The Hindu : Business : Hind Motors to turn three divisions into profit centres

Online edition of India's National Newspaper
Friday, Jan 27, 2006

Business

Business

Hind Motors to turn three divisions into profit centres

Special Correspondent

Sees business opportunities in Europe for forgings

CHENNAI: Hindustan Motors, makers of Ambassador cars, is well on course to making its stamping, forging and foundry units at Uttarpara in West Bengal independent profit centres pursuing more business opportunities outside.

Stating this during an interaction with The Hindu, R. Santhanam, Managing Director, said these divisions had been serving the in-house requirements of the company. "Other than paint and tyre, we are making every other auto component," he said. Hindustan Motors, he said, took a decision to look outside to cash in on its prowess in component manufacture. The forging division had landed three or four external clients. "We are seeing business opportunities in Europe," he said.

Mr. Santhanam said about 60 per cent of production from the forging division went to external clients. This would go up to 80 per cent by next year. The stamping division had started servicing external clients.

According to Mr. Santhanam, about 40 per cent of production from the foundry division went to outside clients.

"We want to build each one of these into a strong business unit," he added.

Answering questions on Ambassador, he said the company was selling 1,100 units of this car every month. He claimed that the Ambassador volume was holding up in certain markets even while moving slowly in certain others.

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