Aircraft Factory
In 1939, a chance acquaintance with an American aircraft company manager inspired him to start an aircraft factory in India. Hindustan Aircraft was started in Bangalore in the Kingdom of Mysore with the active support of its diwan, Mirza Ismail in December 1940, where Kingdom of Mysore were partners in venture. Others, who invested their money were Dharamsey Mulraj Khatau and Tulsidas Kilachand. By April 1941, the Indian government acquired one-third of ownership and by April 1942, it nationalized the company by compensating shareholders adequately. The reasons that prompted the government for nationalizing were – it was a sensitive and strategic sector; Japan’s advances in the war meant that the government needed fast responses and hence, direct ownership; and it could not allow a crucial war project to remain undercapitalised or loss-making. Hindustan Aircraft was renamed as Hindustan Aeronautics Limited.
Read more about this topic: Walchand Hirachand
Famous quotes containing the word factory:
“The medieval university looked backwards; it professed to be a storehouse of old knowledge.... The modern university looks forward, and is a factory of new knowledge.”
—Thomas Henry Huxley (1825–1895)