Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited (FIPL), has signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL’s manufacturing plantsituated at Sanand, Gujarat. The acquisition includes:(i) entireland &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.
FIPL will continue to operate its Powertrain Manufacturing Facilityby leasing back the land and buildings of the Powertrain Manufacturing Plant from TPEMLon mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of FIPL’s Powertrain Manufacturing Plant in the event of FIPL’s cessation of such operations. The closure of the transaction will be subject to the receipt of relevant approvals from the government authorities and fulfilment of customary condition precedents.
The government of Gujarat, TPEML and FIPL have already executed a tripartite MoU on 30th May 2022 to support all relevant approvals for the above transaction. Announcing this, Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, “The agreement will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat”.
