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Moneycontrol India :: News :: Ind cheers Tata Motors-JLR deal but differ on road ahead :: Tata Motors :: Business :: Tata Group ,Tata Motors ,Anand Mahindra, Mahindra & Mahindra ,Rahul Bajaj,Bajaj Auto ,Ratan Tata ,Ravi Kant ,Pawan Goenka,Jagdish Khattar
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Ind cheers Tata Motors-JLR deal but differ on road ahead
2008-03-26 20:13:51 Source : News Bulletins/CNBC-TV18
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The Tata Group has conquered another bit of the empire. Tata Motors is now the proud owners of the iconic Jaguar and Land-Rover brands. In an all cash deal, Tata Motors will buy the British marquee brands for USD 2.3 billion. Ford will contribute 600 million dollars towards the pension plans. 

 

So, what does a fellow co-bidder think of the deal?

 

Applauding Tatas' success, Anand Mahindra, MD, Mahindra & Mahindra, said this acquisition highlights India's prominence in the global auto arena.

 

Pawan Goenka, President-Automotive Division, M&M, said, "Undoubtedly, Jaguar and Land Rover are brands that any auto manufacturer would like to have in their portfolio of brands. Mahindra was also interested in JLR. It's a very different ball game from what any of us have been doing so far," he added.

 

Though the industry views the deal as coming of age for the Indian auto sector, most think that managing the two companies is a different ball game.

 

Jagdish Khattar of Maruti feels it will take some time before the Indian automobile industry comes of age. "I think the industry can only come of age when the domestic industry is internationally competitive and can stand on its feet. But as far as this deal is concerned, what we need to know is what is the gameplan of the Tatas to make use of this takeover. But I am sure the Tata group must have really worked out a gameplan to take advantage of this investment. That has not been shared with the shareholders or the country so far. We need to wait for that before we come to any definitive conclusion either way."

 

Rahul Bajaj, Chairman, Bajaj Auto, said, "I am delighted that Tata Motors has got the deal both as an industrialist, as a person in the automotive industry, and as an Indian. I regard these two -- Land-Rover and Jaguar -- as iconic brands and time will show what happens. But I have no doubt that people will sort it out very well at Tata Motors. I hold both Ratan Tata and Ravi Kant in extremely high regard. There is no reason to believe that they wouldn’t make a success out of this. There are lots of things to be done to learn from them like their technology, R&D, brand name, and dealer network. So, there are lots of things that Tata Motors would have to learn from them and maybe vice versa.”

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