The CK Birla-owned Hindustan Motors has set Rs 150 crore as the minimum sale price of its Tiruvallur manufacturing plant near Chennai.
The plant, which manufactures Pajero Sport, Cedia, Outlander, Montero brands and spare parts in collaboration with Mitsubishi of Japan since late 90s, was put on block by the company last month owing to mounting losses.
The decision to hasten the sale of the plant was taken to bring in fresh funds to cut losses and improve performance of its other plants at West Bengal and Madhya Pradesh.
The proposed sale will in no way affect the other operations of the company, company sources said. Sources also said the company has been in touch with consultants/interested parties and has received enquiries for direct and complete acquisition of the plant. The company sought members' approval for the same by a special resolution by way of postal ballot.
According to sources, given the decades-old relationship with Hindustan Motors, Mitsubishi can be a potential strategic buyer.