Hindustan Motors (HM) projects revenue of INR3 billion (€56.6million) in three years from its Uttarpara plant in West Bengal which, in fiscal year 2005, Uttarpara plant generated INR250 million in external component sales while revenue from internal consumption was INR1.5 billion.

Now HM has announced that it is in discussions with Volkswagen and Peugeot to supply automotive parts from the plant. Ashwani Dubey, executive vice-president, said: "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."

HM has set higher sales targets for its ancient Morris Oxford-based Ambassador model whose sales have a knock-on effect in stimulating sales of Uttarpara plant via internal consumption.

Its modern engine and transmission plant in Pithampur has successfully performed powerplant assembly work for third partie. It currently supplies engines for the Mahindra Scorpio, Chevrolet Tavera and Ford Ikon and Fusion.

Further, HM has mulled spinning off its profitable supplier business into a newly formed company. It is in talks with private equity firm Actis for participation.

Deepesh Rathore / Tilak Swarup

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