Tata Motors Acquiring Ford India’s Sanand Plant
Tata Passenger Electric Mobility (TPEML) and Ford India (FIPL) had executed a Unit Transfer Agreement on 07 August 2022 for the acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat, which inter-alia includes: entire land & 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 companies have decided to proceed towards completion of the transaction on 10 January 2023.
Tata Motors Passenger & Electric Vehicles business has delivered 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. With existing capacities near saturation, this acquisition will unlock an additional state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.
As part of the transaction, all eligible employees of FIPL’s vehicle manufacturing plant have been offered employment with TPEML on terms, conditions and benefits of service similar to those that are currently availed by them. TPEML would like to take this opportunity to extend a warm welcome to all the eligible FIPL employees who have accepted its offer of employment and who shall become TPEML employees with effect from 10th January 2023.
