India

In 1945, the Tata Engineering and Locomotive Company (TELCO) was established for the manufacture of steam locomotives, in the belief that rail travel would continue to be one of the main forms of transport in India. Little did anyone realize that the TATA house would become one of the country's leading fully integrated automobile manufacturers.

"The real success of this company comes down to technical innovation," says Praveen Kadle, the company's executive director of finance and corporate affairs. "In 1954, when we entered into collaboration with Daimler Benz of Germany for the production of commercial cars, we decided we should concentrate on developing our own specifics. We recruited a lot of young engineers, including those from abroad who were of Indian origin. This helped us create a solid technology base, and allowed us to move into the components business. In fact, many of the component manufacturers in India have emerged thanks to TELCO's support."

Tata's own distribution network and its ubiquitous brand name - one of the most recognized in India - have made flourish at the top of the market. "In this big country, Tata means trust," he comments. Taking care of this image is also a key part of TELCO's strategy.
Praveen Kadle, executive director for finance and corporate affairs of Tata Engineering and Locomotive Company

"We have a training institute in Pune," continues Kadle, "in which the employees stay and are given training in all aspects of the business - product knowledge, selling techniques, and commercial aspects. We also check on the showrooms, and all advertising material prepared has to be approved by us first." Adhering to strict standards, TELCO has tried to impose uniformity across the country and consistency in all dealerships.

Approximately 15 to 20 percent of production is exported to countries in Africa, South East Asia and Europe, where the Tata name is not as well known. "We are not a familiar name yet in the international market," he explains. "We have been participating in the Geneva Motor Show for the past five years. Through this participation, our brand name is getting exposure in the world's premium motor show. Most importantly, we have started exporting certain products to Germany, the UK, Portugal and Italy. We believe that the product will eventually create its own image."

Kadle happily admits that all this could not have come about without successful partnering. TELCO has a number of collaborations in Europe. In Japan, it has set up a joint venture with Hitachi for the manufacturing of construction equipment, and a tie-up with Bridgestone for the production of tires.

"The joint venture with Hitachi has been a win-win situation," he exclaims. Established in 1985, a plant was originally set up to produce excavators under the brand TATA-Hitachi. "Our experience with the Japanese has been excellent. We are both oriental countries, so our thinking processes are similar. The Japanese are conservative in nature, and so are we. Doing business and securing a deal can take time, but once signed, we feel secure in a long term relationship."

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