Tata Motors in ‘Misti Doi’ Land
Posted : May 26, 2006 at 2:46 pm [IST]
Ratan Tata gifted Buddha Babu Tata Motors’ Rs. 1-lakh car plant to West Bengal on his swearing-in day. It is expected to be a huge plant with an investment of Rs 5,000 crore and a capacity to produce 2,00,000 cars per year. The car is still at the development stage. The Rs1-lakh ($2200) car project is the most prestigious and simultaneously challenging one for Tatas. Many experts including Mr. Suzuki of Suzuki Motors came out openly with some doubts about the project.
Tata Motors have selected Singur in Hooghly district of West Bengal as its location and will get acquired 1000 acres of fertile land. As reported, the farmers are protesting. The place is very near to Hind Motor, where I spent the 36 years working for Hindustan Motors. I knew Singur for its delicious ‘Misti Doi’ (sweet curd) without which any Bangali’s ‘bau bhat’ couldn’t get an excellent rating. I used to love it too. We had some workmen from the area. They used to bring it for us.
Firstly, I couldn’t understand the logics of selecting the state of West Bengal for setting up this auto manufacturing plant of real critical importance to Tata Motors. West Bengal still has the worst type of frighteningly aggressive trade unions that certainly affects the productivity and quality too. The situation is a big disadvantage in the present competitive manufacturing world. But perhaps, Tatas want to prove that it can work in even the worst circumstances. The project will create employment for some 10,000 people. Besides, it may lead to growth of a large number of small and big vendors, as the scale of the production will mean large scale outsourcing too. It will bring a manufacturing revolution in West Bengal, if the project is properly handled. It will have to a lean manufacturing plant based on ‘Toyota Production System’, unless Tatas come out with some innovative management techniques for this plant that can establish a brand for ‘Tata Production system’.
While expressing confidence that West Bengal is the right choice, Tata said to Business Week, “We have come to believe that West Bengal is one of the most investor-friendly states. I think someone has to turn this belief into a reality.” Naturally, Ratan Tata must be trying to prove something that others have not dared to do.
Secondly, I again couldn’t appreciate Tata’s fancy for Singur? The district is agriculturally productive. ‘There are areas where farmers grow jute in summer, then paddy till October and, subsequently, vegetables before winter sets in. In many areas, they manage to grow a fourth crop of quick growing winter vegetables between October and December’. Why should Tatas be insisting for Singur? Singur must not become Kalingnagar. Is it because someone in its team loved ‘misti doi’ (sweet curd) as I did and do till date? Is it because of its proximity to Kolkata port? However, I don’t think the plant will have much export possibility or will depend on imported parts too much, at least to start with. The region may have a good customer base for this cheapest car. However, the poor road conditions of the region may be deterrent. However, I can see a huge benefit of locating the plant near Hind Motor. The area has still many trained skilled hands available for auto manufacturing that may prove to be beneficial for the plant.
Natural choice of location of this project would have taken the Tata’s auto plant either to Kharagpur or Durgapur belts that had plenty of land that are not as fertile as the land in Singur (Hooghly).
However, there is an alternative location that will be a win-win situation for two manufacturing plants. Why can’t Tata locate plant buying the spare and unused land of Hindustan Motors? Huge stretch of land allotted at one time to Hindustan Motors (HM) is today lying unused or underused. The West Bengal government can request HM to give the extra land to the project or confiscate it in the state’s interest. Hindustan Motors has already shrunk to a small unit and is further shrinking. As declared, HM has already made component business as their major thrust area. If Tatas with the state government negotiate with HM on this proposal, the farmers of Singur will not have to lose their fertile agriculture land. Excess land of HM and the adjoining huge swamp areas can be sufficient for the new plant. HM can restructure its activities and can become the major part supplier for this Tata project. Is it not a win-win solution for all- Tata, Government, HM, and the farmers of Singur?
However, I still insist that Tata must come out superior on quality and after sale services too and compete with other MNC auto manufacturers in India that it has been till date with its passenger cars
PS
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