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CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS
FINANCIALS (123-204)
minimize the risk around residual values which in turn reduces
the level of lease subvention.
Labour unrest:
The Company’s permanent employees, other
than officers andmanagers, in India andmost of the permanent
employees in South Korea and the United Kingdom, including
certain officers and managers, in relation to automotive
business, are members of labour unions. They are covered by
wage agreements, where applicable, with those labour unions.
In general, the Company considers labour relations with all of
employees to be good. However, in the future the Company
may be subject to labour unrest, which may delay or disrupt
the operations in the affected regions, including the acquisition
of raw materials and parts, the manufacture, sales and
distribution of products and the provision of services. If work
stoppages or lock-outs at the facilities or at the facilities of the
major vendors occur or continue for a long period of time, the
business, financial condition and results of operations of the
Company may be adversely affected.
Jaguar LandRover operations inkeymaturemarket:
Jaguar
Land Rover, which contributes approximately 63% of the
Company’s consolidated revenues, has a significant presence
in the United Kingdom, North American and continental
Europeanmarkets. The global economic downturn significantly
impacted the automotive industry in these markets in FY 2008-
09. Even though sales of passenger cars were aided by
government-sponsored car-scrap incentives, these incentives
primarily benefited the compact and micro-compact car
segments and had virtually no slowing effect on the sales
declines in the premium car or all-terrain vehicle segments in
which we operate. Although demand in these markets has
recovered strongly, any decline in demand for the Company’s
vehicles in these major markets may in the future significantly
impair the Company’s business, financial position and results
of operations. The strategy, which includes new product
launches and expansion into growing markets, such as China,
India, Russia and Brazil, may not be sufficient to mitigate a
decrease in demand for the Company’s products in mature
markets in the future.
Growing business throughmergers and acquisitions:
The
Company believes that its acquisitions provide opportunities
to grow significantly in the global automobile markets by
offering premium brands and products. The acquisitions have
provided access to technology and additional capabilities while
also offering potential synergies. However, the scale, scope
and nature of the integration required in connection with
acquisitions present significant challenges, and the Company
may be unable to integrate the relevant subsidiaries, divisions
and facilities effectively within our expected schedule. An
acquisition may not meet the Company’s expectations and
the realization of the anticipated benefits may be blocked,
delayed or reduced as a result of numerous factors, some of
which are outside the Company’s control.
The Company will continue to evaluate growth opportunities
through suitablemergers and acquisitions in the future. Growth
through mergers and acquisitions involves business risks,
including unforeseen contingent risks or latent business
liabilities that may only become apparent after the merger or
acquisition is completed. The key success factors will be
seamless integration and effective management of the
merged/acquired entity, retention of key personnel, and
generating cash flow from synergies in engineering and
sourcing, joint sales and marketing efforts, and management
of a larger business.
Inability to protect or preserve intellectual property:
With
respect to Jaguar Land Rover, the Company owns or otherwise
has rights to a number of patents relating to the products,
which have been obtained over a period of years. In connection
with the design and engineering of new vehicles and the
enhancement of existing models, the Company seeks to
regularly develop new technical designs for use in its vehicles.
The Company also uses technical designs which are the
intellectual property of third parties with such third parties’
FINANCIAL HIGHLIGHTS (32-45)