Calcutta, May 9: Hindustan Motors, the makers of the Ambassador, today announced the resignation of key board members as part of a restructuring exercise.
The company has informed the Bombay Stock Exchange that its board has accepted the resignation of managing director Uttam Bose and chief financial officer Yogesh Goenka effective from today. The resignation of director Kranti Sinha has also been accepted. Another director, Naresh Chandra, had put in his papers in February.
Hindustan Motors is undergoing a restructuring, which involves the demerger of the car plant at Tiruvallur in Chennai and its transfer to subsidiary Hindustan Motor Finance Corporation Limited. The move is crucial for the revival of the financial health of the loss-making car maker. It will help the company to attract potential investors or strategic partners for its facilities in Chennai and Uttarpara in Bengal.
In December last year, Hindustan Motor chairman Chandra Kant Birla had announced his resignation.
According to the company, his exit will pave the way for the entry of a strategic investor, allowing more flexibility during discussions.
Industry observers, however, suggest that a strategic investor will be more interested in the lucrative Chennai plant as the future of the Uttarpara unit remains hazy owing to a dispute with the Bengal government over a land sale.
Ambassador sales fell to 113 units in April against 407 in the same month a year ago.
At present, Hindustan Motors manufactures the Ambassador and the Winner at its Uttarpara plant, while the Chennai facility produces cars for Mitsubishi and Isuzu, with whom the company has entered into an agreement for contract manufacturing.