Cars in India | Autoportal.com
Select City

Are you from New Delhi?

Yes Change City
Stand a chance to win a Trip to Dubai! Know More
Autoportal
Independence Day Offer!
*T&C Apply

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

  • Current Offer and Discounts on Maruti, Hyundai, Tata & Hyundai Cars – August 2017 18-08-2017 Davender Soni Current Offer and Discounts on Maruti, Hyundai, Tata & Hyund...
  • Tata Nexon - All Your Queries Answered 18-08-2017 Mayank Tata Nexon - All Your Queries Answered
  • Top things that Land Rover Discovery offers 18-08-2017 Pankaj Vig Top things that Land Rover Discovery offers
  • Current Offers and Discounts on Hyundai, Volkswagen, Honda & Tata Cars – August 2017 11-08-2017 Davender Soni Current Offers and Discounts on Hyundai, Volkswagen, Honda &...
  • 10th Generation Honda Civic to be showcased at the 2018 Auto Expo 18-08-2017 Autoportal Team 10th Generation Honda Civic to be showcased at the 2018 Auto...
  • Cricketer Hardik Pandya surprises his father by gifting him Jeep Compass 18-08-2017 Davender Soni Cricketer Hardik Pandya surprises his father by gifting him...


Helpline