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July 18, 2001
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Money > Business Headlines > Report July 18, 2001 |
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HM enters medical transcription to beat the bluesV Phani Kumar & Freny Patel Hindustan Motors Ltd, the C K Birla flagship, which produces the ponderous Ambassador car, is diversifying into medical transcription business in an attempt to profitably utilise its excess manpower. HML is likely to transfer several employees to this business at a time when its main automotive business is careening due to recession. K Chandran, general manager (corporate planning) of Hindustan Motors, said, "Except for one or two top-level positions, the rest of the employees will be recruited internally. Since we already have a lot of contacts in the US, we do not see any problem in getting good business." HM, however, is open to the idea of hiving off the business into a separate division, Chandran said, but only at a later stage. The company has already chosen its first batch of 25 employees and is training them at its Uttarpara plant, in the suburbs of Calcutta. The company's new initiative is in sharp contrast with other auto companies -- Tata Engineering, Mahindra & Mahindra, Bajaj Auto and Ashok Leyland -- which already have or are planning to introduce various VRS schemes to reduce flab. HM, which envisages a modest investment of Rs 50 million into the business is expecting operations to begin from November after the current batch completes its training. The company is also hopeful of scaling up the operations to about 300-500 employees, depending upon the market response. "Even if we succeed in getting business worth Rs 150 million, we should generate profits of about Rs 4-5 million through the business," Chandran added. "It saves the company the expenses incurred on a VRS scheme, and will also rake in some revenue. However, in the long run the company may have to look at other ways of reducing its work force, including VRS," Chandran said. Analysts said the company's effort is aimed at better utilisation of its human resources in addition to generating income from other sources in the face of difficult circumstances in the domestic auto industry. Powered by YOU MAY ALSO WANT TO READ:
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