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Hindustan Motors keen to Expand & Diversify at Uttarpara Plant - August 25, 06

Hindustan Motors keen to Expand & Diversify at Uttarpara Plant - To emerge as a Vibrant Manufacturing Enterprise

To develop World Class Automotive Casting, Forging & Stamping Units at it’s Uttarpara Plant

Kolkata, Friday, August 25, 2006: HM has developed a comprehensive “Revival & Renewal Proposal” that would bring its Automotive Industrial Complex at Uttarpara back to profitability and financial health. The proposal envisages the following:
  • Diversifying & Expanding into the Auto Component Sector by developing a modern & large sized Automotive Forgings & Automotive Castings & Automotive Stampings business by cost effectively leveraging existing facilities and infrastructure.
  • Sustaining the existing vehicle business by expanding range and upgrading technology. 
  • Transformation of work practices in line with best in class in the auto industry – to achieve competitiveness in Quality Cost & Delivery. 
McKinsey & Co. and other reputed consultants have forecast auto component exports from India to grow manifold from current levels of $ 1.5 Billion; Uttarpara is well placed to ride this growth wave. The company has piloted this approach over the past few months and response from OEMs, both in India and Europe has been heartening.

HM’s Uttarpara (UTP) 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 the State of West Bengal by bringing in technology and capital, generating direct and indirect employment and contributing through direct and indirect Taxes. Post liberalization 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 backdrop, to fund the expansion and diversification program, HM had applied to the State Government, seeking permission for alternate use of 314 acres. 

It has been reported that West Bengal Govt. through a communiqué to a syndicated news agency, has indicated that the above application is being approved, under the West Bengal Industrial Renewal Scheme 2001 and as per West Bengal Land Reforms Act 1955. The company is awaiting formal communication.

The company’s application envisages development of 314 acres of land, over a 4-5 year period, into a World Class Integrated IT & ITES Township and Auto Ancillary Park. IT, ITES and Auto Ancillary are three of the fastest growing sectors and such a development will also maximize socio-economic benefits to Uttarpara and the neighbouring belts. 

For more information, please contact:
Ms. Soni Shrivastav
General Manager, Corporate Communications
GP-CK Birla Group, New Delhi
Phone: (011) 42092177, 42092100
E-mail: soni.shrivastav@india.birlasoft.com 
Mr. Risha Dhingra
Perfect Relations (Delhi)
# 9810023269

Mr. Sanjoy Datta
Perfect Relations (Kolkata)
# 9830332519

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