Fiat India Pvt Ltd on Friday said it had sold its 53-acre Kurla property to IKG Associates, an IL&FS-affiliated entity, for Rs 608 crore. The company said that the sale was in continuation of the ongoing consolidation and restructuring process of its Indian operations.
The company’s operations have been completely shifted to a 200-acre facility at Ranjangaon near Pune.
The facility, which commenced operations in February, will be the destination for all Fiat manufacturing processes in the country. The plant manufactures the Palio, and is geared up for producing internationally successful Fiat models, which will be launched here in the near future. The total estimated investment in the plant is Rs 4,000 crore, the company said.
The Kurla property where Fiat had commenced its Indian manufacturing operations in 1997 had produced various models such as the Uno, Palio, Siena, Weekend, Adventure and Petra.
Fiat discontinued its Kurla operations late last year and shifted Palio production to the Ranjangaon facility. Fiat had also indicated interest in sourcing auto components from India for most of its global models.
TATA MOTORS TIE-UP
In October, Fiat Group Automobiles and Tata Motors signed an agreement for establishing a joint venture at Ranjangaon to manufacture passenger
cars, engines and transmissions for the Indian and overseas markets. Assembly of the new Fiat Palio at Ranjangaon has commenced.
Source: The Hindu Business Line
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