C.K. Birla has stepped down as Chairman of Hindustan Motors Ltd to pave the way for a new investor in the sick automobile company.
In a communication issued on Saturday, the company said that Birla has decided to relinquish his directorship and also step down as the Chairman of the company. “This decision has been communicated to the members of the board of directors,” the company said.
HM has been in discussions with strategic/financial investors for its Uttarpara and Chennai units. Some global players have shown interest in buying the plant. In June, HM signed an agreement with Isuzu to contract manufacture SUVs and pick-up trucks for Isuzu at the Chennai plant, where it now also assembles Mitsubishi vehicles, including the Cedia sedan and the Pajero SUV.
The Uttarpara plant, which started operations in 1948, makes the Ambassador car and HM-Shifeng Winner mini-truck. Birla’s decision to step down would pave the way for the entry of strategic investors.