Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors, has announced that pursuant to the fulfilment of the necessary condition precedents for the transaction, including receipt of relevant Government approvals, the company and Ford India have decided to proceed towards completion of the transaction on January 10 2023.
A press release from Tata Motors said that the transaction is based on both parties that executed a Unit Transfer Agreement on August 7, 2022, to acquire Ford India's manufacturing plant in Sanand, Gujarat. This, among others, include the entire land & buildings and vehicle manufacturing plant along with machinery and equipment situated therein, and the transfer of all eligible employees of Ford India's manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of INR 725.7 crore.
TPEML saw significant growth over the last few years and aims to sustain this momentum with its robust pipeline of future-ready “New Forever” products and proactive investments in electric vehicles. Furthermore, with existing capacities near saturation, this acquisition will unlock an additional state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.
As part of the transaction, all eligible Ford India's vehicle manufacturing plant employees have been offered employment with TPEML on terms, conditions and benefits of service similar to those they currently avail. Those who have accepted its offer of employment will become TPEML employees with effect from January 10 2023, the release added.
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