© Reuters. FILE PHOTO: The Tata Motors brand is pictured outdoors their flagship showroom in Mumbai on Could 28, 2013. The image was taken on Could 28, 2013. Reuters/Vivek Prakash

(Reuters) – Tata Motors (NYSE:) Ltd. on Sunday signed an settlement to purchase Ford Motor’s (NYSE:) manufacturing plant within the western state of Gujarat for Rs 7.26 billion ($91.5 million).

The settlement between Tata Passenger Electrical Mobility Restricted (TPEML) and Ford India Non-public Restricted (FIPL), a subsidiary of the Indian automaker, covers land, property and all eligible workers.

“With our manufacturing capability nearing saturation, this acquisition is well timed and a win-win for all stakeholders,” Tata Motors stated in a press release.

The Jaguar Land Rover mum or dad stated the acquisition of the Sanand plant would unlock a producing capability of 300,000 models each year which may enhance to 420,000.

Ford, which had lower than 2% of the Indian passenger automobile market when it stopped manufacturing within the nation final yr, had struggled for greater than 20 years to make earnings.

($1 = 79.3600 Indian Rupee)

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