example of vertical Merger: backward integration

1. Vertical Merger Tata Motors and Trilix Srl Presented by:- Vinay Bihari

2. A merger between two companies producing different goods or services for one specific finished product. A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain, merge operations . Most often the logic behind the merger is to increase synergies created by merging firms that would be more efficient operating as one. VERTICAL MERGER

3. Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group . TATA MOTORS

4. Trilix Srl is a design and engineering company and design and engineering services in the automotive sector, specifically styling, architecture, packaging, surfacing, macro and micro feasibility, and detailed engineering development . The company is based in Grugliasco , Italy. With a turnover of €4 million and net profit of €2,50,000, the company offers design and engineering services in the automotive sector. . TRILIX SRL

5. MERGER- Tata Motors and Trilix Srl

6. As of September 2010, Trilix Srl operates as a subsidiary of Tata Motors Ltd . Tata Motors Ltd  had acquired  80% stake in Trilix Srl , an Italian design and engineering firm for €1.85 million ( Rs . 11.29 crore ).

7. The acquisition is in line with the company’s objective to enhance its styling and design capabilities to global standards. Trilix has developed a strong understanding of the Tata brand and excellent working relationships with the company in several projects over the years. OBJECTIVE