New Delhi: Commercial vehicle major Force Motors is shifting gears to bolster its infrastructure. The company announced on Wednesday that its board has granted in-principle approval to explore a 100% equity acquisition of Veera Tanneries Private Limited (VTPL).
While the target company operates in the leather industry—manufacturing chrome-free organic leather—the primary driver for the deal is not diversification into textiles, but a strategic “land grab”. Force Motors intends to utilize VTPL’s land bank to expand its own core automotive manufacturing operations.
The acquisition is structured as a full buyout of the private entity, which was incorporated in 1978. For Force Motors, the move represents a pragmatic approach to scaling production capacity at a time when industrial land acquisition remains a key challenge for automotive players.
”To acquire land bank of the target entity for expansion of Company’s current business,” Force Motors stated in a regulatory filing.
The proposed transaction will be an all-cash deal. While the final price tag is yet to be determined—pending a rigorous due diligence process—VTPL is a relatively small-scale entity in terms of revenue.
VTPL Turnover (FY25): ₹36.02 lakh.
Historical Performance: The entity saw a turnover of ₹1.03 crore in FY24 and ₹71.10 lakh in FY23.
Paid-up Capital: ₹2.51 lakh.
The board meeting, which concluded late Wednesday evening, sets a tight deadline for the closure of the deal, targeting March 31, 2026. The acquisition does not fall under related party transactions, and no promoter group interest is involved, ensuring an arm’s length process.
Shares of Force Motors have been in focus recently following strong quarterly performance, and this move signals the management’s intent to reinvest in long-term capacity building.