Tata Motors and Aditya Birla Group Comoarison

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TATA Motors


Tata Motors Limited also formerly known as Tata Engineering and Locomotive Company Ltd. (TELCO) founded in 1945 by J.R.D. TATA. It is an Indian multinational automobile manufacturer, establishing its headquarters in Mumbai and this company is a part of Tata group. It has its operations in many Indian states and countries.


This company manufactures cars, trucks, and other engineering products. They set up there 1st research and development center in Jamshedpur in 1959. Before 1990’s Bajaj auto was the market leader in light commercial vehicles but after that time Tata started their innovations in that area which helped them to become the market leader in the Indian automobile market.

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Some of the innovations done by the R&D department of TATA are:

  • TATA motors have always preferred creating and innovating new products. The first innovation by tata was the steam road roller which helped them to get the 1st mover advantage.
  • The company then designed a “407 platform” by using Japanese technology which is better for the Indian roads which helped tata motors to acquire 2/3rd of the market
  • Then in 1990 they introduced the Indica platform which had a record-breaking sale in the Indian automobile market.
  • Then came the TATA-ACE which was India’s first mini truck which was launched in the year 2005 which recorded a very huge sale in the area of small commercial vehicles
  • Then came the biggest success for tata motors the TATA-NANO which is said to be the peoples car as it was for 1 lakh rupees it was said by many experts that it was not possible to make a car for 1 lakh which showed the innovative capabilities of tata motors


In case of tata motors, the company in my opinion has benefited a lot from the innovations like the 407-platform made them acquire almost 2/3rd of the Indian automobile market. Also, after the launch of tata ace the tata motors stock price increased for about 20% and the year after that there was another 20% gain in the stock price of tata motors. Then after the launch of TATA-NANO the stock price which was at a loss of 76% changed to a gain of 278% which is the highest gain in tata motors till date.

So, in my opinion R&D has helped Tata motors a lot to get to the point they are today. Today Tata motors have a 44% market share in the area of domestic commercial vehicle market.

Aditya Birla Group


Aditya Birla group was founded in 1857 by Seth Shiv Narayan Birla and set up its first headquarters in Mumbai. The products that Aditya Birla group mainly deals in are Agribusiness, carbon black, chemicals, retail, metals, telecommunications etc.

In 2003 the company started the center for R&D and in 2006 the company started a centralized center for R&D for all its businesses.


The first R&D institution of Aditya Birla group is the Aditya Birla Science and Technology Private Ltd. the focus of this institution is on architectural, engineering, and other technical activities.

Then the corporate technical and energy services which basically focuses on the conservation of water and energy.

Some other institutions of R&D by Aditya Birla group are:

  • Birla Carbon Technology Centre
  • Grasim Wood and Pulp Research Institute
  • Birla Research Institute for Applied Sciences

Some of the innovations that these R&D institutions have come up with are:

  • Ultratech cement – This product led the Aditya Birla group to become the market leaders in cement because this offered the end customer a longer lasting cement which is made with wastes which lead to energy conservations too.
  • Birla white – This product has made an entirely different kind of putty it is not at all expensive like the acrylic putty. it is also water, algae and fungi resistant.
  • Novelis – This company produces the most advanced and sophisticated aluminum products
  • Birla cellulose – The Aditya Birla group focuses on silk sarees for women under the brand name livaeco. Which promises a very soft and breathable fabric.


As we can see in the above fig the net profit of the Aditya Birla group increased in the year 2000-2001 due to the introduction of the UltraTech cement which captured a lot of market which made Aditya Birla group India’s largest cement company.

Also, there was also a small increase in the year 2001-2002 due to the introduction of Birla white.

Finally, we can see that there is a huge increase in the year 2006 -2007 from the year 2005 -2006 as around this time novelis was started which produces great quality aluminum products.

As we can see the return on asset ratio is the highest in the years 2006-2007 which also tells us that the introduction of the novelis company was a really great step for the company.


In my opinion that R&D has now become a necessity for the companies to move forward. Also, by the research I could observe how much value was added to the company like in the case of tata motors their innovations made them a market leader.

R&D has now become the need of the hour a company has to have a working R&D center to survive in this highly competitive market.

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Tata Motors and Aditya Birla Group Comoarison. (2021, Oct 12). Retrieved from https://studymoose.com/tata-motors-and-aditya-birla-group-comoarison-essay

Tata Motors and Aditya Birla Group Comoarison

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