Hindustan Motors (HM) has declared suspension of work at its Uttarpara plant in West Bengal.
The notice sent across to the stock exchanges states: "the company has been transparent in sharing updates about the worsening conditions of the Uttarpara unit which includes very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product - Ambassador cars and large accumulation of liabilities."
It further adds, "in the given the circumstances, the company has no alternative but to suspend operation of its Uttarpara plant till further notice. The suspension of work will help the company in minimizing losses. According to sources, it suffered a loss of Rs 80 crore in 2012-13 financial year and Rs 40 crore till December 2013.Things are expected to improve once a strategic investor comes in.
Earlier HM’s chairman Mr CK Birla has decided to relinquish his directorship and also step down as the Chairman of the company. This decision was taken to pave the way for the financial investors for Uttarpara and Chennai units of the company.
The notice sent across to the stock exchanges states: "the company has been transparent in sharing updates about the worsening conditions of the Uttarpara unit which includes very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product - Ambassador cars and large accumulation of liabilities."
Ministry of Labour is looking into the matter, it will be solved: Firhad Hakim (TMC) on Hindustan Motors shutting down Uttarapara plant
— ANI (@ANI_news) May 25, 2014
It further adds, "in the given the circumstances, the company has no alternative but to suspend operation of its Uttarpara plant till further notice. The suspension of work will help the company in minimizing losses. According to sources, it suffered a loss of Rs 80 crore in 2012-13 financial year and Rs 40 crore till December 2013.Things are expected to improve once a strategic investor comes in.
Earlier HM’s chairman Mr CK Birla has decided to relinquish his directorship and also step down as the Chairman of the company. This decision was taken to pave the way for the financial investors for Uttarpara and Chennai units of the company.
