Hindustan Motors has been trying to revive its legacy as a automaker, and is now looking at entering the lucrative electric vehicle segment.
In fact, since it suspended work at its Uttarpara plant on May 24, 2014, the management has been continuously scouting for tie-ups, potential investment / strategic partners who can introduce new products and infuse capitals in the company.
Hindustan Motors was also considering various measures including alternative use of fixed assets to generate revenue. Recently, this has been affected adversely due to the Covid-19 pandemic situation in the past. In 2021, the management sought shareholders’ nod to sell part of land at its manufacturing plant in West Bengal and Madhya Pradesh.
However, two key developments took place last year. Firstly the company sold the iconic ‘Contessa’ brand to SG Corporate Mobility for Rs 10 crore and the second was joining hands with Europe’s Peugeot to enter the electric two-wheeler space and potentially four-wheelers in the future.
It seems is going to take much longer than the company has anticipated. In a regulatory filing, Hindustan Motors has informed that the project is stalled at the movement due to a notice from the West Bengal government on resumption of its Uttarpara land. It has devised ‘alternate plans to facilitate and generate additional revenue and realise adequate fund required’ after the resumption issue is resolved.
For FY2023, the company has brought down its accumulated loss to Rs 148.46 crore versus Rs 148.55 crore a year ago. In FY2017, the losses had reached Rs 252 crore. Hindustan Motors remains optimistic about the future as it continues to “prepare accounts on a going concern basis.”
