Professional Documents
Culture Documents
ON
BY
NILESH R. MANGHWANI
AM 26
P.G.D.M (MRKT)
2008-2010
PUNE- 411048
ACKNOWLEDGEMENT
To all these truly outstanding people , and many others too , my warm personal regard .
I am indeed grateful to my Director Mr. Sunil Kumar and Guardian Mr. Vishal Bhole and
class co-ordinator Mrs. Manisha Landefor providing me the necessary guidance and
facility required for completion of this project and for being an effective source of
inspiration. I am thankful to the library for providing the necessary magazines and
journals without which the completion of this project would not be possible
Your’s Faithfuly
Nilesh .R. Manghwani
C E RT I FI CAT E
This is to certify that the Project title Effect of Declining Market on TATA Motors is a
bonafide work carried out by NILESH R. MANGHWANI student of P.G.D.M (MRKT) of
Sinhgad Institute of Business Administration and Research, Pune for fulfillment of a project
report . He has worked under our guidance and direction. His work is found to be satisfactory
and complete in all respect.
Date:
Place: SIBAR, PUNE
TABEL OF CONTENTS
Definition:
A recession is a decline in a country's gross domestic product (GDP) growth for two
or more consecutive quarters of a year. A recession is also preceded by several quarters of
slowing down.
Causes:
An economy which grows over a period of time tends to slow down the growth as a
part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go
into a recession for about six months to 2 years.
A recession normally takes place when consumers lose confidence in the growth of
the economy and spend less.
This leads to a decreased demand for goods and services, which in turn leads to a
decrease in production, lay-offs and a sharp rise in unemployment.
Investors spend less as they fear stocks values will fall and thus stock markets fall
on negative sentiment.
Global recession has devastated the global auto industry with pinching effects on the
Indian auto industry. India is a strong and growing economy but the hit of recession has put red
marks on the entire balance sheet of the Indian economy.
Among the leading car manufacturers, General Motors and Ford were the first one to
file for bankruptcy. GM is struggling to stay alive and claims that the company has just enough
cash to continue its operations. Even the merger talks of GM and Chrysler have been officially
brought to a halt because of the liquidity crunch.
U.S sales have fallen down by 32% which has directly affected the Indian car industry
where GM has recorded a fall of 45%, Ford of 30% and Chrysler down by 35%. All the three
major car manufacturers have reported declined growth after the hit of recession.
After the industry experienced a heavy fall in the month of August due to inflation,
September proved to be a promising month with things setting out at the right place. Then again
the market went in the negative terrain swayed by the wind of recession.
October usually is considered to be the best month for car sales because of the festive
season. Unfortunately, this year it proved to be a curse for the Indian auto industry. At one end of
the spectrum, car manufacturers like Tata Motors, GM, Hyundai, Ford, Renault, Mahindra, and
Maruti Suzuki are investing huge amounts to establish new production plants and line up launch
of car models. At the other end of the spectrum, SIAM has cut down the growth forecast of
automotive sales from 12.5% to 9.5%.
This initiative taken by SIAM further forced few car manufacturers like Tata Motors
and Maruti Suzuki to cut down their production which further took away the job of almost 300
workers. Even Mahindra-Renault reduced the number of production units of their Logan.
In addition, the severe liquidity crunch in the U.S market has also forced many of the
car buyers to cut upgrades to bigger cars and many are pushed back from buying new cars. With
deteriorating car sales, even production has gone down to a great extent, which has eventually
put a negative impact on the auto component industry.
In October, overall car sales declined to about 9.05% over October 2007 and the car
production fell down to about 12.32%. Further to that even the month of November was not
successful in bringing some charm to the industry. Infact, November recorded the steepest fall in
car sales in the past five years.
Maruti Suzuki recorded a fall of 27%, Mahindra & Mahindra recorded a fall of about
40%, and Tata Motors showed 12% decline in the car sales.
It is also said that the recent Mumbai terror attack and the cyclonic rain in South India
have added to the woes of Indian car manufacturers.
However, there is still hope for automobile industry of India in 2009 as there are certain factors
working in its favor. India is blessed with a middle class, which is getting economically stronger
with every passing day. This class is being touted as potential consumers for India auto industry
in years to come.
Indian economy has been, more or less, able to withstand tremors of global financial meltdown.
Even though its rate of growth has slowed down considerably, there are hopes of an economic
revival. Work force of auto industry of India is relatively well trained.
All these factors indicate that there could be a decent future for India auto industry in days
Hyundai, a major automobile establishment of South Korea, has put in large sums of money in
India automobile market. As per its estimates, India auto industry could become a major center
for small car manufacturing organizations in future.
There are some other automobile companies of world who have shown interest in India auto
market. Major names among these are General Motors, Skoda Auto and Mercedes-Benz. These
companies have major plans lined up for India auto industry and are likely to invest a huge
amount of money in India automobile market
India domestic auto industry has been passing through a tough phase in 2008 and such a trend is
supposed to continue in 2009 as well. Leading members of India auto industry have forecast a
difficult path in 2009. Shinzo Nakanishi, managing director of Maruti Suzuki, has said that 2009
would present them with a number of challenges.
1. History
Tata Indica
After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle. After the
launch of three more vehicles, namely, Tata Estate (1992, a stationwagon design based on the
earlier 'TataMobile' [1989] a light commercial vehicle which some people may still think of as
Tata's first passenger car), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports
utility vehicle); In 1998 Tata launched the Indica, the first fully indigenous passenger car of
India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy,
powerful engine and aggressive marketing strategy made it one of the best selling cars in the
history of the Indian automobile industry. A newer version of the car, named Indica V2, was a
major improvement over the previous version and quickly became a mass-favorite. A badge
engineered version of the car was sold in the United Kingdom as the Rover CityRover. Tata
Motors also successfully exported large quantities of the car to South Africa. The success of
Indica in many ways marked the rise of Tata Motors. Note: In 1996-97 Tata launched the Tata
Sumo Deluxe and the Tata Sierra Turbo variants respectively.
3.Daewoo acquisition
Main article: Tata Daewoo Commercial Vehicle
Tata Novus is one of the best selling commercial trucks in South Korea.
With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004,
it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the
acquisition were:
• Company’s global plans to reduce domestic exposure. The domestic commercial vehicle
market is highly cyclical in nature and prone to fluctuations in the domestic economy.
Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in
the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle
sales of the company are at the mercy of the structural economic factors, it is increasingly
looking at the international markets. The company plans to diversify into various markets
across the world in both MHCV as well as LCV segments.
• To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata
Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the
strong presence of TDCV in the heavy-tonnage range and introduce products in India at
an appropriate time. This was mainly to cater to the international market and also to cater
to the domestic market where a major improvement in the Road infrastructure was done
through the National Highway Development Project
On its journey to make an international foot print, it continued its expansion through the
introduction of new products into the market range of buses (Starbus & Globus).
4. Joint ventures
Tata MarcoPolo NON-AC City Bus in Delhi.The NON-AC version is only used in Delhi while
AC versions are used in Bangalore, Mumbai and Delhi alike
In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21%
stake in Hispano Carrocera SA , Aragonese bus manufacturing company and introduced its high-
end inter-city buses in the country.
Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global
leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and
assemble fully-built buses and coaches targeted at developing mass rapid transportation systems.
The joint venture will absorb technology and expertise in chassis and aggregates from Tata
Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and
bus body design.
5. Tata Ace
6. 2007
Tata Pick Up, unveiled in 2007, is expected to enter European and American market by 2009.
In 2007, Tata Motors generated revenues of Rs 31,884.69 crore.
In 2007, Tata Motors launched several concept models and future designs of existing models. It
also formed joint ventures with various local companies in several countries to assemble Tata
cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna
which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was also
launched under the program 'Global Pick-Up'. The company plans to launch the new pick-up
model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors also
unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto
Show.
Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine
technology.Tata Motors is looking to extend its relationship with Fiat and Iveco to other
segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the
entry of the company into developed markets like Europe and the United States. The project was
initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial
Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync
with the needs of sophisticated European customers. The company has formed a joint venture
with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will
hold a 70% stake.
7.2008 onwards
8. Compressed air car
Motor Development International of Luxembourg has developed the world's first prototype of a
compressed air car, named OneCAT.In 2007, MDI owner Guy Negre was reported to have "the
backing of Tata"
It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In
2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3
minutes.There are no gasoline costs and no fossil fuel emissions from the vehicle when run in
town, but "the compressed air driving the pistons can be boosted by a fuel burner".
OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at
100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual fuel car
but it is more efficient than any present Hybrid cars.
9. Tata Nano
Tata Nano
Tata has developed a car, named Tata Nano, that aims to sell in 2008. It is the least expensive
production car in the world: the price is about Rs. 1,00,000 (USD $2,000)The company unveiled
the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Bajaj
Auto and Mahindra-Renault have[when?] plans to launch cars in this price range.
Tata has faced controversy over developing the Nano. Some environmentalists are concerned that
the launch of such a low-price car could lead to mass motorization in India with adverse effects
on pollution and global warming. There was also strong opposition to the compulsory acquisition
of land for the proposed car factory in Singur West Bengal. NowTata Motors Limited plan to set
up the Nano factory in Sanand, Gujarat, because of the problems faced in West Bengal.
To solve this, Tata is goingto produce the E-Nano, an electric version, in partnership with
Miljøbil Grenland AS
10. Jaguar Cars and Land Rover
Main articles: Jaguar Cars and Land Rover
As of 27 March 2008, Tata Motors reached agreement with Ford to purchase their Jaguar and
Land Rover operations for US$2 billion. The sale is expected to be completed by the end of the
second quarter of 2008Tata will also gain the rights to the Daimler, Lanchester, and Rover brand
names.
In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in
UK. The key acquisition would be of the intellectual property rights related to the technologies.
11.Electric vehicles
Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle
Tata Ace. Both run on lithium batteries . The company has indicated that the electric Indica
would be launched locally in India in about 2010, without disclosing the price. The vehicle
would be launched in Norway in 2009.
Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%
holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for
US$1.93 M, which specialises in the development of innovative solutions for electric vehicles,
and plans to launch the electric Indica hatchback in Europe next year.
12. Global operations
The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and
American markets.
With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its
intention to enter the sedan and sports car markets.
Tata Indica during an auto exhibition in Bangkok, Thailand. Indica and Xenon TL will be
assembled in Thailand and Argentina.
Tata Prima was unveiled during the Geneva Motor Show in 2009. The Luxury Sedan was
designed by Pininfrina and has marked the entry of Tata into the international sedan market. The
car is to be sold in India by 2013 and around the world by 2015
Tata Motors has expanded its production and assembly operations to several other countries
including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in
Turkey, Indonesia and Eastern Europe.
13.Global brands
Tata Motors has been aggressively acquiring foreign brands to increase its global presence. In
2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo
Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano
Carrocera SA, giving it controlling rights in the company.
On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford
Motor in a deal worth $2.3bn (£1.15bn)Tata Motors has also acquired from Ford the rights to
three other brand names: Daimler, Lanchester and Rover. it was rumoured in 2008 that Tata was
in negotiations along with Fiat, General Motors and Renault-Nissan as a possible suitor for the
rapidly declining Chrysler, which is currently owned by Cerberus Capital Management 14.
Present global challenge
Tata Motors have some distinct advantages in comparison to other multi-national competitors.
There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of
sales in developed economies. Tata motors have extensive backward and forward linkages and it
is strongly interwoven with machine tools and metals sectors. Tata Group's strong expertise in
the IT based engineering solution for products and process integration has helped Tata Motors.
India has a large auto component industry noted for its world class capabilities. There is huge
demand in domestic markets due to infrastructure developments and Tata Motors is able to
leverage its knowledge of Indian market. There are favorable Government polices and
regulations to boost the auto industry.
However, some major automakers have moved their operations to India to cut costs. Volvo
entered India in 1998 to focus on production of its fully built buses. In India, it has focused on
providing economical transport solutions in consonance with its values of safety, quality, and
environmental care. Its competitive advantage is its high technology which makes the vehicle a
very comfortable option to travel through. Tata's trucks have long been reputed for their
unmatched performance, build, and technological advancements that are the flag bearers in their
production activities in India. It is still operating in the niche market of high end buses where the
Tata compete through its Hispano Carrocera and Marcopolo S.A. JV buses.
The Government of India announced an automobile policy in December 1997. The policy
required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in
equity if they wished to set up manufacturing projects in India. It also forced them to take on
export obligations to fund their auto part imports and required them to submit to a schedule for
increasing the share of locally made parts in their cars. Mere car assembling operations were not
welcomed.
An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh
investment guidelines for foreign firms wishing to manufacture vehicles in the country.
Investments in making auto parts by a foreign vehicle maker will also be considered a part of the
minimum foreign investment made by it in an auto-making subsidiary in India. The move is
aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The
policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies
adopted by Government will increase competition in domestic market, motivate many foreign
commercial vehicle manufactures to set up shops in India, whom will make India as a production
hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in
near future, which might affect its growth negatively.
15.Future challenges
Tata Xover
Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.
• Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M
has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar
International), to manufacture commercial vehicles and to bolster its position in the CV
business. ITEC is the leader in medium and heavy trucks and buses in North America,
and is the world's largest manufacturer of medium-duty diesel engines. Mahindra
International aims to have a presence across the CV market (6-35 tonnes GVW) with
variants of passenger transport, cargo and specialised load applications and is likely to
start producing medium/heavy commercial vehicles from FY09.
• Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force Motors
has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty
vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the
16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per
annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in
the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia,
Asia and Africa. Further, the two companies have formed another JV to manufacture
buses in India from end-2007.
• Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL)
recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia
manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The
acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press
shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities.
ALL has also entered into technology agreements with Hino Motors of Japan and ZF of
Germany to complement its in-house R&D efforts and developing complementary
components and aggregates.
Tata Indigo SW
• Tata Sierra
• Tata Estate
• Tata Sumo/Spacio
• Tata Safari
• Tata Indica
• Tata Indigo
• Tata Indigo Marina
• Tata Winger
• Tata Nano (3RD March 2009)
• Tata Xenon XT
• Tata Xover (2009)
[2] Concept vehicles
Tata Cliffrider
Tata StarBus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations in
Delhi, Mumbai, Pune, Udaipur and Indore
• Tata Ace
• Tata TL/Telcoline/207 DI Pickup Truck
• Tata 407 Ex and Ex2
• Tata 709 Ex
• Tata 809 Ex and Ex2
• Tata 909 Ex and Ex2
• Tata 1109 (Intermediate truck)
• Tata 1510/1512 (Medium bus)
• Tata 1610/1616 (Heavy bus)
• Tata 1613/1615 (Medium truck)
• Tata 2515/2516 (Medium truck)
• Tata Starbus (Medium Bus)
• Tata Globus (Low Floor Bus)
• Tata Marcopolo Bus (Low Floor Bus)
• Tata 3015 (Heavy truck)
• Tata 3118 (Heavy truck) (8X2)
• Tata 3516 (Heavy truck)
• Tata 4923 (Ultra-Heavy truck) (6X4)
• Tata Novus (Heavy truck designed by Tata Daewoo)
Price
Tata initially targeted the vehicle as "the least expensive production car in the world"aiming for a
starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of March 22,
2009)6 years ago, despite rapidly rising material prices at the time
As of August 2008, material costs had risen from 13% to 23% over the car’s development, and
Tata faced the choice of:
• introducing the car with an artificially low price through government subsidies and tax-
breaks
• forgoing profit on the car
• using vertical-integration to artificially boost profits on cars at the expense of their
materials industries
• partially using inexpensive polymers or biodegradable plastics instead of a full metal-
body raising the price of the car option.
Model versions
At its launch the Nano was available in three trim levels:
• the basic Tata Nano Std priced at 123,000 Rupees has no extras;
• the deluxe Tata Nano CX at 151,000 Rupees has air conditioning;
• the deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow Colour Taxi
Version;
• the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and
central locking
the Nano Europa, European version of the Tata Nano has all of the above plus a larger body,
bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards
and emission. The base model will have fixed seats, except for the driver's, which will be
adjustable, while the deluxe and luxury models will get air conditioning and body coloured
bumpers.
Quick Take
The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has
already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver
maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been
made apt for Indian roads especially with its driver & co passengers oriented positive attributes
such as :
Indigo LX Dicor
Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear
view window, black dials with chrome rings & star check as the new pattern for its
console&ACfascia.
Indigo LS Dicor
Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz
silver as the new pattern for console & AC fascia. It has no mounted LCD screens.
ENGINES
Petrol 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. power - 85 PS @
5500 rpm Max. torque - 12 Kgm @ 3500 rpm
Diesel Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power -
70 PS @ 4500 rpm Max. Torque - 13.5 kgm @ 2500 rpm
Dicor 32-bit microprocessor based 1396 cc DICOR(Direct Injection Common Rail) 16-valve engine with Dual
Over Head Camshafts and a Variable Geometry Turbocharger(VGT) Max.power-70 PS@4000 rpm
Max.torque - 140Nm@1800-3000 rpm
e) Tapping of Rural Markets
According to the National Council for Applied Economic Research, or NCAER, rural India
accounts for 70% of India’s population, 56% of the national income, 64% of the total
expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets
pale before the huge potential they offer a company. Of the total sales (of consumer goods),
around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER
data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16
trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will
be about two-thirds of the rural economy by 2012-13.
Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of
which runs on cash. Tata motors ltd. are working on strategies to make inroads into these
markets.
Human Resource Strategies
a) Hiring Practices
Hiring the right talent is the greatest challenge in business environment and new and
innovative hiring strategies are the need of the hour if Indian companies have to succeed in
the changing global scenario. With Indian companies entering the phase of global mergers
and acquisitions, already there is a shift in standard hiring practices, the compensation
being offered, sharing the vision of the company and transmitting a sense of passion in the
company to the prospective employee will go a long way in attracting the right talent.
Some of the innovative hiring strategies could include hiring teams and not just individuals
and offering education and placement packages. Over the past few years HR is witnessing a
dramatic increase in lateral hiring of professionals with some years of experience, hiring
from the public sector as well as experienced people looking for second careers. The
challenge facing many firms is to hire with retention.
A smart and sophisticated workforce will be the most important corporate resource over the
next 20 The demand for this resource is sure to go up; however, the supply is already
dwindling.
2.Re-organizing the organizational structure of co.:
At the time of recession its important task of hr personal to reorganize the structure of
the company.so as to avoid extra man force and duplication of work.
Human resourse manger should cut incentives of individuals.for ex-If marketing manager used to
get incentives for hotelling accommodations 2000 per day.it should be cut down to 1200 per
day..as already due to recession he will get equal amount of service by paying the less price.
Operations Strategies
Tata motors has reduced its number of shifts frm 3 to 2 in a day and so as to control reduce
cost of production. And started making production according to the sales required.
b) Quality Management
Quality management is crucial to effective operations management, particularly
continuous improvement. More recent advancements in quality, such as benchmarking and
Total Quality Management, have resulted in advancements to operation s management as well.
c)Inventory Management
Costs can be substantial to store and move inventory. Innovative methods, such as Just-in-Time
inventory control, can save costs and move products and services to customers more quickly.
Conclusion
Over the period of time, fear of a slowdown in the United States of America have increased. The
impact of the subprime crisis along with a slowdown in mortgages has led to a significant
lowering of growth estimates. Since the United States dominates the global economy, any
slowdown there would have an impact on most of the global economic variables.
For India, it could mean a further appreciation in the rupee vis--vis the US dollar and a darkening
of business outlook for sectors dependent on US companies. The overall impact of a US
slowdown on India would, however, be minimal as the factors driving growth here are more
local in nature. Unlike the rest of Asia, India is a strong domestic demand story, so any slowing
in the US is likely to have a more muted impact on India. Strong growth in domestic
consumption and significant spending on infrastructure are the two pillars of Indias growth story.
No sector has a dominant influence on earnings growth and risks to our estimate are limited.
Corporate India is also learning to master the art of efficient capital management, reduction in
costs and delivery of value-added services to sustain profit margins. Further, interest rates are
expected to be stable primarily due to control over inflation and proactive measures undertaken
by the RBI
BIBLIOGRAPHY
[3] www.pearsoned.co.in/pkotler
[4] http://www.genmills.com/corporate/company/india.aspx
[5] http://www.utube.com
www.wikipedia.com
[6] http://iegd.institut.com
[7] http://www.rotman.utoronto.com