Acquisition

of
Jaguar & Land Rover
BY
Tata Motors

A presentation
By
Dileep pandey
MBA-IInd semeste
 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
• Tata Motors Limited is a multinational corporation headquartered
in Mumbai, India. Part of the Tata Group, it was formerly known as
TELCO (TATA Engineering and Locomotive Company).

• It is India's largest company in the automobile and

commercial vehicle sector, and a midsized player on the world
market

• Tata Motors is a dual-listed company traded on both the

National Stock Exchange(where it is a component of the Sensex
index), as well as on the New York Stock Exchange. (history)
 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, Chairman
David Smith, CEO
Mike O'Driscoll, Managing
Director
Industry Automotive
Products Automobiles
Owner(s) Tata Motors, Ltd.
Employees 10,000[1]
Website Jaguar.com
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 the
unfavourable connotations of the SS initials.

Jaguar cars are designed in an engineering centre at their

headquarters in Coventry, England and are manufactured in
one of three English Jaguar plants; Castle Bromwich in
Birmingham, Halewood near Liverpool and Gaydon in
Oxfordshire.(history)
 Leading News
• On 1 January 2008, Ford made a formal
announcement which declared Tata as the
preferred bidder.
• It is now official that ford has handed over the
rights to both brand to TATA MOTORS.
• Tata motors has eventually paid USD 2.3 billion
in cash while ford has contributed USD 600
million to the jaguar Land rover pension plan
On 1 January 2008, Ford made a formal announcement
which declared Tata as the preferred bidder.

Tata Motors also received endorsements from the Transport

And General Worker's Union (TGWU)-Amicus combine as
well as from Ford.

According to the rules of the auction process, this

announcement would not automatically disqualify any other
potential suitor.
However, Ford (as well as representatives of Unite) would now
be able to enter into more focused and detailed discussions
with Tata to iron out issues ranging from labour concerns (job
security and pensions), technology (IT systems and engine
production) and intellectual property, as well as the final sale
price.

Ford would also open its books for a more comprehensive

due diligence by Tata.

On 18 March 2008, Reuters reported that American bankers

Citigroup and JP Morgan shall be underwriting a loan of USD 3
billion in order to finance the deal.[24]
 Challenges…
JLR’s acquisition appeared negative for tata
motors, as it had increased the earnings
volatility, given the difficult economic
condition in the key markets of JLR
including the US and Europe
Tata motors had to incur a huge capital
expenditure as it planned to invest
another US$ 2.3 billion it had spent on the
acquisition
 Benefit of this acquisition
• Tata motors was interested in acquiring
JLR as it would reduce the company
dependence on the Indian market which
accounted for 90% of its sales.
• The company was of the view that
acquisition would provide it with the
opportunity to spread its business across
different customer segment.
 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