Business Daily from THE HINDU group of publications
Sunday, Aug 27, 2006
Business Daily from THE HINDU group of publications Sunday, Aug 27, 2006 |
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Corporate
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Sick Units States - West Bengal Hindustan Motors Uttarpara complex to be revived Our Bureau
Uttarpara facility The Uttarpara facility was developed as a fully integrated automotive industrial complex and township For many decades, the plant has been a significant contributor to West Bengal by bringing in technology & capital, generating direct & indirect employment and contributing through direct & indirect taxes
Kolkata , Aug. 26 Hindustan Motors Ltd has prepared a comprehensive `Revival & renewal proposal' in order to bring its automotive industrial complex at Uttarpara in West Bengal back to profitability & financial health. This was announced by the company's Managing Director, Mr R. Santhanam. The proposal envisages diversification and expansion into the auto component sector by developing a modern and large sized automotive forgings, automotive castings and automotive stampings business by cost effectively leveraging existing facilities and infrastructure.
Expansion plan
The proposal also envisages ways for sustaining the existing vehicle business by expanding range and upgrading technology. To achieve the competitiveness in quality, cost and delivery, the company has drafted a strategy to transform the work practices in line with best in the auto industry. Mr Santhanam told newspersons here on Friday that McKinsey and Co and other reputed consultants had forecast auto component exports from India to grow manifold from current levels of $1.5 billion. He felt that Uttarpara was well placed to ride this growth wave. The company, he said, had piloted this approach over the past few months and response from OEMs, both in India and Europe, had been heartening.
Plant history
He said that the company's Uttarpara facility was established in 1948 and developed as a fully integrated automotive industrial complex and township. For many decades this plant has been a significant contributor to West Bengal by bringing in technology and capital, generating direct and indirect employment and contributing through direct & indirect taxes. Post liberalisation and opening up of the economy, this unit handicapped by legacy costs and systems, experienced a whole new set of challenges and sustained financial stress. Given this back drop, to fund the expansion and diversification program, HM had applied to the State Government seeking permission for alternative use of the company's 314 acres of used land.
Development plans
However, the company's application has envisaged development of 314 acres of land, over a 4-5 year period, into a World Class Integrated IT and ITES Township and auto ancillary park because IT, ITES and auto ancillary happened to be the fastest growing sector and such a development would also maximise socio-economic benefits to Uttarpara and the neighbouring belts.
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