Hindustan Motors has announced that it will demerger and transfer its Chennai plant to its fully owned subsidiary Hindustan Motor Finance Corporation Limited. The company’s other two plants located near Kolkata and Pithampura in Madhya Pradesh will continue to be run by Hindustan Motors itself.
The Chennai plant, located in Tiruvallur, is used for the assembly and previously the manufacturer of various Mitsubishi models including the Pajero Sport (assembly) and the now phased out Lancer and Cedia sedans (production).
The Uttarpara plant, located near in West Bengal, is used for manufacturing all variants of the Hindustan Ambassador, both variants of the company’s Winner mini-truck and auto components as well. The Pithampura plant near Indore is used for manufacturing the mini-truck range.
The move has been approved by the board and will help both companies pursue their respective growth plans.
Source: ET
