A decade or so earlier it would have been unthinkable even to forecast when an Indian company would make acquisition of smaller firms in the West. A few years ago none of us thought that any true blue Indian entity could be in the running for taking over a big multinational brand. Well, it's happening now!
India's largest private company Tata made its global ambitions clear in 2000 when it bought over the tea company Tetley, marking corporate India's first major international acquisition. Next came the £6.2bn takeover in 2006 of the Anglo-Dutch steel maker Corus after a hard-fought battle with a Brazilian giant.
And what's making news right away on the both sides of globe is Tata's reportedly successful $2 billion bid for two of Britain's premier cars -- Jaguar and Land Rover. Ford Motor Company, which owns the two brands, has been holding talks with Tata, another global Indian player Mahindra and Mahindra and US private equity firm, One Equity Partners.
What might be termed as a reversal of fortune of some sort, Tata Motors proved to be the preferred bidder because of the backing of the UK-based brands' unions and was viewed as a long-term investor. Unions in the UK are also said to be seeking assurances that the sale would not affect employment levels. Combined, Jaguar and Land Rover employ about 15,300 people in the UK alone.
The foray is set to make Tata a power in corporate Britain, knocking down a barrier that seemed impregnable in the days of Jamsetji Tata.
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