TATA MOTORS’

ACQUISITION OF JAGUAR
AND LAND ROVER

IBS Kochi
Group-1
Anurag Gupta
Chandan
Jobin
Lini
Ritesh
 Introduction
 Jaguar and Land Rover(JLR) - Brand
owned by US based Ford Motors’
Premier Automotive Group.
 Ford bought Jaguar from British Leyland
Limited for US$2.5 bn in 1989.
 Ford bought the Land Rover from BMW for
US$2.7 bn in 2000.
 Tata Motors Acquired JLR on June 02, 2008
for US$2.3 bn.
THE REASONS FOR
TATA JAGUAR DEAL
EXPERTS BELIEVE THAT:
Ø researching on and developing a luxury
car without necessary technical know-
how would have taken the company
three to five years, so this deal will help
the Tata to enter into luxury car market
easily without much cost.
Ø At the price staring from 63 lakh and
going upto 93 lakh, it seems Tata has
just got the right place to compete with
the current market leaders – BMW,
Audi, Mercedes
 Ø It is going to give Tata Motors publicity on
an international scale, and will place
the company among the world’s top
automobile companies
Ø In 1999, Mr. Ratan Tata has said they
were interested in the Ford luxury
brands to reduce dependence on the
Indian market and for a more global
presence.
Ø To overcome the competition from
Mahindra & Mahindra who is an
international player in automotive
industry

DRAWBACKS:
q Firstly, they eat up the country’s precious
foreign reserve. Paying almost $3
billion to Ford will lower the
government’s reserve by quite a few
notches.
q Tata plans not to change the current
employee structure at Land Rover and
Jaguar, meaning the country’s
employment rate does not get any
assistance from this deal.
TATA LAUCHED NEW MODELS
IN:
JAGUAR
 LAND ROVER


vXF Sedan vDiscovery 3

vConvertible vRanger Rover
XKR Sport
vSport XFR vRange Rover
(Rs.63- Rs.92 (Rs.63- Rs.89

Lakhs) Lakhs)
 WHY JAGUAR……..
§ Long term strategic commitment to
automative sector.
§ Opportunity to participate in fast growing
auto segments.
§ Increased business diversity across markets
and products.
§ Jaguar provides a range of performance
/luxury vehicle to broaden the brand
portfolio.
 Economical Factors
 India’s huge geographic spread
 Increasing road development
 Higher GDP growth
 Increasing per Capita Income
 Cheaper and easier finance scheme’s



 Political and government
factors affecting the deal………
ü As Tata motors is a part of large
conglomerate company its need to have
a strong corporate governance .
ü Tata motors needs to pay close attention to
the political climate but also law and
regulation in all countries were its
operate .
ü Law governing commerce ,trade, growth
and investment are dependent on local
govt. as well as how successful local
markets and economies will be due to
regional,national&local influence.
 Continued………
 The norms for the foreign investment and
import of technology have been
progressively liberalized ,in order to make
this sector globally competitive.
 100%foreign direct investment is
permissiable under automative route in
this sector.
 The company is also subjected to extensive
government regulation regarding vehicle
emission level,noise,safety,and levels of
pollution.
 The proposed tightening of vehicle emission
regulation will require significant cost for
the company.
 Strong political motivation for the
globalization.
 Strong reputation and trust .
 Adaptive legislative framework.
 The wave of liberalization has also given a
new dimension to globalization.
 The agreement has been an important step
in helping Tata motors to gain very quick
access to a fairly large market and a large
distribution network.

 Strategies Made
 Presentation to union representatives
assuring that no unit will be shutdown,
no employee will be sacked and
additional employees will be appointed
in 2-3 years.
 Impact of Corus steel deal and after deal
growth.
 Executives were also welcomed and
brand name was also not changed.
After Acquisition Benefits
 Strong R & D culture and facilities.
 Strong tie-ups with western technology
companies.
 Adaptive to new technologies
 JLR’s services and Distribution network in UK and
other countries
 Compete from both the ends- lower end-
Nano(US$2500) and upper end Jaguar
XF(US$64000)
 Reduce companies dependence on Indian
market(90%)
 Component sourcing, engineering and design
benefits
 Both JLR had many new models lined up for next
 Challenges
 Additional expenditure of US$1 bn.
 Global slow down
 European Commission’s rules like CO2
emission limit range
 Parts and engine technology
 Establishment of Tata as premium car
brand in European countries.
 Leaders


 "No institution can possibly survive if it

needs geniuses or supermen to
manage it. It must be organized in such
a way as to be able to get along under
a leadership composed of average
human beings."— Peter Drucker
 Vision
 Tata Motors' transformation from an
India-centric truck maker to a
global auto company is a
remarkable story of visionary
leadership, determination and
thinking big.



 Mr. Ravi Kant
 B.E from IIT, Kharagpur
 MS from University of Aston, Birmingham, UK.
 Prior with Philips India Ltd as director Consumers
Electronics business
 prior to which with LML Limited as senior
executive director (marketing)
 Titan Watches Limited as vice president (sales &
marketing).
 Mr. Kant was also employed with Kinetic
Engineering Limited and Hawkins Cookers
Limited.
 Appointed as MD in 2005
 Now non executive vice-chairman of Tata Motor.
 "Effective leadership is not about making
speeches or being liked; leadership is
defined by results not attributes"
- Peter Drucker
 Mr. Ratan Naval Tata
 Ratan Tata completed a Bsc degree
in engineering with structural
engineering from cornel university in
1962.
 Done Advanced management program
form Harvard business school.
 Joined Tata Group in 1962 after turning
job with IBM on the advice of JRD Tata.
 First sent to Tata steel in Jamshedpur to
work on floor shop with blue collar
worker.
 1991 became group chairman.
 “Good business leaders create a vision,
articulate the vision, passionately own
the vision, and relentlessly drive it to
completion.”- Jack Welch

 Future
 Indian Automobile
market is expected
to grow at a CAGR of
9.5% amounting to
13008 million by
2010.
 The liberalization policy
followed by
government inviting
foreign investor and
manufacturer.
 It is expected that by
2010 the Indian car
market will be the
3rd largest car
market across globe.