TATA -JAGUAR -LAND ROVER

DEAL

TATA MOTORS
 India's largest passenger automobile and commercial vehicle.  Tata Motors was established in 1945  It is the 5th largest medium and heavy commercial vehicle manufacturer in the world. listed in BSE, NSE & NYSE.

LAND ROVER
 Founded in 1948 as a marquee of the Rover Company.  Known for superior off-road performance, Used by military for projects and expeditions, Safe but less reliable.  In 1994 Rover Group is taken over by BMW & sold to FORD MOTORS for $2.75 bn in 2000.

JAGUAR
 1922 - Founded in Blackpool as Swallow Sidecar company.  1990 - Taken over by Ford.

THE DEAL PROCESS

 12/06/2007- Announcement from Ford that it plans to sell Land Rover and Jaguar.  August 2007 - Major bidders are identified: Tata Motors, M&M, Cerberus Capital Management, TPG Capital, Apollo Management  03/01/2008 Ford announces Tata s as the preferred bidders and sells it to them on 26/03/2008  02/06/2008 The acquisition is complete.

FUNDING STRUCTURE
3 simultaneous but unlinked Rights Issues of about Rs.72bn ($1,800mn) of the following securities:    Equity shares upto Rs.22bn ($550mn) A Equity shares carrying differential voting rights upto Rs.20bn ($500mn) 5 year 0.5% Convertible Preference Shares (CCPs) upto Rs.30bn, optionally convertible into A Equity Shares after 3 years but before 5 years from the date of allotment (upto $750mn)

THE TURN AROUND

100-fold jump in profit in the three months to 30 September. Debt-to-equity ratio was down to 1.6 times at the consolidated level from 4.5 times at the end of 31 December 2009. Cash management: Manage liquidity with the assistance of KPMG was put in place. The workforce trimmed at JLR by 11000. Team of young managers, reviews daily.

SWOT
Strengths: Tatas strong management capability Strong monetary base to invest Weaknesses: Jaguars declining sales record Inexperience of handling such luxury brands

Opportunities:

Tata s Jaguar Land Rover Acquisition

Threats: Market is volatile and driven by new products Strong presence of competitors like Mercedes, BMW, Lexus and Infinity

Support from Ford in terms of Technology, Engine, IT, Accounting Adding up of luxury brands in the product line Access to European Market

THANK YOU
Nupur Midha Pooja Bhadkamkar Shivani Srivastava Shruti Mehta Varun Goel 11BSP0652 11BSP0693 11BSP0950 11BSP0965 11BSP1105