Mega Acquisitions by Indian companies changing brand India !
The giant positive strides that Brand India has taken in last few years is nothing less than astonishing. Indian Businessmen and Entrepreneurs are set out to revamp Indian image that will be boasting world’s biggest corporation’s in near future. All the sectors, be it Steel, manufacturing, Information technology, Auto and FMCG are all buzzing with Mega Indian acquisitions.
The latest and probably the most talked about after Mittal’s buy-out of Arcelor, is Jaguar- Land Rover bid by Tata group.
To say that Jaguar and Land Rover are iconic brands in America and Europe is an under-statement. If you see someone driving an Jaguar or Land Rover, the default thought that comes to your mind is “those guys must filthy rich !”.
This Tata buy-out of these two brands is much more than mere acquisition of a company. It is a message that Tata is sending across the globe about Indian companies and India itself ! Not without a reason were the Jaguar dealers in Northern America making a big hoopla about this deal. Some dealers have gone so far as to suggest that consumers in the United States would not want to buy a premium brand such as Jaguar if it were owned by a company in India.
From financial perspective though, I am not too sure how Tata plans to make a turn-around of brands like Jaguar that have been on a loosing streak since last 15 years making more than $billion losses year on year !
Some of the comments on Motor Authority website that published this news are quite interesting.
Another news (may be a rumour) that caught my eye was possible takeover of Cap-Gemini by Wipro. Cap-Gemini is known to be one of the top Consulting firms in the world.
Wipro is expected to place a bid to acquire Capgemini by January-end next year, according to investment banking sources. The bid could be close to Euro 48 per share, valuing Capgemini at $6.4-7 billion.
Wipro has already made a another big acquisition in August this year of US-based business process outsourcing services provider Infocrossing for approximately $600 million (Rs 2,400 crore)
I think we will witness lot more mega-deals of this nature in coming months and years.
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It is good to see, How will tata manage it, as well as tata is doing smart job – Tata is making its niche market between meddle class with their TATA Nano and High class with Jaguar and Land Rover..
This is difficult to understand. On the one side, Tata seems to have smart engineers producing genuine innovation – items like the air car would probably sell well anywhere in the world once safety concerns regarding the compressed air tank are addressed.
On the other side, their board appears to completely fail to understand the Western market – Jaguar and Land Rover are “have beens”, brands that are decades past their prime, and the appalling quality and “yesterdecades technology” associated with both brands more than outweigh negatively the image of stylishness that comes with Jaguar.
Tata repeats the mistakes of BMW and Daimler-Benz – incompetent management wasting the money gained from the work of competent engineers.
great going …keep it up
Tata can do lot of things for India. Indian machines and equipments or technologies do not have that much brand name in the world. But Tata can change this blind vision.
We should have to make good movement in world market. It will help to get more job oppertunity as well as Indian economy.
We are always depends ouside people for all energies… expecially fuel.
We want to overcome that. we want to gather better ideas (like hydregen emission engine) and do more productive in all areas…
Tata….. you can do it for India.
Thanks alot Tata for good step…(Nano Car, S/W side, air emission car, good R&D)……………………
very good cars
Tata Motors is taking giant strides and making history for itself. First the Landrover-Jaguar deal, then the world’s cheapest car and now it is also set to introduce the car that runs on air, compressed air to be specific.
Here’s the deal guys…whether or not Tata makes a profit out of the whole deal is not really the point. What we have to keep in mind is that the level of technology Tata is going to inherit is going to be worth a lot more. The first thing that one needs when he starts manufacturing a product is the technology. and as far as Indian engineering in the field of automobiles is concerned…well you know. This will give Indian engineers a whole new level of experience in working with perfomance vehicles. And once we get the experience, it wont take us a long time to launch modified designs that are even more technically advanced. And once that happens…well we will then have a better product to offer under a brand name that has already been established. The profits will soon follow.
Tatas have always been my favourite when it comes to their Business strategies, work morale and all I have heard about Tata. This is yet another thing which is adding to the appealing nature of Tata…Truly taking India to the world in the right manner…
I owned two landrovers from 1995 to 2005. They are the worst suvs or cars I ever drove in my life. I heard the same comments about jaguars from my friends who own them.I agree with saptarshi’s comments.
Saptarshi,
Like I mentioned in the article, how financially viable these acquisitions are is a completely different thing. I am sure Tata’s have thought about synergies and subsequent profits (direct and indirect) in these deals, that we are unable to see outright.
It is about the aggressive growth policies adopted by Indian entrepreneurs like Tata’s, Mallya’s and Premji’s, thereby giving “Brand India” a complete new image worldwide !
Somehow in this takeover spree, common sense is being lost. Just for the sake of reputation some takeovers are overpriced. The Jaguar bid definitely falls very much in this overpriced category, since its a hugely loss making thing that Tata bought. Even Corus hasn’t proved much for Tata yet!!
If Tata can change these companies and start making some profit then it’ll be something to be proud of. Just buying these companies/brands isn’t good enough. I’ll wait for some more time before I begin to clap!!
This is an indication to the world that Indian Enterpruenerial talent is world class in its competence. The foolish Govt policies had stiffled it so long.I am glad in hardly 15 years after liberlising the economy our people have written India.s name in world Industrial map. Let this trend continue.