Jaguar

Jaguar Cars Ltd, known simply as Jaguar, is a British luxury and sports car manufacturer, headquartered in Whitley, Coventry, England. It is part of the Jaguar Land Rover business, a subsidiary of the Indian company Tata Motors. Jaguar was founded as the Swallow Sidecar Company originally making motorcycle sidecars before developing passenger cars.

Jaguar

Since its incorporation Jaguar has been passed onto different hands. Swallow Sidecar Company British Leyland Ford Motors Tata Motors

Land Rover

Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, UK. It is owned by the Indian company Tata Motors since 2008, forming part of their Jaguar Land Rover (JLR) group. It is the second oldest four-wheeldrive car brand in the world.

Land Rover

Since its incorporation Land Rover too has been passed onto different hands.

British Leyland

BMW
Ford Motors Tata Motors

JLR Acquisition

In June 2008, India-based Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British brands - Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2.3 billion. Tata had completed this biggest buy-out in the automobile space by an Indian company on June 2, 2008 as it bought the ownership of luxury brands - Jaguar and Land Rover. Tata Motors was interested in acquiring JLR as it will reduce the companys dependence on the Indian market, which accounted for 90% of its sales.

SWOT Analysis

Strengths: Tatas strong management capability. Strong monetary base to invest.

Synergy due to Corus, TACO and TCS.

Experience in growing market like India.

SWOT Analysis

Weaknesses: Inexperience in handling a luxury automobile brand. Inexperience in turning around loss making company.

R & D and designing capabilities.

SWOT Analysis

Opportunities: Rising appetite for luxury automobiles in growing markets like India and China. Established European brands available at affordable investment. Complete product line with addition of luxury brands. Access to European and American Market.

SWOT Analysis

Threats: Volatility in market driven by new products. Strong presence of competitors like Mercedes, BMW, Lexus and Infinity. Receding sales and brand image. Downturn making Investment riskier and costlier.

Fall Of Jaguar-Land Rover

Jaguar-Land Rover sees a slump in sales in 2009 as analysts report declining revenue in the 4th quarter.

Increasing competition, change in technology and design drags the company to a slowdown.

Jaguar-Land Rover is unable to conform with the European Safety & Pollution norms.

The Turnaround Story

Four years after being bought by Tata Motors , the wellknown but somewhat faded British brands are regaining some of their lost lustre, racking up big sales from Shanghai to London. Mr. Ratan Tata is popularly known as the Turnaround Man. On 3rd June, 2008 Tata Motors announces the completion of Jaguar-Land Rover buyout.

There were two areas on which the Tatas needed to emphasize on cash management & cost reduction.

The Turnaround Story

Since JLR didnt have a cash management system of its own, TATA hired KPMG to implement one for them. Munich based Roland Berger Strategy Consultants was hired for the cost reduction issue.

The parent company also pumped capital in to JLR to tide over the problem of liquidity and to ensure that new model development programs continued as planned.
Tata Technologies, a subsidiary of Tata Motors was handed over the work to separate JLRs IT systems from those of Ford. This initiative also helped JLR save millions of dollars on IT.

The Turnaround Story

The company laid off 11,000 of its workforce.

Analysts say Tata has done what few companies from emerging markets have been able to do turn around and successfully run a troubled Western company.

Tata Motors appears to have succeeded in large part because it did not seek to run Jaguar Land Rover from their headquarters in Mumbai. Instead, it has left day-to-day management in the hands of executives in England.

The Turnaround Story

The table shown below shows the turnaround, in FY 2010-11 the net profit for JLR was 1,036 million pounds compared to a net profit of 24 million pounds in FY 2009-10.

The Road Ahead

Jaguar-Land Rover strives to proves its presence felt in the market by providing new, better & innovative products. Jaguar has been providing products like its XJ, XF & XK models at competitive prices and Land Rover has been providing cars like Land Rover Sport, Vogue, Discovery & Freelander. Ever since the buyout, JLR has been expanding into different countries and setting up new assembly lines to reduce cost of production.

Thank You
Presentation By: Jinal Botadra Foram Dhakan Abhishek Khanna Utsav Shah 135