In view of smaller size and continuous operating losses, Hindustan Motors has decided to sell whole or part of its component business, including forge and foundry shops at its Uttapara plant in West Bengal. Meanwhile, the company is attempting to revive its automobile businesses through corporate restructuring, fund infusion and asset sales.
Recently, the company sold its residual stake in former subsidiary HM Export to its wholly-owned subsidiary Hindustan Motor Finance Corp (HMFCL). During the 18-month financial year ended September 30, 2013, the company had sold 33,82,857 shares (99.99 per cent) of Rs 10 each of HM Export. It also sold an 11.78% stake in Avtec, an associate company.
Hindustan Motors is India’s pioneering automobile manufacturing company manufactures passenger cars, Multi Utility Vehicles and RTV. It also manufactures passenger cars in the mid size premium segment (Mitsubishi Lancer, Lancer Select, and Lancer Cedia) and has brought the Sports Utility Vehicle (Mitsubishi Pajero) into the Indian market, in collaboration with Mitsubishi Motors of Japan.
