Tata - Jaguar - Land Rover Deal: Presented By: Swati Chaudhry

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TATA -JAGUAR -LAND ROVER DEAL

Presented by:
Swati Chaudhry
Introduction

• Location: Mumbai, • Location: Dearborn, Michigan


Founded: 1903 by Henry Ford
India (HQ) •

• Competitors: General Motors,


• Founded: J R D Tata in Toyota
1945 • Brand names: Volvo, Mazda,
Jaguar and Land Rover
• Competitors: Maruti, • CEO: Alan Mulally
M&M, Ashok Leyland
• Brand names: NANO,
Starbus
• CEO: Ratan Tata
Why did Ford sell?
 Reports said, losses at Jaguar stood at US$ 715 million in 2006.

 Even though LR made 18% profit, nevertheless it is not


what Ford wanted.

 Bringing down production costs and turning around the


company successfully-challenge for Ford.

 Ford made the heaviest loss in 2006 i.e. $12.6 billion in


its 103-year history.
Why did Tatas acquire JLR?
 Long term strategic commitment to automotive
sector.

 Opportunity to participate in two fast growing


auto segments.

 Land rover provides a best option for Tata


Motors SUV segment.

 Tata can broaden the brand portfolio by Jaguar,


that offers a range of Luxury cars
Tata Motors– JLR Deal Process

12/06/2007- Announcement from Ford that it plans to sell


Land Rover and Jaguar.

August 2007 - Major bidders were identified.


Tata Motors
M&M
Ceribrus capital Management
TPG Capital
Apollo Management
Key Points…
 The deal finalised for $2.3 billion.

 TAMO gets access to manufacturing plants in UK, all intellectual property


rights, 2 advanced design centers in UK and worldwide network of National
Sales Companies.

 Contribution of $600 million by Ford to JLR pension plans.

 David Smith, the acting CEO of JLR, will continue his position.
NEW IDENTITY
TATA’s “JaGuar and LandRover” ……
Result..
• JLR posts $60m profit
with Jaguar volumes up
by 11.5% after strong
demand for its XF model.

• Tata Motors reports a net


profit of Rs. 400.14
crores in December 2009
quarter.
Thank You!!!

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