Jaguar and Land Rover Add Brand Value to Tata Motors

Tuesday 26 October 2010, 00:00 AM by Payal Pathak

Tata Motors has witnessed an growth brand value in past two years owing to the acquisition of the two prestigious British luxury brands Jaguar and Landrover. Two months before the acquisition of JLR, Tata Motor’s market capitalisation was Rs. 24,000 crores which plunged to only Rs 6,500 crores just after the acquisition. Market did not have much faith in dwindling Jaguar and Land Rover which had failed under the Ford flagship. However, Ratan Tata, Chairman, Tata Group foresaw how to harness the full potential of the two brands to turn them around to profitable and most coveted brands once again in the still struggling markets.

The current market capitalisation of Tata Motors after two years of acquisition stands at Rs. 71,500 crores which is a ten-fold increase from the all time low. It has also made Tata Motors’s brand value surpass that of Reliance Industries.

Tata Motors now stands as India’s Most Valuable Brand amongst the survey with a valuation of $8.5 billion. It was $3.1 billion in 2008-09. “Jaguar and Land Rover were part of a larger conglomerate (Ford). So the market couldn’t value them (at the time of the deal),” says Carl-Peter Forster, CEO and MD of Tata Motors. “The minute you unlock some of that potential, immediately the understanding of what is possible with these brands is reflected in an increased value.”

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