Tata Motors Acquiring Daewoo

Topics: Tata Motors, Tata Group, Automotive industry Pages: 10 (3042 words) Published: January 14, 2013
The company was started in 1868 as a Tata group company that was involved in textile manufacture. The company was invented by Jamsetji Tata at Nagpur in Maharashtra. He brought first textile mills in the country as well one of the most luxurious hotels in India. In addition, he made it possible for the India to have the first airline. Tata Company did very well growing from textile to automobile company. In recent years, its turnover has raised significantly. For example in 2004, the company turnover was $14.25 billion. This made a 2.6% GDP contribution in India. In 2010, the company had a turnover of $27.3 billion, which is almost twice times growth. This may have been brought by the recent acquisition that they have done towards several companies (Center of management research, 2005).

The company had 91 companies world wide in 2004 with objectives to get more. These companies deal with diverse functions such as Engineering, energy, consumable products chemicals as well as communication and information services. Of the whole group, Tata motors is rated as the biggest and has been ranked as fifth largest manufacturers of commercial vehicles worldwide.

As a part of the bigger bracket of the Tata Group Company, it started as Tata Engineering and Locomotive Company Limited (TELCO) at around 1920. TELCO was originally a company that was owned by the Peninsular Locomotive Company that came into existence in 1923. This company was taken by the East India Railways to ensure that it was used in, manufacturing passage carriers for the Indian railways. It was until 1945 when the Tata sons bought it from the government of India using it to manufacture steam boiler engine locomotives. They continued their manufacture under the TELCO name. Afterwards they joined with Marshals Sons from United Kingdom as they manufacture steam roads roller. They also worked together with Krauss Maffei from West Germany in the continuation of their steam engine locomotive manufactures.

From then the company has been growing steadily. The company collaborated with Daimler-Benz that is automobile manufacturers from West Germany. This made them to have the first vehicle get rolling after six months. The company acquired diverse technology that made the company in 1986 to have their indigenous fully designed light commercial vehicle that is TATA 407. From there, the company got a break through that made it begin making their own designed passenger cars such as Tata Sierra and Tata Estate. This made the company to emerge as the leading manufacture of commercial vehicles, passengers vehicles , construction, metal grinding and cutting machines, industrial shutters, high quality steel among others products (Tatamotors, 2010).

Despite problems that the company has encountered in the business especially in 2001 where the turnover of commercial vehicles went down, the company has bounced back. In 2004, Tata motors had revenue of 132 million making a profit of 8.1billion. The company has become one of the highest commercial vehicle exporters. Through it s diversification and competent manufacturing, it was capable of being listed in the New York Stock Exchange becoming the first Indian automobile to b e listed.


The person behind foundation of this Company was Kim woo Chung widely known as Kim. This company was initially founded as textile industry in 1967. Through the intervention of the government, the company was able to have a significant growth. This was done through government- approved borrowings. This made the company to grow significantly over the globe becoming the eighteenth largest world corporation in the late 1990s. The company had twenty-four companies worldwide Daewoo Group being the biggest. These companies have diverse business ranging from shipbuilding, construction, Engineering as well as securities. In the spirit of expansion, the company started automobile company in 1978. This was hatched when the company acquired 50% of...
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