Tata Cummins - SM Prez

CONTENTS

ACKOWLEDGEMENT

 We would like to express our gratitude to everyone who
has supported us throughout the course of this
assignment. We are thankful to them for their guidance,
constructive criticism and advice during the work.
 Firstly, we would like to thank our professor, Dr Shyamal
Gomes for giving us the opportunity to prepare this
presentation.
 Lastly, we thank our friends and classmates who
supported and guided us throughout the completion of
this assignment.
- Team St Xavier’s School, Doranda

TEAM MEMBERS

 Ankita Mishra (01)
 Ria Bansal (02)
 Mark Tirkey (05)
 Anmol kaur Virdi (06)
 Vaibhav Bhagat (25)
 Aman Joshi (37)
 Abhinav Thakur (44)
 Apurvaa Bhattacharya (48)
 Avanti Deshmukh (53)
 Kunal Singh (54)
 Anshuman Nayak (61)
 Swati Xalxo (75)
INTRODUCTION
Tata Cummins Private Ltd. is a 50:50 joint

venture between Tata Motors Limited, India's
largest automobile manufacturer and
Cummins Inc., USA, world leaders in design
and manufacture of diesel engines.
Established in the year 1994, the company

started its operations with its state-of-the-art
facility at the steel city of Jamshedpur.
Aligning itself with the world class
manufacturing standards, Tata Cummins
Jamshedpur has consistently exceeded
customer expectations which resulted in
increased annual sales and demands for
further capacity. Expansion plans were finally
put in place with the setting up of the second
and third manufacturing facilities at the
Cummins Mega site in Phaltan, Maharashtra.
STRATEGIC INTENT
MISSION

Making people’s lives better by powering a more prosperous world
VISION
Innovating for our customers to power their success
VALUES
1) INTEGRITY - Doing what you say you will do and doing what is right
2) DIVERSITY & INCLUSION - Valuing and including our differences in decision

making is our competitive advantage
3) CARING - Demonstrating awareness and consideration for the wellbeing of others
4) EXCELLENCE - Always delivering superior results
5) TEAMWORK - Collaborating across teams, functions, businesses and borders to

deliver the best work
TYPES OF STRATEGIES
FOLLOWED

Joint Venture can be described as a business arrangement, wherein two or more
independent firms come together to form a legally independent undertaking, for a
WHAT? stipulated period, to fulfill a specific purpose such as accomplishing a task, activity or
project. In other words, it is a temporary partnership, established for a definite purpose,
which may or may not uses a specific firm name.
 In order to strengthen the strengthen the position of Cummins as a leading

producer of
 engines for growing medium and heavy duty commercial vehicles market in India.
 To significantly increase the number of engines produced.
 In order to cater to global power generation, industrial and automotive markets.
WHY?  While inaugurating its third manufacturing facility for producing diesel engines at
 Phaltan in Maharashtra, Tom Linebarger; the Chairman and Chief Executive
Officer,
 Cummins, said that; “Despite the economic slowdown, we have continued to make
 significant investment in technologies and infrastructure that are critical for our
future
 success”.
EVOLUTION OF STRATEGIES
Expansion Competitive
Strategy Strategy

Joint Venture of Tata Second
Launching of
Motors & Cummins Manufacturing Unit
B&L Series
India at Phaltan
1993 1994 2011 2012 2012 2017
Fit for market

solutions that meets Cut costs and
Establishment of
or exceeds customer rely on rental
Industrial Plant at
satisfaction income
Jamshedpur with a
capacity of 1.2 lac
engines per annum
Value addition or Retrenchment
Brand building Strategy
PESTLE Analysis
• Regulatory Practices in various markets
• Political Stability in existing markets

• Other stakeholders such as protests,
pressure groups, transition in elections
POLITICAL • Government policies in investment
FACTORS • Hierarchical structure of Tata Motors
• Inflation rate
• Exchange rate
• Government interventions can impact
ECONOMIC economy
FACTORS
• Skill level of workforce
• Demographics-India is a young and
growing country
• Society is different from the home
SOCIAL FACTORS market of Cummins
• Leisure Interests
• Restructuring the supply chain
• Intellectual property rights and patent protection
• Research and development investment at both macro
TECHNOLOGICAL and micro level
FACTORS • Information systems AVALON Systems
• Products designed on environmental standards and

expectation
ENVIRONMENTAL • Recycling is fast emerging as a norm
FACTORS
• Environment laws
• Health and Safety norms
• Protection of intellectual property, patents, copyrights
and IPR rights
LEGAL FACTORS • Business law procedures need to be followed
• Employment norms
SWOT
STRENGHTS

WEAKNESSES
 Integrated player with full diesel
product line.  Heavy dependence on few suppliers.
 Distribution strength with pan-India  Tough competition and limited
coverage. market share.
 Cummins brand image. (60 years of
engineering excellence)
 Strong R&D.
 Growing consumerism and
infrastructure investments.
OPPORTUNITIES THREATS
 Rise in demand for diesel engines  Presence of a large number of
worldwide. unorganized players.
 Strategic joint ventures with fluid  Low margin pressure with increased
companies. commodity cost.
 Tightening of CPCB Norms.  Emergence of new power generation
sources like solar energy.
GENERIC STRATEGIES
 Being a leader in design and manufacturing of diesel engines, it is the cost

factor and not
 the product differentiation that gives it a competitive advantage.
 Competitive scope is clearly broad market target as it covers the major
segments like
 engines, power systems and distributors.
 Therefore, TCL is following COST LEADERSHIP Strategy because it is
serving a broad
 Market and also strategizing to reduce the costs.
7S FRAMEWORK
 THE HARD Ss –

1) Strategy: In order to compete with the world economy &
foreign markets , TELCO chose to form TCL and collaborate
with Cummins instead of making large investment in world
class engines.
2) Structure:
3) Systems: The Systems Plan supports the other elements of the Business Plan, is key to their
effective integration & includes means to develop consistent data to attain maximum efficiency.
It is supported by computer hardware and software & spans the entire process of organizing
and managing the work and flows of information.
 THE SOFT Ss –

1) Skills: Since this was a case of joint venture, hence regular training sessions were
conducted to help the staff prepare them to operate the new systems that functioned on
new technology.
2) Shared Values:
Integrity, diversity & inclusion, caring, excellence and teamwork are the shared values that
TCL functions on.
3) Staff:
TCL decided that the staff would represent both the companies.
Senior executives of TCL would come from each parent. Cummins was to provide the
managing director, engineering manager, quality manager, manufacturing engineering
manager, and aftermarket support manager. TELCO was to provide the operations
manager, materials manager, finance manager, systems manager, and company
secretary/personnel manager.
4) Style: The leadership team has lead the Company on a path of growth and dependability
& is guided by the Vision and Mission of Cummins and emulate the five Core Values. It
devises strategic initiatives that assure returns to shareholders, winning partnerships to
customers and suppliers, caring environment to employees and benefits to the
communities.
PROBLEMS

 High speed data link requirements between Jamshedpur
and Colombus
 6 months to get Visas for Indian nationals to go to USA
for training
 Telco's mainframe computers not capable of running IBM
3090
 In case Avalon software is used Cummins systems group
will have to make necessary additions to the software
 Data security
 Installation and training issues
FUTURE GOALS AND TARGETS

 According to the company’s Business Report, the company
plans to work on the following areas –
• Provisions and contingent liabilities
• Impairment of non-financial assets
• Cash and cash equivalents
• Segment Reporting
• Government Grants
• Post-employment benefits
• Business combinations and goodwill
• Three strategic target areas to reduce waste –

1) Reduce Waste
2) Increase Waste Reuse/Reduce Waste Disposed
3) Increase ‘Zero’ Waste Sites

 Wellbeing Strategy – ‘7 Levers of Healthy Lifestyle’
1) Physical Activity
2) Nutrition
3) Sleep
4) Stress Management
5) Substance Free (staying away from addictions)
6) Clean Water
7) Sunshine & Air
CSR

 Cummins India Foundation (1990) focuses on –
• Higher Education - making education economically
accessible.
• Energy and Environment - Working towards giving
power to all.
• Equality of Opportunity - Uplifting the infrastructure by
means of grass-root level participation.
 Every Employee Every Community initiative (EEEC) –

Every employee is encouraged to dedicate a minimum of
four working hours towards any of the projects undertaken
under above mentioned three focus areas.
RECOMMENDATIONS

1) Stability Strategy
2) Cooperative Strategy
3) Competitive Strategy
LEARNINGS

 Learned the practical applications of various
strategies, frameworks, tools and matrices.
 Learned lessons in teamwork, cooperation and time
management.
 Practical business, strategizing, implementation,
challenges faced when companies embark upon a
joint venture like that of TELCO and Cummins.
 In depth knowledge about the subject.
REFERENCES

 http://nitieim19pomb139.blogspot.com/2012/07/st
udy-of-cummins-india-limited-about.html
 https://www.cumminsindia.com/companies/tata-
cummins-pvt-limited
 https://www.cumminsindia.com/sites/india/files/
Annual_Report%20FY%202017-18.pdf
 CASE STUDY

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CONTENTS

- Team St Xavier’s School, Doranda

Established in the year 1994, the company

2) DIVERSITY & INCLUSION - Valuing and including our differences in decision

3) CARING - Demonstrating awareness and consideration for the wellbeing of others

4) EXCELLENCE - Always delivering superior results

5) TEAMWORK - Collaborating across teams, functions, businesses and borders to

 In order to strengthen the strengthen the position of Cummins as a leading

1993 1994 2011 2012 2012 2017

Fit for market

• Products designed on environmental standards and

 Being a leader in design and manufacturing of diesel engines, it is the cost

• Three strategic target areas to reduce waste –

 Every Employee Every Community initiative (EEEC) –

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