Acquiring jlr provides the Tatas with phenomenal potential benefits, but managing the brands will be tough
It sure does add to the already growing stature of India and Indian businessmen across the globe. From writing great software, we have moved on and on, to the extent that now we will own two iconic automotive brands that the world swears by. But is a sum of $2.3 billion for two struggling luxury brands a great bargain? Well, according to industry experts, the Tata Motors’ pledge for Jaguar & Land Rover (jlr) deal sure is!
An exhuberant Ratan Tata commented that Tata Motors “will endeavour to preserve and build on their (jlr’s) heritage and competitiveness, keeping their identities intact.” The acquisition, which was finally announced on March 26 has not inspired that much confidence at the stock markets. Tata Motors’ shares fell by more than 7% on the day of the deal announcement, which is ample indication of concerns shared by investors.
In terms of volumes, Jaguar and Land Rover are niche brands. In the year 2007, the entities manufactured a combined 300,000 units, a figure that is not sustainable, considering three factories in ‘expensive’ Britain.
It sure does add to the already growing stature of India and Indian businessmen across the globe. From writing great software, we have moved on and on, to the extent that now we will own two iconic automotive brands that the world swears by. But is a sum of $2.3 billion for two struggling luxury brands a great bargain? Well, according to industry experts, the Tata Motors’ pledge for Jaguar & Land Rover (jlr) deal sure is!
An exhuberant Ratan Tata commented that Tata Motors “will endeavour to preserve and build on their (jlr’s) heritage and competitiveness, keeping their identities intact.” The acquisition, which was finally announced on March 26 has not inspired that much confidence at the stock markets. Tata Motors’ shares fell by more than 7% on the day of the deal announcement, which is ample indication of concerns shared by investors.
In terms of volumes, Jaguar and Land Rover are niche brands. In the year 2007, the entities manufactured a combined 300,000 units, a figure that is not sustainable, considering three factories in ‘expensive’ Britain.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
