Debt-ridden Hindustan Motors said on Monday it has handed over the possession of its Tiruvallur car plant to subsidiary Hindustan Motors Finance Corporation (HMFCL) to find a suitable buyer. The company had in December put the Tiruvallur car plant on block. The plant manufactures vehicles such as Pajero Sport, Cedia, Outlander, Montero and spare parts in technical collaboration with Mitsubishi of Japan since 90s.
In its notice on the stock exchanges on Monday, the company said according to the working arrangement agreement in early January, it has handed over the possession of the Chennai car plant in Tiruvallur district to HMFCL on March 30. The necessary approvals of the lenders and the Tamil Nadu government with respect to the transfer and other necessary approvals as may be required are under process, it added.
The CK Birla-owned Hindustan Motors had fixed a minimum sale price of the plant at R150 crore to get prospective buyers early. The Tiruvallur plant was put on block by the company owing to mounting losses as well lack of growth in sales. The Tiruvallur plant has an annual capacity of 24,000 units.