The all-cash deal, which was agreed in March, includes all necessary intellectual property rights, manufacturing plants,

two advanced design centers in the UK and a worldwide network of sales companies, Tata Motors said in a statement. The brands were bought from Ford Motor Co (F.N), which has contributed about $600 million to the Jaguar and Land Rover pension plans, and long-term agreements have been entered into for the supply of engines, stampings and other components. "Jaguar and Land Rover are two iconic British brands (and) will retain their distinctive identities and continue to pursue their respective business plans as before," Chairman Ratan Tata said in the statement. "We recognize the significant improvement in the performance of the two brands and look forward to this trend continuing in the coming years." David Smith, the acting chief executive of Jaguar and Land Rover, will be the new chief executive. Tata Motors last week said it would raise up to $1.7 billion from three rights issues to help fund the acquisition. On completion of these issues, it would also raise a further $500-$600 million from an overseas equity issues. The company is scheduled to start selling the Nano, the world's cheapest car priced at just above $2,500, in India later this year. TRANSITION SUPPORT Other areas of transition support from Ford include IT, accounting and access to test facilities. The companies will also cooperate in areas such as design and development through sharing of platforms and joint development of hybrid technologies and powertrain engineering, Tata Motors said. The Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers for a period, and Tata Motors said it was in advanced negotiations with auto finance providers in the UK, Europe and the United States. Tata Motors, India's top bus and truck maker and No. 3 car maker, has sought to expand its presence in the global markets through alliances and acquisitions in recent years. It bought South Korea's Daewoo Commercial Vehicles in 2004, and has a minority stake in Spanish bus maker Hispano Carrocera. It also has ventures with Thailand's Thonburi for pick-up trucks, and with Italy's Fiat (FIA.MI) for manufacturing, distribution and technology, as it gears up for tougher competition at home.

About Tata Motors Tata Motors is South Asias largest automobile company; it is the leader in commercial vehicles and among the top three in passenger vehicles. Worldwide it is the world's fourth-largest truck manufacturer and second-largest bus manufacturer.[2] It has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune, India, as well as in Argentina, South Africa, Thailand and the United Kingdom. Tata Motors has produced and sold over 4 million vehicles in India since 1954.[3] Originally a manufacturer of locomotives, the company Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange and New York Stock Exchange.

About Jaguar and Land Rover The Jaguar Cars and Land Rover businesses were brought together as a single entity by Ford Motor Company in 2002.[4] Ford had acquired Jaguar Cars in 1989 and Land Rover from BMW in 2000.[5][6] In 2008 the Jaguar Land Rover company was established when Tata Motors acquired the Jaguar and Land Rover businesses from Ford.[7] In March 2011, Jaguar Land Rover announced that it would be hiring an additional 1,500 staff at its Halewood plant, and signed over 2 billion of supply contracts with UK-based companies, to enable production of its new Range Rover Evoque model.[8] [2] In September 2011, the company confirmed that it would be investing 355 million in the construction of a new engine plant at the i54 business park near Wolverhampton, central England, to manufacture a family of four-cylinder petrol and diesel engines.[9] [10] In November 2011 Jaguar Land Rover announced that it would be creating 1,000 new jobs at its Solihull plant, a 25 per cent increase in the size of the workforce at the site.[11][12]

Established in 1945 o India Indias largest automobile company and commercial vehicle s manufacturermanufacturer o First Indian automobile company to be listed on the New York Stock ExchangeYork Exchange o One of Tata Group Groups 98 operating companies s Tata Group is one of IndiaTata Indias largest conglomerates, with revenues averaging to $28 billion USD, or 3.2% of Indiarevenues Indias GDP o Falls under the Engineering Engineering section of Tata Group Groups 7 s business sectors (Engineering, Materials, Energy, Chemicals, Services, Consumer Products Ultimately Tata was looking to increase its profitability by taking increase this opportunity to globally expand its automotive reaches into the luxury market. Buying JLR was a horizontal acquisition, since it purchased another company in the automotive market. JLR Acquisition may even be a conglomerate acquisition from perspective of Tata Group, since it adds to the Group, diversified products and services Tata Group offers and Group produces. The next step for TataTataMotors is to continue

SWOT Opportunities: Rising appetite for luxury automobiles in growing markets like India and ChinaEstablished European brands available at affordable investmentSupport from Jaguar in Technology, Engine, IT, AccountingComplete product line with addition of luxury brandsAccess to European and American Market Threats: Volatility in market driven by new productsStrong presence of competitors like Mercedes, BMW, Lexus and Infinity Receding sales and brand imageDownturn making Investment riskier and costlier90% of TAMO revenues comes from one market aloneIndia Strengths:Tatas strong management capabilityStrong monetary base to investSynergy due to Corus, TACO and TCSExperience in growing market like IndiaNew product development and brand building experienceJLR would give TAMO an in-house R&D

and designing capabilitiesBetter utilization of cash reserves available with TAMOReduce production cost of JLR by synergizing better with other TATA cos like Corus Acquisitions like JLR will help TAMO in competing with brands like Merc. etc.Proven Management and brand building capabilities would facilitate faster JLR turnaroundStrong financial muscle will help TAMO to invest in R&D and produce new better productsImprove risk profile of TAMO with diversification in different markets Weaknesses:Inexperience in Handling luxury automobile brandInexperience in turning around loss making companyR & D and designing capabilitiesJLR experience and designing capability would help TAMO in improving their existing products in Indian markets.JLRs strong brand image will ease acceptance of TAMO in international marketsKeeping the existing management team of JLR make turning around easier Leverage experience gained with Tetley and Corus in allaying market apprehensions about acquisitionMake Jaguar design center as their global design HQUse Jaguar channel to distribute TAMO brands without merging the brands Deutsche Equities India Pvt Ltd 11 April 2008 Tata Motors: Acquisition of Jaguar & Land Rover What lies ahead: Digging deeper for answers All prices are those current at the end of the previous trading session unless otherwise indicated. Prices are sourced from local exchanges via Reuters, Bloomberg and other vendors. Data is sourced from Deutsche Bank and subject companies. Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Independent, third-party research (IR) on certain companies covered by DBSI's research is available to customers of DBSI in the United States at no cost. Deutsche Bank AG TAMO. BO ( BUY, TP Rs 920): We remain +ve at current valuations WHY Tata Motors (TAMO) bought Jaguar & Land Rover (JLR) Its purchase of JLR is part of Tata Groups ongoing strategy of internationalisation. WHERE could this lead to? TAMO can leverage group-wide competencies in various companies such as TACO, TCS, Corus & Tata Technologies to manage JLR HOW will it impact TAMOs financials? Headline Debt/Equity increases to 2x, interest coverage at 5x remains reasonable. Consolidation of vehicle finance biz skews leverage We estimate proforma PBT to fall by 5-10% in FY09E WHAT are the current valuations? At Proforma EV/Sales of 0.5x & P/E of 6.5, TAMO is trading inline to a modest discount to global peers TAMOs funding options It holds $400m of Tata Steel. Further stake sales/demerger of vehicle finance biz are among the options available Srinivas Rao 11 April 2008