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TATA MOTORS 1289973-tata-motors - Coggle Diagram

- - - - Automating repetitive tasks has achieved a 30% reduction in processing time and associated costs
    - - Implementing robots in welding, painting, and assembly lines at major plants like Pune reduced labor costs by 5% and improved production efficiency by 12%
    - - the production chain has achieved a 7% reduction in production lead time and inventory holding costs.
  - - - 7% increase in employee productivity due to workforce management initiatives.
      - Estimated IRR of 25% for Nexon EV launch project
      - 10% decrease in warranty claims due to improved quality control.
    - - Diversification across segments and markets mitigating financial dependence on any single market.
      - 5% decrease in production costs due to supply chain risk management
      - 7% increase in customer satisfaction scores
  - - - Ford Partnership (2019): Collaborated for electric vehicle platforms, reducing JLR's development costs by INR 500 crore annually
    - - Geely Partnership (2023): Access to Geely's battery technology and sourcing potentially reduces battery costs by 10-15%
    - - Acquisition cost of USD 2.3 billion, initial losses in JLR operations.
  - - - reflected in a higher stock price in 2023 compared to competitors with governance concerns.
    - - Improved credit rating from S&P Global from B+ to BB- in 2022, lowering borrowing costs and increasing financial flexibility.
    - - reflected in a 10% decrease in employee attrition rate from 2021 to 2023.
- - - - Investing in EVs Aligning Financing with Strategic Objectives
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        Invests Rs. 6,000 crore in EV development by 2026.
        Achieve 25% of total sales from EVs by 2025 and 50% by 2030
      - Hedging Strategies
        
        Their global operations result in significant forex exposure, which they manage through a combination of forward contracts, currency swaps, and options. This helps protect profit margins FY2023 annual report showed derivative contracts of Rs. 31,221 crore
      - Debt Restructuring:
        
        This positively impacted profitability , the debt to equity from 2019 to 2023 went from 105 - 162 Debt-to-equity ratio showed improvement post-restructuring but remains high, indicating potential long-term financial risks. In 2019, TML undertook debt restructuring, extending maturities and lowering interest rates, improving immediate cash flow and reducing finance costs
  - - - TATAS Focus on achievement, continuous improvement, and accountability for value creation throughout the organization.
        
        Done through Metrics and Measurement , Like 360 degree feedback , team based KPIs
      - Engaging the Workforce: Fostering a culture of ownership and value creation among all employees at all levels.
        
        Incentive structures like stock options , performance based bonuses , profit sharing schemes
      - Effective workforce management
        
        India: 66,101 UK: 3,887 and Other Countries: 6,975
  - - - Champion of the Electric Wave: EV Drive It sold 50,043 units of EVs in 2022-23
    - - . International Expansion: Reaching New Heights impressive international footprint, spanning over 170 countries
    - - Digitalization and Connectivity: Implementing connected car technologies and offering customer-centric digital services.
  - - - In 2019, the company planned to invest around 461 billion rupees in new products and technologies.