GLOBAL ACQUISITION 1

? purchase of one business or company by another company Such purchase may be of 100%, or nearly 100% 2

TYPES Friendly Acquisition Reverse Acquisition Backflip Acquisition Hostile Acquisition 3

OBJECTIVES Strategic Benefits Market Dominance Economies of Scales Growth 4

ADVANTAGE Speed Market Power Entry Barrier Financial Gains Resources & Competencies Growth 5

DISADVANTAGE Integration Problem High Cost Financial Consequences Unrelated Diversification To Much Focus 6

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TATA MOTORS, JAGUAR & LAND ROVER OVERVIEW 10

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TATA GROUP is 150 year old India's largest passenger automobile and commercial vehicle. Tata Motors was established in 1945 Listed on the New York Stock Exchange in TATA MOTOR OVERVIEW 12

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 JLR was a part of Ford's Premier Automotive Group (PAG) and were considered to be British icons.  Jaguar was involved in the manufacture of high- end luxury cars JAGUAR OVERVIEW 14

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British car manufacturer founded in 1948 as a marquee of the Rover Company – 1 million cars running on the road In 1994 Rover Group is taken over by BMW sold to FORD MOTORS for $ 2.75 b in LAND ROVER OVERVIEW 16

WHY IS FORD SELLING? 17

Reports said losses at Jaguar stood at USD 715 million in Jaguar was not able to provide any profit Ford was combining both the brands since the products and manufacturing of vehicles for Land Rover and Jaguar was so intertwined. 18

THE DEAL PROCESS 19

12/06/ Announcement from Ford that it plans to sell Land Rover and Jaguar. August 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 ($ 2.3b & $ 1.9b) 03/01/2008 – Ford announces Tatas as the preferred bidders 26/03/ Ford agreed to sell their Jaguar Land Rover operations to Tata Motors. 0 2/06/2008 – The acquisition is complete 20

THE DEAL 21

100% stake in Jaguar & land Rover Business 3 Plants in UK 2 advanced design & engineering center 26 National sales company Intellectual property rights Capital Allowance Support from Ford Motor Credit Pension Contributed by Ford 22

WHY TATA BUYING? 23

Tata wanted to make a global impact This acquisition also eases the entry of Tata in European market. Reduce the company dependence on the Indian market Opportunity to spread its business across different customer segment Tata has to compete with the current market leaders in luxury brands – BMW, Audi, Mercedes Publicity on an international scale Access to large distribution network JLR had many new models lined up for next 3 years, so no much work just profits Strong R & D culture and facilities 24

PROBLEMS IN THE DOMESTIC MARKET 25

The profits for the first quarter for the year were at 3.26 billion. Q3 the sales of passenger vehicles went down to 41,287 units a drop of 14.14% Tata Motors cut production across different categories. 26

POST MERGER 27

Following Cost Rationalization initiatives were taken to improve cash flows: 1] Single shifts and down time at all three UK assembly plants. 2] Supplier payment terms extended 3] Receivables reduced by £133 million from 38 to 27 days. 4] Inventory reduced by £217m between June 2008 and March 2009 from 70 to 50 days. 28

5] Labor actions – Voluntary retirement Agency staff reduced by 800. Additional 450 job cuts including 300 managers. 6] Engineering and capital spending efficiencies. 7] Fixed marketing and selling costs reduced in line with sales volume. 8] Reduction in all other non-personnel related overhead costs. 29

PRESENTED BY- A yush J ain( ) S aurabh J ain ( ) V inesh P al ( ) Y ogesh K hurana ( R ochak V ishnoi ( ) H imanshu S ukhija ( ) 30