![]() | #16 |
Senior - BHPian Join Date: Jul 2005 Location: Mumbai
Posts: 1,134
Thanked: 153 Times
| ![]()
The stock Markets think Otherwise. Their share prices are at all time highs! The analyists studies are strongly in their favour. |
![]() |
|
![]() | #17 |
Senior - BHPian ![]() Join Date: Oct 2006 Location: Bangalore
Posts: 1,197
Thanked: 166 Times
| ![]() My first thought was...no way, Tata, Jag and Land Rover?? But, on second thoughts, it doesnt appear to be a liability but an opportunity. Jag and Land Rover are bloody expensive to make. Jag closed down one of their factories near Birmingham, UK recently. This is where I feel Tata can come in. Get Jag and Land Rover to source heavily from India in short term. It is also an opportunity for component makers to move to the next level - go world class. And the engineering expertise that Tata can take from this marriage is worth its weight in gold. Tata has global aspirations. Tetlley Tea, Corus etc are ample proof. But if the deal goes through, this would be their toughest test yet, not monetarily but in terms of sustainability. |
![]() |
![]() | #18 |
BHPian ![]() Join Date: Feb 2006 Location: New Delhi
Posts: 994
Thanked: 20 Times
| ![]() Along with all the Acquisitions Over-drive, Money still needs to be pumped in by NRI's, Global Indian Players to keep the Economy growing in India itself so as to sustain the force. |
![]() |
![]() | #19 |
BHPian Join Date: Dec 2006 Location: Bangalore
Posts: 145
Thanked: 160 Times
| ![]() There was once a beautiful lady that approached Bernard Shaw and told him if we get married and produce a child, it will have my beauty and your intelligence - GBS replied 'what if it has my beauty and your intelligence?!' IMHO Tata is overreaching itself. The result will be erosion of Jaguar brand value as every buyer will know or suspect parts have been sourced cheap from Indica-producing factories. Europe/UK has not forgotten the CityRover story. Tata has enough partnerships with Fiat and others to learn what it needs to learn - products of global quality and reasonable prices. In any case as far selling Jaguarish cars in terms of quality/features in India goes, let us first see what comes out of the Daewoo truck takeover that happened years ago. As long as we neo-rich yuppies keep buying crappy underfeatured cars at inflated prices, not only Tata, no one has incentive to introduce higher specs at reasonable prices. Last edited by ggkg : 18th July 2007 at 18:16. |
![]() |
![]() | #20 |
BHPian ![]() Join Date: Dec 2006 Location: Los Angeles
Posts: 453
Thanked: 20 Times
| ![]() I would'nt get too excited about Tata potentially buying LR and Jag (@ Steeroid - It will be package deal. Infact Bill Ford wanted to sell PAG together and from an inside source, Jac Nasser lowballed him so they decided to split PAG and sell it in bits but with the intention to sell Jag and LR together (Commands more value since Jag doesnt have a SUV lineup and LR doesnt have any sedans). But I digress - Here's a few reasons why this deal won't happen and even if it does you will not see LR / Jag in India. 1) Ratan Tata's long term strategy is to get the group as much global exposure as possible. He was always limited by Tata Sons board and has finally convinced him to let a lot of international deals take place (Tata Steel, Indian Hotels, Tetley, TCS etc). But with another 5 to 6 Billion dollars required for both companies - I fear it may be too risky for the board to allow. 2) Corus - IMO (And another dozen WS analysts) Tata's overextended themselves with Corus. Overvaluation can be deterimental in the long run and if the global market demand for steel does not keep growing the way it is. Tata's may be in a lot of financial trouble (Never easy paying back a $10B+ dollar loan, esp when fuelled by over-zealous banks). So basically with Jag and LR, the group may be over burdended financially. 3) Glaceau - Many in India would not have heard of this company. Tata's bought a 30% stake into this company that sold flavored water under the brand Vitamin Water. Their plan was to buy the company out totally but had made clear intentions of never bringing it to India as there was a very limited market for flavored water (Similar limited market for Jag / LR). Coke later bought the Tatas 30% stake at an overvalued price and Tata netted about $450Million in a 8 month time frame. Won't be surprised if Jag and LR go the same route. |
![]() |
![]() | #21 |
Senior - BHPian ![]() | ![]() Good to hear, but nothing to fancy about. There are a lot of Indians buying a lot of foreign stuff, doesn't take much. However what can be cheered is when the Indian stuff can actually box-out a benchmark product (not on price alone) and we can say, hey we bough a Tata instead of a, say, Jaguar. It would make better sense if they can buy out some engineering firm like Cosworth and use its expertise to grow the indian competence. Last edited by 1100D : 18th July 2007 at 21:55. |
![]() |
![]() | #22 |
BHPian | ![]() So far TATA has not made any bad deals and lets hope it continues that way. 1. Glaceau was a small company when it started and within 6 - 7 years it became a $2b company when TATA purchased 30% of it. Glaceau was growing at over 50% every year and after 8 months it became a $4b company which is the price Coke paid. TATA was very wise to sell off their share. 2. Corus is a very good buy even if it was expensive. TATA has captive mines and is a low cost producer whereas corus makes high end steel. Its a good marriage. TATA essentially went from a nothing to a top 10 steel manufacturer. In the long run only the top 10 are going to survive and thats the reason why this acquisition makes sense. 3. TATA purchange Tyco after Reliance bought Flag. If I remember right, these two companies own 80% of worlds submarine cables which means TATA and Reliance now control most of the international data traffic. 4. Tetley was TATA's first purchase and it gave TATA a strong foothold and distributor network in international market. Through Tetley TATA now markets its own Tea in international markets. The next logical step for TATA was to conquer american coffee market and they aquired stake in a gourmet coffee maker. Soon we will see TATA coffee in america. 5. Rover and Jag? I dont know how that fits in TATA's plans but if TATA does want to buy, it wont be a big financial strain on them. They only have to see a small share in TCS to raise the funds in house. Indian companies are a big name in world market now and private investment funds aren't afraid to back them. Even though its Indian companies that are buying european brands, its actually American and European money being funnelled through Indian front. Reliance unsuccesfully tried to buy Dow chemicals which was much bigger than Reliance, the money was to come from Rotschild IIRC, which is American. Last edited by Mayavi : 18th July 2007 at 22:00. |
![]() |
![]() | #23 |
Senior - BHPian ![]() | ![]() Expected price of $1.5 billion is fairly affordable for TATA. They need to understand that Jag and LR depend on Ford for engines and transmission and how will they manage after the umbirical cord is cut off. First Proton goes to Malaysia and then Rover cars goes to China. Now India's turn? Last edited by Mpower : 18th July 2007 at 22:10. |
![]() |
![]() | #24 |
BHPian | ![]() TATA would have purchased Rover if not for China's higher bid. |
![]() |
![]() | #25 |
Senior - BHPian ![]() Join Date: Dec 2005 Location: Singapore, Mumbai, Nagpur
Posts: 2,166
Thanked: 204 Times
| ![]() Both Tata Motors Ltd. and Mahindra & Mahindra Ltd. are exploring the possibility of bidding for Jaguar and Land Rover. Tata may actually finance a bid with JV partner Fiat. There are also reports Ford may sell Volvo of Sweden. Where is Ford heading and why? |
![]() |
![]() | #26 | |||
Senior - BHPian Join Date: Mar 2005 Location: N.A
Posts: 7,047
Thanked: 2,731 Times
| ![]() Quote:
Quote:
Quote:
Ford needs cash. Volvo, Jag and LR together will get them about $10 Billion. Now thats a lot of money. Wonder when they will get rid of the Mazda stake too. | |||
![]() |
|
![]() | #27 |
Senior - BHPian ![]() Join Date: Feb 2007 Location: Bengaluru / Bagdal
Posts: 1,104
Thanked: 565 Times
| ![]() According to one of the report on Autocar UK (link given in some other thread), 19th July is the D-day. So will we come to know of it tomorrow? |
![]() |
![]() | #28 |
Senior - BHPian ![]() | ![]() Yes, thanks Steeroid. Lotus goes to Proton. Frankly, nothing good came out of that. Lotuses are still made in UK and cost a bomb. Proton's engg capability has still not improved like Hyundai. |
![]() |
![]() | #29 | |
Newbie ![]() Join Date: Jun 2007 Location: Mumbai, Buffalo, San Francisco
Posts: 16
Thanked: 2 Times
| ![]() i have also heard this Quote:
also i heard TATA is bringing ferrari to india? | |
![]() |
![]() | #30 | |
Team-BHP Support ![]() ![]() Join Date: Oct 2005 Location: Hyderabad
Posts: 5,892
Thanked: 2,541 Times
| ![]() Quote:
* Essentially there is nothing wrong with these companies. The same Americans are putting in the same top dollars for these companies. Only that this time someone else is fronting for them. Its the Indians. * What we and the rest of the world always knew is now getting formalized or rather I would say hammered in. Indians have good managing capabilities and business sense. Americans are willing to put in their $$$ into the same "pit holes", as some analysts called those huge money looser corporate behemoths, as long as the Indians are in charge. | |
![]() |
![]() |