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Topic : investment out look in land
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Equity Investments: Hot Stocks

Industry : Equity Research/Analytics Functional Area : Performance
Activity:  4 comments  345 views  last activity : 07 06 2010 20:18:04 +0000
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"Like all Indians, I too walk a little prouder in London with the Jaguar and Land Rover brands almost owned by Tata." these were the sentiments of great Indian film director shekhar kapur after the deal was finalised..I was also excited about this deal, because this is something which will give boost to the Indian automobile market.

But the journey by Tata to acquire land rover & jaguar was not that fascinating..If we go by the sequence of events that happened during this deal, then i think it will be great learning for us. think of this buying Jaguar and Land Rover, which date back to Britain's colonial era, would give Mumbai-based Tata a presence outside Asia and provide access to new technology. so definitely this was important for Tata..

lets first start with other bidders that were there in the line...

Mahindra & Mahindra Ltd., the No. 3 automaker in India behind Tata, and JPMorgan Chase & Co.'s One Equity Partners LLC buyout unit also sought to buy the units.. over mahindra the Tata's advantage was Tata is the only Indian automaker to be listed on the New York Stock Exchange. so this challenge was negated.

Now what are the benefits that Tata is getting form this deal.. we have for Tata

    * Tata needs to improve its engineering ability to become a global player and can only do this through such acquisitions
    * They need to make quantum jumps, though digestion of these acquisitions

As for Jaguar and Land Rover, there’s an unavoidable irony to the idea that two jewels of the British automotive empire are now the property of an Indian manufacturer. But times have changed since the days of the Raj. While poverty and economic inequality are crippling problems, India’s middle class is growing exponentially, and like those in that other fast-emerging market, China, they are hungry for mobility.

Tata is anxious to feed that hunger. Already the subcontinent’s largest automotive manufacturer, it recently introduced the Nano, a stripped-down car for the masses, which will go for a modest $2500. Ratan Tata, the self-made billionaire owner of the Tata Group, has made it clear he’s not going to be happy just focusing on basic transportation. With Jaguar and Land Rover, he’s hoping to gain a level of instant credibility among the automotive world’s leading players.

To make sense of its new acquisitions, Tata will need to pump plenty of resources into Jaguar and Land Rover. There’s no question the company has money, lots of it, though it is little more than a wannabe when it comes to engineering and design assets. The good news is that the British brands have developed plenty of skills that they’ll take with them. Meanwhile, Ford has agreed to continue providing powertrains and other support, once the sale is formalized. And in today’s globalized auto industry, still more know-how is available from suppliers, if you have the financial resources of a Tata.

But as of now enjoy the Tata ride!!!!!!!!!

 

 
 
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4 comments on "Ford Says “Tata” to Jaguar, Land Rover"
  Commented by  varsha mishra, technical Manager, rfrac    | 10 02 2008 13:25:54 +0000
Rating : +1 
nice sharing 
  Commented by  Darpan Sinha, Solution Architect, Fujitsu Consulting India Pvt Ltd    | 09 05 2008 03:07:37 +0000
Nice article
Very good article.
Thanks
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