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HM speeds up on talk of Mitsubishi interest

The Economic Times | Kolkata | December 05, 2007

The Stock of CK Birla - promoted Hindustan Motors (HM) rose 4% to close at Rs 43 on talk that Mitsubishi Motors is eyeing the company's casting and forging unit at Uttarpara near Kolkata. This unit is part of the plant, which manufacturers the Ambassador and other Mitsubishi branded Pajero utility vehicles, and Cedia mid-size cars. Analysts say that HM is likely to part with this facility and point out the company has already developed a major part of the 743-acre Uttarpara township into IT parks and other commercial projects. When contacted Managing Director R. Santhanam denied such a move, saying that it is more a "figment of somebody's imagination". He said that his company in fact has been investing heavily in the component plant and that the plant has not yet been integrated with AVTEC, its arm engaged in manufacturing of engine.

Contributed by Santosh Nair & Gaurav Pai

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