Hindustan Motors Ltd has said that its Chennai plant was adversely affected due to lower volumes caused mainly by higher petrol prices and increased interest rates. The company also said exchange rates and power shortage in Tamil Nadu are the added reasons, which affected company's margins on the products produced at its Chennai plant.
Last week the company said it needs to restructure its business by demerging its Uttarpara and Chennai plants as the product portfolio and customer segment of these two units are very different. The company is seeking potential strategic / financial investors for both the units. It is already in talks with some of them. However, the potential partners, too, have specific needs and are interested in either of the two units, not both, Uttam Bose, Managing Director and CEO, HM quoted in release.
Earlier, the company received its shareholders' approval to Scheme of Arrangement between Hindustan Motors Ltd (HML) and Hindustan Motor Finance Corporation Ltd (HMFC) and their respective shareholders for demerger of the Chennai Car Plant from HML to HMFC.
Meanwhile, company's Annual Report for 2012-13 stated that “further adverse exchange rates and shortage of power availability in Tamil Nadu has also "severely" affected the margins on the products of the Chennai car plant. Pajero Sport was rolled out from this plant last year. Read more..
Last week the company said it needs to restructure its business by demerging its Uttarpara and Chennai plants as the product portfolio and customer segment of these two units are very different. The company is seeking potential strategic / financial investors for both the units. It is already in talks with some of them. However, the potential partners, too, have specific needs and are interested in either of the two units, not both, Uttam Bose, Managing Director and CEO, HM quoted in release.
Earlier, the company received its shareholders' approval to Scheme of Arrangement between Hindustan Motors Ltd (HML) and Hindustan Motor Finance Corporation Ltd (HMFC) and their respective shareholders for demerger of the Chennai Car Plant from HML to HMFC.
Meanwhile, company's Annual Report for 2012-13 stated that “further adverse exchange rates and shortage of power availability in Tamil Nadu has also "severely" affected the margins on the products of the Chennai car plant. Pajero Sport was rolled out from this plant last year. Read more..
Source: Automobile News
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