Another feather in Tata's cap

Hats-Off to Ratan Tata! The veteran warrior of India Inc has added another feather to his cap by acquiring two of the world’s most renowned luxury brands Jaguar and Land-Rover. After inking Chorus deal, this one could be regarded as second best for Tata Empire and a big boost for Indian Automobile Industry. It’s a great feat for Indians as the Western World didn’t want to let it go in the hands of an Asian or especially “No-white” and was grossly opposed on several points. Also, the race for duo brands had seen a great competition from Automobile giants like BMW, Audi and host of others but Tata managed to get out of best by extinguishing the rivals’ hopes.
Stock Market has been a little bit apprehensive over the funding arrangements of the deal. Once the financing structure would be finalised, the financial impact of deal on company would be visible. If arrangements are done through debt market, revenue margins have to bear the brunt of interest charges. However, Tata Motors CFO, Mr. Ramakrishnan quotes that company is evaluating the possibilities of funding through disinvestment of Tata Motor’s stake in group companies, which would be a positive indication to stock market.
However, for market watchers, it may not be a luring opportunity in short run but for the long haul, it would be a must have gem for every serious investor’s portfolio.