Tata Passenger Electric Mobility, the EV of Tata Motors, and Ford India completed the transaction and TPEML has acquired the Sanand Property and the VM Plant and Machinery.
Both parties had executed a Unit Transfer Agreement on August 7 for acquisition of Ford India’s manufacturing plant at Sanand, Gujarat, which inter-alia includes: (i) entire land and 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. The deal was closed for a total consideration, exclusive of taxes, of Rs 725.7 crore.
Pursuant to the fulfilment of the necessary condition precedents, including receipt of relevant regulatory approvals, the Parties have today 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 January 10, 2023.
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.