Tata Passenger Electric Mobility Limited, Tata Motors’ electric vehicle unit, stated on Friday, December 30, that its agreement to acquire Ford India’s production factory in Gujarat’s Sanand will be completed on January 10, 2023. The deal covers land, a vehicle production plant, machinery, and equipment, as well as all qualified staff.
Tata Motors, in an exchange filing, stated, “Tata Passenger Electric Mobility had executed a Unit Transfer Agreement on August 7, 2022, for the acquisition of Ford India’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 crore.”
The company also announced that both parties would proceed with the deal on January 10, 2023, after fulfilling the requisite condition precedents and obtaining applicable government clearances.
This announcement comes at a time when Tata Motors is experiencing manufacturing capacity restrictions in its existing plants, resulting in lengthier wait times for select car models.
Following this acquisition, Tata Motors’ manufacturing capacity, which is currently 300,000 units per year, might be increased to 420,000 units per year. As part of the acquisition, all qualified Ford employees have been offered employment with Tata’s EV subsidiary on comparable terms, conditions, and service perks as their existing employer.
“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,” it added.
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