On Friday, Tata Motors said that the acquisition of Ford India’s manufacturing plant in Sanand through its subsidiary will be completed by January 10, 2023.

In August 2022, the company announced that its subsidiary Tata Passenger Electric Mobility Ltd (TPEML) would buy Ford India Pvt Ltd’s (FIPL) Sanand plant in Gujarat state for Rs 725.7 crore.

The acquisition includes the transfer of the entire land and buildings, vehicle manufacturing plant, machinery and equipment, and all qualified employees of FIPL’s vehicle manufacturing operations in Sanand.

“Subject to fulfilling the necessary prerequisites for the transaction, including obtaining relevant government approvals, the parties have decided to proceed to close the deal on January 10, 2023,” Tata Motors said in a statement.

It added that all eligible FIPL Automobile Manufacturing Plant employees had been offered employment with TPEML on terms, conditions and service benefits similar to those they currently enjoy.

From January 10, 2023, FIPL employees who accept their employment will become TPEML employees.

Tata Motors said its passenger and electric vehicles business has “outpaced market growth over the past few years and has strong plans to maintain this momentum with its strong pipeline of new products and active investments in electric vehicles”.

“The acquisition will unlock an additional state-of-the-art manufacturing capacity of 3 lakh units per year, scalable to 4.2 lakh units per year, as existing capacity approaches capacity,” the company said.