Hind Motors declares suspension of work at WB plant
Posted on May 25 2014 | IBNS
Kolkata, May 25 : As the presence of the yellow Ambassador taxis are fading despite its strong signature in the City of Joy, Hindustan Motors Ltd, popularly known as Hind Motor, declared a "suspension of work" at its Uttarpara plant in West Bengal on Saturday.
The effect was taken as company's efforts are falling short of the large liabilities.
"Pursuant to clause 36 of the Listing Agreement we would like to inform that the Company has declared suspension of work at its Uttarpara Plant with effect from 6:00 AM of 24th May, 2014," the company said in a statement to the bourses.
"The Company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include low productivity, growing indiscipline, critical shortages of funds, lack of demands for its core product the Ambassador and large accumulation of liabilities," it said.
Given the present circumstances, the company said it had, "no alternative but to declare a suspension of work at its Uttarpara Plant with effect from May 24. The suspension of work will enable the company to have some space to restructure the organisation, debts, etc. As of today the company has been trying to restructure a running organisation - the suspension of work will, we are hoping, allow us to focus more on the restructuring."
With the emergent of the Mamata Banerjee-led-government and her likeness for white and blue colours, several taxis are also now seen painted same and they proudly claim themselves as No Refusal taxis in a city where refusal to passengers is more the norm.
According to officials, some 33,000 Ambassador taxis are running in Kolkata every day.
Most taxi drivers in Kolkata are migrants. Rajesh Paswan, 37, who drives an Ambassador for the past ten years in Kolkata after he migrated to the city from Bihar, sounded sad.
"We still can't imagine the city without yellow Ambassador cabs," says Singh.
Even several veteran Kolkatans still prefer an Ambassador in the name of hiring a cab.
Hindustan Motors Limited 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 in 1958