Hyundai Motors India inked a deal with General Motors (GM) on Monday for their Talegaon plant located in Pune, Maharashtra. The company has signed the “acquisition term sheet”, and trial production is expected to begin next year.
The manufacturing capacity of Hyundai Motor India will expand as a result of the Talegaon factory acquisition, which will also unintentionally help enhance the company’s market dominance in the nation. Additionally, it will aid General Motors India in streamlining operations and lowering debt.
Currently, ArcelorMittal Nippon Steel (AMNS) India Ltd is in the running for takeover rights of mining major National Mineral Development Corporation’s (NMDC) steel plant in Chhattisgarh. It is facing competition from JSW Steel. The process is not yet completed, and both parties are in the race. The Tata Group is also close to taking over a major plant in southern India in a deal that would give the country its first Made in India iPhone.
There have been a string of such interesting acquisition deals over the years that have drawn interest and invited expansion opportunities. Here’s a quick recap:
The Tata takeover of the Ford plant
Hyundai-GM takeover isn’t the only major acquisition deal we have witnessed recently. Ford India Private Limited (FIPL) handed to Tata Passenger Electric Mobility Limited (TPEML) its production facility in Sanand, Gujarat, in December 2022. The property, production facility, equipment, and all of the qualified staff were all transferred as part of the acquisition, which was sealed in January of this year.
Tata Motors already has a second production facility in Sanand, right opposite the former Ford plant, where the Tata Nano was previously made. The Ford plant takeover was essential for Tata as they were falling behind in their manufacturing, leading to long waiting periods for customers. The Sanand plant diminished Tata’s production woes due to its high-scale manufacturing capacity of 300,000 units per annum, which could further be upscaled to 420,000 units per annum.
Ford India has already declared its departure from India in September 2021 as part of the company’s plans for a global restructuring. The company had been attempting to make a profit for 20 years but was unable to leave a lasting impression on customers. It controlled less than 2 per cent of the country’s market for passenger vehicles.
Salcomp is the new tenant in Nokia’s Sriperumbudur plant
Nokia and Sriperumbudur have enjoyed an enviable “plant-based” relationship. But it was dampened due to the shutting down of the Nokia plant in 2014 as a Rs 21,000 crore tax case was brought forth by the income tax department for alleged violation of withholding tax norms.
After a 6-year gap, Salcomp, one of the biggest providers of chargers for Apple iPhones, purchased the shuttered plant inside the Nokia Telecom SEZ in Sriperumbudur that was once held by Jabil Circuit, a US-based electronics manufacturing company.
The fourth acquisition Salcomp made was at the Nokia Telecom Park. The Laird and LOM plants inside the SEZ had already been acquired by the Finnish major.
Marksans Pharma acquires Teva manufacturing plant
In October 2022, Mumbai-based Marksans Pharma entered into an agreement with Israeli drug maker Teva’s manufacturing site in Goa. Health Canada, the European Union, and the Japanese Health Authority have all given their permission for the manufacturing facility, which spans 47,597 square metres.
Subject to the customary closing requirements, the deal is anticipated to be completed by April 1, 2023. In accordance with the agreement, Marksans will continue to provide Teva’s affiliates with a selection of goods through the end of FY23.
Marksans intends to increase its present capacity in India from 8 billion units annually to 12 billion units through the acquisition of Teva’s production facility.
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