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Tata Group planning to acquire JLR six months after Corus Deal Access to technology + markets but financial and strategy stretch for the group Large Competitors and previous deals a premium of 1.3 was paid During Tatas tenure, many companies internationalized their operations and after Corus deal 65% of the revenue from abroad. 5. M&A looked from long term strategic objective. Presented financial and integrations challenges. Identify the M&A strategy for the group II 1. House of Tata forefront in nation building business activities and the profits goes to trust which funds various social programs 2. Expanded to 300 companies and led to many groups overlapping 3. Mr Tata streamlined the process and improved competitiveness of the group and organized the group into 7 sectors. 4. Acquired atleasr 26% stake in all Tata Companies and developed a brand equity scheme. Formed GEO and GCC to coordinate group strategy and leverage financial strength of the group 5. Market value increased from $8 billion to $60 billion. 6 companies contribute 77.6 % of the revenue III 1. The liberalization introduced opportunities and threats to the Indian business environment 2. The partnership with various international companies helped TATA to build capability to compete in international market 3. Due to the Asian financial crisis, Tata questioned on the strategy to put all investment in Asia 4. An international economic integration led to companies operating globally 5. Regulatory barriers and infrastructure limitations led to companies not growing to their best 6. Government limits were gradually decreased as the foreign exchange increased. Companies can invest upto 4 times their net worth. 7. Financing options were also expanded to extent were international borrowing became very easy 8. The inflow of foreign funds increased 9. Wildly held that M&A does not result in gains to the shareholder but the outbound M&A doubled in 2008 IV

1. TCS a. Most of the Group Companies developed international profiles and sought opportunities to enter new markets b. 91% of TCSs revenue was from abroad. Company used M&A to make additions to technological capabilities and to build presence in new markets. TCS accounts for almost 50% of the TATA market cap 2. Titan a. Titan was unsuccessfully in European whereas successful in Middle East 3. IHC a. IHC started the global outlook in 1980s. It focused only on high end properties abroad and ran most properties on management contracts rather than outright sale b. IHC strategy was to build a seamless connectivity to global customers who would be potential customers to the Indian properties c. Expansion deals looked overvalued or did not fit the company criterions 4. Tata Tea a. Teteley was bought to bring new growth opportunities in advanced markets and to transform itself in to a branded tea company b. Eye opener to the conservative group operations c. Deal executed through a special purpose vehicle in which Tata Teas equity contribution was limited to only the amount which it could service without any returns d. Group Strategy has been to retain the management for the acquired company e. Synergy between the groups were not as great as it was expected to be f. Group made other acquisitions which complemented the existing business 5. Tata Steel a. Pioneer in the Indian Steel Industry but faced stiff competition after liberalization b. During the 90s revamped itself through various measures c. Developed 6 connector strategies to globalize the companys growth i. Domestic Expansion ii. De-intergrated strategy iii. Mature Market M&A iv. Raw material security v. Downstream products vi. Logistics control d. Consolidation of global steel industry triggered Corus and the acquisition made Tata steel the 6th biggest player e. Host of challenges from increasing profit margins to managing the financial debt for acquiring the company V

1. Formed Group Centre to strategize the groups globalization and internationalization process and to access potential acquisitions from a holistic point of view 2. Established offices in key markets to coordinate business development activities 3. Internationalized some common business processes and 4. Group support creates significant reassurance in the target company 5. Established committees to synergize the combined entities but has faced huge opposition due to lack of top down approach within the group VI 1. Tata Motors, largest operating company with significant share in passenger market and truck market. 2. High dependence of the cyclical truck market gave way for other segments and markets 3. Compelled to internationalize due to stiff foreign competition and advanced product development abroad 4. Focused approach on internationalization in key markets with lookout for those business which will complement or stretch the companys existing portfolios and capabilities ( Daewoo, Hispano Carrocera and Fiat) 5. Strategic pricing of spare parts in international markets 6. International business share at 18% 7. Most of the products catered to the low end of the market ( APE, Nano) 8. China a market not yet tapped by the company due to regulations 9. US and UK not yet entered and the best way is a M&A 10. JLR open for M&A with Jaguar making huge loss 11. Conditions from union and challenges in having separate sales 12. Challenges as the company was planning substantial investments for the existing business 13. Operating margins and free cash flow at the lowest as market looked dull 14. Market, Technology and new distribution channels