Mumbai: UK-based NRI business conglomerate, Hindujas, which is stepping up its commercial vehicle manufacturing business in the country, have not ruled out the possibility of making passenger cars.
“We are not averse (to making cars) and are open to investments in that sector,” said Hinduja Group Chairman Srichand P Hinduja.
“There is a slowdown in the market — who knows, we could look at acquisitions in this segment,” he said without elaborating.
The Hindujas’ flagship company, Ashok Leyland, which manufactures about 85,000 commercial vehicles annually at its various plants pan-India, had announced its expansion plans including manufacturing one lakh LCVs at its greenfield facility being set up near Chennai at an investment of Rs2,600 crore.
It would also invest Rs1,500 crore to raise output at Ennore and Hosur in Tamil Nadu.
The company has plants at various locations including Chennai, Hosur, Bhandara (near Nagpur) and Alwar in Rajasthan and constructing a plant at Pantnagar which will be commissioned next year.
The group had announced a $50 billion investment across sectors — power, automotives, IT, hospitality, real estate, healthcare, financial services, oil and gas, media and entertainment in 2004.
Also mulling to make a foray into the power sector it had chalked out plans for setting up 4,200 MW unit and proposes to take raise the output up to 10,000 MW. After the Indo-US nuclear deal the company is also looking at nuclear power generation.
“Energy and infrastructure are the two key areas of focus,” Hinduja said adding that the Government should hasten the reforms process to attract investment.
The group, which has promoted IndusInd Bank in India and owns Amas Bank in Switzerland, is also looking at the financial sector for big-ticket investment.
“We will be looking at insurance and other financial services,” Hinduja said.
On the current inflationary trend he said, the slowdown in the economy on the back of recessionary trends globally, may be temporary.
“Inflation is a matter of concern and the cash crunch is beginning to surface,” he said, adding that he expected this situation to last for some more time.