Tata Motors Electric To Complete Acquiring Ford India’s Sanand Plant On January 10, 2023
Modified On Jan 01, 2023 10:35 PM By Rohit
The acquisition of the facility had been confirmed back in August 2022 for a sum of Rs 725.7 crores (before taxes)
If you have been closely following the Indian automotive industry over the last few months, you may have known that Tata Passenger Electric Mobility Limited (TPEML) had acquired Ford India’s Sanand plant in August 2022. Now, the carmaker has announced that it, along with Ford India, has decided to complete the full transaction on January 10, 2023.
To jog your memory, TPEML is the EV-centric split from the core Tata Motors passenger cars company. It acquired Ford India’s manufacturing facility for a whopping Rs 725.7 crores, excluding taxes. As per the agreement between Tata Motors and Ford, the former will acquire the entire buildings situated within the grounds of the plant, the vehicle manufacturing plant with machinery and equipment, and also get all the employees of Ford’s vehicle manufacturing operations.
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Here’s a look at the entire press release to get you up to speed:
Intimation of closing date for acquisition of Ford India’s Sanand plant by Tata Motors
Mumbai December 30, 2022: Tata Passenger Electric Mobility Limited (“TPEML”), a subsidiary of Tata Motors Limited (“TML”), and Ford India Private Limited (“FIPL” and together with TPEML, “Parties”) had executed a Unit Transfer Agreement on August 7, 2022 for acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat, which inter-alia includes: (i) entire land & buildings; (ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein; and (iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty Five Crores and Seventy Lakhs) (“Transaction”).
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 10th January 2023.
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. 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.
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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.
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