Hindustan Motors seeks shareholder nod for Tiruvallur plant sale
Observing that the business of the company was under “strain”, C K Birla Group company Hindustan Motors has sought shareholder approval, through a postal ballot, for raising about Rs 150 crore by means of sale or lease of its Tiruvallur car plant situated near the city.
In a BSE filing, the Kolkata—based company said, ”…hereby accorded to the Board of Directors of the Company to sell, lease or otherwise dispose of the whole or substantially the whole or part of Chennai car plant of the company at Adigathur, Tiruvallur district in Tamil Nadu to such person or persons and for such consideration which shall not be less than Rs 150 crore“.
For the purpose of giving effect to the aforesaid resolution, the Board is authorised to do and perform all such acts and modes of disposal of the Chennai car plant aforesaid, it said.
“In the present day and circumstances, it is imperative to induct a suitable investor or a global leader in the respective businesses for viability in the long term and therefore, the company has been looking at suitable proposals for Chennai car plant,” it said.
Hindustan Motors currently has two facilities: one at Uttarpara in West Bengal and the Tiruvallur plant in Tamil Nadu.
While the company manufactures the famous Ambassador and light commercial vehicle Winner at Uttarpara, it makes premium SUV Pajero Sport, premium sedan Cedia, and luxury SUVs Outlander and Montero, at the Chennai plant, in collaboration with Japanese automaker Mitsubishi Motors.
Japanese car maker Isuzu Motors entered into a contractual agreement with Hindustan Motors for contract assembling of Completely Knocked Down (CKD) units of Isuzu’s sports utility vehicle MU-7 and pick-up truck D-Max from the Chennai plant.