0:02 the story I'm about to tell you is one
0:04 of the biggest triumphs in the
0:07 automotive world it's a story of Drive
0:11 ambition and resilience this is the
0:14 story of how Tata Motors brought Jaguar
0:17 Land Rover to India the acquisition of
0:20 Ford Motors Jaguar and Land Rover Brands
0:22 was not a simple corporate deal behind
0:25 it is a story of visionary leadership
0:28 and a pivotal meeting gone sour listen
0:32 on to find out what fuel Tartas takeover
0:40 Rover hello and welcome to A Century of
0:42 stories brought to you by idfc First
0:44 Bank always you first I'm your host
0:47 Kunal Vier we've traveled through time
0:50 to meet The Architects of India's
0:53 business science arts and sports
0:56 landscape today I have one more such
1:00 Tale the Tata Triumph story
1:02 in a meeting between ranata and Bill
1:05 Ford in Detroit in 1999 there was a
1:07 disagreement about the potential of
1:10 tataa motors's passenger car division
1:12 while belittling tata's experience in
1:15 the space Ford spoke rather harshly to
1:18 ranata and his team who were there to
1:20 discuss the sale of Tata motors's car
1:23 division to Ford Ford said why would you
1:25 get into this business you know nothing
1:28 about it hearing those words ratan Tata
1:30 realized something this seemed like an
1:34 unequal transaction and that did not sit
1:36 right with him after all Tata Motors had
1:37 been a successful locomotive
1:39 manufacturer since
1:42 1945 has started making commercial
1:45 vehicles in the 1950s commercial
1:46 vehicles in India was synonymous with
1:48 the brand remember all those tataa
1:50 trucks you used to see on the highways
1:53 tataa Motors entered passenger vehicles
1:55 under the leadership of r andata with
1:58 SUVs like Tata Sierra Tata Sumo and Tata
2:02 Safari doing well in the 1990s in 1999
2:05 they faced a setback from their new
2:07 affordable indigenously developed
2:09 hatchback indic car's below power
2:11 performance might have put the company
2:15 in a sticky situation but ranata decided
2:18 to stick with the Mora Perka and banked
2:22 on Tata motors' strong foundations and
2:24 his own self-belief to carry them
2:26 through he called off the sale to Ford
2:30 raata comes from a long line of vist
2:33 businessman like nanata jamata dorab
2:37 jata and jata his predecessors had
2:40 contributed greatly to building India since
2:41 since
2:44 1868 and ran would continue to do the
2:47 same as a Young Man learning the ropes
2:50 of the business he showed one clear
2:53 quality the ability to look at a problem
2:55 objectively and come up with an
2:58 unconventional solution in 1991 he was
3:01 made chairman of the Tata group he was
3:05 taking over from jrd Tata who had spent
3:08 50 years in this role ratan's first
3:10 order of business was to streamline and
3:13 consolidate all the Tata companies so
3:16 profits could help the group as a whole
3:17 it also protected them from foreign
3:19 buyers entering India during
3:22 liberalization he turned his Focus to
3:25 Innovative and affordable solutions for
3:29 the Indian middle class in 1999 when the
3:31 sale of of Tata motors's car division to
3:35 Ford fell through ran Tata changed tact
3:38 and took the challenge headon the Tata
3:40 group's Mission had always been the
3:42 welfare of Indians he was going to build
3:45 Tata Motors up to make it the vehicle of
3:48 choice for every Indian they learned
3:50 from their mistakes and made
3:52 improvements to the first model of the
3:55 indicia sales picked up tataa Motors
3:57 even started exporting Inda the Indian
4:01 car to Africa and to Europe data Motors
4:03 had ritten out the 2001 economic
4:05 downturn and was listed now on the New
4:08 York Stock Exchange in 2004 with global
4:11 Acquisitions of a trucking unit in South
4:13 Korea a bus and Coach manufacturer in
4:16 Spain and a joint venture in Brazil
4:19 under ranata Tata Motors was well and
4:22 truly On The Rise internationally the
4:24 crowning Jewel in Ran tata's business
4:27 repertoire was the launch of Tata Nano
4:30 in January 2008 it was the most cost
4:34 effective car in the world priced under
4:37 rupees 1 lakh it was not only a hope for
4:39 every Common Man and his family but the
4:41 achievement also spoke to the
4:45 operational efficiencies of Tata Motors
4:48 at the same time Ford was not doing so
4:52 well and the 2008 recession was the last
4:55 straw for his luxury Brands jaguar and
4:58 Land Rover people were just not buying
5:01 luxury cars any anymore so when Bill
5:05 Ford met ranata again in 2008 the
5:08 scenario was very different this time it
5:11 was ran Tata who would be doing ford a
5:16 favor and he did in June 2008 he made an
5:20 offer of a cool $2.3 billion to buy
5:22 jaguar and Land Rover just a few billion
5:25 short of what Ford had paid just a
5:28 decade before but the payback was not
5:31 complete till Tata breed life back into
5:34 these then unprofitable Brands learning
5:36 from tata's own experience of the last
5:40 decade this set to work $1 billion was
5:43 infused into the design and development
5:46 of new models for Jr coupled with
5:48 cutting cost and bringing operational
5:51 efficiencies the tatas turned Jr's
5:54 fortunes around with this new
5:57 positioning Jaguar Land Rover had become
6:00 profitable within one year of the
6:02 acquisition more than a bold business
6:05 decision this is a story of self-belief
6:08 of triumph over failure and over one's
6:12 harshest critics for centuries the Tata
6:15 group has built infrastructure to
6:19 support industries from steel to salt to
6:21 software some would say the story of
6:23 tataa is a story of India's growth
6:26 itself while the central Focus was
6:29 always India tata's Ambitions were also
6:32 Global much like India itself from being
6:36 a supplier of robust steel during the
6:38 two World Wars to taking over some
6:40 iconic International brands in a move to
6:44 meet Global aspirations ranata and Tata
6:47 Motors had scripted one of the biggest
6:50 triumphs in the automotive
6:53 World you've been watching A Century of
6:55 stories brought to you by idfc First
6:58 Bank always you first I'm kalal and I'll
7:01 be back in next week with another story
7:03 that will make you think that will make
7:05 you feel and that will make you want to
7:08 know more about a century of
7:11 stories in today's safe banking tips
7:14 presented by idfc First Bank be very
7:16 careful where you take your trading
7:19 advice from if you see investment ads
7:22 that seem to be too good to be true
7:24 refrain from
7:26 participating there are new scams which
7:29 mimic legitimate platforms like stock
7:33 broking firms financial advisors or even regulatory
7:34 regulatory
7:38 bodies if someone offers you unrealistic
7:41 returns think twice before parting with
7:47 [Music]
7:51 money I VM [Music]
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