Hindustan Motors’ (HM) Uttarpara plant which was shuttered last week has been attracting investor interest.
27 May 2014 | 3460 Views | By Sumantra B Barooah
Hindustan Motors’ (HM) Uttarpara plant which was shuttered last week has been attracting investor interest. The plant, India’s oldest car making facility, rolled out the Ambassador, which is widely used as a taxi in some parts of the country.
It is believed that five suitors, some foreign firms, have ...
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Hindustan Motors’ (HM) Uttarpara plant which was shuttered last week has been attracting investor interest. The plant, India’s oldest car making facility, rolled out the Ambassador, which is widely used as a taxi in some parts of the country.
It is believed that five suitors, some foreign firms, have indicated their interest. It is not clear though how many of them are serious. Interestingly, HM’s earlier attempts, about a year ago, to find an investor to revive the company failed because some prospective investors then didn’t want the deal to include the loss-making Uttarpara plant. That led to the company being de-merged and its Chennai plant (that assembles the Pajero Sport SUV for Mitsubishi) being transferred to Hindustan Motors Finance Corporation, a 100 percent subsidiary of HM.
HM’s decision to suspend production at Uttarpara, aimed at containing losses, estimated at around Rs 7 crore a month, is part of its overall financial revival process. Workers, however, have objected to the shutdown. The state government has now stepped in and a tripartite meeting among the company representative, leader of the workers’ union and an official of the state government’s labour department is now slated for Wednesday, May 28.
HM sold about 2,000 cars in the last fiscal year.
Also read: Hindustan Motors shuts down Uttarpara plant