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and Chrysler, filed for bankruptcy.

Jaguar Land Rover was hit hard in the second half of the year ended 31st March 2009. In the U.S, Europe and Japan, sales of new cars have declined by 16% in the second half of the year. Stimulus packages designed to rekindle demand were only partially successful. The volumes at JLR over the 10 months post acquisition reduced by 32% as compared to the comparable period in the previous year resulting in a Loss before tax of GB ￡ 281 million.

Europe was in doldrums. This was a major concern for the Tatas since it is a big market for Jaguar Land Rover. By the end of January 2009, Tata Motors had US$ 2 billion outstanding as regards the bridge loan. Moreover, JLR required additional investments, that too quickly, in order to sustain its operations that were burning cash at that juncture. Terming the acquisition as 'irrationally exuberant ', critics started questioning the rationale for the company's move

To compound the company's woes, the commercial launch of Tata Motor's small car Nano required much more time than anticipated. 'The Nano was always more than just a car. It was Tata group supremo Ratan Tata's dream project to bring an affordable transportation solution within reach of the masses. The promise of a small car priced at Rs. 1 lakh had fired the imagination of an entire nation and the global automotive industry' (Forbes)

Faced with the altered dynamics of the new business environment, the company adapted its productive model as well as profit strategy to respond to the need of the hour.

Prompt action was taken to reduce inventory, improve working capital, reduce investments and payroll costs including more than 2000 job losses. Transition initiatives were undertaken in marketing, customer financing support, IT and related infrastructure.

The company appointed KPMG International and also Roland Berger Strategy Consultants to suggest appropriate action plans to reduce costs at the two brands.

It retrenched 2,200 employees of JLR since it took over the management of JLR. The move was in sharp contrast to the well entrenched business practices followed by the Tata Group where no employees are retrenched. The company to secure flexible arrangements with the workforce in the UK. Tata Motors had Rs 191 crore in employee separation costs at JLR during the year ended 31st March 2009

The company finalized guarantee arrangements to access a ￡340 million loan approved by the European Investment Bank. These funds will be used to develop new technologies for JLR.

The Company prepaid part of the said facility out of proceeds of a Rights Issue and certain divestments and the balance outstanding as on March 31, 2009 was US$ 2.02 billion. For repayment of the said amount, the Company in May 2009 raised resources through further divestments and issued Secured Non-Convertible Credit Enhanced Rupee Debentures in four tranches, having tenors upto 7 years, aggregating Rs.4,200 crores on a private placement basis. The balance facility of US$ 1 billion was rolled over and guaranteed by the Company, by extending the final maturity upto December 2010.

New launches were planned. Range Rover Evoque is to be launched in summer of 2011.

With a view to capitalize on the growing demand for luxury cars in China, the company gave a major thrust to strategy for China and also explor