capital budgeting of tata pdf

[Guest]

i need capital budgeting project of tata motors, maruti, mahindra & mahindra, ashok leyland, and eicher motors...

[jaseela123d]

The capital budget (or investment assessment) is the planning process used to determine whether an organization's long-term investments, such as new machinery, replacement machinery, new plants, new products and research development projects are worth the effort. pain. It is budget for the principal capital, or investment, expenditures.

Capital: Fixed assets used in production (limited resources)

Budget: Plan of entries and exits during some period

Capital budget: A list of planned investment expenditures (expenditures on fixed assets) for different projects.

Tata Motors, India's largest car company for its revenues, plans to raise its capital expenditures by Rs 10,000 crore a year as it strives to make a strong return to the domestic market. The average annual capex over the last three years had been around 25,000 rupees crore-30,000 crore, which is expected to rise to Rs 40,000 crore over the next couple of years. While Tata Motors will see its annual average capex increase from Rs 1,000 crore to Rs 4,000 crore, its wholly owned subsidiary JLR will infuse an additional Rs 9,000 crore over the next two to three years to 3.5-3.75 million pounds ( Rs 32,000 cr to Rs 35,000 cr).

Informing the stock exchanges about its proposed Rs 7,500 crore rights issue, Tata Motors said Thursday that it will use funds for new products, global expansion and invest in subsidiaries for future growth in India and abroad. In a statement to BSE on Thursday, the company said: "Taking into account future growth and plans to expand the company globally, it is expected that the total capital outlay will remain high in the short term for the business Of India and JLR. "

The company also plans to launch more than 100 new products or variants for domestic and international markets over the next three years through its ultra light truck range, as well as expanding the Prima range of medium and heavy trucks.

"The company will launch eight improved and improved vehicles through five key brands over the next 2-3 years and the products offered in a new modular platform will come from 2016-17," said Tata Motors.

Tata Motors has increased R & D spending in domestic operations in recent years, from 3.3% of total sales, to 6.3% of its total sales in fiscal year 14. For JLR, I + D has been averaging about 6.6% of total sales.

JLR continues to have a long-term capital expenditure target of 10-12% of revenue, which it believes is in line with other premium rivals, but in the short and medium term, JLR expects its capital expenditure to be higher Percent revenue in order to realize the current growth opportunities, the company said.

Tata Motors also plans to invest in its captive financing subsidiary to enable it to capitalize on the next phase of economic growth in India. Tata Motors' share price rose 1.42% on Thursday at the trading session in Mumbai, a day on which Sensex rose 0.41% to 29,681.77.