THE TURNAROUND MANAGEMENT

HINDUSTAN MOTORS V/S PREMIER LTD.

PRESENTED BY-

SAKSHI CHANCHAL-09ELZA GERZIM-14SANJANA NAIR-30ANJALI SHARMA-39NIKITA SODHIA-43SURYA PRAKASH-48

INTRODUCTION•

HINDUSTAN MOTORS

• It was formed in the year 1942.

• Part of Birla group of industries.

• Largest car manufacturer of India.

• Producer of Ambassador.

PREMIER AUTOMOBILES

• It was formed in the year 1944.

• Formed by Industrial pioneer Walchand (Doshi).

• Licence with Chrysler USA for cars and trucks.

• Factory setup in Mumbai

HISTORY•

HINDUSTAN MOTORS

• Started production of Land Master.

• Tie-ups with companies abroad.

• Production of Ambassador started.

• Major sales

THE AMBASSADOR•

AMBASSADOR• First car to be manufactured in India.

• Ruling the Indian roads.

• Time-tested service.

• Popular in taxi segment

• Service market range.

• Major market share.

PREMIER AUTOMOBILES

POST INDEPENDENCELOCALISATION OF PRODUCT

• Forced to localize 100% of the car

• Setting up of a press plant

• Peoples car

• Designed for average customer

PREMIER PADMINI•

THE LOST DECADE•

STRATEGY IMPLEMENTATION HR ASPECT

• Maruti Udyog and Hindustan Motors are manufacturing cars, essentially using identical technology.

• Human resource today is heavily involved in the execution of the company’s downsizing and restructuring strategies.

• Through out placing employees, instituting performance- linked pay plans, reducing health- care costs and retraining employees

HR problems that arise when executing strategies were of the causes below: -

1. Failure to match individual goals and organizational goals.

2. Failure to match individuals aptitudes with implementation tasks

3. Inadequate top management support for implementation activities.

4. Union unwilling for change

TURNAROUND EFFORTS

•

HINDUSTAN MOTORS1. Indian economy opened up for foreign players.2. HM was the worst affected due to its inflow of

competitors.3. HM launched Nova (1990)4. HM launched 1800 ISZ(1993)

MCKINSEY’S AND CO FINDINGS1. Asked HM to focus on the marketing of

components Refurbish the Ambassador model and upgrade other vehicles.

2. Speed up the delivery process and improve productivity through re-engineering.

3. Reduce the workforce in its production plant at Uttarpara.

Turn Around Efforts -II :

1. Established a unit Indore to assemble engines and gearboxes.

2. Most international companies like Toyota, GM etc, entered and flourished into the economy.

3. HM’s Executive Director “Sarker Narayanan” said: We are open to such opportunities. It brings in extra cash and its an expensive way to upgrade our skills by working with different customers.”

PREMIER AUTOMOBILES

• In early 80’s when Maruti Suzuki began famous ‘PEOPLE’S CAR BEGAN’.

• Tie up with FIAT for new model car FIAT 124.

• Later on, needed new Engine: Tie up with Nissan.

• Home grown car Fiat body, Nissan Engine, Premier Engineering.

• FIAT and PREMIER re-combined in 1990,and came up with FIAT PALIO FAMILY.

• Gave majority control to FIAT.

• FIAT’s goodwill in India is the result of what PREMIER did for the cars and its brand for so many years.

• Community Service Policy.

• Offered the car at lower price.

• The government also charged lesser taxes.

SWOT ANALYSIS•

PRESENT

•

CONCLUSION•

ARTICLES• HM to launch new SUVs with

Mitsubishi (15-01-2013)

• Hindustan Motors suffering from exits?(18-08-2010)

• Hindustan Motors inks deal with SBI for vehicle financing(09-06-2010)

• New generation ambassadors to be launched by next year(03-10-2012)

• Can new Ambassador take HM

out of the woods?(24-08-2010)

• CK Birla Group company Hindustan Motors reports net loss at Rs 15.51 cr for December quarter(06-02-2014)

• Hindustan Motors prices new Ambassador Encore under Rs 5 lakh(01-09-2013)

THANK YOU!!!