Eyet Blogs: Ratan Tata

Monday, March 23, 2009

Launch of Tata Nano marks a Watershed Moment in Indian Auto Industry

Today, Tata Motors launched Nano, a $2,200 family car with four doors, 35 horse power engine, top speed of just over 65 miles per hour, mileage of just over 55 miles per gallon, a single windshield wiper, manual transmission, 10 feet in length, and 5 feet width - with room for four. This marks a watershed moment for India and Indian automobiles. Tata Group is a top ten innovative company in the world according to 2008 BusinessWeek - BCG annual report.

Selected references:
Leading eBook on Creativity and Innovation in Business
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The Innovation Index
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Tata Nano, "the mini-car is the brainchild of one of India's top industrialists, Ratan Tata, who had a dream to move millions of Indian families off their two-wheelers and into a safer, all-weather alternative.

Many auto experts here have likened the Nano to the Henry Ford Model T that revolutionized American life a century ago. The down payment for a Nano is about $70."

"I made a promise and I kept that promise," Ratan Tata, chairman of Tata Motors, said at a glitzy launch party Monday, March 23, 2009. "I dedicate this car to the youth of India who designed it and will use it to transport their families. It shows that nothing is really impossible if you set your mind to it."

Tata Nano is an amazing innovation, perhaps the best automobile innovation of 2009. To pack an entire car for such a rock bottom price is next to impossible for any car company in today's marketplace. Tata has started something that will overhaul the small car industry. If Tata Nano is a wild success, if the owners love the new car, if the car lives up not only to its looks but also on important metrics such as safety, ride, handling, fuel economy, and quality, and if Tata is able to create the Nanos in hordes to satisfy the appetite and dreams of the Indian buyers - well, we may be witnessing the beginning of at least a $1 billion enterprise in the making.

Congratulations Mr. Tata! You are a true innovator, and you have just shown the world that India can create disruptive innovations in auto industry.

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Wednesday, March 26, 2008

Historic Day For Indian Business - Tata acquires Jaguar, Land Rover from Ford

March 26, 2008 will forever be a historic day for India Inc., India, and the Indian Business.

Tata today acquired two of the most celebrated, royal and revered auto brands in the history of automobiles - Jaguar and Land Rover - for $2.3 billion from Ford Motor company.

Tata Sons and Tata Motors chairman Ratan Tata, said, "We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business."

Just hours after Tata issued a low-key announcement to confirm it had "entered into a definitive agreement with the Ford Motor Company for the purchase of Jaguar Land Rover, comprising brands, plants and Intellectual Property Rights", the top bosses of Unite, the UK's largest trades union, said the deal "is really good news for the UK automotive industry".

The UK India Business Council, (UKIBC) the lead organization supporting the promotion of bilateral trade, business and investment opportunities between the two countries, said the deal was an outstanding example of the UK's open economy. Its Chief Executive Sharon Bamford said the purchase was in line with "many significant (cross-border) deals in recent years (namely) Vodafone's acquisition of Hutch and Tata's previous acquisition of Tetley and more recently Corus, are leading examples of this".

UKIBC Chairman Lord Karan Bilimoria said, "Tata's purchase of Jaguar and Land Rover is only the latest example of the newfound confidence of Indian companies. Less than two months ago I sat in the new Tata Nano, and I witnessed history in the making. Indian companies are growing more confident in the global economy, and with this deal the country is on the move like never before."

Tata is poised to become a global brand with this acquisition of Jaguar and Land Rover. India Inc. will now enter the world of autos besides the world of software and steel.

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