Financial Daily from THE HINDU group of publications
Thursday, Jun 16, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Corporate - Announcements


HM in talks with Volkswagen, Peugeot for component supplies

Our Bureau

New Delhi , June 15

HINDUSTAN Motors said on Wednesday it was in talks with players such as Volkswagen and Peugeot to supply components from its Uttarpara plant.

"We are in initial talks to supply (body) panels to Volkswagen and forgings/casting components to Peugeot. We are also talking to Mitsubishi for supply of components," Mr Ashwani Dubey, Executive Vice-President, Hindustan Motors, said at a press conference to announce the launch of the CNG BS III Ambassador Grand (costing Rs 4 lakh).

The company is targeting to increase the outsourcing of its components business from the Uttarpara unit in West Bengal to over Rs 300 crore in three years.

"Components outsourcing from Uttarpara should generate revenues of about Rs 5 crore per month. Outsourcing from the unit generated revenues of about Rs 25 crore in the last fiscal. The total figure would be much larger as components worth around Rs 150 crore were supplied for internal consumption last year," Mr Dubey said.

Currently, the Uttarpara unit accounts for 40 per cent of the company's sales. Meanwhile, despite stiff competition in the market, the company has set growth targets for its old warhorse Ambassador and expects sales to increase by about 50 per cent over the next three years to 18,000 units a year.Sales of the Ambassador grew four per cent last fiscal to about 12,600 units, with nearly 1,000 units coming from personal use segment, Mr Dubey said.

In the days ahead, Hindustan Motors expects to sell about 150 units per month on the personal use segment, even as the bulk of sales would continue to come from the institutional segment.

"We have got orders for 200 cars from the Government and the Army has ordered 400 units," Mr Dubey said, adding the company expected to sell 1,400 units this month.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
HM in talks with Volkswagen, Peugeot for component supplies


Skoda to roll out 4 new models; plans exports
No plans to sell stake, says Gillette India promoter
IOC to introduce branded diesel for fishing sector
Callidai Motor launches 4 new products
RPG Life Sciences closes Pune unit
HML board clears Erumely rubber estate sale
Adani bags contract to build silos for FCI
Orchid Chemicals plans $100 m GDR issue
India Inc wants Clause 49 deadline extended
Emerson stepping up recruitment in Pune
J.J. Exporters to merge 2 subsidiaries with it
Philips India set to complete merger by July-end — New company to be named Philips Electronics India
Posco may ink Orissa deal on June 22
DCM Shriram to expand sugar, chlor alkali capacities
MSP Steel plans to raise Rs 16 cr thru public issue
Time frame set for grant of disclosure approvals
Tata Investment bonus issue
Bosch may bring CRDi systems to India — Sees big demand from car segment


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line