Hindustan Motors Chennai Plant to be demerged and transferred

Hindustan Motors Limited (HML) has decided to demerge and transfer its Chennai Car Plant to its fully owned subsidiary Hindustan Motor Finance Corporation Limited (HMFCL). Demerger notwithstanding, the balance businesses and other interests of HML will continue to be managed by HML itself. This move has been approved by the board and will help both HML and HMFCL to enhance their respective growth plans.

Post demerger, the Uttarpara plant will be under control of Hindustan Motors wherein manufacture of Ambassador cars, both diesel and petrol engined options as well as CNG and LPG variants will be undertaken. Manufacture of light commercial vehicles such as Winner 1.5 lt, 2.0 lt and 1.8 lt, along with CNG and auto components will also be undertaken at the HML Uttarpara plant. HML will also continue overseeing operations at the Pithampur plant in Indore, Madhya Pradesh.

It will be from Chennai unit in Tiruvallur from where Pajero SFX, Cedia, Montero, Outlander and Lancer Evolution along with Pajero Sport will continue manufacture under collaboration with HML and Mitsubishi Motors of Japan.

Source: ET