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Hindustan Motors seeks shareholders’ nod to sell plots of MP, Bengal plants

According to a stock exchange filing on Wednesday, Hindustan Motors has sought shareholders’ approval, through postal ballot, to sell, lease or otherwise dispose of both Uttarpara and Pithampur plant plots in any manner as its board may deem fit for the “best interest of the company.

Hindustan Motors seeks shareholders’ nod to sell plots of MP, Bengal plants

Hindustan Motors, erstwhile makers of iconic Ambassador car, is planning to sell the land of its Pithampur plant in Madhya Pradesh.

Last month, the company, a part of CK Birla Group, had signed a memorandum of understanding (MoU) with real estate developer Hiranandani Group to sell 100-acre land in West Bengal’s Uttarpara, the closed factory site of the company.

Hindustan Motors has sought shareholders’ approval, through postal ballot, to sell, lease or otherwise dispose of both Uttarpara and Pithampur plant plots in any manner as its board may deem fit for the “best interest of the company”, it said in a stock exchange filing on Wednesday.

Notably, the company, India’s oldest car maker, stopped production of the Ambassador in 2014, citing debt and lack of demand for the vehicle. It declared “suspension of work” at Uttarpara plant with effect from May 24, 2014, and also declared “layoff” at Pithampur plant with effect from December 4, 2014. The CK Birla group sold the Ambassador car brand for `80 crore to French automaker Peugeot in 2017.

Notably, Mumbai-based Hiranandani Group is planning to set up an integrated logistics park and a hyper-scale data-centre park on the Uttarpara plot, investing around

`8,500 crore. The group, in a release last month, said its group companies GreenBase and Yotta will set up the integrated logistics park and hyper-scale data-centre park, respectively.

Chennai-based Shriram Group in 2008-09 bought more than 300 acres at the Uttarpara factory for real estate and IT park.

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First published on: 04-03-2021 at 07:50 IST