Annual Report (Integrated) for the Financial Year 2020-21 and Notice Convening the 76Th Annual General Meeting
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G TATA BSE Limited Listing Compliance Department First Floor, New Trading Ring National Stock Exchange of India Ltd. Rotunda Building, P J Towers, Exchange Plaza, Sandra Kurla Complex, Dalal Street, Fort, Mumbai 400 001 Sandra (E), Mumbai 400 051 Kind Attn: Mr Khushro A. Bulsara Kind Attn: Mr Lokesh Bhandari General Manager & Head Senior Manager Listing Compliance & Legal Regulatory Listing & Compliance June 28, 2021 Sc no. 16412 Dear Sirs, Re: Annual Report (Integrated) for the Financial Year 2020-21 and Notice convening the 76th Annual General Meeting This is with further reference to our letter no. Sc 16409 dated June 23, 2021 pursuant to Regulations 30 and 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit herewith the Annual Report (Integrated) for the Financial Year 2020-21 along with Notice convening the 76th Annual General Meeting of the Company scheduled to be held on July 30, 2021 at 3.00 p.m. (1ST) via two way video conferencing or other audio visual means. The 76th Annual Report (Integrated) for the FY2020-21 is also available on the Company's website at www.tatamotors.com. This is for the information of the exchange and the members. Yours faithfully, Tata Motors Limited \t Hoshan Sethna 'i---:compan\\t.Si ecretary_r' TATA MOTORS LIMITED Bombay House 24 Homi Mody Street Mumbai 400 001 Tel 91 22 6665 B282 www.tatamotors.com CIN L28920MH1945PLC004520 76 th Integrated Annual Report 2020-21 Performance snapshot FY 21 Resilience and Rebound OPERATING FINANCIAL ENVIRONMENTAL SOCIAL FY 21 was an extremely challenging year with the COVID-19 pandemic resulting in severe business disruptions. 8,37,783 2,49,795 20% 7,58,053 Amid stringent restrictions on mobility and large-scale disruptions in supply Sales Volume Revenues (K crore) % of Renewable energy Total Community chain, we demonstrated strong resilience, consolidated our core capabilities and (Consolidated excluding CJLR) (Consolidated) Consumption to Total Outreach (TML) stayed on course with our strategic objectives. Amid the lingering uncertainties Electricity Consumption (TML) in the operating environment, we staged a strong recovery, backed by our continued focus on operational efficiencies. As the restrictions eased, we swiftly 12.2% 2,56,247 shifted our gears, ramped up production and despite several challenges moved fast to serve consumer demand. Our strong financial performance amidst several EBITDA Margin Scope 1+2 GHG Emissions headwinds truly reflects strong business fundamentals. (Consolidated) (tCO2e) JLR About the report Contents The 76th Integrated Annual Report 2020-21 of the Tata Motors Group outlines its financial and non-financial performance. The report narrates in detail how 04 14 22 Tata Motors has delivered a resilient performance and recorded a sharp CORPORATE IDENTITY PERFORMANCE VALUE CREATION 04 Company Profile 16 Chairman’s Message 24 Operating Context rebound while navigating strong economic and sectoral headwinds. 06 Our Presence 18 TML CEO and MD’s Message 26 Risk Management 08 Product Profile 19 JLR CEO’s Message 30 Value-Creation Model 20 Key Performance Indicators 32 Stakeholder Engagement SCOPE AND BOUNDARY MATERIALITY and Materiality The Report covers the performance of Tata Motors Limited and Jaguar The Report includes information that is material to our stakeholders Land Rover, for the period starting from April 1, 2020 to March 31, and our value-creation abilities. We have also presented information 2021. The Report aims to provide a holistic view on our ability to create on how we strategically approach these material issues. The material long-term value through our value-creation model, strategy, and issues are reviewed by the Group management. 68 environmental, social and governance (ESG) focus. 34 50 ASSURANCE STATUTORY REPORTS REPORTING STANDARDS AND FRAMEWORKS Assurance on financial statements has been provided by independent STRATEGIC ROADMAP ESG APPROACH The Report has been prepared in accordance with the <IR> auditors BSR & Co. LLP and non-financial statements have been 36 Tata Motors Limited 52 Environment 68 Board’s Report 90 Business Responsibility Report framework prescribed by the International Integrated Reporting assured by TUV India Private Limited. The assurance has been given 44 Jaguar Land Rover 58 Social — People, Community 101 Management Discussion and Analysis Council. The financial and statutory information has been presented against the Report’s adherence to the International <IR> Framework 66 Governance as per the requirements of the Companies Act, 2013 and the rules of the IIRC and the GRI’s Sustainability Reporting Standards. The 128 Risk Factors made thereunder, the Indian Accounting Standards, the Securities assurance report issued by TUV India Private Limited is available on 147 Report on Corporate Governance and Exchange Board of India (Listing Obligations and Disclosure our website www.tatamotors.com. Requirements) Regulations, 2015 and the Secretarial Standards issued by the Institute of Company Secretaries of India. 170 368 INTEGRATED APPROACH The Report showcases the initiatives undertaken across multiple FINANCIAL STATEMENTS NOTICE capitals – financial, manufactured, human, intellectual, natural 170 Standalone 368 Notice and social & relationship, and the value created under each of For further information, log on to 250 Consolidated those capitals. We have also applied a sustainability lens (covering www.tatamotors.com the environment, social and governance aspects) to evaluate our performance to better demonstrate our dependencies and impacts on each of these capitals. Integrated Report (1-67) Statutory Reports (68-173) Financial Statements (174-371) Company Profile Delivering mobility solutions Jaguar Land Rover Jaguar Land Rover (JLR) continues to shape the future of modern luxury vehicles globally built around its iconic brands: Jaguar across the world and Land Rover. JLR, which became part of Tata Motors Group in 2008, exemplifies quality and sustainability. JLR's new strategy is Tata Motors Group is one of the leading global automobile manufacturers with reimagining the future of modern luxury by design through a canvas of true sustainability and a new benchmark in quality. Jaguar Land Rover a diversified portfolio of commercial, passenger, and luxury vehicles. Part of aspires to become the creator of the world's most desirable, luxury the multi-national conglomerate, the Tata Group, we have operations in India, vehicles and services for the most discerning of customers. the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries, associate companies and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea. COUNTRIES OF OPERATION MARKET CAPITALISATION* CUSTOMER TOUCHPOINTS 125+ US$ 14.60 BN 8,800+ Tata Motors Limited Tata Motors Limited (TML) is one of India’s biggest automobile manufacturing companies with an extensive range of integrated, smart and e-mobility solutions in its portfolio. TML's strong presence over years is heralded by its ability to offer quality products by connecting customer aspirations with innovative mobility solutions. Mission Other subsidiaries Revenue mix FY 21 (%) 1.8 0.1 We innovate mobility solutions with TATA MOTORS FINANCE* TATA DAEWOO & TATA TECHNOLOGIES 13.3 LIMITED* passion to enhance the quality of life Tata Motors Finance Limited (TMFL) and Tata Motors Finance Solutions Limited (TMFSL) Tata Daewoo Commercial Vehicles (TDCV) 6.8 are Non-Banking Financial Companies and Tata Technologies Limited (TTL) are (NBFCs). They are the subsidiaries of TMF some of the key subsidiaries of Tata Motors Vision Values Holdings Limited (TMFHL). TMFHL is a 100% Group. TDCV is Korea’s second-largest truck subsidiary of TML and a Core Investment maker, exporting to more than 60 countries By FY 24, we will become the most Company (CIC). TMFL facilitates new vehicle across the world. Tata Technologies Limited aspirational Indian auto brand, financing. TMFSL undertakes the dealer/ is a leading company in engineering services vendor financing business and the used outsourcing and product development IT 78.0 consistently winning, by vehicle refinance/repurchase business. services, providing a competitive edge to INTEGRITY ACCOUNTABILITY EXCELLENCE global manufacturers. − delivering superior financial returns Tata and other brand vehicles - CV *The Integrated Report does not include information on these subsidiaries explicitly, except for the Tata and other brand vehicles - PV − driving sustainable mobility solutions consolidated financial figures of the Tata Motors Group. Jaguar Land Rover − exceeding customer expectations, and TMFL Others − creating a highly engaged work force TEAMWORK CUSTOMER SPEED FOCUS *as on March 31, 2021 4 | 76th Integrated Annual Report 2020-21 Resilience and Rebound | 5 Integrated Report (1-67) Statutory Reports (68-173) Financial Statements (174-371) Our Presence 3 2 Europe China Driving Change 02 76,606 Manufacturing Vehicles Sold 01 112,424* facilities Joint Vehicles Sold Across Geographies 01 Manufacturing R&D/engineering and facility design centres C 44,687 CR C 34,045 CR Revenue Revenue * including CJLR 4 4 UK 3 05 81,500 5 Manufacturing Vehicles Sold facilities 03 2 R&D/engineering and design centres 1 C 37,24 4 CR Revenue 5 1 India North America 10 465,734 Manufacturing Vehicles Sold 01 93,759 facilities R&D engineering Vehicles Sold and design 02 centres R&D/engineering and design centres C 46,947