Started as Construction Equipment Division of Telco (now TATA MOTORS) - manufacture of

rope shovels and cranes in collaboration with P&H, USA at Jamshedpur in 1961.
Collaboration agreement with Hitachi Construction Machinery Co. Ltd. for the manufacture of
hydraulic excavators in 1984.
Construction Equipment Business Unit formed in 1994.
New manufacturing facility set up at Dharwad in 1998.
CEBU Created into a separate company Telcon in 1999.
Telco & Hitachi sign JV for 80:20 stakes in Telcon in 2000.
TERPL (Telcon Eco Road Resurfaces Pvt Ltd.) Formed in 2003.
Telcon 36%, Hitachi 20%, Green Arm 20%, IVRCL 24%
TATA Motors & Hitachi sign NEW JV Agreement for 60:40 stakes in 2005
Construction of New plant at Kharagpur Started in 2008
OUR VISION
Market Demand Projection 2007 onwards
All market projections showed an impending Boom in
the Construction Equipment Demand In India
9520
14524
22495
30189
39512
0
5000
10000
15000
20000
25000
30000
35000
40000
Units
2007-08 2008-2009 2009-10 2010-11 2011-12
Year
FIVE YEAR VOLUME
Manufacturing locations 3 Factory scenario
New
facility at
Kharagpur
Feasibility study Feb 2007
A New Telcon Project was mandated based on
Demand Projection in Indian Construction Equipment
Market.
Back
Land Requirement
Factory Land 259.19 Acres
Lease Period 99 Years, Renewable thereafter on Mutually agreeable terms
Vendor Park 98.94 Acres
Lease Period 99 Years, Renewable thereafter on Mutually agreeable terms
Sub Lease to Vendors Allowed with WBIDC as a confirming party
Township Land 100 Acres
Lease Period 99 Years, Renewable thereafter on Mutually agreeable terms
Sr.
No.
Other Requirements
1. Water 5000 Cum per Day
2. Power 12 MVA
3. Power Supply 132KV / 33KV
4. Project Commencement
Within 24 Months from Land
Availability
Local Unrest in Nandigram and Singur in West Bengal over
Land Acquisition
Political Pressure on the Government on the terms of Land
Lease to the Companies
Government forced to relook at the Industrial Promotion
Assistance (IPA) Terms
Other Investors started buying land directly from owners
offering Cash, Equity & Employment
Political Risks
Factory Land..

Major Steel Plants (For RM)

Branch Wise Average Sale of Machines (2003
2006)

Branch Office Total
Ahmedabad 261.3
Aurangabad 37.9
Bangalore 266.9
Bhubaneshwar 266.9
Chandigarh 199.9
Chennai 381.3
Cochin 334.7
Corporate Office Blr 0.0
Delhi 387.3
Exports Cell 34.1
Goa 83.9
Guwahati 109.7
Hospet 249.1
Hyderabad 490.3
Indore 242.7
Jabalpur 27.1
Jaipur 213.6
Jamshedpur 270.4
Kolhapur 47.7
Kolkata 442.6
Lucknow 149.0
Mumbai 250.4
Nagpur 189.9
Nellore 175.9
Pune 347.1
Patna 166.7
Raipur 129.7
Rajkot 183.6
Salem 193.6
Udaipur 187.9
Vizag 5500.6
FOR
Transportation
Model Analysis.
States which offered Tax Benefits
Kharagpur, WB
Pantnagar, Uttarakhand
Baddi, Himachal Pradesh
Pune, Maharashtra

Major Vendor Hubs: Adityapur, Faridabad,
Pune, Hosur, Bangalore
Why Kharagpur
1. Closle to JSR Mother Plant for better control.
2. THCM surrounded from three sides by TATA Motors. No
space around JSR to expand.
3. In future THCM plans to move its setup & Manpower at
JSR to new location. Existing Manpower at JSR would not
like to move very far from JSR plant.
3. Vendor Base at Adityapur.
4. Port proximity for Exports.
5. Ratan Tata was offer two lands for putting new plant by
WB Government. Singur & Kharagpur. TATA motor opt
Singur, TATA Hitachi Kharagpur.
Ravis data (To be used for Factor
Analysis)
Critical Success factor:
Better connectivity to market via rail/road: It is about 120 km from Kolkata on NH 6 and well
connected by roads and railways
Proximity to port to fullfil objective of becoming global hub : The nearest port, Haldia, is at a
distance of nearly 60 km and is well connected by rail and roads.
Availability of skilled/semiskilled labour force
Low wages
High flexibility: Scope of volume/product expansion is higher
Proximity to suppier : reduce cost of RM transportation
Development of vendor park: attract investment from supplier or other sector
High prospective growth in demographic region due to proposed industrial park
Uninterrupted Power supply: Dedicated power station (220/132 KV Substation and 33/11 KV
Substation)by West Bengal State Electricity Distribution Company Limited (WBSEDCL) for
uninterrupted power supply for the industrial units at Kharagpur.
Easy access of water resource: Ground water can easily be used with the approval of appropriate
authority till surface water is made available.
Govt. Support: WB incentive scheme for potential investors
Collaboration with prestigious IIT Kharagpur to facilitate R&D activity in future
Support from local community