Force Motors Board Approves Exploration of Veera Tanneries Acquisition
Filing Summary
Force Motors Limited has announced that its Board of Directors has approved the exploration of acquiring 100% shares in Veera Tanneries Private Limited (VTPL). VTPL, a private company engaged in the manufacturing of Chrome Free Organic Leather, reported a turnover of Rs. 36 lakh for FY 2024-25. The acquisition aims to secure a land bank for Force Motors’ business expansion. The transaction is expected to be completed by March 31, 2026, subject to mutually agreed terms. The acquisition will be executed through cash consideration, with the cost determined post due diligence.
Force Motors Limited has informed the stock exchanges that its Board of Directors has given in-principle approval to explore the acquisition of 100% shares in Veera Tanneries Private Limited (VTPL). This decision was made during the board meeting held on February 4, 2026. VTPL is a private limited company incorporated under the Companies Act, 1956, and operates in the tannery industry, specifically manufacturing Chrome Free Organic Leather.
The financial details of VTPL indicate that its authorized share capital is Rs. 10 lakh, while the paid-up share capital stands at Rs. 2.51 lakh. The company’s turnover for the fiscal year 2024-25 was reported at Rs. 36 lakh. The proposed acquisition will be executed through cash consideration, although the exact cost will be determined after the necessary due diligence and mutual agreement between the parties involved.
The primary objective of this acquisition is to acquire the land bank of VTPL to facilitate the expansion of Force Motors’ current business operations. This strategic move aligns with the company’s growth plans, although the specific terms and conditions of the acquisition are yet to be finalized. There are no related party transactions involved in this acquisition, and the promoter group of Force Motors does not have any interest in VTPL.
The acquisition process is expected to be completed by March 31, 2026, or as mutually agreed upon by the involved parties. Force Motors has stated that any changes to the timeline will be communicated to the stock exchanges. The acquisition does not require any governmental or regulatory approvals at this stage.
Veera Tanneries Private Limited was incorporated on August 19, 1978, and operates solely within India. The company has reported turnovers of Rs. 1.03 crore and Rs. 71 lakh for the fiscal years 2023-24 and 2022-23, respectively. Its business focus is on the production of Chrome Free Organic Leather, which is a niche segment within the tannery industry.
Force Motors Limited is a prominent player in the automotive industry, known for manufacturing a range of vehicles, including commercial and utility vehicles. The company’s strategic priorities include expanding its market presence and enhancing its product offerings. The exploration of acquiring VTPL aligns with Force Motors’ objective to strengthen its business infrastructure and support future growth initiatives.