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| Santhanam: Upbeat |
Calcutta, Aug. 25: Hindustan Motors (HM) plans to invest close to Rs 100 crore to develop its auto ancillary and component business at Uttarpara — a move that is likely to revive the loss-making CK Birla group flagship.
The company plans to generate the funds from its 314-acre plot in Uttarpara, which the Bengal government allowed for ‘alternate use’ yesterday.
HM plans to set up an infotech and ITeS park, an auto ancillary park and a residential project. It has mandated HDFC to work out the details and scout for a joint venture partner.
The company is also exploring the possibility of setting up a new assembly line. Sources said the company might foray into mini trucks.
HM managing director Ravi Santhanam, who came down to Calcutta today to meet state government officials, said the auto component business would be the main driver for HM at Uttarpara in days to come.
“We can easily increase our existing business — forging, casting and stamping — four to five times by expanding them,” Santhanam said, terming the government nod as the principal force for HM’s turnaround.
At present, the company supplies to OEMs like Tata Motors and Tier I vendors — companies that supply to OEMs — like Avtec.
The Uttarpara plant was set up in 1948 on an over 700-acre plot, the only automobile unit of the state before Russian truckmaker Ural came up earlier this year.
The unit that churns out 1,200 Ambassadors a month employs 5,500 people. Its own auto component business is worth Rs 50-60 crore a year now.
Santhanam said proximity to the port would be a key factor as the company plans to tap the export market in a big way.
The auto ancillary park will provide a synergy to its own business as well.
The proposed Rs 1-lakh-car plant of Tata Motors at Singur will also be only 25 km from Uttarpara.
There too, an auto component hub will be set up.
With two passenger car and two-wheeler units each and a truck unit, the state government is keen to develop the auto industry in Bengal.
A high level delegation led by state industry minister Nirupam Sen went to Germany sometime back to showcase Bengal’s possibility in the auto and auto component sector.