HM managing director Ravi Santhanam in New Delhi on Thursday. Picture by Ramakant Kushwaha

New Delhi, Aug. 17: Hindustan Motors, the CK Birla group flagship and maker of the Ambassador, is in a makeover mode.

The company is consolidating its auto component business, focusing on parts and engine manufacturing. HM is making the Ford engines at its Uttarpara plant in Bengal and has consolidated the division into a separate company for component business — Avtec. The company is now diversifying into castings, forgings and stampings.

“We are into auto forgings, castings and stampings. We expect the business to see considerable growth in coming years,” said Ravi Santhanam, managing director of HM.

“We are now selling our products to original equipment manufacturers at home and abroad. However, we will only be able to sell independently after we develop these facilities completely. We are looking for a tie-up with a financial institution for this project. In the next three years, we will invest heavily in this field,” Santhanam added.

HM will introduce two SUVs this fiscal under the Mitsubishi brand.

The Mitsubishi Montero, with a 3.2-litre diesel engine and priced at Rs 29.7 lakh (ex-showroom Delhi), was launched today. Sources say the next in line to hit the Indian roads is the Outlander.

The Montero will be brought in as a completely built unit (CBU). A company official said, “We have already sold 54 Monteros even before the official launch. We expect to sell anywhere between 25 and 30 vehicles per month.”

Land sale

HM has appointed HDFC as a consultant to sell part of its land at Uttarpara. The company, which plans to sell 300 acres of its 740 acres, has sought an approval from the state government.

“HDFC will manage the process for us. We will sell around 300 acres of the 740 acres that we have. The objective, however, is to promote Uttarpara as a vibrant manufacturing base,” said Santhanam.

The company is awaiting the state government’s nod before going ahead with the sale.