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Acquisitionof Jaguar & Land Rover

BYTata Motors

A presentation By

Dileep pandey MBA-IInd semester

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Tata Motors Limited

Founded 1945

Founder(s) JRD Tata Headquarters Mumbai , India

Key people Ratan Tata , Chairman

Products Automobiles and Engines

Revenue

INR Rs. 74151 Crs (2009)

Net income INR Rs. 2505 Crs (2009)

Parent Tata Group

Subsidiaries

Jaguar Cars Land Rover

Tata Daewoo Commercial Vehicle Hispano Carrocera Rover Daimler Lanchester

Website TataMotors.com

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Tata Motors Limited is a multinational corporation headquartered inMumbai , India . Part of the Tata Group , it was formerly known asTELCO (TATA Engineering and Locomotive Company).

It is India's largest company in the automobile and commercialvehicle sector, and a midsized player on the world market

Tata Motors is a dual-listed company traded on both the NationalStock Exchange (where it is a component of the Sensex index), aswell as on the New York Stock Exchange . (history )

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Jaguar Cars Limited

Type Private Limited Company

Founded 4 September 1922(as Swallow Sidecar Company )

Founder(s) Sir William Lyons

Headquarters Coventry , England

Key people

Ratan Tata , ChairmanDavid Smith, CEOMike O'Driscoll, ManagingDirector

Industry Automotive

Products Automobiles

Owner(s) Tata Motors, Ltd.

Employees 10,000 [1]

Website Jaguar.com

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Jaguar Cars Ltd. , better known simply as Jaguar , is a British luxury car manufacturer, headquartered in Coventry , England .

Jaguar was founded as the Swallow Sidecar Company by Sir William Lyons in 1922, originally making motorcycle sidecars before switching to passenger cars.

The name was changed to Jaguar after World War II due to theunfavourable connotations of the SS initials.

Jaguar cars are designed in an engineering centre at their headquarters in Coventry , England and are manufactured inone of three English Jaguar plants; Castle Bromwich inBirmingham , Halewood near Liverpool and Gaydon inOxfordshire .(history )

http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Coventryhttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/Swallow_Sidecar_Companyhttp://en.wikipedia.org/wiki/William_Lyonshttp://en.wikipedia.org/wiki/William_Lyonshttp://en.wikipedia.org/wiki/Sidecarhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Coventryhttp://en.wikipedia.org/wiki/Castle_Bromwich_Assemblyhttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/Halewoodhttp://en.wikipedia.org/wiki/Liverpoolhttp://en.wikipedia.org/wiki/Gaydonhttp://en.wikipedia.org/wiki/Oxfordshirehttp://localhost/var/www/apps/conversion/current/tmp/Desktop/CBS/History%20of%20jaguar.dochttp://localhost/var/www/apps/conversion/current/tmp/Desktop/CBS/History%20of%20jaguar.dochttp://en.wikipedia.org/wiki/Oxfordshirehttp://en.wikipedia.org/wiki/Gaydonhttp://en.wikipedia.org/wiki/Liverpoolhttp://en.wikipedia.org/wiki/Halewoodhttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/Castle_Bromwich_Assemblyhttp://en.wikipedia.org/wiki/Castle_Bromwich_Assemblyhttp://en.wikipedia.org/wiki/Castle_Bromwich_Assemblyhttp://en.wikipedia.org/wiki/Coventryhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Sidecarhttp://en.wikipedia.org/wiki/William_Lyonshttp://en.wikipedia.org/wiki/William_Lyonshttp://en.wikipedia.org/wiki/William_Lyonshttp://en.wikipedia.org/wiki/William_Lyonshttp://en.wikipedia.org/wiki/William_Lyonshttp://en.wikipedia.org/wiki/Swallow_Sidecar_Companyhttp://en.wikipedia.org/wiki/Swallow_Sidecar_Companyhttp://en.wikipedia.org/wiki/Swallow_Sidecar_Companyhttp://en.wikipedia.org/wiki/Swallow_Sidecar_Companyhttp://en.wikipedia.org/wiki/Swallow_Sidecar_Companyhttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/Coventryhttp://en.wikipedia.org/wiki/United_Kingdom

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Leading News

On 1 January 2008, Ford made a formalannouncement which declared Tata as thepreferred bidder .

It is now official that ford has handed over the rights to both brand to TATAMOTORS.

Tata motors has eventually paid USD 2.3billion in cash while ford has contributedUSD 600 million to the jaguar Land rover pension plan

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On 1 January 2008, Ford made a formal announcementwhich declared Tata as the preferred bidder .

Tata Motors also received endorsements from the Transport And General Worker's Union (TGWU)- Amicus combine aswell as from Ford.

According to the rules of the auction process, thisannouncement would not automatically disqualify any other potential suitor.

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However, Ford (as well as representatives of Unite ) would nowbe able to enter into more focused and detailed discussionswith Tata to iron out issues ranging from labour concerns (jobsecurity and pensions), technology (IT systems and engineproduction) and intellectual property, as well as the final saleprice.

Ford would also open its books for a more comprehensive duediligence by Tata.

On 18 March 2008, Reuters reported that American bankersCitigroup and JP Morgan shall be underwriting a loan of USD 3billion in order to finance the deal. [24]

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Challenges

JLRs acquisition appeared negative for tatamotors, as it had increased the earningsvolatility, given the difficult economic

condition in the key markets of JLRincluding the US and EuropeTata motors had to incur a huge capital

expenditure as it planned to investanother US$ 2.3 billion it had spent on theacquisition

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Tata motors was interested in acquiringJLR as it would reduce the companydependence on the Indian market whichaccounted for 90% of its sales.

The company was of the view thatacquisition would provide it with theopportunity to spread its business acrossdifferent customer segment.

Benefit of this acquisition

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Exhibits of this acquisition International acquisition by Tata group Assets and liabilities jaguar and land

rover

Jaguar and land rover worldwide sales Jaguar and land rover financial

performance

Tata motors stock market charts Jaguar and land rover new products pipe

line

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