1. Tata-jaguar–and-land rover deal 1

3. The sale of Jaguar and Land Rover was initiated by their former owner US FORD.19-09-2011 2

5. India’s largest passenger automobile and commercial vehicle.

6. Tata Motors was established in 1945.

7. Listed on the New York Stock Exchange in 2004. 3

9. 1984 - Floated off as a separate co in the stock market

10. 1990 - Taken over by Ford .

11. Ford acquired Jaguar for $2.5 billion in 1989.4

13. In 1994 Rover Group was taken over by BMW & sold to FORD MOTORS for $2.75 billion in 2000.5

15. Most of the loss was the result of bad performance of Jaguar, Land Rover however was performing steadily, Land Rover was driven by a record sale of 2.26 lakh vehicles in the year 2007.

16. Ford announced for a combined sale of both Jaguar and Land Rover.6

18. Tata Motors had desired to have diversified line up.

19. Good research and development facilities at a reasonable price.7

21. Corus being the major supplier of automotive steel to JLR and other automobile industries in USA and Europe, acquiring JLR would result in a cost synergy for TATA motors.8

22. THE DEAL PROCESS 12/06/2007- Announcement from Ford that it plans to sell Land Rover and Jaguar. August 2007 - Major bidders are identified Likely buyers: Tata Motors, M&M, Ceribrus capital Management, TPG Capital, Apollo Management India’s Tata Motors and M&M arrive as top bidders ($ 2.05b & $ 1.9b) 03/01/2008 – Ford announces Tatas as the preferred bidders 26/03/2008 - Ford agreed to sell their Jaguar Land Rover operations to Tata Motors. 02/06/2008 – The acquisition is complete

24. Automotive sector in India suffered contraction in demand

25. Launch of Nano delayed

26. Tata Motors reeling under a huge debt burden

28. Tata Motors spent approximately US $430 million on developing the Nano

31. Opportunity to participate in two fast growing auto segments- Luxury cars and all terrain vehicles.

32. Increased business diversity across markets and products.

33. Sharing of best practices in manufacturing and quality assurance systems and processes

37. Additional amount of US $ 0.7 billion was for engine and component supply, contingencies and working capital.

38. The amount was repaid in following manner

39. Rs 1.92 billion Underwriting agreement with JM financial consultants

40. Rs 1.75 billion was raised through a deposit scheme from the public

43. Supplier payment terms extended from 45 to 60 days in line with industry standard.

45. Fixed marketing and selling costs reduced in line with sales volume.

47. DEBT BURDEN

48. STRONG COMPETITION

49. INEXPERIENCE IN HANDLING LUXURY BRANDS

50. JAGUAR WAS A LOSS MAKING UNIT AND LANDROVER HAD DECLINING SALES.19-09-2011 20

52. GLOBAL FOOTPRINT AND TO REDUCE DEPENDANCE ON INDAIN MARKET.

53. ENTRY IN EUROPEAN MARKET.19-09-2011 21

55. RESEARCH AND DEVELOPMENT FACILITIES.

56. RECOGNITION TO OWN THE CHEAPEST CAR .AS WELL AS MOST LUXURIOUS CARS.

57. OPPORTUNITY TO SPREAD BUSINESS ACROSS DIFFERENT CUSTOMER SEGMENT.19-09-2011 22

58. Swot 19-09-2011 23

59. CURRENT STATUS Jaguar land rover sales continued their upward trend since launch in June 2009. During the quarter ended June 2010 JLR generated a profit of Rs 1613 crore. Tata motors had never ventured into luxury car segment before acquiring JLR, hence the inefficiency in handling such segment hampered Tata motors’ operational efficiency for quite some time. 19-09-2011 24

60. Jaguar Land Rover is now a strong, profitable and innovative competitor in the premium car industry. 26% Delivery Growth. JAGUAR LANDROVER global sales in July 2010 were 19,386 vehicles, higher by 30%. Jaguar sales for the month were 5,676, higher by 26%, while Land Rover sales were 13,710, higher by 31%. 25

62. 19-09-2011 27