Tata Motors acquires Ford India's manufacturing plant in Sanand for Rs 725 crore
The agreement between the Indian automaker's subsidiary Tata Passenger Electric Mobility Ltd (TPEML) and Ford India Pvt Ltd (FIPL) covers land, assets and all eligible employees.
FollowTata Passenger Electric Mobility Ltd (TPEML), a Tata Motors subsidiary, has acquired the Ford India manufacturing facility in Sanand, Gujarat, for a price of Rs 725.7 crore. This includes the whole land and buildings, the car production plant, as well as gear and equipment. On Sunday, a unit transfer agreement (UTA) for the same was signed by the two corporations. All of the unit's eligible personnel would be transferred to Tata Motors as per the agreement.
By subleasing the land and buildings of the powertrain production plant from TPEML under mutually agreeable conditions, Ford India will keep running its powertrain manufacturing facility. If FIPL stops operating its Powertrain Manufacturing Plant, TPEML has pledged to give jobs to the qualified workers there. Meanwhile, 3,043 direct employment and 20,000 indirect jobs are available at the factory.
Ford India’s vehicle assembly plant is spread across 350 acres while the engine-manufacturing plant has 110 acres. The acquisition will only be finalised if all necessary government clearances have been obtained and customary preconditions have been met. On May 30, 2022, the state of Gujarat, TPEML, and FIPL signed a tripartite memorandum of understanding (MoU) to support the necessary clearances for the aforementioned transaction.
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This transaction is timely and beneficial to all parties involved since Tata Motors Passenger Vehicle's manufacturing capacity is almost at capacity. The business stated in the statement that it will enable a cutting-edge manufacturing capacity of 300,000 units annually, which is expandable to 420,000 units annually.
TPEML would undertake the necessary expenditures to modify the factory to accommodate the current and next car platforms from Tata Motors. An easy transfer should be made possible by the unit's proximity to Tata Motors Passenger Vehicles Ltd's current Sanand production site.
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