Q: From a business perspective, what could it mean for Tata Motors as a company both in terms of the price and what it would in terms of earnings over the next couple of years you think?

A: I think the price - when one looks at USD 2-2.5 billion the expected price; it’s not seen as very expensive especially when one compares it with what Ford paid for these assets few years ago. They paid about USD 2.5 billion in 1989 for Jaguar and USD 2.73 billion for Land Rover in 2000. So compared to what Ford has paid for it, doesn’t seem like a lot of money.

I know a lot of analysts have been saying that the price is bit on the high side. But I would say it really depends on how Tata handles a post-acquisition phase and how it limits the negative impact on the brands, which there are lot of worries about. So from that perspective, it very much depends on how Tata handles the post-acquisition phase.

There is a concern especially now that Tata’s borrowed USD 3 billion and put it on its balance sheet and in these days of credit crunch, these sort of woes are not seen well. I think it will be a tough challenge for Tata to turn around, Jaguar particularly. The Land Rover side of the business seems to be in good shape with relatively new products lined up and few requirements for major investments. But Ford has struggled for years to turn around Jaguar and this is where there are worries right now.