Tata Passenger Electric Mobility Limited completes acquisition of Ford India’s Sanand plant
Mumbai, January 11, 2023
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Limited (TML) on Tuesday completed the acquisition of Ford India Private Limited's (FIPL) manufacturing plant at Sanand in Gujarat.
TEMPL had executed a Unit Transfer Agreement on August 7, 2022 for acquisition of FIPL's manufacturing plant at Sanand.
The agreement includes the entire land & buildings, vehicle manufacturing plant along with machinery and equipment situated therein (VM Plant and Machinery); 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, including receipt of relevant regulatory approvals, the Parties have today completed the Transaction and TPEML has acquired the Sanand Property and the VM Plant and Machinery. Additionally, all VM Employees are offered employment, and those who have accepted TPEML’s offer of employment, have been transferred to TPEML and have become employees of TPEML with effect from today i.e. January 10, 2023. TPEML extends a warm welcome to all such VM Employees who have accepted its offer of employment," it said.
"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 stateof-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.