The Tatas buy Landrover & Jaguar

It is not often that things like this happen but it did now and it was announced with quite a lot of fanfare. They have done it many times before with Tetley and Corus and an attempt at the Orient Hotels; still pending I believe in spite of a rude rebuff. The Indian story is still up and running and the worthy have argued that the takeover of Jaguar and Land Rover would be good for the both of them. As a Tata Automobile user, I own and drive one everyday, I just look forward to this deal and off course are extremely happy. I am hoping for a slightly cheaper Land Rover will hit my town and I cannot wait for it enough. I am certain they will have a vehicle under the sub ‘Defender’ range for us.I think the data will bear us out – they will do an admirable job of it and as a proud customer of theirs (I own their products & not their shares) I think they will do a good job.

In the automobile industry – the Tata’s have crashed prices down to less than $3000 for a four seater mini vehicle. I daren’t comment any more on it than that as I have never really seen one yet but I am certain it will be quite a wonder. Truthfully speaking I would say that the Tata’s in automobile making are a bit like Microsoft – the first version really is never the best and they need retrofitting to make their version 1 stable. This is from personal and documented experience off course having been one of the first lot of buyers of a new Tata engine – their common rail diesel engine SUV. The ‘build’ if I may call it that took 6 months to stabilise but when it did – it has been ok and I have manhandled the product a bit. Their version 2 release with a smaller more powerful engine killed me, they had a better product and version out in a year after I bought my version and there was no way to upgrade except to get a new one! And yes I am speaking of a machine here not a software application; but they made the deal really as painful as buying software! But yes; I am a satisfied customer – not perhaps delighted, but definitely ok I bought a Tata. I also hope Jaguar Land Rover teach Tata Motors a bit about making body cladding fit tighter with the metal and better plastic quality.

I think the stock’s also doing well; my tracker doesn’t seem to show so much red in the little index of their scrips that I have set up. The terms of the Jaguar Land Rover deal is complex but the Tatas are expected to take a bridge loan of $ 3 billion to fiance this deal which  they then have committed to refinance through stocks and debt within a year. The British may not like it said – but having seen the way the Tatas have grown – Sir Ratan deserves a knighthood! I don’t if it can be done; but it is a thought whose time has come. If a corporate buy can have any more a resonance as  this buy of what are rather British heritage automobile symbols and technology power houses than this does, I haven’t yet heard of it. Once upon a time, long back as a front line sales person at Mumbai, I used to work in an office in the shadows of  Bombay House, the HQ of the Tatas (Tata Sons.) and always looked upon it in awe. When one begins to understand the variety of enterprises  they are involved is enough to make minds spin. Power; IT; Retail; Realty; Automobile & components manufacturing; Insurance; Satellite TV services; hospitality; commodities. It is no wonder that the company fought a legal battle with a cyber squatter for the rights to tata.com – which is more like a portal than a website!

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About Soumya
A technology enthusiast, forever enamored by all that it hath wrought and of course here is an attempt at making sense of it all and perhaps simplifying it!

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