<http://www.dealcurry.com/20100714-Mitsubishi-Motors-To-Buy-Stake-In-Hindustan-Motors.htm>

Japan's *Mitsubishi Motors Corporation* may buy stake in Hindustan Motors.

Hindustan Motors' Thiruvallur plant is the likely asset buy option. The
plant has a manufacturing capacity of 12,000 vehicles per annum.

Hindustan motors, maker of the Ambassador car, also nmanufactures and sells
passenger vehicles, including premium sedan Lancer-Cedia, Outlander, Pajero
and Montero, in India in technical collaboration through Chennai car plant
with Japanese automaker Mitsubishi.


Transaction Note

HML currently has two manufacturing facilities in India, one at Thiruvallur
and the other at Uttarpara in West Bengal.

It reported a net loss of Rs 42.86 Cr for year ended March 31, 2010. It has
made an operating loss of Rs 95 and 90 Cr in the past two years on sales of
Rs 602 and 576 Cr respectively.

Hindustan Motors is in the process of approaching *Board for Industrial and
Financial Reconstruction (BIFR) *as its net worth eroded by more than half
from the peak in the preceding four years. Its current networth stands at Rs
164 Cr and its accumulated loss stands at Rs 132 Cr.

Previously, Hindustan Motors Limited (HML) had collaborations with *Isuzu
Motors Ltd. *Japan from 1983 -1993, *Vauxhall Motors U.K. *from 1980 - 1990
and *Ricardo Consulting Engineers Ltd* U.K. from 1989-1993. HML also owned
an Earth Moving Equipment Division (EED) in collaboration with *Caterpillar
*(U.S.A.) for the manufacture of dumpers and excavators, with *Terex *for
the manufacture of dumpers, loaders & dozers and with *Fermac *(U.K.) for
the manufacture of backhoe loaders.

-- 
Regards

Hardik Shah

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