On Tuesday, Tata Motors proudly announced the successful conclusion of their subsidiary’s acquisition of Ford India’s Sanand manufacturing facility.
Last August, Tata Passenger Electric Mobility Ltd (TPEML) declared that they would purchase Ford India Pvt Ltd’s (FIPL) Sanand plant in Gujarat for an impressive sum of Rs 725.7 crore.
Upon completion of the necessary requirements, such as obtaining required regulatory approvals, both parties have finalized the transaction where Tata Power Engineering & Manufacturing Limited (TPEML) has acquired a property in Sanand and its vehicle manufacturing plant together with machinery. As per reported by Tata Motors in an official announcement.
Moreover, all workers within the vehicle manufacturing industry were offered new jobs with TPEML. Those who accepted the offer will be transitioned over to the company and become employees of TPEML from January 10th onward, as stated in a press release.
FIPL’s acquisition included the entire Sanand vehicle manufacturing plant, featuring land, buildings and machinery. All qualified personnel working in FIPL’s vehicle manufacturing operations at Sanand were also transferred to ensure a smooth transition.
Tata Motors has declared that they are confident in taking over and effectively managing the Sanand facility. They have also assured to maintain FIPL’s existing workforce and business models, while also providing good conditions of salaries and other remunerations.
The acquisition is part of Tata Motor’s strategic initiatives towards expanding its reach in the Indian automotive market. It will enable the company to optimize its current capacities, while also helping them serve their customers better and faster.
This acquisition marks a big step in Tata Motor’s plans for growth in India and is well poised to help the company capture a larger share of the automotive industry. With this new facility at their disposal, they can now leverage the best of both worlds – Tata Motors’ engineering and production capability, combined with Ford’s impressive manufacturing processes.
The company is confident that this new partnership will help them become a formidable force in India’s growing automotive industry. They also believe that this acquisition is likely to provide ample job opportunities and a much-needed boost to the economy.
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.