C K Birla-controlled Hindustan Motors Ltd. is planning to sell, either wholly or partly, two of its loss-making units in Uttarpara in West Bengal’s Hooghly district. The two units employ 400 people together.
The company board, on Wednesday, decided that, subject to necessary approvals, it will divest either whole or part of the business of its forge shop and foundry shop in Uttarpara.
Enquiries revealed that the 60-year-old units were set up as part of the integrated production facility at Asia’s oldest car-manufacturing facility. They now face technological obsolescence. “ HM finds it cheaper to outsource its parts rather than source them from these two shops,” a source said, adding that the wage bill of these two units were higher than their revenue earnings. The board also decided to have a six-month year ending for 2013-14 from October 1, 2013 to March 31, 2014. Earlier it had twice extended the closing of 2012-13 to make it an 18 month period ending September 30, 2013.