TATA MOTORS AND JAGUAR

Acquisition•When one company takes over another and clearly

established itself as the new owner, the purchase is

called an acquisition.

•Acquisition is generally considered negative in nature

SYNERGIES RELATED TO ACQUISITION

Staff reductions

Acquiring new technology

Improved market reach and industry visibility

Takeovers A corporate action where an acquiring company makes

a bid for an acquiree . If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.

Takeover might be :Hostile Takeover

A takeover attempt that is

strongly resisted by the

target firm

Friendly Takeover

Target company's

management and board of

directors agree to a merger or

acquisition by another

company.

WHY SHOULD FIRMS TAKEOVER? To gain opportunities of market growth more quickly.

To seek to gain a more dominant position in a national or global market

To acquire the skills or strengths of another firm.

To acquire a speedy access to revenue

To diversify its product or service range to protect itself against downturns in its core markets

7

Major M&A Deals Undertaken Abroad by India Inc.

USD 12.1 billion

Tata Steel buys Corus Plc

USD 6 billion

Hindalco acquired NovelisInc.

USD 2.3 billion

Tata buys Jaguar and Land Rover

USD 1.6 billion

Suzlon Energy Ltd. acquires REpower

USD 1.58 billion

Essar Steel acquired Algoma Steel

THE DEAL………………

•Location: Dearborn, Michigan

•Founded: 1903 by Henry Ford

•Competitors: General Motors, Toyota

•Brand names: Lincoln, Mercury, Volvo, Mazda, Jaguar and Land Rover

•CEO: Alan MulallyHenry Ford and his Model T

Jaguar: The ups and downs 1922 - Founded in in Blackpool as Swallow Sidecar

company

1960 - Jaguar name first appeared in 1935

1975 - Nationalized in due to financial difficulties

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

1990 - Taken over by Ford

Jaguar: The ups and downs A statement of ultra luxury

Holds Royal warrants

Rarely advertised

Ford’s formula one entry since 1990s

Why acquire Jaguar Long term strategic commitment to automotive sector

Opportunity to participate in two fast growing auto segments

(premium and small cars) and to build a comprehensive

product portfolio with a global footprint immediately

Increased business diversity across markets and product

segments

Unique opportunity to move into premium segment with access

to world class iconic brands.

Jaguar offers a range of “Performance/Luxury” vehicles to

broaden the brand portfolio.

Sharing of best practices between Jaguar, Land Rover and Tata

Motors in the future

The Deal Process July 2007- Announcement from Ford that it plans to

sell Land Rover and Jaguar.

August 2007 - Major bidders are identified

The Deal ProcessLikely buyers

Tata Motors

M&M

Ceribrus capital Management

TPG Capital

Apollo Management

The Deal Process India’s Tata Motors and M&M arrive as top bidders ($

2.05b & $ 1.9b)

Jan 2008 – Ford announces Tata as the preferred bidders

March 2008 - Ford agreed to sell their Jaguar Land Rover operations to Tata Motors.

June 2008 – The acquisition is complete

TATA MOTORS – A SNAPSHOT TATA GROUP – 150 YEAR OLD

Previously Tata Engineering and Locomotive Company, Telco

Tata Motors’s break-even point for capacity utilization is one of the best in the industry worldwide

listed on the New York Stock Exchange in 2004

Ratan tata says• 'We have enormous respect for the two

brands and will endeavor to preserve and

build on their heritage and

competitiveness, keeping their identities

intact,' he said in a statement.

Why acquire JLR?

Is TATA catching a falling knife…or

Long term strategic commitment to automotive sector.

Opportunity to participate in two fast growing auto segments.

Increased business diversity across markets and products.

Land rover provides a natural fit for TML’s suv segment.

Jaguar offers a range of “performance/luxury” vehicles to

broaden the brand portfolio.

Benefits from component sourcing,design services and low

cost engineering.

Tata and the dream…NEED FOR GROWTH

In the past few years, the Tata group has led the growing

appetite among Indian companies to acquire businesses

overseas in Europe, the United States, Australia and Africa -

some even several times larger - in a bid to consolidate

operations and emerge as the new age multinationals.

Tata Motors is India's largest automobile company, with

revenues of $7.2 billion in 2006-07. With over 4 million Tata

vehicles plying in India, it is the leader in commercial vehicles

and the second largest in passenger vehicles.

Result

ACTUAL 2.3 BILLION $

VALUATION 2.80 BILLION $

by- AVI