Top 5 International Acquisitions by Tata

When we think of Tata, the first things that might come to mind are the salt in our kitchens or the cars on our streets.

But apart from making desh ka namak, Tata is also ahead in acquiring videsh ki companies. If you check out Tata's Wikipedia page, you’ll find over 30+ acquisitions noted throughout its history. Among these, JLR and BigBasket are some of the well-known names.

Today, we’ll be taking a closer look into some of the international companies that joined hands with the Tata Group and gave it global recognition!

Table of Contents:

1. Jaguar Land Rover
2. Tetley
3. Daewoo Commercial Vehicle
4. Brunner Mond
5. British Salt

Jaguar Land Rover

Jaguar Land Rover (JLR) is a British automotive company renowned for designing, manufacturing, and selling luxury vehicles under the Jaguar and Land Rover brands. It was established as a wholly owned subsidiary of Tata Motors in 2008 when Tata Motors acquired both brands from Ford.

Tata Motors acquired JLR's 100% stakes for $2.23 billion (₹9,702.73 crore). There were several reasons why Tata showed interest in acquiring JLR. One of the reasons was quite interesting, which you probably remember. And if you don’t, let me give you a quick recap!

The whole scenario was partly fueled by an incident during a failed Ford-Tata deal. Ford executives reportedly dismissed Tata's car-making efforts. They were like, “Nah, you don’t know anything”. But karma hit back at Ford 9 years later, and when it struggled with JLR, Tata Motors seized the opportunity to buy the brands in 2008. The acquisition marked a significant turnaround, with Tata Motors successfully revitalising JLR into a profitable and iconic luxury automotive company.

Apart from this beizzati ka badla, Tata had other reasons to acquire JLR:

• JLR was already a big name in the international market, and acquiring it gave Tata access to the international markets ( across Europe and the US), especially in the luxury segment.

• With this acquisition, Tata Motors also got a pass to enter the high-end vehicle market that complemented its existing range.

• Plus, both companies also got the chance to collaborate with one another and utilise their technology, including hybrid and electric vehicles, increasing long-term revenue.

JLR operates multiple manufacturing facilities in the UK and has a global presence, catering to markets worldwide. It is also planning to target zero net carbon emission across the supply chain, products, and operations by 2039.

Needless to say, this acquisition did turn out to be a success for Tata. As of 31 March 2024, JLR segment/business of Tata Motors contributes ~69% of consolidated revenue.

Tetley

Tetley is a renowned British beverage manufacturer with a rich heritage of over 180 years. Founded in 1837 by brothers Joseph and Edward Tetley in Yorkshire, England, the company has grown to become the world’s second-largest tea brand. In 2000, Tetley was acquired by Tata Tea (Now Tata Consumer Products) for ₹2750 crore, further expanding its global reach and continuing its legacy of delivering quality tea to consumers worldwide.

Well, they both bartered in this deal. Tata had expertise in growing tea as Tata Tea was already a big name in India. While Tetley had a great market presence, especially in North America and Europe. So, both these companies shook hands and received each other's strong points in this deal.

This acquisition was the largest cross-border acquisition of an international brand by an Indian company. And it definitely turned out to be a great decision for Tata because:

• Tetley became a key brand within Tata Consumer Products' International Business.
• It is now the 3rd largest tea brand in the UK and the largest tea brand in Canada.
• Now, about 40% of Tata Consumer Products's total revenue comes from its international operations.

Tetley offers a diverse range of teas, including black, green, and herbal varieties, catering to a wide range of consumer preferences. Its products are available in over 40 countries, with significant markets in the UK, Canada, and the US, where millions of people enjoy Tetley's distinctive flavours daily.

With Tetley’s successful integration into Tata Consumer Products, the acquisition made Tata shine in the global tea market.

Daewoo Commercial Vehicle

Daewoo Commercial Vehicle Company, established in 2002 as a spin-off from Daewoo Motors, is a prominent South Korean manufacturer specialising in heavy and medium-duty trucks. Headquartered in Gunsan, North Jeolla Province, the company has played a significant role in the commercial vehicle industry, both domestically and internationally.

In March 2004, Tata Motors acquired Daewoo's 100% stakes for $102 million (₹462.264 crore), marking Tata Motors' first overseas acquisition and enhancing its global presence in the commercial vehicle sector. However, Tata's major focus was on entering the Korean market, as it was a new area to discover.

There were other reasons as well for this acquisition:

• Daewoo Commercial Vehicle was South Korea's second-largest heavy truck manufacturer, with a capacity of 20,000 units, holding a 25% market share at the time of acquisition.
• By acquiring perpetual and exclusive rights to use the Daewoo trademark, Tata Motors fulfilled its ambition to establish itself in the Korean and other markets.
• Moreover, this acquisition ensured Tata Motors' global presence in the heavy truck segment and also its technology and manufacturing capabilities.

Today, Tata Daewoo commercial vehicles contribute around 1% of the total revenue of Tata Motors. But its revenue growth as a company to previous years is nearly 10%.

Brunner Mond

Brunner Mond & Company, established in 1873 by industrialists John Brunner and Ludwig Mond, was a prominent British chemical manufacturer specialising in soda ash, sodium bicarbonate, calcium chloride and similar alkaline chemicals production.

In December 2005, Tata Chemicals Limited, a subsidiary of India's Tata Group, acquired a 63.5% stake in Brunner Mond for ₹508 crore, marking Tata Chemicals' expansion into the European market.

Tata Chemicals acquired the stake through its wholly-owned subsidiary, Tata Chemicals Europe Holdings Limited. In 2006, it purchased the remaining minority shares in Brunner Mond, eventually gaining full ownership and control of the company.

Brunner Mond is one of the largest manufacturers of soda ash and sodium bicarbonate with operations in the UK, Netherlands, and Kenya. Hence, acquiring it helped Tata Chemicals to enter in international markets especially in Europe.

This not only strengthened Tata’s position in the soda ash market but also paved the way for future expansion and innovations within the company.

British Salt

British Salt, established in 1969 and based in Middlewich, Cheshire, is a leading UK manufacturer of pure dried vacuum salt products.

In December 2010, Brunner Mond, a wholly-owned subsidiary of Tata Chemicals, acquired British Salt for £93 million (₹660 crore). Basically, Tata acquired British Salt for its brine wells in the UK that have a residual life of 50 years. This acquisition provided Tata with an excellent opportunity to secure a cost-effective Brine supply for Brunner Mond's operations.

The company produces approximately half of the UK's pure salt, supplying various industries, including food production, water treatment, and chemical manufacturing.

The acquisition provides an opportunity to secure long-term brine supplies to Brunner Mond British Salt's units at Cheshire in Middlewich.

Conclusion

Tata’s international acquisitions are more than just business deals, they’re milestones in a journey of ambition and vision. By unifying global brands into its umbrella, Tata has not only expanded its global presence but also redefined what it means to be a truly international company. From the luxury of Jaguar Land Rover to the everyday comfort of Tetley tea, these acquisitions have left an indelible mark on industries worldwide.

But Tata being the flagbearer of cultural values, hasn’t limited it’s acquisitions to just international companies. It has acquired some desi companies as well. Wanna know which are those companies? Then read our article on Tata’s top acquisitions.

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