JLR Turnaround

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  • 7/30/2019 JLR Turnaround


  • 7/30/2019 JLR Turnaround


    Jaguar Jaguar Cars Ltd, known simply as Jaguar,

    is a British luxury and sports carmanufacturer, headquartered inWhitley, Coventry, England.

    It is part of the Jaguar LandRover business, a subsidiary of the Indiancompany Tata Motors.

    Jaguar was founded as the Swallow

    Sidecar Company originally makingmotorcycle sidecars before developingpassenger cars.

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    Since its incorporation Jaguar has been passed onto differenthands.

    Swallow Sidecar Company

    British Leyland

    Ford Motors

    Tata Motors


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    Land Rover

    Land Rover is a British carmanufacturer with its headquartersin Gaydon, Warwickshire, UK.

    It is owned by the Indian

    company Tata Motors since 2008,forming part of their Jaguar LandRover (JLR) group.

    It is the second oldest four-wheel-

    drive car brand in the world.

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    Since its incorporation Land Rover too has been passed ontodifferent hands.

    British Leyland


    Ford Motors

    Tata Motors

    Land Rover

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    JLR Acquisition In June 2008, India-based Tata Motors Ltd. announced that it had

    completed the acquisition of the two iconic British brands - Jaguarand Land Rover (JLR) from the US-based Ford Motors for US$ 2.3billion.

    Tata had completed this biggest buy-out in the automobile space byan Indian company on June 2, 2008 as it bought the ownership ofluxury brands - Jaguar and Land Rover.

    Tata Motors was interested in acquiring JLR as it will reduce the

    companys dependence on the Indian market, which accounted for90% of its sales.

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    SWOT Analysis Strengths:

    Tatas strong management capability.

    Strong monetary base to invest.

    Synergy due to Corus, TACO and TCS.

    Experience in growing market like India.

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    Inexperience in handling a luxury automobile brand.

    Inexperience in turning around loss making company.

    R & D and designing capabilities.

    SWOT Analysis

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    Volatility in market driven by new products.

    Strong presence of competitors like Mercedes, BMW, Lexus

    and Infinity.

    Receding sales and brand image.

    Downturn making Investment riskier and costlier.

    SWOT Analysis

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    Fall Of Jaguar-Land Rover Jaguar-Land Rover sees a slump in sales in 2009 as analysts

    report declining revenue in the 4th quarter.

    Increasing competition, change in technology and design drags thecompany to a slowdown.

    Jaguar-Land Rover is unable to conform with the European Safety& Pollution norms.

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    The Turnaround Story Four years after being bought by Tata Motors , the well-

    known but somewhat faded British brands are regainingsome of their lost lustre, racking up big sales from Shanghaito London.

    Mr. Ratan Tata is popularly known as the Turnaround Man.

    On 3rd June, 2008 Tata Motors announces the completion ofJaguar-Land Rover buyout.

    There were two areas on which the Tatas needed toemphasize on cash management & cost reduction.

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    Since JLR didnt have a cash management system of its own, TATA

    hired KPMG to implement one for them.

    Munich based Roland Berger Strategy Consultants was hired forthe cost reduction issue.

    The parent company also pumped capital in to JLR to tide over theproblem of liquidity and to ensure that new model developmentprograms continued as planned.

    Tata Technologies, a subsidiary of Tata Motors was handed overthe work to separate JLRs IT systems from those of Ford. This

    initiative also helped JLR save millions of dollars on IT.

    The Turnaround Story

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    The company laid off 11,000 of its workforce.

    Analysts say Tata has done what few companies from emerging

    markets have been able to do turn around and successfully run atroubled Western company.

    Tata Motors appears to have succeeded in large part because it didnot seek to run Jaguar Land Rover from their headquarters inMumbai. Instead, it has left day-to-day management in the hands ofexecutives in England.

    The Turnaround Story

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    The table shown below shows the turnaround, in FY 2010-11 thenet profit for JLR was 1,036 million pounds compared to a netprofit of 24 million pounds in FY 2009-10.

    The Turnaround Story

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    The Road Ahead Jaguar-Land Rover strives to proves its presence felt in the

    market by providing new, better & innovative products.

    Jaguar has been providing products like its XJ, XF & XK

    models at competitive prices and Land Rover has beenproviding cars like Land Rover Sport, Vogue, Discovery &Freelander.

    Ever since the buyout, JLR has been expanding into different

    countries and setting up new assembly lines to reduce costof production.

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    Thank YouPresentation By:

    Jinal BotadraForam Dhakan

    Abhishek KhannaUtsav Shah 135