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Tata Motors' EV subsidiary TPEML completes acquisition of Ford India’s Sanand plant.
All vehicle manufacturing employees of the Ford Sanand plant are offered employment by Tata Motors, and those who have accepted the offer have been transferred to TPEML.
The EV subsidiary of Tata Motors, Tata Passenger Electric Mobility Limited (TPEML), has completed the acquisition of Ford India’s manufacturing plant in Sanand, Gujarat. Both companies executed a Unit Transfer Agreement on August 7, 2023, for the acquisition of FIPL’s:
- Entire land & buildings (Sanand Property)
- Vehicle Manufacturing Plant along with machinery and equipment situated therein (VM Plant and Machinery)
- Transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand
TPEML acquired the plant for ₹725.7 crores.
After getting all the relevant approvals from the government authorities, the Parties have completed the Transaction, and TPEML has acquired the Sanand Property and the vehicle manufacturing plant and machinery.
Additionally, all vehicle manufacturing 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 will invest in new machinery and equipment to commission and make the unit ready to produce vehicles. The proposed investment would lead to an installed capacity of 3,00,000 units per year, which would be scalable to 4,20,000 units.
Upon mutual agreement, Ford India will lease back its Powertrain Manufacturing Facility from TPEML to continue to operate its Powertrain Manufacturing Facility.
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