C K Birla controlled Hindustan Motors (HM) said the company is planning to divest its manufacturing units in West Bengal and Madhya Pradesh.
In a regulatory filing, it said the board has decided to obtain shareholders’ approval for ‘sale, lease’ or disposal of the whole or substantially, the whole of the Uttarpara and the Pithampur plant as a going concern’.
Alternatively, the company is also contemplating giving these assets on lease to strategic investors for a joint venture.
“We have been scouting for a strategic investor but the economic slowdown followed by the Covid-19 pandemic derailed our plans. We are in discussion with investors again and hope to enter into a JV soon,” said Uttam Bose, managing director, Hindustan Motors.
Sprawled across 795 acres, Hindustan Motors’ Uttarpara plant in the outskirts of Kolkata used to roll out the iconic Ambassador including its CNG and LPG variants, light commercial vehicle Winner, and auto components. The company’s unit covering 30 acres of land near Indore in Madhya Pradesh produced Winner. Production at both the units had come to a standstill for some time now.