jaguar report case study

8/19/2019 Jaguar Report Case Study

1/23

A

PROJECT REPORT ON

JAGUAR: CASE STUDY

SUBJECT: MANAGERIAL ECONOMICSPage1


2/23

SUBMITTED BY

AKSHAY JOSHI

HIRAL MISTRY

AKHILESH YADAV

MUBIN PARKAR

SUMEDH PITALE

SUBMITTED TO

Prof. T.G. ROY

H.K.INSTITUE OF MANAGEMENT STUDIES AND

RESEARCH.

201!201"

ACKNO#LEDGMENT

Page2


3/23

We take this opportunity to thank H.K.INSTITUTE OF MANAGEMENT STUDIES

AND RESEARH !or "i#in" us this opportunity to $ork on su%h an e&perientia'

pro(e%t.

We e&press our sin%ere "ratitu)e to *ROF. T.G. RO+ !or his %onstant support he'p an)

,oti#ation in %o,p'etin" this pro(e%t. We !e't ,oti#ate) an) en%oura"e) e#ery ti,e.

Without your en%oura"e,ent an) "ui)an%e this pro(e%t $ou') not ha#e ,ateria'i-e).

Without his inno#ati#e sty'e o! tea%hin" an) sharin" i,,ense kno$'e)"e $e $ou')

ha#e not een a'e to kno$ an) 'earn an) $ork on this pro(e%t.

The "ui)an%e an) support re%ei#e) !ro, a'' the peop'e/ $ho %ontriute) their kno$'e)"e

to this pro(e%t/ $as #ita' !or the su%%ess !or the pro(e%t. We are "reat!u' !or their %onstantsupport an) he'p.

Thank you.

INDE$

Sr.No. P%r&'()*%r+ P%,- No.

1 I&ro/)(&'o &o J%,)%r "

Page3


4/23

2 I&ro/)(&'o &o T%&% Mo&or+

S&%,-+ of J%,)%r

3 R-%+o 456 For/ +o*/ J%,)%r

D-%* 7ro(-++ of %(8)'+'&'o 11

" A(8)'+'&'o of J%,)%r 96 T%&% o&or+ 12

Pro9*-+ f%(-/ 45'*- %(8)'+'&'o 1"

I+ J%,)%r;+ +)((-++ 5-*7', T%&% Mo&or+ &o 9- %

,*o9%* 9r%/

1<

< Co(*)+'o 21

10 A-=)r- 22

11 B'9*'o,r%756 2

E=-()&'>- S)%r6

This is the %ase stu)y on 0a"uar auto,oi'e %o,pany.

0a"uar $as un)er For) ,otors/ ut 'ater Tata a%1uire) 02R.

Page4


5/23

This pro(e%t e&p'ains the history o! 0a"uar/ post3a%1uisition y Tata ,otors.

The ,ain o(e%ti#e o! this pro(e%t is to stu)y 0a"uar auto,oi'e/ 4 un)erstan) $hy Tata

a%1uire) 0a"uar !ro, For) an) $hat are the reasons.

For this pro(e%t Finan%ia' State,ents $as ana'y-e) an) se%on)ary resear%h

$as a'so )one.

The purpose $as to kno$ the e%ono,i% !a%tors o! Tata ,otors !or a%1uirin"

0a"uar.

INTRODUCTION TO JAGUAR

Page5


6/23

J%,)%r C%r+ is a ran) o! 0a"uar 2an) Ro#er/ a 5ritish ,u'tinationa' %ar hea)1uartere) in Whit'ey/

o#entry/ En"'an)/ o$ne) y the In)ian %o,pany Tata Motors sin%e 6778.

0a"uar9s usiness $as !oun)e) as the S$a''o$ Si)e%ar o,pany in :;66/ ori"ina''y ,akin"

,otor%y%'e si)e%ars e!ore )e#e'opin" o)ies !or passen"er %ars. Un)er the o$nership o! S. S. ars

2i,ite) the usiness e&ten)e) to %o,p'ete %ars. The na,e S. S. ars $as %han"e) to


7/23

Foun)e) in :;=> as a ,anu!a%turer o! 'o%o,oti#es/ the %o,pany ,anu!a%ture) its !irst %o,,er%ia'

#ehi%'e in :;>= in a %o''aoration $ith Dai,'er35en- AG/ $hi%h en)e) in :;?;.

Tata Motors 2i,ite) @!or,er'y TE2O/ short !or Tata En"ineerin" an) 2o%o,oti#e o,pany is an

In)ian ,u'tinationa' auto,oti#e ,anu!a%turin" %o,pany hea)1uartere) in Mu,ai/ Maharashtra/ In)ia

an) a susi)iary o! the Tata Group. Its pro)u%ts in%'u)e passen"er %ars/ tru%ks/ #ans/ %oa%hes/ uses/

%onstru%tion e1uip,ent an) ,i'itary #ehi%'es. It is the $or')9s :Bth3'ar"est ,otor #ehi%'e ,anu!a%turin" %o,pany/ !ourth3'ar"est tru%k ,anu!a%turer/ an) se%on)3'ar"est us

,anu!a%turer y #o'u,e.

urrent EO o! Tata Motors is yrus Mistry. Tata Motors has #ehi%'e asse,'y operations in In)ia/ the

Unite) Kin")o,/ South Korea/ Thai'an)/ Spain an) South A!ri%a. It p'ans to esta'ish p'ants in Turkey/

In)onesia/ an) Eastern Europe.

Tata Motors are a'so into !o''o$in" %o,pany a%1uisition3

T%&% D%-4oo

T%&% H'+7%o

J%,)%r L%/ Ro>-r

TML Dr'>-*'-+

T%&% M%r(o7o*o

F'%&!T%&%

T%&% H'&%(5' Co+&r)(&'o M%(5'-r6 E&(.

STAGES OF JAGUAR

Page7


8/23


9/23

PROBLEMS FACED BY FORD MOTORS:

In 677?/ reports sai) that 'osses at 0a"uar stoo) at USD B:> ,i''ion. 0a"uar $as not per!or,in" $e'' as

it $as una'e to pro#i)e any pro!it to For) )ue to hi"h ,anu!a%turin" %osts in Unite) Kin")o,. The

$e''ein" o! 2an) Ro#erJs pro!it on the other han)/ $as oost up y the re%or) sa'e o! 66?/777

#ehi%'es/ an :8 year o#er year "ro$th in 677B. L5rin"in" )o$n pro)u%tion %osts an) turnin" aroun)

the %o,pany su%%ess!u''y $i'' e the %ha''en"e ana'ysts sai). It $as a test that For) !ai'e). For) is

%o,inin" oth the ran)s sin%e the pro)u%ts an) ,anu!a%turin" o! #ehi%'es !or 2an) Ro#er an) 0a"uar

is so intert$ine).

The US auto ,a(or put the t$o ,ar1uees on the ,arket in 677B a!ter positin" 'osses o! :6.? i''ion in

677?3 the hea#iest in its :73 year history.

A DIFFICULT RELATIONSHIP BET#EEN THE UK FIRM AND ITS US

O#NERS

• 0a"uar !e'' into hea#y 'osses $hi'st o$ne) y For) @rea%hin" up to ?77,i''ion per year

• The )e#e'op,ent o! a ne$ en"ine ,anu!a%turin" p'ant at Wo'#erha,pton @:/=77 %ostin"

>77, $i'' re)u%e )epen)en%e on For) !or en"ines ut 02R risks o#er stret%hin" itse'! an)

the en"ineerin" $or') y a))in" another #ehi%'e asse,'y p'ant $ithout a %onsi)era'e

a))ition to the 'aour poo'.

• For) has een in#estin" in 0a"uar an) 2an) Ro#er. 2an) Ro#er a%tua''y se''s at a pretty

"oo) ,ar"in

• 0a"uar is ,ore !inan%ia''y trou'e). For) is se''in" not so ,u%h e%ause these ran)s are in

the $orst trou'e that theyJ#e e#er een in/ ut si,p'y e%ause For)Js o#era'' %risis an)

Mu'a''yJs )esire !or !o%us is pushin" the, to$ar)s (ust %on%entratin" on the %ore usiness.

N)9-r+ 200 200" 200 P-r(-&%,-

J%,)%r 8?/?>: B6/?87 >B/>B8

Page9


10/23

Western Europe =?/B8; =:/?B /76= >B

A,eri%a 6/:: 66/:? :?/8? 6;

Rest o! the $or') B/B: ;/:BB B/B:8 :

L%/ Ro>-r :/B7/:>? :/B=/;=7 6/76/?7;

Western Europe ;B/7 ;>/;; :/7;/B8> >=

A,eri%a >:/?= >/?; >B/7;6 68

Rest o! the $or') 6:/6:; 6>/;7 >/B6 :8

To&%* 6/>?/87B 6/=B/?67 6/?7/:8B

Wester Europe :/==/7;6 :/?/B?? :/=6/87; >>

A,eri%a 8/B?> B>/BB= B/;68 68

Rest o! the $or') 68/;>7 >/787 =/=>7 :B

Fro, the ta'e/ $e ,ay see that3

• The sa'es o! 0a"uar are )e%reasin" )ra,ati%a''y !ro, 677> unti' 677B.

• A!ter intert$ine) 0a"uar an) 2an) Ro#er/ sa'es !ro, year to year

!'u%tuate) $ithout %ertainty o! "ro$th.

• This is one o! the reasons that 'ea) For)Js )e%ision to se'' 02R to Tata

,otor .

DEAL PROCESS OF AC?UISITION

Page10


11/23

• On :67?677B3 Announ%e,ent !ro, !or) that it p'ans to se'' 2an) Ro#er an) 0a"uar.

• On Au"ust 677B3 Ma(or i))ers $ere i)enti!ie) su%h as

:. TATA MOTORS

6. M4M. erirus apita' Mana"e,ent=. T*G %apita'>. Apo''o ,ana"e,ent

• In)iaJs TATA Motors an) M4M arri#e) as the top i))ers @6.7>i''ion 4:.;i''ion

• On 77:67783 For) announ%es TATA as the pre!erre) i))er.6?767783For) a"ree) to se''

their 0a"uar 2an) Ro#er operations to TATA Motors @6.i''ion

• On 67?67783 The a%1uisition $as %o,p'ete.

AC?UISITION OF JAGUAR BY TATA MOTORS

#HY TATA MOTORS AC?UIRED JAGUAR:

Page11


12/23

• Tata Motors $ante) to e&pan) its pro)u%t port!o'io an) )i#ersi!y its ,arket ase. The

a%1uisition "a#e the %o,pany a%%ess to pre,iu, %ars/ a %han%e to a)) t$o i%oni% 'u&ury ran)s to its sta'e an) a "'oa' !ootprint. It "a#e stru""'in" For) a %han%e to ri) itse'! o! t$o'oss3,akin" #ehi%'e units. Tata ha) a'rea)y a%1uire) Tet'ey/ South Korea ase) Dae$ooJs%o,,er%ia' #ehi%'e unit / an) An"'o Dut%h Stee' ,aker orus. A'so a%1uire) are CamptonPlace Hotel, Ritz-Carlton hotel Starwood group, The Pierre Regent Hotel (renamed Taj LandsEnd, !ood Earth Corporation " #$ali Her% &nc, Eight ' Cloc) Co**ee Compan+, T !roups (T$osaic %usiness

• Another reason $as to take re#en"e !ro, For). Nine years a!ter the Phu,i'iationJ/ the %'o%k

turne) a !u'' %ir%'e an) the sa't3to3so!t$are %on"'o,erate hu,'e) the ,i"hty For) Q $hi%h$as on the #er"e o! ankrupt%y a!ter the 6778 "'oa' !inan%ia' ,e't)o$n Q y takin" o#er thei%oni% 0a"uar 2an)3Ro#er ran)s !or USD 6. i''ion

HO# TATA MOTORS AC?UIRED JAGUAR:!

The Tata Group/ 'e) y Mr. Ratan Tata/ $as )eter,ine) to ,ake the )ea' $ork an) put to use

the "roup9s ,ana"e,ent ski''s/ !inan%ia' resour%es an) %re)ii'ity.

To staun%h the he,orrha"e at the 5ritish unit/ Tata9s ,ana"e,ent !o%use) on re)u%in" %osts/

i,pro#in" e!!i%ien%ies an) ,ana"in" %ash !'o$ 'essons that Tata Motors ha) 'earne) )urin"

the )o$nturn in 677:.

Tata a'so in!use) : i''ion to !un) operations an) ne$ pro)u%t 'aun%hes.

• When the ,arket turne)/ the pre,ier %ar ,aker $as $e'' poise) to reap the ene!its an) turne)

pro!ita'e )urin" the 1uarter en)e) De%. :/ 677;/ $ith a net pro!it o! >> ,i''ion poun)s @;7.?

,i''ion.

• Tata se%ures a =7,i''ion 'oan !ro, the European In#est,ent 5ank to support 02R throu"h

re%ession.

• Tata announ%es > !i#e year in#est,ent pro"ra,,e in 02R 3 !o%use) on ne$ pro)u%t

)e#e'op,ent 4 ne$ e1uip,ent at 02R three UK p'ants in#est,ent in a p'anne) !a%tory in

hina. 02R a'so to 'ink %'oser $ith Tata Stee' to pro#i)e ne$ 'i"ht$ei"ht stee' a''oys !or ne$

%ar ,o)e's.

• 02R announ%es :/777 ne$ (os a 2an) Ro#er p'ant in So'ihu'' ooste) y risin" )e,an) !or

SUs in hina/ Russia/ In)ia an) 5ra-i'.

Page12


13/23

• Soarin" sa'es o! 0a"uar an) 2an) Ro#er %ars ha#e he'pe) In)ian !ir, Tata Motors to a hu"e rise

in pro!its @up =: on 67:7. 02R ar, sa$ sa'es rise B/ he'pe) y se''in" 6/777 o! its ne$

Ran"e Ro#er E#o1ue. hina o#ertakes the UK as 02RJs i""est ,arket.

• 02R an) hery Auto,oi'e a"ree a (oint #enture that shou') pa#e the $ay !or pro)u%tion o!

0a"uar an) 2an) Ro#er %ars in hina.

• 02R announ%es that it $i'' ui') a su%%essor to its pre#ious sports %ars %a''e) the F3type at its

!a%tory in 5ir,in"ha,.

BENEFITS OF AC?UISITION:!

•

The a%1uisition $ou') he'p the %o,pany a%1uire a "'oa' !ootprint an) enter the hi"h3en) pre,ier se",ent o! the "'oa' auto,oi'e ,arket. A!ter the a%1uisition/ Tata Motors $ou') o$nthe $or')9s %heapest %ar 3 the US 6/>77 Nano/ an) 'u&ury ,ar1uees 'ike the 0a"uar an) 2an)Ro#er.

• Tata a'so "ot t$o a)#an%e )esi"n stu)ios an) te%hno'o"y as part o! the )ea'.

• This )ea' pro#i)e) Tata an instant re%o"nition an) %re)ii'ity a%ross "'oe $hi%h $ou') ha#e

other$ise ha#e taken years.

•

The %ost %o,petiti#e a)#anta"e $as as orus $as the ,ain supp'ier o! auto,oti#e hi"h "ra)estee' to 02R an) other auto,oi'e in)ustry in US an) Europe. This $ou') ha#e pro#i)e) asyner"y !or TATA Group on a $ho'e. The $ho'e %ost syner"y that %an e %reate) %an e seen inthe !o''o$in" )ia"ra,.

• In the 'on" run TATA Motors $i'' sure'y )i#ersi!y its present )epen)en%e on In)ian ,arkets.

A'on" $ith it )ue to TATAJs !ootprints in South East Asia $i'' he'p 02R )o )i#ersi!y its"eo"raphi% )epen)en%e !ro, US an) Western Europe.

• Tata $ante) to ,ake a "'oa' i,pa%t an) it thinks that uyin" these ran)s at a 'o$er rate no$/

$i'' "i#e etter #a'ue in !uture.

• Re)u%e) the %o,panies )epen)en%y on the In)ian ,arket $hi%h a%%ounte) !or ;7o! its sa'e.

• In%rease) sa'es in e,er"in" ,arkets.

• Re)u%e) )epen)en%y on ,ature ,arkets.

Page13


14/23

• At the pri%e startin" !ro, ?'akh an) "oin" up to ;'akh it see,s TATA ha) (ust "ot the ri"ht

p'a%e to %o,pete $ith the %urrent ,arkets 'ea)ers3 5MW/ Au)i/ Mer%e)es.

• 02R ha) ,any ne$ ,o)e's 'ine) up !or ne&t years/ so no ,u%h $ork $as nee)e) (ust pro!its.

• o,ponent sour%in"/ en"ineerin" an) )esi"n ene!its.

COMPETITIVE ADVANTAGE

• Tata Motors $as #u'nera'e to "reater %o,petition at ho,e.

• Forei"n #ehi%'e ,akers in%'u)in" Dai,'er/ Nissan Motor/ o'#o an) MAN AG ha) stru%k 'o%a'

a''ian%es !or a i""er presen%e.

Tata Motors/ $hi%h ha) a (oint #enture $ith Fiat !or %ars/ en"ines an) trans,issions in In)ia/$as a'so !a%in" heat !ro, top %ar ,aker Maruti Su-uki In)ia 2t)/ Hyun)ai Motor/ Renau't an)

o'ks$a"en

• the Tata "roup ha) 'e) the "ro$in" appetite a,on" In)ian %o,panies to a%1uire usinesses

o#erseas in Europe/ the Unite) States/ Austra'ia an) A!ri%a 3 so,e e#en se#era' ti,es 'ar"er 3 ina i) to %onso'i)ate operations an) e,er"e as the ne$ a"e ,u'tinationa's.

• Tata Motors $as In)ia9s 'ar"est auto,oi'e %o,pany/ $ith re#enues o! B.6 i''ion in 677?3

7B.With o#er = ,i''ion Tata #ehi%'es p'yin" in In)ia/ it $as the 'ea)er in %o,,er%ia' #ehi%'es

an) the se%on) 'ar"est in passen"er #ehi%'es.

MARKET CAPITILISATION

Page14


15/23

• T $ o , o n t h s e ! o r e i t a % 1 u i r e ) 0 a " u a r A n ) 2 a n ) r o # e r @ 0 2 R i n

M a r % h 6778/ Tata Motors ha) a ,arket %apita'i-ation o! Rs 6=/777 %rore.

• Fi#e ,onths a!ter the )ea'/ it ha) p'un"e) to Rs ?/>77 %rore. The ,arket as $ho'e )u r in"

tha t t i,e ne"ate) the a%1u i s i t ion as oth the %o,panies 02R

ha) een ,a kin" 'osses un)e r thei r !or,e r o$n er Fo r) ,otors / ho$e#er

there $as an opportunity hi))en in e&p'orin" the

stron" r a n ) # a ' u e a n ) r e s e a r % h a n ) ) e # e ' o p , e n t h i ) ) e n e h i n )

o t h t h e %o,panies an) e#entua''y this opportunity $as uti'i-e) to the !u''est e&tent y

Tata Motors an) its ,arket %apita'i-ations no$ stan)s at B:>77 %rore $hi%h is ,ore than a

ten!o') rise !ro, the initia' post a%1uisition 'o$.

BRAND VALUE

• R e% e n t ' y TATA MO TO RS ) ro # e p a s t Re'ian%e In)ustries to to p th e

67:7e)i t ion o! In)iaJ s Mos t a'ua'e 5ran)s sur#ey

$i th a #a 'ua t ion o! 8 .=>i ' ' ion . A ,a(or par t o! th i s su%%ess %an

e a t t r i ute) to the 02R ran)s. 0a"uar an) 'an) ro#er oth ha#e een part o! a 'ar"er

%on"'o,erate !or a 'on" ti,e/ ho$e#er their potentia' $as not un'o%ke) then/ TATA MOTORS

su%%ee)e) in )oin" that. 0a"uar an) 'an) ro#er stea)i'y starte) r e"ain in" the i r rhyth, in

the ,ar ket an) %on tri ute ) t o$a r)s %re ati n" a "oo) ran) #a'ue !or TATA

MOTORS.

• TATA MOTORS302R ran) soare) :B6in one year to 8.=> i''ion !ro, on'y .: i''ion in

677837;.

Pro9*-+ f%(-/ 45'*- %(8)'+'&'o

Page15


16/23

AS THERE #AS A RECESSION PERIOD TATA MOTORS FACED MANY

PROBLEMS #HILE AC?UISITION

• Drop in the share pri%es.

• Fai'ure o! ri"ht issue

• Hu"e )et ur)en

• Sa'es #o'u,e )e%rease) y >.6.

• 2a%k o! %onsu,er 'oans

• Issue o! ti,in".

• Operationa' !ree)o, s'o$ pa%e o! %han"e.

• Depresse) state o! "'oa' pre,iu, %ar ,arket.

• 0a"uar 2an) Ro#er 'ost 7? ,i''ion poun)s @>7=,i''ion !or the !is%a' year en)in"

,ar%h677;.

• TATA Motors reporte) a net 'oss o! Rs.6;i''ion @?B,i''ion !or the 1uarter to en)3

0une.

• TATAJs %ore %o,,er%ia' #ehi%'e ,arket in In)ia $as a'so su!!erin" !ro, s'o$er sa'es.

• E&tre,e'y hi"h ,anu!a%turin" %ost in 5ritain.

• E'i,inate) ,ore than 6677 (os.

At its $orst/ Tata Motors9 sto%k )roppe) to :6?.=> rupees/ )e%i,atin" its ,arket

%apita'i-ation to ?> i''ion rupees @:.=> i''ion/ aout a !ra%tion o! $hat it pai) !or

0a"uar 2an) Ro#er. 5e!ore the )ea'/ the sto%k ha) tra)e) at B77 rupees per share

I>-+&-& /r'>-

Page16


17/23

• 5ou"ht y Tata !or 6. i''ion !ro, For) in 6778/ 02R has )e!ie) those skepti%a' o! its !uture

un)er In)ian o$nership to roar a%k into pro!it o#er the past three years as the ,ain "ro$th

)ri#er !or its no$3stru""'in" parent.

• ontinue) "ro$th in e,er"in" ,arkets su%h as In)ia an) hina/ $hi%h a%%ounte) !or 66.

per%ent o! its sa'es in the De%e,er 1uarter/ is key !or 02R as it e,arks on an e&pensi#e

o#erhau' o! its pro)u%tion an) pro)u%t %'out. The %ar,aker is in#estin" :.B i''ion $ith 'o%a'

partner hery Auto,oi'e o in a !a%tory in hina.

• 02R 'a"s ri#a's 5MW AG/ o'ks$a"en AG9s Au)i an) Dai,'er AG9s Mer%e)es35en- in

asse,'in" %ars in In)ia/ $here the 'u&ury ,arket is e&pe%te) to s$e'' y aroun) si& ti,es y

6767 to 77/777 %ars a year/ a%%or)in" to usiness %onsu'tan%y Frost 4 Su''i#an.

•02R/ $ith s'eek se)ans !a#ore) y 5ritish pri,e ,inisters an) 'u&ury SUs orn o! )esert an) (un"'e %o,at/ has !a%tories $orkin" aroun) the %'o%k in En"'an) to ,eet )e,an)/ u%kin" the

tren) o! s'u""ish )e,an) !or European auto,akers.

• The %o,pany has repeate)'y stresse) that its o#erseas a,itions $i'' not 'ea) to (o 'osses in

5ritain. 02R e,p'oye) %'ose to 6=/777 peop'e at the en) o! Mar%h 'ast year.

• Ear'ier this year 02R starte) the asse,'y o! the 6.63'iter @7.>8 "a''on )iese' #ersion o! the

0a"uar CF se)an at a p'ant in *une/ $est In)ia/ tu%ke) a$ay in a %orner o! a spra$'in"

pro)u%tion site $here Tata ui')s its hea#y )uty tru%ks an) hat%ha%ks.

• S%re$e) to"ether usin" en"ines an) %o,ponents shippe) !ro, 02R9s ast'e 5ro,$i%h p'ant in

5ir,in"ha,/ %entra' En"'an)/ the %o,pany has a'so een asse,'in" its 2an) Ro#er Free'an)er

6 in *une sin%e May 67::.

• The CF an) the Free'an)er 6 are 02R9s est3se''in" ,o)e's in In)ia/ $here it so') 6/688 %ars in

the year to Mar%h 67:6/ up :>B per%ent !ro, the pre#ious year.

• The %ar,aker/ $hi%h $arne) in 0anuary o! ne"ati#e !ree %ash !'o$ ne&t year as it in#ests in

pro)u%tion !a%i'ities/ is a'so e&p'orin" the !easii'ity o! a !a%tory in Sau)i Araia. A!ter the

si"nin" o! a )ea' $ith 02R in De%e,er/ the Sau)i %o,,er%e an) in)ustry ,inistry sai) the

:.6 i''ion p'ant $ou') start ,akin" #ehi%'es y 67:B.

Page17


18/23

•


19/23

• Mer"ers an) a%1uisitions seek to enhan%e as $e'' as )e#e'op 'on"3ter, pro!itai'ity/ y

e&pan)in" the %o,panyJs operations.

• In the 02R Tata %ase/ oth %o,panies ,ana"e) to otain i,portant ene!its. On one si)e/ Tata

"aine) a%%ess to the "'oa' ,arket. This $ou') a''o$ it to )i#ersi!y its operations a'so outsi)e

o! In)ia/ an) he'p it "et out o! the re%ession it ha) entere) sin%e the e%ono,i% s'o$)o$n.

• On the other si)e/ 0a"uar ,ana"e) to otain i,portant in#est,ents that $ou') he'p it re"ain its

an%ient sp'en)or. Tata in#este) hea#i'y on resear%h an) inno#ation/ an) "a#e 0a"uar a $e''3

)e!ine) i,a"e a"ain.

• Further,ore/ $ith 0a"uarJs te%hno'o"y/ Tata ene!itte) o! the ai'ity to 'aun%h pro)u%ts at 'o$er

%osts than %o,petitors/ a'so thanks to syner"ies $ith other usinesses. In a))ition/ Tata $ou')

re)u%e the o#er)epen)en%e on the In)ian ,arket $hi%h is esti,ate) to ha#e a%%ounte) !or aout

;7 per%ent o! its sa'es.

• A'so/ the a%1uisition o! 0a"uar $ou') ena'e Tata to "ain %o,p'e,entary %apai'ities. The

a%1uisition $ou') roa)en the 'e#e' o! )i#ersi!i%ation o! the usiness port!o'io oth

"eo"raphi%a''y an) pro)u%t $ise.

•

Further,ore/ Tata $ou') ene!it !ro, the !a%t that it $ou') en(oy 'o$ %ost o! oth )esi"n an)the en"ineerin". In !a%t/ Tata Motors $ou') ,o#e its )esi"n %enters )ire%t'y at 0a"uars. It $ou')

a'so "ain ne$ )istriution %hanne's $ithout ha#in" to ,er"e TAMO $ith 02R.

• With the )ea' Tata a'so a%1uire) three UK p'ants. A'so/ %enters !or a)#an%e) )esi"n an)

en"ineerin" $ere no$ at TataJs )isposa'. Apart !ro, this/ the ,o#e ,a)e it possi'e !or Tata to

"ain a%%ess to 6? sa'es %o,panies to"ether $ith their I* ri"hts. Further,ore/ Tata $ou') a%1uire

:.: i''ion in %apita' a''o$an%es !or ta&es.

TATA: THE INDIAN PO#ERHOUSE BEHIND JAGUAR LAND

ROVER SUCCESS

• Sa'es at 0a"uar 2an) Ro#er ha#e sur"e) annua''y sin%e the t$o ai'in" 5ritish ran)s $ere

unite) un)er the o$nership o! the Tata Group in 6778.

Page19


20/23

• The pur%hase y Tata o! oth 2an) Ro#er an) 0a"uar !ro, For) !or (ust o#er :n $as

)es%rie) as re#erse %o'onia'is, a',ost si& years a"o/ ut ,anu!a%turin" at its West Mi)'an)s

ases has thri#e) e#er sin%e.

• 2osses in 677; $ere re#erse) as turno#er tre'e) y 67:/ an) 0a"uar 2an) Ro#er has re%or)e)

i''ion poun)3p'us annua' pro!its !or the 'ast three years/ a))in" aroun) nine thousan)e,p'oyees to )ate $ith p'ans to re%ruit :/B77 ,ore.

• Whi'e Tata9s takeo#er $as seen a shi!t in po$er !ro, $est to east/ the !ir,9s histori%a' roots an)

tra)ition o! e,p'oy,ent ri"hts sit a'on"si)e those o! the ,ost en'i"htene) i%torian 5ritish

in)ustria'ists.

• The Tata !a,i'y/ o! the *arsee re'i"ion/ starte) on the path to o$nin" to)ay9s in)ustria' "iant y

openin" a te&ti'e ,i'' in :8?8/ $here $orkers $ere o!!ere) pensions an) %o,pensate) !or

a%%i)ents.

• The ,u'tinationa' %on"'o,erate $hose )i#isions sprea) a%ross IT/ ener"y/ %o,,uni%ations/

,ateria's an) %he,i%a's has assets $orth aroun) >7n/ is hea)1uartere) in Mu,ai/ an)

$ith t$o3thir)s o! its shares o$ne) y %harita'e trusts.

CONCLUSION

• This stu)y has sho$e) the key i,portant !a%tors !or su%%ess o! any ,er"ers an) a%1uisition that

is !inan%ia' ene!its y resear%hin" in )etai' the a%1uisition o! 0a"uar y Tata ,otors.

Page20


21/23

• This present stu)y has on'y %o#ere) the !inan%ia' !a%tors an) it has not %o#ere) the %u'ture an)

hu,an issues.

• The stu)y has %on%'u)e) that the Tata has not a'e to a%hie#e the strate"i% !inan%ia' o(e%ti#es

a!ter the a%1uisitions o! 0a"uar in 677;.

• The su%%ess!u' ,er"ers %an on'y e )e%'are) i! the %o,panies a%hie#e the ,a&i,i-ation o!

shareho')ers $ea'th/ re#enue enhan%e,ent/ %ost re)u%tions/ an) pro%ess i,pro#e,ent ut in the

%ase o! Tata30a"uar the %o,pany has not a'e to a%hie#e any strate"i% !inan%ia' ene!its other

than the sa'es "ro$th in%rease ut the %o,pany has p'annin" to re)u%e the %ost y

,anu!a%turin" in3house en"ines an) shi!tin" the pro)u%tion to hina an) In)ia an) a'so it is

p'annin" to a%hie#e the ,a&i,i-ation o! shareho')ers $ea'th y re)u%in" the )ets throu"h

!un) raisin"/ an) "oo) pro!its "'oa''y.

The u'ti,ate ,oti#e in han)'in" the !inan%ia' issues/ %u'tura' issues or hu,an issues in the

,er"er pro%ess is to in%rease the pro!itai'ity o! the %o,pany.

ANNE$URE

Page21


22/23

B'9*'o,r%756Page22


23/23

http$$$.nyti,es.%o,:;8;::7usiness!or)3to3uy3(a"uar3!or36.83i''ion.ht,'

httpe%ono,i%ti,es.in)iati,es.%o,in)ustryautone$sin)ustry$hen3hu,i'iate)3ratan3tata3)i)3

!a#our3to3!or)3$ith3('r3uyoutarti%'esho$=?>B67:6.%,s

http$$$.tata,otors.%o,in#estors!inan%ia'sp)!#o'u,e66.670a"uar672an)67Ro#er

672i,ite).p)!

http$$$.ken!o'ios.%o,a3,ust3rea)3story3o!3ratan3tata3uyin"3(a"uar3to3take3re#en"e3!ro,3!or)

Page23
http://www.nytimes.com/1989/11/03/business/ford-to-buy-jaguar-for-2.38-billion.htmlhttp://economictimes.indiatimes.com/industry/auto/news/industry/when-humiliated-ratan-tata-did-favour-to-ford-with-jlr-buyout/articleshow/46572012.cmshttp://economictimes.indiatimes.com/industry/auto/news/industry/when-humiliated-ratan-tata-did-favour-to-ford-with-jlr-buyout/articleshow/46572012.cmshttp://www.tatamotors.com/investors/financials/pdf/volume2/2.%20Jaguar%20Land%20Rover%20Limited.pdfhttp://www.tatamotors.com/investors/financials/pdf/volume2/2.%20Jaguar%20Land%20Rover%20Limited.pdfhttp://www.kenfolios.com/a-must-read-story-of-ratan-tata-buying-jaguar-to-take-revenge-from-ford/http://www.nytimes.com/1989/11/03/business/ford-to-buy-jaguar-for-2.38-billion.htmlhttp://economictimes.indiatimes.com/industry/auto/news/industry/when-humiliated-ratan-tata-did-favour-to-ford-with-jlr-buyout/articleshow/46572012.cmshttp://economictimes.indiatimes.com/industry/auto/news/industry/when-humiliated-ratan-tata-did-favour-to-ford-with-jlr-buyout/articleshow/46572012.cmshttp://www.tatamotors.com/investors/financials/pdf/volume2/2.%20Jaguar%20Land%20Rover%20Limited.pdfhttp://www.tatamotors.com/investors/financials/pdf/volume2/2.%20Jaguar%20Land%20Rover%20Limited.pdfhttp://www.kenfolios.com/a-must-read-story-of-ratan-tata-buying-jaguar-to-take-revenge-from-ford/

jaguar report case study

Documents