Tata Passenger Electric Mobility Limited (“TPEML”), a subsidiary of Tata Motors Limited (“TML”), and Ford India Private Limited (“FIPL” and together with TPEML, “Parties”) had executed a Unit Transfer Agreement on August 7, 2022 for acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat, which inter-alia includes: (i) entire land & buildings (“Sanand Property”); (ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein (“VM Plant and Machinery”); and (iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand (“Eligible VM Employees”), for a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty Five Crores and Seventy Lakhs) (“Transaction”).
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.
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.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)