Tata Motors to pursue more Buyouts
Tata Motors has expanded immensely over the year and this article explores the International business activities it has been involved in, partnerships and joint venture seem to be the preferred avenue for their expansion. Finally we have a look at the current situation in terms of weakness and recommend solutions.
Issues
According to the article, Tata Motors recently completed a Jaguar-Land Rover acquisition, Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford Motor in a deal worth $2.3bn however it has still indicated that its appetite for acquisitions is still not over and that the company is still on the lookout for opportunities in acquisitions and alliances. In line with its expansion bid, shareholders in the company have been sought for approval on various issues related to the company's fund raising plans, including for the acquisition on the two British marquees, the company said it was open to further such plans.
"The company has major growth plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicles, including through strategic alliances and acquisition opportunities," Tata Motors said in the notice to its shareholders. (BusinessWeek.com, 2008)
Tata Motors has been aggressively acquiring foreign brands to increase its global presence. In 2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, which currently enjoys a market share of 25% in the bus market in Spain, sells its buses in Europe and several other countries outside Europe. It has its own in house product development facility for buses a ...