Tata Motors has inked a pact to acquire Ford India's Sanand-based manufacturing plant for ₹725.7 crore, as it aims to bolster its passenger vehicle production capacity.
As part of the deal, Tata Motors will get the entire land and buildings, vehicle manufacturing plant along with machinery and equipment situated therein, the Mumbai-based auto major said in a statement.
The deal also includes the transfer of all eligible employees, it added.
Tata Motors said with its manufacturing capacity nearing saturation, the acquisition is timely and a win-win for all stakeholders.
The Sanand plant has a manufacturing capacity of 3 lakh units per annum, which is scalable to 4.2 lakh units per annum.