A POM Asg 1 Devendra

8/3/2019 A POM Asg 1 Devendra

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ASSIGNMENT 1

Project Report on Hindustan Motors

Submitted to: Dr. Jagadeesh

Submitted by: Devendra Bhansali(11015)

Section A


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CONTENTS

Introduction 3

Milestones 10

Financial analysis 14

Forecasting 15

References 16


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INTRODCUTION

Hindustan Motors Limited - Flagship company of CK Birla Group

Hindustan Motors Limited, the flagship venture of the multi-billion-dollar C. K. Birla Group,

was established during the pre-Independence era at Port Okha in Gujarat. Operations were

moved in 1948 to Uttarpara in district Hooghly, West Bengal, where the company began the

production of the iconic Ambassador. Equipped with integrated facilities such as press shop,

forge shop, foundry, machine shop, aggregate assembly units for engines, axles etc and a strong

R&D wing, the company currently manufactures the Ambassador (1500 and 2000 cc diesel,

1800 cc petrol, CNG and LPG variants) in the passenger car segment and light commercial

vehicle 1-tonne payload mini-truck HM-Shifeng Winner (1500 cc diesel) at its Uttarpara plant.

The first and only integrated automobile plant in India, the Uttarpara factory, popularly known as

Hind Motor, also manufactures automotive and forged components.

DETAILS:

Automotive components division

Hindustan Motors components division comprises Accu Cast (casting unit) and Accu Forge

(forging unit) which provide engines and transmission and axle components for HM vehicle

business and also cater to established OEMs.


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Accu Cast

Accu Cast was established primarily for HMs internal consumption. Later on, it started catering

to other well established OEMs. The manufacturing facility includes 2-tonne dual track induction

furnace which can melt up to 1500 tonnes of metal per month. Moulding facilities include three

pairs of ARPA 900 machines and three pairs of ARPA 450 machines which have capacity to

mould 1200 tonnes of castings per month. Further, the unit possesses automated sand plant and

facilities for fettling and machining. It also has a well-equipped laboratory with spectrometer

apart from full-fledged testing facilities. The unit also possesses well established facility for

machining.

The unit currently manufactures all types of grey iron, SG iron, steel and aluminium pressure die

castings for passenger cars, LCVs, HCV and tractor segments. Accu Cast specializes in

manufacturing of intricate castings like 3-cylinder and 4-cylinder blocks, heads, gear box

housings, manifolds, SG iron casings, cover, wheel hubs, aluminium gear box extension, steering

arms etc. The unit can produce grey iron/ SG iron/ steel castings ranging from 5 kg to 500 kg

unit weight and gravity die castings ranging from 1 kg to 25 kg unit weight.

Accu Forge

Accu Forge too was established primarily for the companys own use. It has now started catering

to well established OEM customers. The manufacturing facility includes 6000 T, 2500 T, 1300 T

presses with induction furnace and 5 upsetter, and can, altogether, forge 1300 tonnes/month.

The unit has in house facility for heat treatment, lab with spectrometer and all other necessary

facilities. The unit has excellent facility for design, simulation and model development. The unit

has a well established die shop with VMCs and all dies are being developed in-house.


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The unit, currently, manufactures all types of profile forgings catering to passenger car, LCV,

HCV and tractor segments and specializes in manufacturing intricate forgings like 2- cylinder, 3-

cylinder, 4-cylinder crankshafts, camshafts, stub axles, spindles, draw hooks, all types of gears

and shafts for reputed customers. The unit has the capacity to produce forgings ranging from 1

kg to 75 kg unit weight.

D i v i s i o n


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The armouring division under Hindustan Motors Finance Corporation Ltd., a fully owned

subsidiary of HM, is also based out of the Uttarpara plant. It is one of the leading bullet-proof

fabricators for Ambassador cars and Mitsubishi Pajeros.

DETAILS:


subsidiary of HM, is based out of the Uttarpara plant. It is one of the leading bullet-proof

fabricators for Ambassador cars and Mitsubishi Pajeros. The leading customers for this service

include Union and state governments, police, defence services and para-military forces. The

bullet-proofing and the engineering ballistic material used has been evaluated and tested against

the threat perception for 9 mm SMC, 7.62 mm SLR and AK-47 ammunition by Thermal Ballistic

Research Laboratory under the ministry of defence.

Key features

Enhanced chassis and suspension: Due to the enhanced weight of vehicles up to 800 kg

approximately, the chassis requires further strengthening. Modification of suspension system is a

unique technique of HMFCL.

Run-flat system for tyres: The run-flat system enables the vehicle to move out of the danger area

in spite of flat tyres.

Explo safety fuel tank: Explo safety material in the fuel tank effectively suppresses the

explosion/detonation of inflammable liquids or gases.


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Contact:

Hindustan Motors Finance Corporation Ltd.

Birla Building,

9/1 R. N. Mukherjee Road,

Kolkata - 700001

West Bengal

Tel : 91-33-30533700 / 30410900

Fax : 91-33-22480055

Email : [email protected]

The company also has operations in Pithampur near Indore in Madhya Pradesh where it produces

1800 cc CNG variant of Winner.

Hindustan Motors has technical collaboration with Mitsubishi Motors Corporation of Japan and,

under this license, produces premium passenger cars viz. Lancer, Pajero, Cedia, Montero,

Outlander and Lancer Evolution X (Evo X) at its third plant situated at Tiruvallur near Chennai

in Tamil Nadu.

Hindustan Motors is committed to core values of quality, safety, environmental care and holistic

customer orientation.


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The plants

Uttarpara (West Bengal)

The automobile division at Uttarpara is engaged in the manufacture of the iconic Ambassador

and light commercial vehicle Winner.

Tiruvallur (Tamil Nadu)

Exclusive state-of-the-art plant dedicated to the manufacture of cars in technical collaboration

with Mitsubishi Motors, Japan. View details

Pithampur (Madhya Pradesh)

The company produces 1800 cc CNG variant of Winner here.

Our offices:

Group headquarters:

Birla Tower, 8th Floor, 25 Barakhamba Road, New Delhi 110001, India.

Tel: 91-11-42092100 / Fax: 91-11-42092198

Contact person:

Mr. Rajiv Saxena, General Manager, Corporate Communications

Registered office:

Hindustan Motors Limited,

Birla Building,


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9/1, R. N. Mukherjee Road,

Kolkata - 700001

West Bengal

Tel : 91-33-30533700 / 30410900

Fax : 91-33-22480055 Corporate office:

Hindustan Motors Limited,

1st Floor, RR Towers IV,

A 16/17- TVK Industrial Estate,

Guindy, Chennai - 600032

Tamil Nadu

Tel : 91-044-45606600

COLLABORATION

Hindustan Motors Limited's (HML) collaboration with overseas automobile

manufacturers has brought models in keeping with the present trend in the automobile arena.

Besides vehicles,

HML has entered into collaboration with foreign companies for its manufacture of automobile

parts and transmissions as well.

Current Collaboration

Chennai Car Plant (Tiruvallur, Tamilnadu)

Collaboration : Mitsubishi Motors Japan in the year 1998

Products : Cedia, Lancer, Pajero, Montero, Outlander, Lancer EVO X


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Past Collaborations :

OKA Motor Company Australia in the year 1998

Isuzu Motors Ltd. Japan from 19831993

Vauxhall Motors U.K. from 1980 - 1990

Ricardo Consulting Engineers Ltd U.K. from 1989-1993

In addition to the above HML owned an Earth Moving Equipment Division (EED) in

collaboration with the following companies :

Caterpillar U.S.A. for the manufacture of Dumpers and Excavators

Terex for the manufacture of Dumpers, Loaders, Dozers

Fermac U.K. for the manufacture of Backhoe Loaders

MILESTONES:

1942 - Hindustan Motors Limited was incorporated at Port Okha in Gujarat as a small assembly

plant for passenger cars.

1948 - Hindustan Motors Limited shifted its activities to Uttarpara in West Bengal and set up

facilities for manufacture of cars and trucks.

1971 - Hindustan Motors Limited further diversified its activities by setting up an Earthmoving

Equipment Division at Tiruvallur, near Chennai, Tamil Nadu for the manufacture of

Earthmoving equipments such as dumpers, front-end loaders, crawler tractors and so on.


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1985 - Hindustan Motors Limited commenced a Power Products Division at Hosur, Karnataka

for manufacture of heavy duty transmission required for Earth moving Equipments.

1986 - The Commercial Vehicle Division for the manufacture of Heavy Commercial Vehicles at

Vadodara, Gujarat was commenced. Due to increase in project cost and material cost arising out

of adverse exchange fluctuation, the project was abandoned. The company sold a part of the

assets of this division to General Motors India Limited, for manufacture of "Opel Astra" range of

passenger cars in the premium segment.

1987 - Hindustan Motors Limited commenced production of petrol engines and transmissions at

Pithampur, Madhya Pradesh, in collaboration with Isuzu Motor Company, Japan.

1996 - Hindustan Motors Limited modernized, upgraded and expanded its three existing

divisions Earthmoving Equipment Division, Power Plant Division and the Uttarpara Plant.

1997 - Hindustan Motors Limited began the production of the Road Trusted Vehicle.

1998 - Commenced the Mitsubishi Lancer Car project.

2001 - The Earthmoving Equipment Division plant was sold off to Caterpillar, USA.

2002 - Launch of the Mitsubishi Pajero (in collaboration with Mitsubishi Motors, Japan), in

India.

2004 - Components Business ( PUP-Pithampur and PPDHosur ) transferred to AVTECa

company jointly held by HM, Actis and CK Birla Group.


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Uttarpara (West Bengal)

The automobile division at Uttarpara is engaged in the manufacture of the iconic Ambassador

and light commercial vehicle Winner.

The Uttarpara plant, which started operations in 1948, currently produces Ambassador (1500 and

2000 cc diesel, 1800 cc petrol and CNG & LPG variants) in the passenger car segment and light

commercial vehicle 1-tonne payload mini-truck HM-Shifeng Winner (1500 cc diesel).

The first and only integrated automobile plant in India, the Uttarpara factory, popularly known as

Hind Motor, also manufactures automotive and forged components. View details


subsidiary of HM, is also based out of the Uttarpara plant. It is one of the leading bullet-proof

fabricators for Ambassador cars and Mitsubishi Pajeros. The leading customers for this service

include Union and state governments, police, defence services and para-military forces. View

details

The setting up of the plant, which was followed by the establishment of the adjacent Hind Motor

railway station by the government, had a profound impact on the socio-economic milieu of

Uttarpara. A full-fledged township housing two schools, a hospital, shopping centres, ATM &

bank, specialized sports academy, club, auditoria, lake, temples and other facilities provides the

much needed amenities not only to the employees but also to residents of the entire locality. It is

a live example of Hindustan Motors commitment to corporate social responsibility.


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FINANCIAL ANALYSIS

Face Value (Rs) 5

BSE Code 500500

BSE Group B

NSE Code HINDMOTORS

Bloomberg HM IN

Reuters HMTR.BO

ISIN Demat INE253A01025

Market Lot 1

Listing Kolkata,Mumbai,NSE

Financial Year End 3

Book Closure Month Jul/Aug

AGM Month Aug

Key Ratios

Debt-Equity Ratio 3.59 1.94 1.24 1.52 2.1 1.64 2.96 3.73 2.38 1.95

Long Term Debt-Equity Ratio 3.21 1.71 1.06 1.28 1.74 1.34 2.27 2.74 1.73 1.37

Current Ratio 0.72 0.73 0.87 1 0.92 0.88 1.03 1.12 1.13 1.12

Turnover Ratios

Fixed Assets Ratio 1.8 1.56 1.63 1.79 1.71 1.6 1.81 1.17 1.48 1.69

Inventory Ratio 10.14 10.03 9.82 9.23 8.55 8.92 9.1 4.62 5.65 6.37

Debtors Ratio 49.16 50.87 25 20.24 17.92 15.7 15.4 7.61 7.85 6.82


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FORECASTING

PLEASE DOUBLE CLICK ON THE SHEET BELOW

year sales Trend analysis

1.00 14814 7699.27

2.00 16033 14405.37

3.00 20534 21111.47

4.00 26284 27817.57

5.00 28589 34523.67

6.00 34950 41229.77

7.00 40420 47935.87

8.00 55073 54641.97

9.00 74016 61348.07

10.00 68054.17

y = 6706.1x + 993.17

R = 0.8858

0.00

10000.00

20000.00

30000.00

40000.00

50000.00

60000.00

70000.00

80000.00

1 2 3 4 5 6 7 8 9

Series1

Series2

Linear (Series2)


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References:

http://www.hindmotor.com/

http://www.capitaline.com/user/framepage.asp?id=1

http://www.moneycontrol.com/india/stockpricequote/auto-carsjeeps/hindustan-motors/HM
http://www.hindmotor.com/http://www.hindmotor.com/http://www.capitaline.com/user/framepage.asp?id=1http://www.capitaline.com/user/framepage.asp?id=1http://www.moneycontrol.com/india/stockpricequote/auto-carsjeeps/hindustan-motors/HMhttp://www.moneycontrol.com/india/stockpricequote/auto-carsjeeps/hindustan-motors/HMhttp://www.moneycontrol.com/india/stockpricequote/auto-carsjeeps/hindustan-motors/HMhttp://www.capitaline.com/user/framepage.asp?id=1http://www.hindmotor.com/

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A POM Asg 1 Devendra