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Hyundai Motor India (HMIL) recently signed an asset purchase agreement (APA) for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon plant in Maharashtra, the latter finally exiting the country after six years of shutting the facility.
According to sources, the deal was finalised after the Maharashtra government cleared all regulatory requirements, including the local industrial court’s approval of the closure, despite protests from around 1,100 workers.
A GMI spokesperson told businessline, “I can confirm that General Motors India and Hyundai Motor India Ltd. have signed an asset purchase agreement for the sale of assets at the Talegaon manufacturing facility.”
HMIL’s first announcement to acquire the Talegaon plant came in March this year.
Meanwhile, HMIL said that the APA covers the acquisition and assignment of land (which is on lease) and buildings, as well as certain machinery and manufacturing equipment in the plant.
“The acquisition and assignment are subject to the fulfilment of certain conditions precedent and the receipt of regulatory approvals from the relevant government authorities and stakeholders,” it said.
According to sources, HMIL would invest around ?5,000 crore in the next 10 years in developing futuristic products and expansion of the facility.
“This year is a significant milestone for Hyundai Motor India, as we celebrate 27 years of activity in the market. Demonstrating our dedication to India, earlier this year, to expand capacity and establish an electric vehicle ecosystem, we intend to create an advanced manufacturing centre for cars Made-in-India in Talegaon, Maharashtra,” Unsoo Kim, Managing Director and Chief Executive Officer, HMIL, said, adding that the manufacturing operations are scheduled to begin in 2025.
On being asked about the GM workers raising questions against the acquisition, a HMIL spokesperson said, With the signing of the APA with GMI, we are now moving towards seeking various regulatory approvals. The complete closure of acquisitions and assignments is subject to the fulfilment of certain conditions precedent and the receipt of regulatory approvals from relevant government authorities and relevant stakeholders related to the acquisition or assignment.”
“We are aiming to finalise the terms and conditions and execute the agreement within the year 2023. We will closely work with the government of Maharashtra towards a meaningful and positive dialogue,” he added.
Currently, GMI’s Talegaon plant has an annual production capacity of 1.30 lakh units. Since HMIL already enhanced its production capacity from 7.50 lakh units to 8.20 lakh units in the first half of this year, the capacity augmentation of the GMI plant will lay the foundation for HMIL to produce around one million units a year. |
