Tata Passenger Electric Mobility Ltd. (TPEML), a Tata Motors subsidiary has bought the Ford India’s manufacturing plant situated at Sanand, Gujarat, including entire land and buildings, vehicle manufacturing plant along with machinery and equipment for a consideration of Rs. 725.7 crore, Tata Motors said in a late night notification to the stock exchanges. The two companies signed a unit transfer agreement (UTA) for the same recently As part of the agreement all the eligible employees at the unit will be transferred to Tata Motors.
Ford India will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from TPEML on mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of FIPL’s Powertrain Manufacturing Plant in the event of FIPL’s cessation of such operations.
The plant offers 3,043 direct jobs and 20,000 indirect jobs.
Ford India’s vehicle assembly plant is spread across 350 acres while the engine-manufacturing plant has 110 acres.
The closure of the transaction will be subject to the receipt of relevant approvals from the government authorities and fulfilment of customary condition precedents. The government of Gujarat, TPEML and FIPL executed a tripartite MoU on 30th May 2022 to support all relevant approvals for the above transaction.
With Tata Motors Passenger Vehicle's manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders. It will unlock a state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum, the company said in the statement.
This site is best viewed with a resolution of 1024x768 (or higher) and supports Microsoft Internet Explorer 4.0 (or higher)
Copyright © 2016-2023