The auto major on Friday said that the acquisition of Ford India's (FIPL) manufacturing plant at Sanand, through its subsidiary, Tata Passenger Electric Mobility (TPEML) will be completed on 10 January 2023.
On 7 August 2022, Tata Motors said that its subsidiary, TPEML and FIPL had executed a unit transfer agreement for the acquisition of FIPL's manufacturing plant situated at Sanand, Gujarat.
The agreement includes land and buildings, a vehicle manufacturing plant along with machinery and equipment and transfer of all eligible employees of FIPL's vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 crore.
The auto maker stated, Pursuant to the fulfilment 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.
TPEML 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 manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum, the company said.
As part of the transaction, all eligible employees of FIPL's vehicle manufacturing plant have been offered employment with TPEML on terms, conditions and benefits of service similar to those that are currently availed by them. TPEML would like to take this opportunity to extend a warm welcome to all the eligible FIPL employees who have accepted its offer of employment and who shall become TPEML employees with effect from 10 January 2023, Tata Motors stated in the press release.
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Tata Motors is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses, offering extensive range of integrated, smart and e-mobility solutions. It is India's market leader in commercial vehicles and amongst the top three in the passenger vehicles market.
The company reported consolidated net loss of Rs 944.61 crore in Q2 FY23 as against Rs 4,441.57 crore in Q2 FY22. Net sales jumped 30.5% to Rs 78,846.92 crore in Q2 FY23 as compared to Rs 60,435.92 crore in Q2 FY22.
Shares of Tata Motors rose 0.57% to close at Rs 388.10 on Friday, 30 December 2022.
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