Hindustan Motors Ltd

Hindustan Motors Ltd is one of the premier automobile manufacturing companies in India. The Company is primarily engaged in manufacture and sale of Vehicles, Spare Parts of Vehicles, Steel Products and Components. It is also engaged in Trading of Spare Parts of Vehicles. The Company is the leader in the Indian Automobile Industry, creating customer delight and satisfaction through their products. They produce a range of vehicles which includes Passenger cars, RTV, Multi Utility Vehicles, the versatile Bedford trucks. They also manufacture passenger cars in the mid size premium segment which includes Mitsubishi Lancer, Lancer Select, and Lancer Cedia. They brought Sports Utility Vehicle (Mitsubishi Pajero) into the Indian market in collaboration with Mitsubishi Motors, Japan. The Company was incorporated in year 1942 at Port Okha in Gujarat as a small assembly plant for passenger car. In the year 1948, they shifted their activities to Uttarpara in West Bengal and set up facilities for the manufacture of cars and trucks and in the year 1971, the company diversified their activities by setting up an Earthmoving Equipment Division at Tiruvallur in Tamil Nadu for the manufacture of Earthmoving equipments such as dumpers, front-end loaders and crawler tractors. In the year 1985, the company commenced a Power Products Division at Hosur for manufacture of heavy duty transmission required for Earth moving Equipments and in the year 1986, they commenced the commercial vehicle division for the manufacture of Heavy Commercial Vehicles at Vadodara in Gujarat. In the year 1987, the company in collaboration with Isuzu Motor Company of Japan commenced their production of petrol engines and transmissions at Pithampur in Madhya Pradesh. In the year 1996, the company modernized, upgraded and expanded their three existing divisions namely Earthmoving Equipment Division, Power Plant Division and the Uttarpara Plant. In the year 1997, they began the production of Road Trusted Vehicle and in the year 1998, they commenced Mitsubishi Lancer Car project. During the year 1999-2000, the company entered into an agreement with Allison Transmission Division of General Motors of USA for marketing on-highway transmission. The Earthmoving Equipment Division of the company was sold to Caterpillar India Pvt Ltd, a wholly owned subsidiary of Caterpillar Inc, USA with effect form February 9, 2001. During the year 2001-02, the company in collaboration with Mitsubishi Motors of Japan launched Mitsubishi Pajero in India. Also, they entered into an arrangement with Ford India Ltd for the supply of engines and transmission to Ford India from their Pithampur factory. The company set up Remote Services Division at Chennai as a Software Technology Park towards the end of the financial year 2002-03. They also set up subsidiary in USA during the year 2003-04, for promoting the business and for rendering certain services in connection with the business of Remote Services Division of the company. During the year 2003-04, the company introduced two new variants of Ambassador namely Grand and Avigo. Also they launched new version of Lancer with 1.8 Litre petrol engine as well as automatic transmission with the brand name, Lancer Invex. Power Products Division in Hosur exported transmission components Rs 4 crore to Allison Transmission Division of General Motors USA during the year. During the year 2004-05, Power Unit Plant at Pithampur and Power Products Division at Hosur were transferred to AVTEC, a company jointly held by HM, Actis and C K Birla Group. In January 2006, they introduced a new model of premium car, manufactured under license from Mitsubishi Motors, Japan and branded as Lancer Cedia. In A new model of 'Montero' was launched in June 2007 and an upgraded model with automatic transmission was launched in January 2008. In February 2008, upgraded Pajero was launched in the market. The Chennai Plant introduced two models of Premium Sport Utility Vehicles from Mitsubishi Motors, Japan during the year 2007-08. In December 2008, the company in collaboration with Shandong Shifeng, a China based automotive and agri-equipment company launched their mini commercial vehicle namely HM-Shifeng Winner. Also, they are in the process of launching two more variants of the mini-truck with Chinese collaboration. The Company's unit at Uttarpara, in addition to the car business, embarked on developing a set of auto component business namely supplying of castings, forgings and stampings to other manufacturers in the automobile and component industries during 2009. It introduced a number of new models - Outlander and new Montero from its Chennai Car Plant and a new goods carrying vehicle, Winner' from the Uttarpara Plant in 2009. During year 2010-11, the Company sold 62,18,000 Equity Shares of Rs 10/- each of AVTEC Limited and its immovable properties at Chennai and Halol, Gujarat, aggregating a profit of Rs 96.80 crores. Consequent to sale of shares held by Company in AVTEC Limited, holding in AVTEC Limited was reduced from 49% to 24.13%. The Company launched 'Lancer EVO X', a new model in 2011. During year 2011-12, the Company sold 30,67,000 Equity Shares of Rs 10/- each of AVTEC Limited and its immovable properties at Kolkata and Halol, Gujarat, aggregating a profit of Rs 100.56 crores. Consequent to sale of shares held by Company in AVTEC Limited, holding in AVTEC Limited was reduced from 43.33% to 31.06%. The Company launched Sports Utility Vehicle (SPV) 'Pajero Sports and a seven-seater upgraded version of Mitsubishi Outlander both from its Chennai Car Plant under license from Mitsubishi Motors Corporation, Japan in March, 2012. The Company started production of CNG driven Winner from its Pithampur Plant and a passenger carrier version was being developed. During period 2012-13, the Company sold 29,55,000 Equity Shares of Rs 10/- each of AVTEC Limited and 33,82,857 Equity Shares of Rs 10/- each of HM Export Limited, aggregating a profit of Rs 80.01 crores. Consequent to sale of shares held by Company in AVTEC Limited, holding in AVTEC Limited was reduced from 11.82% to 0.04% and in HM Export Limited from 99.99% to 26.46%. Resultant, AVTEC Limited ceased to be an Associate of the Company with effect from March 28, 2013. HM Export Limited ceased to be a Subsidiary of the Company with effect from September 26, 2013. During period 2013-14, Company divested the Chennai Car Plant as well as sold its entire holdings of 5,00,000 Equity Shares of Rs 5/- each in Hindustan Motors Finance Corporation Limited (HMFCL) and balance 12,17,000 Equity Shares in HM Export Limited, and consequently HMFCL ceased to be a Subsidiary of the Company with effect from December 12, 2013. When it issued further shares and became an Associate of the Company with effect from the aforementioned date. Consequent to sale of shares in HMFCL by Company, its holding in HMFCL was nil and ceased to be an Associate of Company effective from March 24, 2013. HM Export Limited ceased to be an Associate of Company with effect from December 12, 2013. . , Read More