HM may merge forgings subsidiary with Avtec

CK Birla group company Hindustan Motors (HM) plans to spin off its forging unit as a precursor to merge it with the auto component subsidiary Avtec.

HM owns 49 per cent stake in Avtec. The Birla group controls 21 per cent, while Actis Powertrain Investments holds the remaining 30 per cent in the company.

"The move is a strategy to synergise the features of forgings division and Avtec. By clubbing the forgings division with Avtec, the company would be able to independently serve customers both within and outside the country," said senior company officials.

Currently, the forgings (and stamping, castings) division caters to HM. Avtec already is supplying auto components to original equipment makers both within the country and overseas.

"We want to make Hindustan Motors more outward looking than inward looking," said R Santhanam, managing director.

HM is getting enough orders for forging requirements from companies both within and outside the country, he said.

Avtec makes engines, transmissions and other components for vehicles.

Avtec will be supplying components by the mid of this year for Japanese car maker Misubishi's global requirements.

Avtec is one among the eight component makers identified by Mitsubishi.

Meanwhile, Hindustan Motors has launched the all new Mitsubishi Lancer Cedia in two variants in Mumbai today. The Sedan is priced at Rs 9.87 lakh throughout the country.

Lancer Cedia is a premium car evolved from the legendary Evo Series from Mitsubishi.

The machine is powered by an extremely powerful 2 litre petrol engine with 16 valves. Even at 180 kmph, the car is stable, adding to the driving pleasure.