Ahmedabad: A subsidiary of Tata Motors Ltd is closing in on to acquire the manufacturing plant of Ford India Private Limited (FIPL) at Sanand in Gujarat for Rs 725.7 crore.
Tata Passenger Electric Mobility Limited (TPEML) has signed a Unit Transfer Agreement (UTA) with FIPL to take over entire land and buildings, vehicle manufacturing plant along with machinery and equipment, according to The Indian Express
The transfer of all eligible employees of FIPL's vehicle manufacturing operations at Sanand in the event of FIPL's cessation of such operations is also included in the agreement.
FIPL will continue to operate its Powertrain Manufacturing Facility by leasing back the land and buildings of the Powertrain Manufacturing Plant from TPEML on mutually agreed terms, the report said.
Both the parties are waiting for the relevant approvals from the government, after the TPEML, FIPL and Gujarat government executed a tripartite MoU on May 30.
TPEML is likely to reconfigure the plant to adapt to Tata Motor's existing and future requirements.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited responded to the unit takeover saying that " It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat"
Steve Armstrong, Transformation Officer of Ford Motor Company, called the unit transferring announcement an important step forward in Ford's ongoing business restructuring in India.