Iran Khodro Industrial Group has invited domestic and foreign investors to participate in the bid for purchasing its state-owned and intragroup shares.
According to this call, Samand Investment and Iran Khodro Investment Expansion will transfer 13.7% of the shares of Iran Khodro Company (IKCO) to qualified natural and legal people in compliance with rules and regulations.
Applicants can refer to Iran Khodro's Economic and Financial Deputy Office over 15 days starting from July 24 to declare their interest in buying the shares and completing forms for obtaining general and specialized qualifications, Donyaye Khodro reported.
The special conditions for the supply and transfer of Iran Khodro’s shares will also be announced after the completion of the legal process through Iran’s Securities and Exchange Organization.
One of the eight decrees of the president’s order to automakers is to determine the task of selling and handing over the shares of state-owned car manufacturers to private and non-governmental sectors within six months and spending the earning on product development.
According to one of the two executors of this transfer is Iran Khodro Investment Expansion Company, the transformational strategy of this company is to upgrade companies affiliated with IKCO.
Gholamreza Khalil Arjomandi, the CEO of Iran Khodro Investment Development Group, said, "It is important to support subsidiaries for financing and solving legal and administrative problems, forging synergy and cooperation of more companies and exiting from companies where IKCO has no management share.
Announcing plans to establish the financial group of this company soon, Arjomandi emphasized that cooperation with the private sector for new investments and the growth of the company's portfolio, as well as improving the shares of subsidiaries present in the stock market, are among the other plans of IKCO.
Mohammad Nikfar, the financial and economic deputy of Iran Khodro, who will screen the applicants interested in purchasing the shares, said the government's share in Iran Khodro has decreased from 70% to 5.7% in recent years and the transfer of this share is also on the government's agenda.
IKCO’s Car Production Waste Falls by 60%
Waste generated by Iran Khodro’s car production lines, including from its body manufacture, paint and assembly halls, has reduced by 60% in the first quarter of the current fiscal year (March 21-June 21), according to IKCO’s vice president for manufacturing.
Alireza Bakhtazma was also quoted as saying by Donyaye Khodro that by halting incomplete car production, the manufacturing processes have improved, as any defect is identified during inspections and before the car is delivered to the sales representative.
According to the official, the elimination of incomplete car production has resulted in a 25% increase in the quality of IKCO’s products.
“Pre-delivery inspection has improved the quality of products and the results of customer surveys and evaluation of after-sales delivery confirm this issue,” he said.
“We are redesigning the production system and implementing more up-to-date standards in the manufacturing process, including 5S and a new logistics system.”
5S is a five-step methodology for creating a more organized and productive workspace: Sort, Straighten, Shine, Standardize and Sustain. In fact, 5S serves as a foundation for deploying more advanced production tools and processes.
Bakhtazma noted that the space around the production line will be freed, which will increase productivity by the end of the current fiscal year (March 20, 2023).
Referring to the summer break and production condition, the official said this season is the best time for renovating, upgrading and making changes in production lines, apart from undertaking the maintenance of equipment.
“As the maintenance and replacement of spare parts of equipment are very important, we prepare ourselves to achieve production goals in the second half of the current Iranian year,” he added.
Bakhtazma said Industrial Services Engineering Company of IKCO has also increased the security of transporting car parts to production sites by using an efficient transportation management software.
“This software will soon be used to increase the security of car transportation to dealerships as well,” he said.
IKCO Output Grows by 53%
With the production of 174,695 cars from the beginning of the current fiscal year (March 21) to July 11, the CEO of IKCO announced a 53% increase in the production of complete cars compared with the same period of last year.
"Delivery to customers during the period has reached 169,487 vehicles, registering a 30% year-on-year increase," Mehdi Khatibi was also quoted as saying during the meeting with the employees of TAM Company.
He also mentioned that during the same period, deeds were issued for 161,256 cars, which is 41% higher compared with the same period of last year.
"By producing 750,000 passenger and commercial vehicles this year, the production of complete vehicles will help save 70 trillion rials. In addition, it will prevent a decline in the quality of products and reduce social concerns among people due to the decline in supply,” he said.
