Tata Motors acquires Ford’s manufacturing plant in Gujarat for ₹726 crore
- The acquisition of Ford India’s manufacturing plant is being carried out by Tata Passenger Electric Mobility Limited (TPEML).
- The unit is adjacent to the existing manufacturing facility of
Tata MotorsPassenger Vehicles Limited at Sanand.
- Tata Motors will also employ all eligible employees of Ford India’s vehicle manufacturing operations post this deal.
AdvertisementTata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors, on Monday announced the acquisition of Ford India’s manufacturing plant based in Sanand city of Gujarat for ₹725.7 crore, excluding taxes.
The companies have already signed a unit transfer agreement (UTA) to finalise this deal, which also includes the transfer of all eligible employees of Ford India’s vehicle manufacturing operations at the Sanand plant. The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Limited at Sanand, which should help in a smooth transition, the companies said in a statement.
“The agreement with FIPL [Ford India Private Limited] signed today is beneficial to all stakeholders and reflects Tata Motors’ strong aspiration to further strengthen its market position in the passenger vehicles segment and to continue to build on its leadership position in the electric vehicle segment,” said Shailesh Chandra, MD at Tata Motors Passenger Vehicles and TPEML.
Tata Motors would also be taking over the entire land and the buildings, along with the plant’s machinery and equipment. Ford India will continue to operate its Powertrain Manufacturing Facility by leasing back the land and buildings of the plant from Tata Passenger Electric Mobility on mutually agreed terms.
“Today’s announcement marks an important step forward in Ford’s ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring,” said Steve Armstrong, transformation officer at Ford Motor Company.
The government of Gujarat, as well as the two parties involved, have already executed a tripartite memorandum of understanding (MoU) on May 30, 2022, to support all relevant approvals for the transaction. The closure of the transaction will be subject to the receipt of relevant approvals from the government authorities and fulfillment of customary condition precedents, the statement said.
Markets to keep a close watch on US and Indian inflation data
Reliance Industries will be hosting its 45th AGM this month — all your need to know
Rain fury: Farmers in TN's Tiruchi stare at heavy losses as crops submerged
Popular on BI
- Byju's shareholders vote to remove CEO, family; company calls vote invalid
- Engaging with competent authorities, use only genuine cheese, says McDonald's
- Apple's India revenue up 42% to $8.7 bn in 2023: Morgan Stanley
- Reserve Bank asks NPCI to help continue operations of Paytm app
- Top 10 places to visit in Andhra Pradesh