C K Birla group flagship Hindustan Motors Ltd is planning to make inroads into the growing mini truck segment in the country.
The segment is now ruled by Tata Motors through Tata 407, a household name in the light commercial segment.
Mahindra & Mahindra (M&M) and Force Motors (formerly Bajaj Tempo) were the other dominant players in the category.
Top sources in HM said that the research and development (R&D) activity was in full swing for the mini truck.
"It is likely to be a lighter version of Tata 407. It could be a two tonne truck where Tata 407 is a three tonne truck," said sources.
Sources also added that the company was planning to do the project on its own.
"This will be our product and Mitsubishi has nothing to do with this," said sources. Commenting on the mini truck project, Hindustan Motors' chairman, C K Birla said that mini truck was under active consideration of HM.
According to the chairman, HM is planning to invest Rs 30-40 crore (Rs 300-400 million) in the current financial year for upgrading Uttarpara and Chennai plants and also in new production lines.
After the 63rd annual general meeting of the company, Birla informed that a new Mitsubishi model is likely to hit the Indian road by January 2006.
"We are lining up a host of Mitsubishi models for the Indian market," he said.
Birla said the Mitsubishi Lancer Cedia and Montero models were among the Mitsubishi models that would be launched here.
He claimed that following the restructuring of the business and consequent shift of power products division and power unit to Avtec Ltd, the company had successfully reduced its debt burden to a great extent.
"Our interest burden will be only Rs 12-14 crore (Rs 120-140 million) this year," he added.
Birla said he was optimistic about the future of the Uttarpara unit. "There will be a turnaround of the unit. We are now investing in the unit for developing auto components business here," he said.
According to Birla, HM had been supplying auto components for various clients from Uttarpara unit for the last one year.
Commenting on the utilisation of excess land at Uttarpara, Birla said that the company had applied twice to the state government in September 2003 and October 2004 regarding this.
Now it was waiting for the change in law to permit the company to sell surplus land at the factory.
HM owned around 700 acres in Uttarpara.
"We are looking at various options including sale of excess land," added Birla.
