Post Merger Financial Performance of Tata Motors Limited : An Evaluation

Mergers and Acquisitions (M&A) are considered as a quickest route to expansion. M&A is a prudent decision when compared to levying a green field project, which involves longer gestation period and huge investments. Companies are attracted to M&A for availing economies of scale, economies of scope, enormous size and expansion of domestic and foreign market. Rise in disposable income of customers, has converted an all time luxury to a necessity. Indian automobiles market is an eyewitness to such growing necessity. Indian companies are inclined for M&A to reduce competition and grab larger market share. Automobile majors often try to bond with foreign players especially for new technology and tapping the new market in home country as well as cross border country. Present study tries to analyze the motive of Tata Motors Limited for acquiring foreign brands and the also tries to study the post merger financial performance of the company