- As part of the acquisition, Tata has offered employment to all eligible employees of Ford India’s vehicle manufacturing plant on terms and benefits currently availed by them
- The total cost of this acquisition is reported at Rs 725.7 crore, consideration, exclusive of taxes.
- This acquisition will unlock an additional state-of-the-art manufacturing capacity of 3,00,000 units per annum which is scalable to 4,20,000 units per annum as the company’s existing capacities near saturation.
NE BUSINESS BUREAU
MUMBAI, DEC 30
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Limited (TML), and Ford India Private Limited (FIPL) had signed a unit transfer agreement on August 7, 2022 to acquire Ford’s manufacturing plant at Sanand, Gujarat.
The Tata Motors on Friday announced that now both parties will proceed towards the completion of the transaction on January 10, 2023, since they have fulfilled the necessary condition precedents for the transaction, including receipt of relevant government approvals.
As per the unit transfer agreement, the inter-alias for the acquisition of FIPL’s manufacturing plant include entire land & buildings, vehicle manufacturing plant along with machinery and equipment situated therein and the transfer of all eligible employees of Ford’s vehicle manufacturing operations at Sanand. The total cost of this acquisition is reported at Rs 725.7 crore, consideration, exclusive of taxes.
Tata Motors Passenger & Electric Vehicles business has delivered market beating growth over the last few years and has strong plans to sustain this momentum, with its robust pipeline of future ready “New Forever” products and proactive investments in electric vehicles.
As per Tata Motors, this acquisition will unlock an additional state-of-the-art manufacturing capacity of 3,00,000 units per annum which is scalable to 4,20,000 units per annum as the company’s existing capacities near saturation.
As part of the acquisition, Tata has offered employment to all eligible employees of Ford India’s vehicle manufacturing plant on terms, conditions and benefits of service similar to those that are currently availed by them. Ford’s employees who have accepted Tata’s offer of employment shall become TPEML employees with effect from January 10, 2023.
