Amidst heavy monetary influx in the auto sector of our country, boosting up our economy to a great extent, we see another flag added to the cap with Piramal Finance Company willing to invest 565 crore rupees in the auto component space development in two groups altogether. The ones benefitting from the investment are RSB Group and Indoshell Group with an amount division of 275 and 290 crore rupees respectively. The Group stands on the pedestal of major investments due to its proceedings under the Corporate Finance Group. It lets the company explore its profitable chances in the realms of acquisition finance, promoter finance, private equity exits and mezzanine investments. This shall be the first investment in auto industry by the Group and their MD, Khushru Jijina seems optimistic about the move due to 15% CAGR growth which promotes OEMs field specifically over the last decade, helping the auto techies receive easier financing devoid of tedious banking systems of the present.
Also, Tata Motors has decided to invest a whopping amount of Rs. 4 k crorein CV automaking, just like other parallels in the market with their respective sky high investments to make Indian auto sector a better GDP contributor as a whole. its ambition is to become the third largest producer in the country by 2019. To climb up by two positions, the company shall invest Rs 1500 crore in the commercial vehicle business along with Rs 2500 crore in development of passenger vehicle business
On the other hand, Hindustan Motors is facing the heavy monetary loss of Rs 25,217 lakhs by March end in total while the company has a Rs 10,441 lakhs of net worth. The liabilities have crossed the assets net worth by Rs 13,591 lakh and the next move seems to be a blur for the company as a company itself. It has already shut down it's working at the Uttarapura and Pithampur plant in the year before the last. The company has dissolved this ear due to zero profit generation as per the laws of its parent country, USA. It is still to be seen how they shall manage to clear all their hefty dues.
