Cars in India | Autoportal.com
Select City

Hindustan Motors lets go of its Chennai plant to raise Rs 150 crore

Hindustan Motors lets go of its Chennai plant to raise Rs 150 crore

Snapshot: The Chennai facility is being transferred to Hindustan Motor Finance Corporation Ltd.

- Comments    |    Write Comment

According to reports, Hindustan Motors Ltd have initiated the process of handing over the possession of its Chennai car plant in Tamil Nadu to a separate entity - Hindustan Motor Finance Corporation Ltd. The said move has been made in order to cut losses and to improve the overall health of the company. CK Birla Group-owned Hindustan Motors is currently in the process of getting approvals from lenders and Tamil Nadu government for the aforementioned process of handing over of its Chennai plant. Through the de-merger, the Indian automaker hopes to raise around Rs 150 crore.

In an announcement to BSE today, the company said that in supersession of the Working Arrangement Agreement dated January 5, 2014 the Company has on March 30, 2014 handed over the possession of the Chennai Car Plant at Adigathur, Kadambathur, Tiruvallur in the State of Tamil Nadu to Hindustan Motor Finance Corporation Limited.

Earlier Hindustan Motors’ Board of Directors gave their nod to sell, lease or dispose of the whole or substantially the whole or part of the Chennai car plant for a consideration of not less than Rs 150 crore. "In the present day and circumstance, it is imperative to induct a suitable investor / global leader in the respective businesses for viability in the long term and therefore, the company has been looking at suitable proposals for the Chennai plant," an official from Hindustan Motor said.

At present, the Chennai plant is engaged in the business of manufacturing and trading of passenger vehicles like the Pajero Sport and Montero and their respective spare parts. These models are owned by Mitsubishi Motors Corporation of Japan, with whom Hindustan Motor Ltd had signed a technical collaboration long ago. The plant is also engaged in contract manufacturing of vehicles for Isuzu Motors India Pvt. Ltd.

Related car news

  • Ricciardo wins Azerbaijan GP as Hamilton, Vettel engages in ugly spat 26-06-2017 Autoportal Team Ricciardo wins Azerbaijan GP as Hamilton, Vettel engages in...
  • Video - Nissan teases 2018 Leaf EV's self-driving technology 24-06-2017 Autoportal Team Video - Nissan teases 2018 Leaf EV's self-driving technology
  • Video - Roborace Devbot autonomous racing car completes Berlin ePrix lap 24-06-2017 Autoportal Team Video - Roborace Devbot autonomous racing car completes Berl...
  • Harley-Davidson looking into buying Ducati 23-06-2017 Prashant Singh Harley-Davidson looking into buying Ducati
  • All-New Maruti DZire Waiting Period Rises to 3 Months 23-06-2017 Mayank All-New Maruti DZire Waiting Period Rises to 3 Months
  • 2017 KTM 390 Duke recalled in Europe 23-06-2017 Prashant Singh 2017 KTM 390 Duke recalled in Europe


Helpline