C K Birla group company Hindustan Motors continued to reel under recession in 1998-99 with the company reporting a loss of Rs 28 crore.
Sales increased by more than 21 per cent compared with a decline of nearly 20 per cent in the previous year. Operating costs increased by nearly 30 per cent impacting operating profit, which fell by about 34 per cent.
The company's bane has been the excess workforce at its Uttarpara unit in West Bengal. The state government has struck down the company's proposal to lay off some workers at the factory thereby increasing labour cost. The unit makes the Ambassador and Trekker. Though operating costs increased by maintaining an idle workforce, the company slipped into red despite a 99 per cent decrease in tax burden.
Also, compounding the losses were a 43 per c