Hindustan Motors (HM), the oldest carmaker in India, is set to get a new ‘strategic investor’ soon.
18 Feb 2014 | 4781 Views | By Sumantra B Barooah
Hindustan Motors (HM), the oldest carmaker in India, is set to get a new ‘strategic investor’ soon. “We are at a very advanced stage (of talks),” says Uttam Bose, MD, Hindustan Motors. Bose declined to comment further on the talks, stating that a confidentiality agreement has been signed with the ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Hindustan Motors (HM), the oldest carmaker in India, is set to get a new ‘strategic investor’ soon. “We are at a very advanced stage (of talks),” says Uttam Bose, MD, Hindustan Motors. Bose declined to comment further on the talks, stating that a confidentiality agreement has been signed with the potential investor. However, he confirmed that the new investor is a foreign entity. The announcement of the investment is expected to be made during the April-June 2014 quarter.
The investment by the new partner will set off the turnaround plan of the beleaguered carmaker. HM has been looking for a strategic investor for the past few years but has failed to find any who would invest in the entire company. That is why the company decided to demerge and transfer its Chennai Car Plant (CCP) as a going concern to its fully owned subsidiary – Hindustan Motor Finance Corporation Ltd (HMFCL) in January 2013.
The new investment could offer a new lease of life to HM, which saw its accumulated losses exceed its net worth at the completion of the financial year ended September 30, 2013.