Tata Motors, India's third largest car maker on Friday announced that its subsidiary Tata Passenger Electric Mobility (TPEML) will complete its acquisition of Ford India's manufacturing plant in Sanand, Gujarat, on January 10, 2023.

In August, TPEML had signed a Unit Transfer Agreement (UTA) for the acquisition of Ford India’s manufacturing plant at Sanand in Gujarat for Rs 725.7 crore.

"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," Tata Motors said in a BSE filling.

As part of the agreement, Tata Motors will get entire land and buildings, vehicle manufacturing plant along with machinery and equipment situated therein, the automaker said. In addition, all the eligible employees at the Sanand unit of Ford India will be transferred to Tata Motors.

"As part of the transaction, all eligible employees of Ford India'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 Ford India employees who have accepted its offer of employment and who shall become TPEML employees with effect from 10th January 2023," the company added.

Earlier Tata Motors also informed that Ford India will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from Tata Passenger Electric Mobility on mutually agreed terms.

According to the Mumbai-based automaker, Tata Motors Passenger & Electric Vehicles 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 state of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum," it added.