Tata Motors acquires Ford India's Sanand plant
The plant has a capacity of 3 lakh units per annum, which is scalable to 4.2 lakh units
New Delhi: Tata Motors has inked a pact to acquire Ford India's Sanand-based manufacturing plant for Rs725.7 crore, as it aims to bolster its passenger vehicle production capacity. As part of the deal, Tata Motors will get the entire land and buildings, vehicle manufacturing plant along with machinery and equipment situated therein, the Mumbai-based auto major said in a statement.
The deal also includes the transfer of all eligible employees, it added. Tata Motors said with its manufacturing capacity nearing saturation, the acquisition is timely and a win-win for all stakeholders. The Sanand plant has a manufacturing capacity of 3 lakh units per annum, which is scalable to 4.2 lakh units per annum. Tata Passenger Electric Mobility Ltd (TPEML) will make the necessary investments to reconfigure the plant to adapt to Tata Motors' existing and future vehicle platforms, the automaker said. The unit is adjacent to the existing manufacturing facility of Tata Motors at Sanand, which should help in a smooth transition, it added.
"The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors' strong aspiration to further strengthen its market position in the passenger vehicles segment and to continue to build on its leadership position in the electric vehicle segment," said Shailesh Chandra, MD (passenger vehicles), Tata Motors.
TPEML, a subsidiary of Tata Motors and Ford India Pvt Ltd (FIPL), have signed a Unit Transfer Agreement (UTA) for the acquisition of the Gujarat-based plant.
