Tata Engineering Locomotive Company

.. l collaboration are propelling a quantum jump in upgradation of technology. Domestic demand for passenger cars and multi utility vehicles is projected at 800,000 cars by 2000 A.D. With increased production and capacity creation in the passenger car sector, substantial growth in exports is envisaged. This tremendous growth in the vehicle sector, is geared as well to accelerate the continuous growth of the auto-component industry.

Barriers to Entry The favourable economic policy of the present regime and vast market potential make India an easy target for any foreign company theoretically. But the practical constraints like the huge size of the country and wide variation in the market are major barrier to any new player in the automobile market. Past five years have seen companies like Daewoo have failed to capitalise on the theoretical benefits due to practical barriers like a below average distribution network. Huge financial investments and a vast knowledge of the diverse Indian market can only overcome the practical barrier. TELCO being a local home born company stands at an advantage.

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Moreover, the envious, TELCO network is the strength of the company. Supplier The self-reliance of TELCO is the mantra for its success and the biggest advantage it has over its suppliers. The Company strongly pursues a philosophy of vertical integration, which encompasses the manufacture of sophisticated machine tools, industrial electronics and foundry equipment. The Company also designs, develops and tests new automotive products that incorporate new technology and designs, and manufactures its own tooling, from heavy dies to compact high-precision fixtures. The competitors of TELCO have a big weakness in form of bargaining power of suppliers.

The suppliers have low switching cost and a huge potential market this gives them even greater power. Buyer Power In 1996-97, the rate of growth in the automobile industry was 14% and there has been a marginal negative growth in 1997-98. This is a short-term set back in production due to slow down in the economy and since the heat of competitive pressures being felt in the industry. But with the expected economic revival in the coming years the industry as a whole is poised for further growth. The mood of the automobile industry is high and it is reflectd in the growth of the number of distributors. TELCO has the most well defined and srong dealer distribution network.

The service station facility is the strong point of TELCO distribution network. The buyer bargaining power till the recent past was very low because of lack of alternatives and heavy cost of switching involved. But the new economic boom has made times difficult for TELCO. The increase in bargaining power which dealer-distributors have is though not affecting TELCO only but also its competitors. Substitute Threat The relatively new idea of a luxury car, a family car, an economy car has well established itself in the mind of the Indian consumer. The differentiation on the basis of styling and features is also integral part of the new age buyer.

The process of substitution is now faster and is clearly guided by the above principles. The wide range of, cars and other vehicles make substitution a great threat. TELCO is fighting this threat with emphasising on strengths like after sales service and branding. It has also come up for the first time with value addition on the product. Competitor Analysis Global is the name of the game in the automobile industry in India today. Foreign collaboration and joint ventures are the flavour of the month.

This has led to a new market environment in India. The competition is getting more fierce with more global players coming in. TELCO is committed to competing on equal terms with international competition. This is achieved through stringent quality standards and a philosophy of vertical integration. TELCO is thus able to achieve an export performance, which is unequalled among engineering companies in India, and has so far earned Rs.200 billion worth of foreign exchange. At the domestic front Telco faces competition from regional players like Ashok Leyland and Eicher. But weak brand- image and lack of national network dwarfs them in front of TELCO.

Capabilities and Resources Product and Technology The times have changed the view point of TELCO towards the product it is producing for the consumer. Today in the wake of grown awareness among the consumer for his right to demand more TELCO is also acting as a service provider and product developer. We can study the product under the following heads- Product TELCO is trying to achieve a high level of customer satisfaction by enhancing safety standards and incorporating environmental friendly technologies. Recent launch of the new model Indica saw turnaround of TELCO product strategies in both the tangible and intangible aspects. Indica is designed in Italy, test run in the USA, consumes diesel as well petrol and sold in India on easy finance. The product here is emphasising on both service and product quality.

Responding to the growing concern for environment TELCO has taken the following steps: All Telco vehicles meet CMVR emission norms by safe margins. Telco’s new range of vehicles, with Cummins engines, meet Euro I and proposed India norms for year 2000.A number of Telco products meet current European emission norms and are exported to these countries. Telco has absorbed several environmentally sensitive technologies in its manufacturing processes. Telco possesses some of the world’s most advanced equipment for emission check and control. If TELCO continues its consumer friendly packaging of the product it will surely survive the onslaughts of foreign competitors.

Technology Success in todays competitive environment demands technologies and work processes that are result-oriented. Incorporating these technologies into all manufacturing processes, Telco has focussed its manufacturing strategy on developing world class manufacturing facilities. And achieving a high level of indigenisation. Telco has three manufacturing facilities that utilise state-of-the-art equipment and processes. Located at Pune, Jamshedpur and Lucknow, these facilities cater to the ever-increasing demand for Telco vehicles. Telcos sophisticated equipment includes high-capacity automatic press and forging lines, high-pressure moulding lines, CNC machine centres, laser-cutting machines, transfer lines, special purpose machine tools, process equipment, software for IT, disk tools etc.

Most of these are designed and manufactured by Telco in-house. The Company strongly pursues a philosophy of vertical integration, which encompasses the manufacture of sophisticated machine tools, industrial electronics and foundry equipment. The Company also designs, develops and tests new automotive products that incorporate new technology and designs, and manufactures its own tooling, from heavy dies to compact high-precision fixtures. Telco retains an ongoing focus towards engineering solutions for Indian conditions. It has created the largest and most comprehensive Design & Development Centre, which is equipped with the latest CAD workstations and testing facilities, and has a wealth of experience which permits it to design products ideally suited for rugged conditions. The Centre has designed a series of LCGs, which have successfully competed with the latest international brands.

Telco has also undertaken a major design effort for intermediate commercial vehicles and new passenger car models. Telcos large Engineering Research Centre employs some of the India’s finest automotive engineers, who utilise Telcos extensive R facilities, including computeraided design systems to develop new vehicles, aggregates and manufacturing equipment. Quality Control is not a system but rather a way of life at Telco. It is the essence of Telcos corporate philosophy, based entirely on international norms. This, along with a policy of customer-driven quality, enables Telco to maintain its focus on minute detail, at every stage of production. Quality control starts at the root level from raw materials, which are procured from approved sources and have to fulfill Telcos stringent quality norms.

Bought-out components are inspected both dimensionally and metallurgically. First piece approval, line inspection and final inspection of aggregates, followed by vehicle testing are the key inputs for quality control. At predetermined intervals, all gauges used by production and inspection centres are recalibrate in a climatically controlled environment. In order to adhere to the strict tolerances laid down, a variety of state-of-the-art equipment is employ, including such as the Zeiss Multidimensional measuring machine, Centel, Telyrond machine and the Cyclop profile projector. In addition to these in-built checks, an Audit Inspection Group is authorised to carry out random checks on components on the manufacturing line which have already been inspected through regular methods. People The major strength of TELCO is its motivated work force. The Tata Philosophy of treating the employees as branches of the same tree is very much visible in TELCO.

The growth of Telco and the quality of its products are anchored securely in the skills that have been built in its employees. The training schools run by Telco are acknowledged as being the best training establishments in the engineering industry in India. By giving the highest priority to training, the Company has created an invaluable source of skilled craftsmen, who are periodically retrained, so that their skills are never obsolete. Telco has a pool of highly qualified engineers, whose innovativeness gives the Company its distinct competitive edge. Applying the principles of TQM and blending them with the Tata philosophy has given TELCO an enviable position in corporate world as far as HRM is concerned.

With a highly skilled and motivated workforce, coupled with a carefully planned and developed infrastructure, Telco is confidently striding ahead to meet the challenges of tomorrow. Place: Distribution and Sales Telco is a strong marketing focussed company. It has the largest network of sales, service and parts of its kind in India. The network is expanding at a rapid rate through new dealers, branches, service stations and spare parts franchises. With over 90 main dealers, over 70 dealer branches and over 290 authorised service stations, the network penetrates the deepest interiors of the country.

Backing this network is a backbone network of Telco Sales, Services and Parts offices located all across the country. As part of its marketing thrust the Company has set up various customer service initiatives, such as: ? Service set-ups at every 100 km ? 24-hour service facility at service stations ? Mobile service units ? Mobile pollution checking units ? Customised training programmes TATA -THE BRAND OF INDIA Jamsetji Tata, at the turn of the century, identified steel, hydroelectric power and higher education as the core areas of strength. In the course of the years, every field that has the potential for promoting national growth has been explored by the Tatas.The emphasis has been on building not just assets but internal resources for the nation. The Tatas have succeeded in inculcating a new paradigm for growth and as a result have infused a new business culture. A culture that is committed to giving value for money as well as to the practice of good corporate citizenship.

Social concern has been a prime motivator, as the Tatas believe that the community is the stakeholder. The endeavour towards being India’s most trusted business enterprise has been the soul of the Tatas for over a century. It is also the guiding spirit that will carry the house into the next century and even further. The Tatas in there quest for excellence in quality service and product have become part of the Indian psyche. The omnipresence makes this impact even more. TELCO has always helped in establishing the power of the Tata brand and thus enriching its own resources. Boston Consultancy Group Matrix Marketing and Advertising.


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