Financial Management & Corporate Finance Case Study

Case Title:

Tata’s Nano Project: Capital Investment Lessons

Abstract:
The objective of this case study is to illustrate the lessons of capital investment decisions through Tata Motor’s Nano project. In 2003, Ratan Tata, chairman of Tata Group, announced his vision of designing a safe and affordable car for the common man. However, right from its inception, the project had gone through several hurdles. Finally, overcoming all the financial, technical and social challenges, Nano, acclaimed as the world’s cheapest car, was launched amidst much hype and attention from all sections of media.While giving a brief on the entire journey of Nano from the origin of the idea to its launch, the case study highlights the importance of quantitative and qualitative factors in the evaluation of capital investment decisions. Besides, it provides the learning opportunities to discuss the nature of the capital budgeting decisions and its various types.

Pedagogical Objectives:

• To understand the nature of Tata’s Nano project and analyse the sequence of events that marked the launch of Nano
• To derive relevant capital investment lessons from the way Nano project was conceived, handled and executed
• To debate on the role of qualitative parameters in capital investment decisions and weighing the magainst quantitative analysis.

Keywords : Initial Capital Outlay; Qualitative Factors; Capital Investments; Irreversible projects; Capital Budgeting; Strategic; Long-term planning; MBA; Corporate Finance; Financial Management; Finance for Managers; Business Finance; Principles of Financial Management; Course Case Maps; Course Case Packs; Managerial Finance; Financial Management Course Case Pack; Financial Management Course Case