the story I'm about to tell you is one
of the biggest triumphs in the
automotive world it's a story of Drive
ambition and resilience this is the
story of how Tata Motors brought Jaguar
Land Rover to India the acquisition of
Ford Motors Jaguar and Land Rover Brands
was not a simple corporate deal behind
it is a story of visionary leadership
and a pivotal meeting gone sour listen
on to find out what fuel Tartas takeover
Rover hello and welcome to A Century of
stories brought to you by idfc First
Bank always you first I'm your host
Kunal Vier we've traveled through time
to meet The Architects of India's
business science arts and sports
landscape today I have one more such
Tale the Tata Triumph story
in a meeting between ranata and Bill
Ford in Detroit in 1999 there was a
disagreement about the potential of
tataa motors's passenger car division
while belittling tata's experience in
the space Ford spoke rather harshly to
ranata and his team who were there to
discuss the sale of Tata motors's car
division to Ford Ford said why would you
get into this business you know nothing
about it hearing those words ratan Tata
realized something this seemed like an
unequal transaction and that did not sit
right with him after all Tata Motors had
been a successful locomotive
manufacturer since
1945 has started making commercial
vehicles in the 1950s commercial
vehicles in India was synonymous with
the brand remember all those tataa
trucks you used to see on the highways
tataa Motors entered passenger vehicles
under the leadership of r andata with
SUVs like Tata Sierra Tata Sumo and Tata
Safari doing well in the 1990s in 1999
they faced a setback from their new
affordable indigenously developed
hatchback indic car's below power
performance might have put the company
in a sticky situation but ranata decided
to stick with the Mora Perka and banked
on Tata motors' strong foundations and
his own self-belief to carry them
through he called off the sale to Ford
raata comes from a long line of vist
businessman like nanata jamata dorab
jata and jata his predecessors had
contributed greatly to building India since
since
1868 and ran would continue to do the
same as a Young Man learning the ropes
of the business he showed one clear
quality the ability to look at a problem
objectively and come up with an
unconventional solution in 1991 he was
made chairman of the Tata group he was
taking over from jrd Tata who had spent
50 years in this role ratan's first
order of business was to streamline and
consolidate all the Tata companies so
profits could help the group as a whole
it also protected them from foreign
buyers entering India during
liberalization he turned his Focus to
Innovative and affordable solutions for
the Indian middle class in 1999 when the
sale of of Tata motors's car division to
Ford fell through ran Tata changed tact
and took the challenge headon the Tata
group's Mission had always been the
welfare of Indians he was going to build
Tata Motors up to make it the vehicle of
choice for every Indian they learned
from their mistakes and made
improvements to the first model of the
indicia sales picked up tataa Motors
even started exporting Inda the Indian
car to Africa and to Europe data Motors
had ritten out the 2001 economic
downturn and was listed now on the New
York Stock Exchange in 2004 with global
Acquisitions of a trucking unit in South
Korea a bus and Coach manufacturer in
Spain and a joint venture in Brazil
under ranata Tata Motors was well and
truly On The Rise internationally the
crowning Jewel in Ran tata's business
repertoire was the launch of Tata Nano
in January 2008 it was the most cost
effective car in the world priced under
rupees 1 lakh it was not only a hope for
every Common Man and his family but the
achievement also spoke to the
operational efficiencies of Tata Motors
at the same time Ford was not doing so
well and the 2008 recession was the last
straw for his luxury Brands jaguar and
Land Rover people were just not buying
luxury cars any anymore so when Bill
Ford met ranata again in 2008 the
scenario was very different this time it
was ran Tata who would be doing ford a
favor and he did in June 2008 he made an
offer of a cool $2.3 billion to buy
jaguar and Land Rover just a few billion
short of what Ford had paid just a
decade before but the payback was not
complete till Tata breed life back into
these then unprofitable Brands learning
from tata's own experience of the last
decade this set to work $1 billion was
infused into the design and development
of new models for Jr coupled with
cutting cost and bringing operational
efficiencies the tatas turned Jr's
fortunes around with this new
positioning Jaguar Land Rover had become
profitable within one year of the
acquisition more than a bold business
decision this is a story of self-belief
of triumph over failure and over one's
harshest critics for centuries the Tata
group has built infrastructure to
support industries from steel to salt to
software some would say the story of
tataa is a story of India's growth
itself while the central Focus was
always India tata's Ambitions were also
Global much like India itself from being
a supplier of robust steel during the
two World Wars to taking over some
iconic International brands in a move to
meet Global aspirations ranata and Tata
Motors had scripted one of the biggest
triumphs in the automotive
World you've been watching A Century of
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