12/06/2007- Announcement from Ford that it plans to sell Jaguar & Land
08/2007 - Major bidders were identified Tata Motors, M&M, Ceribrus
capital Management, TPG Capital, Apollo Management
India’s Tata Motors and M&M arrived as top bidders ($ 2.05b & $ 1.9b)
03/01/2008– Ford announces Tata as the preferred bidder
26/03/2008 - Ford agreed to sell their Jaguar Land Rover operations to
Tata Motors.($ 2.3 bn)
02/06/2008– The acquisition was complete
The acquisition would help the company acquire a global footprint and enter the
high-end premier segment.
Tata to get access to advance design studios and technology as part of the deal.
Competitive advantage as Corus was the main supplier of automotive high grade
steel to JLR and other automobile industry in US and Europe.
Tata motors will diversify its present dependence on Indian markets(90%) and will
to get footprints in South East Asia, US, Western Europe.
New product development and brand building experience enhancing Tata Motors
in-house R&D and designing capabilities.
Better utilization of cash in the Tata Motors balance sheet.
Rising appetite for luxury automobile in growing markets like India and China
Potential for revenue synergy giving TATA greater international
distribution, broader product range and better customer service skills
JLR sale to Tata Motors was greeted with approval but regretted by the
Tata motors value plunged and the stock hit rock bottom.
Tata motors posted its first annual loss in at least seven years.
Then, in late 2009 the turnaround started. Sales improved upon
introduction of newer, more fuel-efficient and contemporary models.
Debt-equity ratio improved to 1.6 times from 4.5 times.
Huge revenue from BRICS nations.
6. Cost Rationalisation:
Single shifts and down time at all three UK assembly plants.
Supplier payment terms extended from 45 to 60 days in line with industry
Receivables reduced from 38 to 27 days.
Inventory reduced by £217m between June 2008 and March 2009 from
70 to 50 days .
Voluntary retirement to 600 employees.
Agency staff reduced by 800.
Offered leaves to 300 workers of Bromwich and Solihull plant.
Additional 450 job cuts including 300 managers.
Agreement with Unions to implement pay freeze and longer working
hours (equivalent to approximately 20% reduction in labour costs.)
7. Year ending
Net income (loss)
Turnover (£m) EBITDA (£m)
before tax (£m)
Net income (loss)
31 Mar 2013
31 Mar 2012
31 Mar 2011
31 Mar 2010
31 Mar 2009
The merger seemed poorly timed
Demand for luxury cars collapsed as a result of financial crisis
Started making profits in 2010 up to 41 %
Now an example of a successful merger
Entered CHINA in march 2012 with a joint venture with Chery