The protracted land sale of Fiat India’s Kurla property has finally been sealed at Rs 608 crore. In continuance with its process of restructuring and consolidation of its operations in India, Fiat India on Friday announced the sale of the property to IKG Associates; an IL&FS affiliated entity. The company has already completely shifted to its facility in Ranjangaon, Pune, spread over 200 acres.
The Fiat property originally belonged also to Premier Automobiles (PAL), promoted by the Doshi family, who had entered into a joint venture with Fiat in 1995 to manufacture cars at the Kurla factory. Following differences between the partners, the JV was dissolved and Fiat bought the factory and premises in 1998.
A statement issued by the company on Friday said, ?This marks an important phase in the journey of Fiat in India as the company ushers into a new era with the transformation of its production facilities and the impending launch of new models in the country.?
The Kurla property where Fiat had commenced its Indian manufacturing operations in 1997 has witnessed the production of various cars from the Fiat stable such as the Uno, Palio, Siena, Weekend, Adventure and Petra models. Fiat discontinued its Kurla operations last year and shifted Palio production to the Ranjangaon facility.
Kohinoor Planet was keen on the buying out Fiat?s Kurla property as it acquired Premier Auto?s 36-acre plot in Kurla adjoining the Fiat factory in ?05. The company went on to develop an integrated township, Kohinoor City, on that property. It wanted to use the land to further expand its Kohinoor City project or use the property for other value-adds like a retail/commercial space.
The company moved the assembly to Ranjangaon, to take advantage of tax concessions, and also entered into a joint venture with Tata Motors for manufacturing vehicles, engines and transmissions for the domestic and export markets. The JV will manufacture premium cars, Grande Punto and Linea (respectively in the B and C segments), its successful 1.3 litre multijet diesel engine, its 1.2 and 1.4 litre fire gasoline engine and matching transmissions. It will also manufacture one of Tata?s next generation vehicles. The facility would see an investment of Rs 4,000 crore, and is expected to exceed an overall output of 100,000 cars and 200,000 engines and transmissions.