Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors, has completed the acquisition of Ford India’s vehicle manufacturing plant in Sanand for Rs 725.7 crore, according to an exchange notification.
On August 7, TPEML and Ford India (FIPL) had signed a unit transfer agreement for acquisition of FIPL’s plant in Sanand, Gujarat, including entire land and buildings; vehicle manufacturing plant along with machinery and equipment situated therein; and transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 crore.
“Pursuant to the fulfilment of the necessary condition precedents for the transaction, including receipt of relevant government approvals, the parties have decided to proceed towards completion of the transaction on January 10, 2023,” Tata Motors said in a statement on Friday.
Tata Motors has been a major player in the electric-vehicle segment for the past few years, and the company said it has strong plans to sustain this momentum with an upcoming pipeline and investments in EVs.
“With existing capacities near saturation, this acquisition will unlock additional state-of-the-art manufacturing capacity of 300,000 units per annum, scalable to 420,000 units per annum,” the company said.
As part of the transaction, all eligible employees of FIPL’s vehicle making plant have been offered employment with TPEML on terms, conditions and benefits of service similar to those currently availed by them. FIPL staff who have accepted its offer of employment shall become TPEML employees on January 10, 2023.
