In the annals of corporate history, few stories are as inspiring as Tata’s acquisition and transformation of Jaguar Land Rover. This tale is not merely about a business deal; it’s a saga of resilience, innovation, and the power of the human spirit.
When Tata Motors, an Indian automotive giant, took the audacious step of acquiring the struggling British luxury brands, it faced a daunting challenge. The global financial crisis, coupled with internal issues, had pushed Jaguar Land Rover to the brink. However, under the visionary leadership of Ratan Tata, the company embarked on a remarkable journey of revival.
Table of Contents
Tata Motors’ Global Aspiration
The story begins with Tata Motor. Tata Motor said, “We Have Ruled Enough in the Indian Market. There Is Still A Lot Of Scope Left, But If Tata Motor Wants To Be An International Brand, It Will Have To Go To The Global Market And In The Global Market, The Most Developed Market Is The US Market. There you will have to enter and in a developed market like the US, it is very less to build a brand from zero and there is a lot of expenditure and the expectations of the customers of the developed market, are also very high, so matching them is also not of any help.
The only way was that this could be reduced by buying the already company where an already brand is sold there, so Tata was in this makeshifter that brother should get such a good brand which we could buy, he got the opportunity. In June 2007, when Ford officially announced that our two brands, We have to sell Jaguar and Land Rover.
Now let’s talk about why Ford wanted to sell Jaguar and Land Rover, and whether it developed itself or belonged to someone else, then brother, this brand did not even make this Jaguar. The brand was formed in 1935 and then bought Fortuner in 1989. Land Rover was made by spending 2.9 billion in 1948. It was considered the gold standard in off-roading.
It’s such that companies have been changing again and again, the company has been sending the company, buying and selling it, till 1994, BMW bought it, and in 2000, Ford bought it from BMW. Now the question comes, why did Ford want to sell Jaguar and Land Rover? Ford’s own business of making taxes itself went into loss, 2006 it lost 12.6 billion which is approximately ₹1 lakh crore, in 2007 there was a loss of 2.6 billion, then Ford said that its priority which is in the US, because of which we are known, let’s take care of it, brother, in the affair of these two brands.
Sir, destruction is happening, so take out these two brands, generate some money and focus on the main work, so wanted to take out both the brands. Now Land Rover’s big, as I told you, it was an iconic brand, always been profitable, gold standard, that’s why always earned profit, Jaguar’s luck was always bad, Jaguar did not give profit to anyone but bursting also reduced Jaguar tremendously.
There is a joke in Jaguar’s big one that no one Jaguar is let down, two are let down, so why one? It always stands in thunderstorms. Then when Ford said Man, if I go out in the sale, Land Rover is a profit table, everyone will take it, no one will touch Jaguar, and we will get rid of trouble only by this, so what would have happened normally?
When it is said that we are both married or will do it at home, then Ford also sits and gives the lamp that brother, whoever wants to take it, both will study to take it, if they do not give one each, then when Ford has two daughters, Land Rover and Jaguar.
When Swayamvar happened, the king of different states arrived, Tata Motor also went, Mahindra and Mahindra also went to order, a lot of PE firms arrived, GP Morgan’s PE firm came and it felt like brother, you will be the king of different states, brother, it will be a Swayamvar, see who takes it, this Swayamvar had a dangerous bet, this JLR had 16000 employees and their union.
When it was made, they messed it up, they said look, a PE firm is private equity. We will not sell it to them, we want to sell it, send it, send it to the company, but if we are a motor manufacturing company, then you will sell it to a motor manufacturing company.
If we do 10 things, then will mess it up, like this the private equity funders who had come, brother, those princes had to return that this girl is not coming into the hands of Mahindra and Mahindra and in the beginning, they started bidding and as soon as The level of the bid increased, Anand Bhai said why to fight with Tata ji, he is a man of the house, so he also left and finally, Ford also said that among all the candidates who have come, he is the most eligible candidate, who easily accepted our conditions, who is our Will keep the employee happy too, he can be trusted,
he is Tata, who is Tata’s trust and Tata’s respect is not in India, but in the whole world, brother, when Ford said, brother, we will sell to Tata Motors, then Tata The motor was happy, the employees were also happy here, yes, this is a good decision by the Indian government.
Why Ford Sold Jaguar and Land Rover
T was also very happy, and the British government was also very happy, Tony Blair said congratulations brother, it is good that Tata has sold it because Tata knows how to take care of the employees, so we are very happy that this firm has been sold to TATA. With folded hands, Bilford said, Brother, you are doing us a favour by taking this car, you must have remembered a story from this word favour, when the deal was done, this story went on for a long time;
Doesn’t talk story but everyone has come fact figure you will put in this article and the story was something like that in 1998 Tata Indica launch now Indica launch but its sale was low so it won’t work this way.
Then TATA went to Ford has Brother, you take our car division, then he said Manan, why didn’t you come to make that tax, in the division, you are just a truck builder, just make only that, as a result, Tata was insulted by this Ford company. The arrogance came down and the company had to be sold with folded hands and then finally the deal was completed on June 2, 2008, and as I told you newspaper headline umpire strikes back India rule BritainJaguarr is now Indian so what if the queen has Kohinoor Jaguar and Land Rover is with us. So like this Indians were feeling very proud. But Britishers were not happy.
This is not fair, we used to rule on them and now they are buying our companies. There are a few of our shortcomings, we have to buy something like this, then when we talked to him, his citizens came to the question that when a company like Ford could not run Land Rover in profit, Jaguar could not run, then what is the status of brother Tata. He doesn’t even have experience with premium vehicles, now it must have come to your mind too,
Why did Tata buy Ford if it was at a loss?
They know how long it is in profit and how long it is, how it is studied, carefully listened to a question us, if Tata was to be bought, who buy this brand, there were many reasons, The first reason the brand was very good, it was recognized at the global level, secondly, its manufacturing facility was advanced, then Tata Motor will buy its plants if it comes, we will also learn manufacturing techniques and R&D. Center was that too advanced,
so The research and development that is going on, an advance will also be available, then their Land Rover’s XUV which is an extended version of their Safari, which is Tata Safari, said that if we develop ourselves, then how many years will it take us to know, here we are getting ready-made.
To date, Tata has made buses, made trucks, made money on value, and made money in the luxury segment, otherwise, it has made a thorough entry into the luxury segment and a huge market, which was earlier closed, is now open and has global dealerships all over the world. Made more than 2600 dollars cheese was made in 170 countries, then Deal was not just a company, it became the name of the whole ecosystem as a whole in the world. There was a name, dealer and tech.
The rest will make it profitable after buying Jaguar Land R. When the first employee meeting was held and Ratan Tata reached to address all these employees, one thing was clear in everyone’s mind that brother, some leader has come, now he has not bought the money. This is the new owner, now this brother will take our class and show one thing What and show one thing What a great authority
I am and will tell us here is the plan follow Ratan Tata ji different man he didn’t do anything like that he said no problem sir it is your company you have got a good run we are your owner new so what happened Not that we will run our role, you and we will run the company, by doing this he won the trust of the employees.
Challenges and Skepticism
Tata ji used to visit floors, the employees used to be shocked and the boss has arrived, it was a big thing for them because no director of Ford has ever come to the shop floor till date, otherwise, there are big people, no, I will go round the shop floor of the employer.
Trust was built again, then they thought that they would bring a new CEO to Indian Co and put them on our head, they didn’t already seat David Smith of this company you will only remain the CEO, you 25 years of experience of both Ford and Jaguar It is such that he is not a domineering man and a man who does little after that things did not start working very smoothly because when this deal was done, do you remember what happened in June 2008 and two-three months after that September 8, Brother Lehman, the whole market went down and the whole Europe was devastated,
North America was devastated, and this was the segment, this was the market where Jaguar used to buy Land Rover vehicles, with completely zero sales, Tata Motor, whose profit in 2008 was 2515 crores, in 2009 lost 25 crores, a loss of ₹5000 crores Tata had to spend 4.5 thousand crores separately in addition to his initial budget in the year when he went to the British bank or went to the European bank to get this money just to meet the expenses, first he was is losses around 2008. conditions were kept for the money.
Tata said, Man, you are throwing tantrums too much, let it be we will take it from Indian Bank. So a consortium of Indian Bank was formed, SBI led it and the bank together gave 500 million, about 4000 crores to Tata, for the whole turnaround, it is not that Tata took Jaguar in bad condition and fixed it, took it from him in bad condition Ratan Tata ji also came in bad condition and then rectified it, first of all, to turn it on, Ratan Tata ji He hired a German agency.
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Then he hired KPMG at the global level. So those who are our participants of vVyapari2 CEO, those who have attended an advanced class or worked in the boot camp together remember what we talked about Is that brother, your cost-cutting is necessary when a figure like Ratan Tata is in favour of cutting. Which country’s leader and which farm radish are you What is the need for a consultant, business can be run easily who ran the business for 150 years,
when there is a problem, when they also hire a consultant, then from which farm do we have radishes, so here is a message for those people who have 100 times to give 99, just think, what did you do in tight cutting, first of all sitting on the labour front, he said you have all understood, look, you know the condition of the company was already very bad and now it has become very bad or you say So I took out more than half of you and bundled everything in the factory and you support me The company can make a profit table and made some agreement after understanding the labour, but before it came,
they made a convention that if you work 40 hours, you will have to work 3 hours extra, in this,s you will get salary on regular. I will not be able to pay, I will have to pay, I will have to pay after stopping the salary for two months, seeing in pieces, the labours said it is okay, sir, some of the old inefficient labourers, 2000 labourers were also removed from their jobs, some were inefficient people, they were forced to go on leave. VRS was given to some during the year.
By doing all these things, they adjusted the total manpower by 32% and earned a total saving of 68 million pounds i.e. about Rs 680 crores. Invested heavily in research and development in R&D Industries standard is 5% of their revenue Tata has invested 14% to make a new model which is fuel efficient, which is fast and according to the Contemporary model, the third new market has been developed. From America or Europe Now they have banded from this market,
so they developed the market in China, they developed in Russia, they developed in Latin America, then the total sales of Jaguar which at the time when they bought used to be 1% of the total sale, it came from these places.
Started in 2009 2017 Time Ladies and Gentlemen Take heart Sale Kar Di Tiny 34 Billion 2 Lakh 31 Thousand Crore Sale In Tata Group At present Tata Motor has 80 thousand employees out of them 35000 are only in Jaguar and Land Rover and one fact I forgot to tell you when Tata Motor sold Jaguar Land over Had bought Jaguar Landover was bigger than Tata Motor, so in this way Tata bought Land Rover Jaguar and turned it around and the lesson we can learn from this is that lesson number one, you will get the heart of your employee as much as you want.
Nothing happens by becoming your leader when heart-to-heart will meet and then the result will come second thing you have to learn is that no matter how high your tag is your cost should always be low if your casting is not loan how can you cut If you are not paying attention, no matter how big you are, then tell me, sir, if you want 70%, then you should try to get 71%. Always in search of new products and new markets,
Tata acquired jaguar and Land Rover
Tata Motor says that everything is fine in India, but today the global market is hit. Have to go to market, search, find, reduce, find, let’s get Jaguar land, it is sold well in Europe and America, what to sell, find China, find Russia, develop the whole market, then you always want to increase your sales, either develop new markets or new products.
Develop or move in new segments Tata was in money on value Tata went in luxury Tata was in India Went out of India Outside was in a continent Got hold of a different continent So all these things that you can learn and Business Coaching or business consultant if you want to know things a lot how study is going to come there you will get things and this is not my first article in Tata series before that 8-10 article have come
so if you want to know about study business of Tata If you track then bookmark my myrealstory.website now on the list you will get everything you want if you are interested in reading the full article and have real knowledge of business finance
Tata’s acquisition of Jaguar Land Rover stands as a testament to the power of strategic thinking, innovative leadership, and unwavering determination. By focusing on employee empowerment, cost efficiency, product innovation, market expansion, and financial discipline, Tata not only revived the fortunes of these iconic brands but also solidified its position as a global automotive powerhouse.
The lessons learned from this transformative journey can inspire businesses worldwide to overcome challenges, embrace change, and achieve extraordinary results.
