HM Again in News

Hindustan Motors, Uttarpara Plant at Hind Motor

News related to HM in media gives a nostalgic feeling, but keeps skeptic about it being genuine. As reported, around 90% of the net worth of Hindustan Motors has been eroded. How sad it is that HM, the giant manufacturing company, with all potentials has a credential now to be with BIFR? Even its plants at Hosur and Pithampur are with Avtec Ltd, a JV with PE firm Actis. Both these plants were the best ones in the country till late 90s and could have become the biggest auto component manufacturing plants. I feel bad as I was very closely attached with Pithampur plant and its manufacturing process with machinery and equipment selection.

Recently I came across many headlines: HM plans to sell Chennai asset. HM losses continue, Amby-planning-2011-comeback-with-retro-look, Ambassador coming with a complete make over,

It was interesting to read that a new MD, Manoj Jha, has taken over HM. I don’t know him. But Jha like the previous ones wishes to make Uttarpara facility of the company in West Bengal a major auto component facility. I can only wish him luck.

Hindustan Motors also tried the makeover of the great Ambassador many times, but only halfheartedly in the past. And today it has neither the managerial talent nor the skill and more importantly will and resources requiredfor makeover that really clicks in the market.

Are not these news reports the usual ones appearing after the annual general meeting every year? For one who knows HM it’s clearly commercial gimmick.

I don’t know if the news of Mitsubishi buying HM facilities of Chennai to make its presence in India is any serious one. Perhaps that can only be a feasible proposition, if Mitsubishi itself is in financially good shape now.

Naturally, for a person like me who could never understand these aspects of business, the news make me wonder how a potentially big company dies. And it hardly hurts the people who are responsible for it. Promoters would have already milked more than what they invested.

Perhaps the promoters of HM would have liked to exit from its Uttarpara facility. But in India the exit from any business is also very time taking and arduous.

It is better to forget HM altogether, but it is difficult to wipe out the memory card provided by the Almighty.

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