Tata Passenger Electric Mobility Limited (“TPEML”), a subsidiary of Tata Motors Limited (“TML”), and Ford India Private Limited (“FIPL” and together with TPEML, “Parties”) had executed a Unit Transfer Agreement on August 7, 2022 for the acquisition of FIPL’s manufacturing plant situated at Sanand,
Gujarat, which inter-alia includes: (i) entire land & 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, for a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty Five Crores and Seventy Lakhs)
Pursuant to the fulfillment of the necessary condition precedents for the transaction, including receipt of relevant government approvals, the Parties have decided to proceed towards completion of the Transaction on 10th January 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 state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.
