International Business

Tata Motors - JLR

Group 8

Introduction
Tata Had Completed biggest buy-out in the automobile on June 2, 2008 for US$ 2.3 Billion , it bought the ownership of two Luxury Brands Jaguar and Land Rover The Deal Included: 1.Purchase of JLRs Manufacturing plants 2.Two advanced design centres in the UK 3.Licenses of all necessary intellectual Property rights Currently, Jaguar Land Rover Automotive PLC Revenue: $ 24.7 billion Op Income: $ 3.76 billion

International Business

Tata Motors- JLR

Strategic Reasons Global Diversification Entry into World Premier Segment Long Term Strategy Cost Synergy Technology Global Recognition Import to Domestic
Reduces the companys dependence on Indian Market (90% of its sales) Land Rover - Premier 4 wheel drive Jaguar - Luxury and sports cars Consolidating in domestic market and global expansion by acquisitions and collaborations Tata Motors, TCS & Corus (supplier high grade steel) to JLR and US & European Auto Cos Two Advanced Design Studios and latest Technology

Recognition and Credibility

Bring Technology, Brands and Products to India

International Business

Tata Motors- JLR

Synergies: What JLR brought on the table!

Vehicle assembly at 3 UK locations All products designed and engineered in the UK UKs largest investor in automotive R&D and a major employer (25,000) and exporter (11 billion pounds a year) Announced plans to establish new manufacturing / assembly facilities in China by 2015

International Business

Tata Motors- JLR

Synergies: What Tata brought on the table!

3rd largest bus manufacturer (>8t) in the world by sales volume in 2009; 4th largest truck manufacturer (>8t) in the world by sales volume in 2009; 3rd largest manufacturer in the passenger car market in India by sales volume in 2010 (more than 55% of market share by volume in commercial vehicles) Comprehensive engineering and product development capabilities in India Manufacturing footprint in India, South Africa, South Korea, Spain, Thailand and UK Acquired commercial vehicle business of Daewoo in 2004 Acquired Jaguar Land Rover from Ford in June 2008 for a consideration of $2.5bn Represents approximately two-thirds of TMLs revenues Chairman, Vice-Chairman and CEO of TML sit on Jaguar Land Rovers board of directors; TML and Tata Group have supported JLR during the downturn Access to a wider pool of financing banks and sources of funding as part of TML; Access to long-established operational and sales expertise of TML in India Since April 2011, Freelander vehicle kits have been assembled by TML in a complete knock down facility in India

Tata Motors

Acquisitions (including JLR) A core subsidiary of TML

Synergies

International Business

Tata Motors- JLR

What Followed
February 2010: Tata secures a 340million loan from the EIB May 2011: Tata announces 5b five year investment programme in JLR - focused on new product development & new equipment at JLR three UK plants + investment in a planned factory in China JLR to link closer with Tata Steel to provide new lightweight steel alloys for new car models February 2012: Soaring sales of Jaguar and Land Rover cars have helped Indian firm Tata Motors to a huge rise in profits (up 41% on 2010). JLR arm saw sales rise 37% March 2012: JLR and Chery Automobile agree a joint venture Goes to work on F-Type April 2013: Launch of F type

International Business

Tata Motors- JLR

International Business

Tata Motors- JLR