Dissertation Report

On

“Strategic fit in merger and acquisition ' a case study of jlr and Tata motors'.”

A report submitted in partial fulfillment of the requirement for the

Master of Business Administration course

(2018-2021)

By

Kirti Sabran

A35101919003

Under the guidance of

Ms. Mansi Shah

Amity university Jharkhand

 DECLARATION

I hear by the matter in project report entitled “Strategic fit in merger and acquisition ' a case
study of jlr and Tata motors'.”submitted to MS. Mansi shah, Amity School Of Business,
Amity University, Jharkhand is a bonafide and genuine project under the guidance of MS.Mansi
Shah.

The work done in this report is original and has not been submitted earlier for the award of any
degree, diploma or fellowship of any other university or institution.

Date –

Name – Kirti Sabran

Enrolment No.- A35101919003

 CERTIFICATE

This is to certify that the report entitled“Strategic fit in merger and acquisition ' a case study
of jlr and Tata motors'.” is a bonafide work carried out by Kirti Sabran which is submitted in
partial fulfillment for the award of the degree of “Master Of Business Administration” in the
Amity University, Jharkhand.

Date –

Place Ranchi, Jharkhand

Assistant Prof. – MS. Mansi Shah

 ACKNOWLEDGEMENT

The satisfaction that accompanies that the successful completion of any task would be
incomplete without the mention of people whose ceaseless cooperation made it possible, whose
constant guidance and encouragement crown all efforts with success. I would like to thank MS.
Mansi Shah, And Amity University for giving me the opportunity to undertake this project. I
would like to thank my faculty guide who is the biggest driving force behind my successful
completion of the project. He has always been there to solve any query of mine and also guided
me in the right direction regarding the project. Without his help and inspiration, I would not have
been able to complete the project. Also, I would like to thank my batch mates who helped me
and gave ideas and motivation at each step.
 TABLE OF CONTENT

SL.NO. TITLE PAGE NO.

I. Declaration
II. Certificate
III. Acknowledgement

 Table of content

Abstract 3

1. Introduction
1.1 Company profile
1.2 Importance of the study
1.3 Merger 4 – 12
1.4 Acquisitions
1.5 Objective of the study
1.6 Limitation of the study
1.7 Literature review

2. Research Methodology
2.1Research Design 13
2.2 Data Collection

3. Case study
3.1 Introduction
3.2 Reason
3.3 Issue during Acquisitions 14 – 16
3.4 SWOT Analysis

4 Trend Analysis 17 – 20

5 Finding
Key sources of revenue for Tata motors 21 – 27
Pre Acquisition
Post Acquisition
Current Acquisition

4. Recommendations 28 – 29

5. Conclusion 30

6. Reference 31

Abstract

2
In the period of rivalry organizations are searching abroad for securing targets or Merger
accomplices to help them meet their development goals. Mergers and acquisitions for the most
part include some degree of groundbreaking changes. Effective post-Merger coordination
consistently requests huge change with respect to both the securing and the gained association.
Previously, Mergers and acquisitions (contracted M&A) much of the time prompted baffling
outcomes as diminished investor esteem. Anyway the situation has changed now, the present
arrangements are getting a charge out of better progress. The exploration is pointed toward
contemplating the effect of securing Of Jaguar& Land Rover on Tata Motors (procuring firm) by
analyzing pre-Merger and post-Merger fiscal reports. It additionally portrays the conduct of
stock Merger when obtaining. The examination discoveries demonstrate that it is supporting our
theory that M and A has decidedly affected Tata Motors as far as its corporate exhibitions and
stock costs conduct.

Keywords : Merger and Acquisition, corporate execution, stock cost.

1.Introduction

3
1.1Company profile

Established by Jamsetji Tata in 1868, the Tata bunch is a worldwide endeavor, settled in India,
including 30 organizations across 10 verticals. The gathering works in excess of 100 nations
across six mainlands, with a mission 'To improve the personal satisfaction of the networks we
serve worldwide, through long haul partner esteem creation dependent on Leadership with Trust'.
Tata Sons is the primary speculation holding organization and advertiser of Tata organizations.
Sixtysix percent of the value share capital of Tata Sons is held by generous trusts, which support
schooling, wellbeing, occupation age and workmanship and culture. In 2017-18, the income of
Tata organizations, taken together, was $110.7 billion. These organizations on the whole utilize
more than 700,000 individuals. Each Tata organization or venture works freely under the
direction and management of its own top managerial staff. There are 28 openly recorded Tata
ventures with a joined market capitalisation of about $145.3 billion (as on March 31, 2018).
Organizations incorporate
The two notable brands of Jaguar Land Rover are Jaguar, with a scope of extravagance cars,
sports vehicles and extravagance execution SUVs, and Land Rover, including an arrangement of
premium off-road vehicles.

The organization has head car fabricating offices in the United Kingdom at Solihull, Castle
Bromwich, Halewood, Gaydon, the Engine Manufacturing Center at Wolverhampton, and base
camp at Whitley. The organization additionally has an assembling impression in China through a
joint endeavor, an office in Nitra, Slovakia, contract fabricating in Austria and neighborhood get
together activities in Brazil and India.

JLR Land Rover finished ten years of relationship with the TATAin 2018. Around there, deals
expanded from under 200,000 units per year to in excess of 600,000 units. The organization has
set new guidelines for designing greatness, car advances and progressed plan, reflected by
different honors for its different models. The organization made a speculation of GBP 3.8 billion
in FY19 in new auto innovations, creation and R&D offices in accordance with its Autonomous,
Connected, Electric and Shared (ACES) technique. The organization is resolved to convey long
haul development through grant winning items and administrations for its clients.

1.2 Importance of the study

4
Merger and Acquisitions are not new, rather they are proceeding from the early long stretches of
history. USA, Mergers and acquisitions began in 20th century. First it occurred in USA in 1929,
in the last 50% of 1960s, in the primary portion of 1980s and again in the last 50% of 1990s.

The speed for Mergers and acquisitions action In Indian industry, gotten because of different
monetary changes presented by the Government of India since 1991, in its move towards
advancement and globalization. The Indian economy has gone through a significant change and
primary change following the monetary changes, and "size and ability" have become the focal
point of business ventures in India. Indian organizations understood the need to develop and
extend in organizations that they saw well, to confront developing rivalry; a few driving
corporate have attempted rebuilding activities to auction non-center organizations, and to make
more grounded presence in their center spaces of business premium. Mergers and acquisitions
arose as quite possibly the best strategies for such corporate rebuilding, and turned into an
indispensable piece of the drawn out business system of corporate in India. Throughout the most
recent decade, Mergers and acquisitions in the Indian business have ceaselessly expanded
regarding number of arrangements and arrangement esteem.

One in addition to one makes eleven: this condition goes for a Merger or a procurement. Mergers
and acquisitions (M&A) and corporate rebuilding are a major piece of the corporate money
world, prompts corporate development. One can see from the most recent models that Wall
Street speculation financiers mastermind M&A exchanges, which unite separate organizations to
frame bigger ones. In the event that this has not been done maybe the different organizations
may be on a similar stage. This isn't astonishing that these activities regularly make the news.
For a supervisor, overseeing chief or CEO, driving a M&A can address the feature of an entire
vocation. What's more, it is no big surprise we catch wind of so many of these exchanges; they
happen constantly. The conventional way to deal with M and A was confining to the
development of syndications. The cutting edge approach typified in the takeover guidelines is
intended to guarantee productive utilization of corporate assets and secure the premium of
minority investors.

1.3MERGER

5
The term 'Merger' isn't characterized under the Companies Act, 1956 (the 'Organizations Act'),
the Income Tax Act, 1961 (the 'ITA') or some other Indian law. Basically, a Merger is a blend of
at least two particular elements into one; the ideal impact being not simply the amassing of
resources and liabilities of the unmistakable elements, yet to accomplish a few different
advantages, for example, economies of scale, securing of front line innovations, getting access
into areas/markets with set up players and so forth By and large, in a Merger, the mergin g
substances would stop to be in presence and would converge into a solitary enduring element.

Laws in India utilize the term 'mixture' for Merger. The Income Tax Act,1961 [Section
2(1A)]defines mixture as the Merger of at least one organizations with another or the Merger of
at least two organizations to frame another organization, so that all as sets and liabilities of the
amalgamating organizations become resources and liabilities of the amalgamated organization
and investors at least nine-tenths in worth of the offers in the amalgamating organization or
organizations become investors of the amalgamated co many.

In this way, Mergers or mixtures may take two structures: -

 Merger through Absorption:- An ingestion is a mix of at least two organizations into an

'current organization'. All organizations aside from one lose their character in such a
Merger. For instance, absorption n of Tata Fertilizers Ltd (TFL) by Tata Chemicals Ltd.
(TCL). TCL, an obtaining organization (a purchaser), made due after Merger while TFL,
a procured organization (a dealer), stopped to exist. TFL moved its resources, liabilities
and offers to TCL.
 Merger through Merger:- A solidification is a mix of at least two organizations into
'another organization'. In this type of Merger, all organizations are lawfully broken up
and another element is made. Here, the obtained organization moves its resources,
liabilities and offers to the securing organization for money or trade of offers. For
instance, Merger of Hindustan Computers Ltd, Hindustan Instruments Ltd, Indian
Software Company Ltd and Indian Reprographics Ltd into a totally new organization
called HCL Ltd.

6
A central quality of Merger (either through retention or union) is that the procuring organization
(existing or new) assumes control over the responsibility for organizations and joins their tasks
with its own activities. There are three significant kinds of Mergers:-

Horizontal Mergers. Likewise alluded to as a 'level combination', this sort of Merger happens
between substances occupied with contending organizations which are at a similar phase of the
modern interaction. An even Merger makes an organization a stride nearer towards imposing
business model by wiping out a contender and setting up a more grounded presence on the
lookout. Different advantages of this type of Merger are the upsides of economies of scale and
economies of extension.

Following are the significant instances of even Mergers:

 The arrangement of Brook Bond Lipton India Ltd. through the Merger of Lipton India
and Brook Bond
 The Merger of Bank of Mathura with ICICI (Industrial Credit and Investment
Corporation of India) Bank
 The Merger of BSES (Bombay Suburban Electric Supply) Ltd. with Orissa Power Supply
Company
 The Merger of ACC (recent Associated Cement Companies Ltd.) with Damodar Cement

Vertical Mergers. Vertical Mergers allude to the blend of two substances at various phases of
the modern or creation measure. Besides, vertical joining helps an organization move towards
more prominent freedom and self - adequacy. The disadvantage of a vertical Merger includes
enormous interests in innovation to contend viably. Vertical Merger may appear as advance or in
reverse Merger.

Conglomerate Mergers. A combination Merger is a Merger between two substances in random

ventures. The chief justification an aggregate Merger is usage of monetary assets, development
of obligation capacity, and expansion in the benefit of remarkable offers by expanded influence
and profit per share, and by bringing down the normal expense of capital. A Merger with an
assorted business likewise assists the organization with foraying into fluctuated organizations

7
without causing huge beginning up costs regularly connected with another business and
furthermore cuts down the levels of their openness to chances.

1.4ACQUISITIONS

A securing or takeover is the buy by one organization of controlling interest in the offer capital,
or all or substantially the entirety of the resources and additionally liabilities, of another
organization. A takeover might be cordial or threatening, contingent upon the offerer
organization's methodology, and might be affected through arrangements between the offerer and
the greater part investors, acquisition of offers from the open market, or by making a proposal for
securing of the office’s offers to the whole assortment of investors. sort of takeover is depended
on additional some basic goals of both the gatherings.

• Hostile Takeover. A threatening takeover can occur via any of the accompanying
activities: if the board dismisses the offer, yet the bidder keeps on pursueing it or the
bidder makes the proposal without advising the board in advance.
• Leveraged Buyouts. These are a type of takeovers where the obtaining is supported
by acquired cash. Regularly the resources of the objective organization are utilized as
security for the credit. This is a typical design when acquirers wish to make huge
acquisitions without submitting a lot capital, and desire to make the gained business
administration the obligation so raised.

• Bailout Takeovers. Another type of takeover is a 'rescue takeover' in which a benefit

making organization secures a wiped out organization. This sort of takeover is
generally according to a plan of recreation/recovery with the endorsement of loan
specialist banks/monetary organizations. One of the essential intentions in a benefit
making organization to gain a debilitated/misfortune making organization is set off of
the misfortunes of the wiped out organization against the benefits of the acquirer, in
this way decreasing the expense payable by the acquirer.
• Friendly takeover. Likewise generally alluded to as 'arranged takeover', a well
disposed takeover includes a securing of the objective organization through dealings
between the current advertisers and planned financial backers.

8
1.5 Objective of the study

To develop by improving the nature of the assembling concern is essential. To improve the
effectiveness and the intensity, to develop rapidly, to acquire collaboration impact, to fulfill
requesting customers the assembling concerns and the monetary administrations industry are
following the method of consolidation and securing. The current exploration study dependent on
the accompanying destinations:

• To do perform analysis of JLR and TATA Motors before and after Acquisition
• To prepare SWOT Analysis of JLR and TATA motors
• To examine the reason behind TATA motor’s acquisition of Jaguar and Land Rover

1.6 Limitation of the study

Quite possibly the most prominent constraints of virtually all investigations on post-
consolidation execution, counting the current examination, is the utilization of various example
choice rules to accomplish a spotless example. As examined in the technique segment, this
investigation too embraced a bunch of test area rules. The overall contention set forward in the
M&A writing for the use of such rules is to decrease the effect of exogenous factors that may
conceivably frustrate the discoveries. While such example area standards upgrade the interior
legitimacy of the discoveries, the outer legitimacy of the investigation is forfeited to a degree.
While the example area rules for this investigation depended on prior investigations, we
attempted to improve the inside and the outside legitimacy through consideration of a wide scope
of arrangements as far as industry and size. We additionally felt that the example was reinforced
by barring sequential acquisitions.

Another constraint of the examination was that the interior legitimacy has been undermined to a
degree due to not having the option to join the focus proportions of the businesses contemplated.
This is one of the shortcomings of the investigation. Future examinations ought to accordingly
consolidate the focus proportion and look at with respect to what this mean for execution in the
post-consolidation years There are additionally different factors like the overall sizes of the
acquirer and target (10-1 is normal as indicated by a few huge investigations (Andrade, et al.,
2001), the obtaining experience of the acquirer (numerous previous acquisitions), the possession

9
design of both acquirer and target (public versus private), the relative pre-consolidation
execution of both firms, and the level of relatedness as far as brand/item portfolio relatedness,
dispersion relatedness and so on of the organizations engaged with the M&A arrangements
would be fascinating to inspect. Further investigations are justified to incorporate a portion of
these factors furthermore, to additional improve our comprehension of this exceptionally
unpredictable marvel.

10
1.7 Literature review

The exhibition of M and As firms has been a space of study, examination and discussion from
quite a while period. Despite generous volume of writing, this discussion about whether M and
As are abundance making or abundance decreasing occasions for the organizations that embrace
is a progressing one. A few papers distributed by researchers in the fields of monetary financial
matters, mechanical association financial matters and key administration has endeavored to
reveal insight into this point. The patterns of global venture show that the portion of M and As
altogether FDI outpouring enlisted an increment from 60% to 95% and more during 1990-2000
(United Nations, 2001). Caves(1998) finds that since the innovation, hole between a created and
a non-industrial nation is enormous, M &As also are found infusing new innovation in the
objective firm and furthermore, they help safeguard the innovation created by the obtained firm.
The Empirical examinations have shown the FDI through M and As has prompted significant
innovative redesigning (United Nations, 2000). Worldwide Mergers might be viewed as new
cross-line systems that target expanding corporate worldwide seriousness by seeking after related
expansion and by incorporating partners into the worldwide organization (Cantwell and
Santangelo, 2002). The examination by Healy and Palepu (1992) inspected the post Merger
income execution procuring and target firms. The investigation tracked down a solid positive
connection between post-Merger expansions in working income and strange stock return at
Merger declarations, showing that assumption for financial improvement clarify a huge segment
of the value upheaval of the blending firms. Cross-line M and As may emphatically affect the
market structure f a sickly firm is gained, which would have in any case been constrained out of
the market. In India, when Hindustan Lever Limited, the Indian auxiliary of the Unilever, gained
its fundamental opponent, Tata Oil Mills Company, the market for latrine cleansers and cleansers
got concentrated (Mehta, 1999). The investigation by Basant (2000) tracked down that over half
of the M and A were level while 16% were vertical in nature. The investigation by Pawaskar
(2001), including a day and a half, tracks down that the consolidating firms were at the lower end
regarding size, development, duty and liquidity of the business, and these organizations
performed better that the business as far as productivity. Manson et. al. (2000) examined 44
takeovers in the U.K. finished between January 1, 1985 and December 31, 1987, where in they
found that takeovers had prompted working additions going from 2% to 14% each year post
Merger. An investigation in the United States that likewise centered around consolidating firms

11
working execution after corporate acquisitions was by Ghosh (2001). The example comprised of
315 sets of target and procurement firms. The examination tracked down that the income of
combining firms expanded essentially by 2.4% consistently.

Simultaneously, the coordinated effort among Tata and JLR was restricted to a couple of
extraordinary cases, for example, the joint advancement of Revotron, India's first 1.2-liter
turbocharged petroleum motor. One interviewee determined that the R&D branch of Tata Motors
got contribution from JLR during the turn of events and dispatching periods of Tata's traveler
vehicles, referencing the exchange of configuration related drawings from JLR to Tata. The
R&D branch of Tata has analyzed JLR plans to explore whether they could be utilized in Tata's
traveler vehicles. Nonetheless, regardless of whether Tata has yet been impacted by any such
drawings in their own traveler vehicles or not, couldn't be checked. The investigation of the
USPTO patent shows that Ford and Jaguar mutually applied for an aggregate of 58 licenses and
Ford and Land Rover together documented 29 licenses at USPTO. Then again, under Tata's
authority, Jaguar applied for 144 USPTO licenses. Of these 46 were imparted to Land Rover and
not one was imparted to Tata

12
2.RESEARCH METHODOLOGY

2.1 Research Design:

Ex Post facto research method is utilized. Sometime later exploration as it is such an examination
plan in which the investigation begins sometime later has occurred without intercession from the
scientist. Any wonder is being considers utilizing past year information gathered, explicitly in a
state of harmony with the subject topic, to discover the relationship in them.

2.2 Data Collection:

Secondary data has been taken from yearly reports of JLR auto plc and Tata Motors.
Consistently, shutting share costs are considered in this investigation and afterward they are
found the middle value of quarterly. This addresses a more dependable information as opposed
to share cost taken of a day of the quarter or of the most recent month. All the information taken
from journal, company website, newspaper and magazine.

13
3.Case study

3.1 Introduction

In June 2008, India-based Tata Motors Ltd. declared that it had finished the procurement of the
two notable British brands - Jaguar and Land Rover (JLR) from the US-based Ford Motors for
US$ 2.3 billion. Tata Motors obtained Jaguar and Land Rover for $2.3 billion on a money free,
obligation free premise. Passage likewise commitment

$600 million JLR annuity plans. David Smith the acting CEO of JLR will proceed with his
position. After the obtaining, Tata Motors claims the world's least expensive vehicle - the $
2,500 Nano, and extravagance marquees like the Jaguar and Land Rover. In spite of the fact that
there was introductory suspicion over an Indian organization possessing the extravagance brands,
proprietorship was not viewed as a significant issue at all during this consolidation.

3.3 Reason during Acquisition

• The deals of Jaguar and Land Rover in the U.S. markets were somewhere near 25.7%
and 1.8% in May 2007.
• In U.S. what's more, Europe Jaguar deals went somewhere near 33% in 2008's initial
2 months. Land Rover deals in U.S. fell by 13% and in Europe it fell by7.7% in a
similar period.
• Jaguar lost 15.3billion dollars in the 2 years and reacted by closing down plants and
lessening the labor force in North America by in excess of 40,000 specialists.
• Tata Motors needed to have presence outside India . It wanted to have a broadened
line-up going from the world's least expensive vehicle to a portion of the more
costly. It empowered Tata's entrance into extravagance vehicle portion.
• Ford sold Jaguar and Land Rover as a bundle since the designing, buying and
dispersion of the two brands had gotten reliant as Ford had attempted to discover
efficiencies in maintaining the business.
• No different brands with so great innovative work offices were accessible to Tata at
so sensible a cost. Additionally the financial decline had influenced the vehicle
business. Tata paid 2.3 billion though Ford paid 5.2 billion for procuring JLR, which

14
 was more than twofold of what Ford paid.
• Acquiring JLR would help Tata for part sourcing, plan administrations and minimal
effort designing which would over the long haul diminish the expense of creation
and work with in expanding the reality and subsequently accomplish economies of
scale.
• Corus being the significant provider of auto high evaluation steel to JLR and other
vehicle enterprises in USA and Europe, gaining JLR would bring about an expense
cooperative energy for Tata motors.
3.4 Issues during Acquisition

Not long prior to gaining JLR, Tata had obtained Corus and also Tata motors had gone through
immense capital consumption to carry Nano into the market and henceforth financing the
procurement was a significant worry for Tata motors. Financial backers were not for the choice
of securing JLR around then , both Jaguar and Land Rover were misfortune making units and
vehicle industry by then of time was feeling the squeeze of slump, indeed Tata motors itself had
gone in for justification and conservation procedures. Financial backers accepted that the
monetary record of Tata motors was not sufficiently able to assimilate more credits. To back the
arrangement Tata motors raised a scaffold advance of 3 billion through consortium of banks
before the finish of 2009. Tata motors still couldn't seem to pay 2 billion towards the scaffold
advance, also it required extra assets and that excessively fast to keep the tasks running. Tata
motors' offer costs dropped in the market post procurement of JLR in light of the financial
backer discernment that it was not the opportune chance to put resources into that obtaining,
when Tata had as of late gone through enormous capital use in the Nano project in Singur whose
outcomes were yet to be uncovered.

3.5 SWOT Analysis

Strengths

• Tata's solid administration ability.

• Strong money related base for the
• Tata to put resources into the arrangementeaknesJaguar’s declining sales record in both U.S. and
Europe markets

15
Weaknesses:

• Jaguar’s declining sales record in both U.S. and Europe markets

Opportunities:

• Support from Ford in terms of technology, engine and accounting.

• Adding up of luxury brands in
• the product line for Tata.
• Access to the European and
• U.S. markets as well as other global markets.
Threats:

• Strong presence of competitors like BMW, Mercedes, Lexus and Infinity.

16
4. Trend Analysis

Today checks a long time since Tata Motors revitalized Jaguar Land Rover from its deteriorating
worth and decreasing marketing projections to one of the greatest and the best auto brands in the
UK.

It was on June 2, 2008 that Tata Motors procured the Jaguar Land Rover organizations from
Ford Motor Company for a net thought of US $2.3 billion (Rs 9,200 crore), as first reported on
March 26, 2008 in an all-cash exchange. Passage contributed about US $600 million to the
Jaguar Land Rover benefits plans.

JLR was procured on a money free, obligation free premise. The buy thought incorporated the
proprietorship by Jaguar and Land Rover or unending eminence free licenses of all essential
Intellectual Property Rights, producing plants, two progressed configuration focuses in the UK,
and overall organization of National Sales Companies.

This is a brief look into how Jaguar Land Rover (JLR) was changed from a 400 million pound
misfortune in 2008 to 2.6 billion pound benefit in 2015, even as the notorious British brand
brings a jump into new megatrends of charge and self-ruling portability.

The pressing factor of obtaining

With the securing, Tata Motors ended up in an obligation of Rs 21,900 crore. In FY2009, the
organization posted a deficiency of Rs 2,500 crore, which was the first misfortune for the
organization in quite a while. This came in as an unmistakable difference to the Rs 2,200 crore
benefit that it had posted in the earlier year (2008).

The securing additionally came when the Tata Group had as of late obtained the Anglo-Dutch
Steel organization Corus and Tetley Tea. While the then recently dispatched Tata Nano was
battling in posting its assessed focuses on, the UK government was considering a bailout of JLR.
With this, Tata Motor's fairly estimated worth plunged to Rs 6,503.2 crore while the stock
collided with one of its most reduced at Rs 126.45.

17
The period of restoration

The worldwide downturn in 2008 had not just confined the vehicle deals (particularly the
extravagance and the SUV fragment), however it likewise restricted the car business' admittance
to good credit from the banks. Fears began crawling into the entire extent of the securing as both
Tata and JLR obliged totally various sections in the traveler vehicle fragment. TATA and JLR
needed to at first location the way that they were totally two distinct substances with independent
fundamental worth chain and plan of action.

As the initial step, Tata Motors held the current administration structure at JLR with no burden
of Tata's administration into it. Afterward, unexpectedly, JLR got answerable for its own cash
and Tata helped them in setting up an appropriate money the board framework in the
organization.

With great sponsorship from technique advisor Roland Berger , JLR was good to go to a way of
benefit. Ten to 11 separate cross-useful groups were set up at JLR. To meet the item
advancement, innovation upgradation and capital consumption needs, Tata siphoned in around 1
billion pounds (Rs 5,728 crore at the present rate). It even raised money by selling a portion of
the stocks in Tata Steel and different gatherings of the parent organization to keep the money
streaming.

In 2010-11, deals rose forcefully on the rear of the new item dispatches and subsequently,
improved market estimation. With the accomplishment of the XJ in 2010, JLR represented the

18
greater part of Tata Motors' business in 2010. JLR's obligation to-value proportion went down to
1.6 occasions from 4.5 in 2009. JLR recorded benefit interestingly after the procurement in 2010.

Category Industry sales Nos Company sales NoS. Market share (%)
FY 13-14 FY 12-13 Growth(%) FY 13-14 FY 12-13 Growth FY13-14 FY 12-13
Micro 21,130 53,847 -60.8 21,130.0 53,847.0 60.8 100 100
Compact 786,888 794,284 -0.9 84,141 117,377 -28.3 10.7 14.8
Midsize 154,981 200,013 -22.5 2,414 7410 -67.4 1.6 3.7
Executive 18,272 23,537 -22.4 164 1,061 -84.5 0.9 4.5
Premium &
3,973 5,214 -23.8 1,430 825 73.3 36.0 15.8
Luxury
UtilityVehicle 532,963 560,892 -5.0 29,409 45,841 -35.8 5.5 8.2
Vans 118,618 123,254 -3.8 3,158 2,964 6.5 2.7 2.4
Total 2,438,502 2,557,566 -4.7 141,846 229,325 -38.1 5.8 9.0

The story up until this point

After in excess of 22 billion pounds (Rs 196,249 crore) in speculation, JLR has modified,
incorporated and extended its line-up with adaptable, shared stages and new powertrains and
restrictive innovations. Today, the notorious British brand has a headcount of in excess of 43,000
representatives.

As of late, JLR planned its own in-house petroleum and diesel motor called the 'Ingenium' which
fulfills all future worldwide emanations guidelines. It has even reported a course of events for the
charge of its whole reach. With assembling presently occurring even out of the UK, as in China,
India, Brazil, Austria and even Slovakia, it has forcefully decreased the cash and inventory
network hazard, consequently prompting gigantic money saving advantages.

In the principal quarter of 2018, JLR kept on seeing high deals in China, with an ascent of
11percent, in spite of the fact that its Europe deals diminished on the rear of the Brexit concerns.

JLR has likewise embraced the zap megatrend with the improvement of the Jaguar I-Pace and
the Range Rover PHEV. In a further lift to its future imminent, JLR had as of late exhibited a
self-sufficient vehicle that is proficient at utilizing over a wide range of landscape.

TATA Motors profited by this securing with a firsthand involvement with the advancement of
elite plans through the execution of probably the prescribed procedures from JLR. This

19
extensively expanded Tata Motors' prosperity rate with new dispatches. TATA has even marked
cases that a couple of the practices from JLR have even improved the unwavering quality of the
item without the requirement for any actual approval.

A high ranking representative at Tata Motors disclosed to Autocar Professional that the
procurement has given both the organizations the correct sort of worldwide openness, with the
specialized offices at both the organizations getting the correct sort of understanding for the
correct item.

Individual performance of Jaguar Land Rover

FY 2013-14 FY 2012-13 Growth from FY 2011-12 Growth from
Units % Units % last year Units % last year
Jaguar 79,307 18.5% 57,812 15.5% 37.2% 54,039 17.2% 7.0%
Land Rover 350,554 81.5% 314,250 84.5% 11.6% 260,394 82.8% 20.7%
Total 429,861 100.0% 372,062 100.0% 15.5% 314,433 100.0% 18.3%

5. Findings

20
 Key Sources Of Revenue For Tata Motors

TATA Motors (NYSE: TTM) announced $44.2 billion in all out incomes for 2018. There were 2
key segments of this income figure: JLR Land Rover (JLR) portion (practically 77% of complete
incomes) TATA Motors and different brands fragment (23% of absolute incomes) As we detail
beneath, we anticipate that total revenues for Tata Motors should become 2.5% to reach $45.3
billion out of 2019. We have made an intuitive dashboard, What is Tata Motors' Revenue
Breakdown and Future Outlook? Furthermore, here is more Consumer Discretionary
information.

Complete Revenue:

TATA

TATA Motors had a Total income increment of $3 billion from 2016 to 2018 while recording
$44.23 billion of income in FY 2018. The increment was driven by Tata and other brand sections
offering over 80% to the expansion. Trefis gauges the JLR to stay level for 2019 while Tata and
other brand fragment to keep pushing the development and record by and large income of $45.35
billion

Jaguar Land Rover:

JLR Land Rover reliably contributes a main part of the organization's incomes, with a normal
income portion of 78.9% over the most recent 3 years. The development has stayed level in the
previous years with a flat out increment of just $0.5 billion from 2016 to 2018. In 2019 Trefis
gauges the development to keep on leftover level as the portion will contribute about $34 billion
to income, as a no arrangement Brexit looms for the United Kingdom.

TATA and Other Brands:

This section has developed consistently over late years, and saw a leap of 23.4% in incomes for
FY 2018. The development has been moved by the quick development in units sold and a
moderate development in income per vehicle. We anticipate that the segment should proceed
with its development direction and record $11.4 billion in incomes in FY 2019 with units offered
to be around 713K and normal income at around Rs. 976K. Fare incomes have been consistent at

21
averaging around $1.4 billion through 2016 to 2018 and is relied upon to stay comparative in FY
2019. The section is additionally consistently expanding its commitment in the general income of
the organization (19.2% of Total income in 2016, to 25% of expected Total income in 2019).

TATA JLR bargain - Profit or Loss?

22
As per Morgan Stanley's report, this arrangement was a misfortune for TATA. They needed to
place in extra USD 1billion as capital consumption in JLR to go with USD 2.3 billion they had
effectively given. Sincethey were putting a colossal sum in TATA NANO project as well, it was
amounting to their expenses also. Their overall vehicle deals likewise endured a shot and
diminished by 5 %. TATA lost USD 517million in their Indian activities in March 2009 and lost
extra USD 510 million on JLR.However, if TATA had not gained JLR, they would not have had
the option to enter the extravagance carssegment and they would have lost on astonishing
innovation of JLR as well. In addition, sooner or later,global market would have ascended from
downturn and worth of JLR would have expanded.

Pre - Acquisition Analysis

Tata motors raised $3 billion, about Rs. 12000 crore t unpleasant extension advances of fifteen
months from a grip of banks including JP M R , C TIGR P, and STATE BANK OF INDIA. The
organization diagrammed plans to raise Rs. 7200 crores through right issue, continues of which
were to be utilized to part the account the JLR arrangement of Rs. 9228.75 crores. The rights
issue raised the value capital of Tata Motors by 30-35% by March 2009. The basic inquiry is
whether blending organizations do really produce adequate esteem through the misuse of
collaborations to reimburse the premium paid to secure the target firm, and to give a good re-
visitation of investors. A hugeexperimental writing on this issueexists, starting during the 1960s
and proceeding with straight up to the current day (King, et al., 2004; Tuch and O'Sullivan,
2007; Haleblian, et al., 2009).Post-consolidation execution has gotten consideration from a few
unique disciplines including Accounting, Finance, Economics, Industrial Organization and The
executives (Zollo and Singh, 2004; Zollo and Meier, 2008). The two generally normal points of
view taken by concentrates on post-consolidation execution are the investor point of view,
estimating returns dependent on share esteem, and the bookkeeping directors' point of view,
estimating working benefits. In spite of the broad volume of exploration and the assortment of
the techniques applied, the proof is amazingly blended, with a wide agreement that
consolidations and acquisitions don't add esteem (Andrade, et al., 2001; Lord, et al., 2004; Tuch
and O'Sullivan, 2007;McNamara, et al., 2008).

23
Post-Acquisition Analysis
Following the consolidation the portions of Tata Motors endured an underlying shot as the
collaborations were yet to be misused. In any case, it bobbed back after at some point and
detailed a decent edge. In spite of the fact that the Land Rover deals mellowed in certain business
sectors particularly in Europe, worldwide it expanded because of high deals volume in business
sectors like Russia and China. In June 2008 Jaguar sold 3836units in West Europe when
contrasted with 2924units sold in June 2007. It was an unmistakable 31% increment in a range of
one year. As a result of this the Indian Government followed some changed approaches which
permitted unfamiliar financial backers and producer s to take part in the Indian vehicle market.

During the quarter finished June 2010 JLR created a benefit of Rs 1613 crore. Tata motors had
never wandered into extravagance vehicle fragment procuring JLR, thus the failure in taking care
of such section hampered Tata motors' operational effectiveness for a long while.

24
During a similar period, Tata Motors Ltd homegrown deals and fare was declining strongly. Be
that as it may, even couple of years in the wake of gaining JLR till FY 2011-12, the deals were
discovered developing for Tata Motors too. In the middle of FY 2007-08 and FY 2011-12, TML
deals develop by 78% to 7.14 lac units. While that of JLR by 72% to 3.05 lac units. Yet, from
that point onward, the deals of Tata Motors declined by 89% to 0.79 lac units. What's more, that
of JLR developed by 71% to 6.04 lac units in the middle of FY 2011-12 and FY 2016-17.This
brings up a significant issue that why two unique groups under a similar administration, same
pioneer, same brand and same portion are acting only inverse to one another? One is continually
rising and other continually falling quite a long time after year. This is a difficult issue from
investor's perspective too and necessities genuine investigating of current realities.

25
Current situation

At first JLR has performed firmly after the consolidation and was gradually and consistently
reimbursing TATA's gigantic confidence in its name and notoriety.

On June 15, 2020 JLR revealed a drop in its deal figure for final quarter and monetary year
finished March 31st, 2020 because of Covid pandemic. The extravagance carmaker said the
pandemic "essentially affected" its projections for 2019-20, with final quarter retail deals down
30.9 percent and entire year deal lower 12.1 percent. Since year 2014-15, JLR is dealing with
issues and its deals is lessening all through the globe.

TATA Motors endured united final quarter total deficit of 98.94 billion rupees, as Covid
lockdown across its business sectors debilitated deals, including at JLR.Its all out deals of
traveler vehicles for monetary year 2019-20 is 38% not exactly monetary year 2018-19 and all
out deals of business vehicles is 34% less in contrast with monetary year 2018-19.Tata Motors'
misfortunes mount, with languid deals in China and Brexit adding to its burdens.

TATA Motors is assessing every one of its organizations, overhauling its ventures and working
capital and the organization has likewise dispatched stock remedy program. During the hour of
Covid pandemic, organization has laid off 1100 workers as it is zeroing in on cost cutting. JLR
bargain isn't ending up being awesome for the organization in year 2020. JLR resembles blade
that cuts both ways for Tata Motors. In the event that JLR performs well, Tata Motors procure its
benefit closer to 80% from JLR. At the point when JLR doesn't perform well, in that
circumstance the greater part of the deficiency of Tata Motors is from JLR.

Previously, the organization has dispatched not many vehicles, however they didn't perform well.
Because of this Tata Motor's endurance is getting troublesome. The organization is battling for
benefits over the most recent couple of years, truth be told the organization endured enormous
misfortunes of 28,826 crores in year 2019. Aside from misfortunes, the organization has taken
gigantic obligation approaching one lakh crore. The circumstance of the organization is horrid in
2020.

26
From: 09/27/2004To: 04/30/2021 ZOOPM: AII

50

45

40

35

30

25

20

15

2006 2008 2010 2012 2014 2016 2018 2020

10
2006 2008 2010 2012 2014 2016 2018 2020
5

27
6. RECOMENDATON

At the hour of Tata's the securing of JLR, a few outer partners stressed that Tata would move
advancements to help Tata Motors tasks in India. Vendors were concerned regardless of whether
Tata, with its experience of assembling minimal effort vehicles for the Indian market, would
have the option to deal with an extravagance vehicle brand. These concerns are steady with
perceptions in past considers (Pirson and Malhotra 2008); nerves over changes to the nation of
inception, assembling and plan area are grounded in the writing about Mergers and acquisitions
(Essoussi and Merunka 2007), yet they were especially notable for this situation, where an ease
maker from a previous province secure the "gem in the crown" of British.

The narrative and meeting confirmations recommend that there two or three new models in the
pipeline for JLR, when Tata purchased JLR from Ford. While the part of these models in Tata's
buy choice couldn't be checked, narrative proof shows that Tata expanded interest in JLR's
innovation and items after the securing, as demonstrated in the quantity of Research and
development faculty at JLR, the quantity of items dispatched or prepared to dispatch, and the
quantity of licenses conceded

Tata's choice to put £500 million in the motor assembling plant in UK has been recognized as a
component of Tata's technique to keep JLR as a British brand. The proof likewise recommends
that Tata held the U.K. as the nation of plan for JLR, while offshoring a few assembling to China
and knockdown get together to India. This paper upholds the end reached by Aiello et al. (2008),
that the nation of plan and recorded inception are more effective segments of a brand picture than
the nation of assembling

During Ford's possession, JLR utilized import organizations to sell its item in China. Nonetheless
institutional climate of such market influences firms to carry out various and a particular section
technique (Cui, 1998) to an entrance more extensive market. It is seen that JLR has set up its
own circulation network in China and it additionally utilizes dispersion channels which are
claimed by Chinese business people as free market channel methodology. See Table 9 for Tata'
and Portage association methodologies

28
In spite of its huge worldwide experience and more noteworthy worldwide scale, Ford attempted
to bring accomplishment to the Jaguar and Land Rover brands (Gomes et al. 2007). In this
manner Strach and Everett (2006) archive how the brand worth of Jaguar was consumed and
affected by Ford's mass‐ market brands. In the interim Tata addressed a lot more modest engine
vehicle maker without critical global experience and conveying the possible weaknesses of being
a ease worldwide firm situated in an arising economy (Luo and Tung 2007; Madhok and
Keyhani 2012). In any case, the monetary valuation of JLR was assessed as $14 billion in 2012
(Rapoza 2012), addressing a five-overlay increment inside the initial five years of Tata's
responsibility for. Additionally, Tata's methodology turned the procured brands to productivity
and development inside five years. In 2008, Tata obtained Jaguar Land Rover (JLR) from Ford
Motor Organization for $2.3 billion (Carty, 2008).

29
7. CONCLUSION

Tata motors choice of procurement reprimand on the ground of time of arrangement that is
changing monetary circumstance of the world. Post procurement because of lull in homegrown
and world economy request of business just as traveler vehicle diminished. Tata motors
significant income is coming from business vehicle previously securing. This procurement will
assist the organization with building up itsbrand in extravagance traveler vehicle. The chance
came to Tata motors for the procurement is additionally the consequence of monetary
downtrend. Portage was prepared to deal these two notable brand at half of its cost which is at
the hour of securing paid by Ford in 2005. Such trouble deal by Ford is a chance for Tata motors
to turn into globalize and go into premium class traveler vehicle which may impractical as from
the get-go in other case. Tata motors strength, that is their administrative capabilities alongside
experience of enormous market like India, extraordinary brand and monetary base assistance
them to take such essential choice. Fall in homegrown market request may change their system
to move to developing nations as is china likewise the essential choice taken towards the
satisfaction of vital expectation of company. Tata motors presently build up its image esteem in
world as a result of this effective obtaining and development of these two organizations

30
 7. REFERENCE

Books:

 H.R.Machiraju (2008). ”Mergers Acquisitions and takeovers” New Age International (P)
Limited, Publishers, New Delhi
 Vyuptakesh Sharan (2009). “ International Business Concept, Environment and Strategy”,
Pearson Education, New Delhi
 IM Pandey (2010), “Financial Management”, Vikas Publishing House Pvt Ltd.

Journals:

 S C Bardia,Shweta Kastiya,(2010), ”Liquidity Management and Control: A comparative study of

Torrent Pharma and Cipla”, The IUP Journal of Accounting Research and Audit practices, Vol
IX No. 3, pp. 82-88
 Anita Shukla, Mouni Geoffrey Gekara (2010),”Effects of Multinational Merger and Acquisitions
on Shareholders’ Wealth and Corporate Performance”, IUP Journal of Accounting Research and
Audit practices, Vol IX Nos. 1& 2, pp. 50-52
 K Ramakrishnan (2008), “ Long Term Post –merger Performance of firms in India”, Vikalpa The
Journal for Decision Makers, Vol 33 No. 2, pp. 47-62

31