HM submits plan for expansion and diversification in own land
Kolkata, Aug 25 (UNI) Hindustan Motors, the manufacturers of Ambassador cars, would diversify into the thriving auto component manufacturing and ancillary industries sector as part of its aggressive expansion plan.
As part of the comprehensive "revival and renewal package" to the West Bengal government, to be executed on an area of 314 acres of land within HM's Uttarpara complex in neighbouring Hooghly district, we plan to develop world class automotive casting, forging and stamping units, besides, establishing an integrated IT and ITES township and auto ancillary park within the next couple of years with an initial investment of more than Rs 100 crores, said Hindustan Motors Managing Director R Santhanam.
Speaking to newsmen here today, a day after receiving a favourable communique from the state government indicating that their application would soon be approved formally, Mr Santhanam said their proposal was also aimed at turning around the HM's automotive unit and improve its financial health under a time bound programme.
Further elaborating, he said the proposal primarily envisaged diversifying into automotive casting and forging business through effective leveraging of existing facilities and infrastructures.
Claiming that since globalisation the annual export volume of auto components from India had increased by more than 300 per cent to touch the 15 billion dollars mark, he said, "Since HM's Uttarpara complex has all the avialable facilities and growth prospect, we are confident of reaping rich benefits from the new ventures." He said following the development of the new auto component casting and forging divisions, they would start developing the remaining areas of the 314 acres of land for the new IT and ITES hub and the township. "We have also decided to appoint a separate consultant for the both the conceptualisation and implementation of the IT related programmes," he said.
Mr Santhanam, however, refused to shed any light about his plan to raise the necessary funds but indicated that since the land was being provided by HM, other costs would be met through various self financing programmes.
Incidentally, way back in 1948 HM had acquired about 700 acres of prime land in Uttarpara for setting up Eastern India's sole auto manufacturing plant, which, however, went into red since late 1990s because of various reasons, including failure of creating new market for the Ambassador car and other vehicles from the factory.
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