mainly operates in commercial vehicle segment, entered into
personal vehicle segment on 19/08/2011 and launched its first SUV (Sports Utility
vehicles) named Force-one.

Rs. In
Crores
Particulars

Tata
Motors

Force
Motors

164795.67

1,335.3
5

Add: Total Debt

54,954.47

20.38

Less: Cash Balance

29,711.79

219.60

420.65

129.06

Market Capitalization

Add: Minority interest

Firm Value

1,90,459.0
0

1,663.6
3

Why Force motors?

In Commercial vehicles sector, while domestic LCV

market share declined by 17%, Tata motors share
declined by 32% over the previous year.
According to Tata motors Annual Report 2013, they are
planning to expand their business in Rural markets
where Force Motors has a very good market share.

Market Share of Companies in Light Commercial

Vehicle Segment

3%

7%

49%

33%

1%

7%

Tata Motors
Ashok Leyland
Eicher Motors
Mahindra & Mahindra Ltd
Force Motors
Others

Force Motors posted Negative growth rate of 30% in 2013-14

Entry into Three-Wheelers

Segment
2010

2011

2012

2013

2014

41%

-35%

187%

22%

Export Growth

Indian Three Wheeler Market to surpass USD 3.41 Billion by

2017. In Three wheeler segment, Tata Motors is presently
not available. After acquiring Force Motors, it may turn up
a good opportunity in three wheeler segment.