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Tuesday Feb 07, 2023

Ratan led Tata Motors to complete acquisition of Ford India manufacturing plant in Jan – Business News India


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Tata Group company Tata Motors through its subsidiary will complete the process of plant acquisition of Ford India. According to the information given by Tata Motors, the process of acquisition of Gujarat-based Sanand plant between subsidiary Tata Passenger Electric Mobility (TPEML) and Ford India Private Limited (FIPL) will be completed on January 10, 2023.

What will come in Tata’s share: Through this acquisition process, Tata Motors will get Ford India’s land, buildings, vehicle manufacturing units, machinery and equipment. Tata Motors said in the stock exchange- The annual capacity of this plant is 3 lakh units and it can be increased to 4,20,000 units. At the same time, in this acquisition process, the jobs of all the eligible employees of the plant will remain intact. Please tell that this deal was worth Rs 725.7 crore.

Let us tell you that the American company Ford had entered the Indian market in the 90s. Ford spent many years trying to make profits in India but could not get success. Last year, the company announced plans to exit India citing a number of reasons, including weak demand, low-cost vehicles from competitors and a failed joint venture with Mahindra.

Attitude was shown to Ratan Tata: It is also interesting that the deal with Tata Motors, the American company which is taking over Ford’s plant in India, was also canceled about 23 years ago. Actually, Ratan Tata wanted to sell his business after the failure of the car division. American car maker Ford showed interest in buying this business. When Ratan went to the headquarters of Tata Ford Motors for the deal, the top executives of the American company tried to make fun of him.

Bill Ford, chairman of Ford Motors, even said that if I deal with this car division, it will be a great favor to you. Ratan Tata canceled the deal for this insult and started promoting Tata Motors. Not only this, Ratan Tata also bought Jaguar and Land Rover, two popular brands of Ford, from the company after a few years. Now once again Tata has bought the plant of this American company in India.

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