HINDUSTAN MACHINE TOOLS (HMT)

INDUSTRY PROFILE:
Snapshot

Registered Office
'H M T Bhavan'
Bellary Road

59,

Pune - India

560032 Maharashtra
Tel.
Fax
Website
Chief Executive Name
Secretary Name
Face Value
Market Lot
Business Group Name
Incorporation Date
Industry Name
Registrar of Company
Listed on

3330333
3339111
http://www.hmtindia.com
Mr. A V Kamat
Mr. U Jagadish Nayak
10
1
Public Sector
07/02/1953
Auto - Tractors
Not Available
National Stock Exchange of India limited
The Stock Exchange,

BOARD OF DIRECTORS:

Board of Directors
Name
Mr. A K Mohapatra
Mr. B S Meena
Mr. A V Kamat
Mr. K Kipgen
Mr. S K Kampasi
Mr. S K Tuteja
Mr. S G Sridhar
Dr. Surajit Mitra
Mr. S Behuria
Dr. N B Ballal
Mr. Prakash Sharan

Designation
Non Official Part-Time Director
Director
Chairman & Managing director
Director
Director
Director
Director [Operations]
Director
Part Time Director
Director
Executive Director

Key Executives
Name
Mr. U Jagadish Nayak
Mr. Prem Singh
Yearly High Lows
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

ABOUT INDUSTRY:

Designation
Co. Secretary and Compl. Officer
Chief Vigilance Officers
High
85.00
70.00
52.50
31.25
15.00
25.10
14.60
17.50
20.50
9.75
38.70
28.75
52.70
111.45
101.00
122.10
163.50

Low
67.50
35.00
27.00
13.40
13.00
5.45
3.35
4.70
5.65
3.50
4.20
12.20
13.65
30.60
37.65
50.00
21.90

India's premier Public Sector conglomerate. IT are a Public Sector Undertaking of the
Government of India engaged in the manufacture of engineering goods in diverse areas such as
Machine Tools, Watches, Tractors, Printing Machinery, Die Casting & Plastic Processing
Machinery, Metal Forming Presses etc.
IT began in a small way in 1953 to meet a big commitment: `To build mother machines to build a
modern industrial India'.
From a single Product, single Unit Company in the post independence era IT emerged as a
conglomerate by the turn of the twentieth century with
Several manufacturing bases spread over different states in India
A wide & diversified product range
Markets stretching across 38 countries around the world.
ITS teams of engineers have created a brand equity that symbolizes:
Machine Tools to a manufacturer
Tractors to a farmer
Watches to millions of people in India and abroad.

HISTORY
YEAR EVENTS 1953 - The Comp. was Incorporated in Bangalore. The Comp. was converted into
a Public Limited Comp. on May 13, 1977. The main objects of Comp. is Manufacturing of
Machine Tools, Metal forming presses & press brakes, pressure die, casting machines & automatic
plastic injection moulding machines, Automatic plastic injection moulding machines, Paper cutting
machines, Automatic plastic injection moulding machines, Paper cutting machines, Tractors
25/35/55 HP, Lamps & Lamp making machines, Printing Machinery, Printing Machinery, Watches.
Some of trade names of watches manufactured are Janata, Sona, Pilot, Tarun, Nutan, Jawhar,
Automatic Day & Date, Priya, Chinar, Nishat, Rakhee, and Avinash & Kohinoor.
- The Machine Tool Division at HMT Bangalore was the oldest manufacturing unit of Comp. & the
product lines consist of 16 types of metal working machines. The Die Casting Division was set up

for manufacture of Die Casting & Plastic Injection Moulding machines in technical collaboration
with Reifenhaeuser GmbH and Co. of West Germany.
1961 - The Watch Factory at Bangalore had two operating divisions the Watch Factory Division:
set up during the year in technical collaboration with Citizen Watch Co., Ltd., Tokyo, this division
started with manufacture of hand winding watches. A new plant was set up to manufacture selfwinding watches in collaboration with the same Japanese firm & Horological Machinery: Division
was established for manufacture of sliding headstock automatics in technical collaboration with
M/s. Jos Peterman, Switzerland.
- The Watch Factory at Srinagar was set up for manufacture of 3 lakh hand winding watches.
1963 - The HMT, in Pinjore have two operating divisions attached to it, viz., Machine Tool
Division & Tractor Division. The Machine Tool Division was set up during the year. The Tractor
Divisions was set up in technical collaboration with Mototov Foreign Trade Corporation, Prasha,
Czechoslovakia.
1964 - The Two operating divisions attached to HMT, Kalamassery, were the Machine Tool
Division & the Printing Machine Division set up in collaboration with Societa Nebiolo, Turin,
Italy.
1965 - The HMT at Hyderabad had 3 operating divisions, the Machine Tool Division primarily for
manufacture of special purpose machine tools. The Press Division was set up in technical
collaboration with M/s. Verson Allsteel Press Co., Chicago, U.S.A. The Lamp Division was
established for manufacture of lamps & lamp components in collaboration with United
Incandescent Lamp and Electrical Co., limited [Tungsrams], Budapest, Hungary.
1975 - The HMT at Ajmer was set up by Govt. of India as the unit of Machine Tool Corporation of
India, limited with effect from 1st April; the unit was merged with HMT.
1976 - The manufacture of critical components like hair spring & main spring were also taken up
by setting up a new plant by Watch Factory Division at Bangalore.

- The following collaborations agreements were concluded during the year: With the Cross
Company, Fraser, Michigan, U.S.A. for the manufacture of special purpose machines in
Hyderabad, With M/s. Creusot - Loire, Paris, for manufacturing of rotary web offset printing
machines, With M/s. Laeis - Werke AG, Trier, West Germany, for manufacture of refractory
presses, A MOU with M/s. Tesa SA, Renens, Switzerland, a subsidiary of Brown and Sharpe
Manufacturing Co., Rhode Inland, U.S.A., for manufacture of precision measuring instruments.
- HMT [Internationals], Ltd., with an issued capital of Rs 6 lakhs is a wholly owned subsidiary of
Company.
- All shares held by President of India & his nominees. Out of issued capital, 7,122 No. of Equity
shares were issued as fully paid-up without payment in cash & 40,000 fully paid Equity shares
were allotted on amalgamation of erstwhile Machine Tool Corporation of India, Ltd., Ajmer.
1977 - All shares issued to Govt. of India.
1978 - The Comp. undertook a scheme to expand the capacity of Watch Factory to 4 lakh watches
in 1979 & 5 lakh watches in 1980.
- The Govt. approved a total investment of Rs 24.50 crores in the watch factory to be established at
Tumkur in Karnataka State for the manufacture of 2 million watch movements.
- The Comp. undertook to set up a project for manufacture of 4 million fluorescent tubes per
annum in collaboration for assembly line with Tungsram of Hungary at a capital outlay of Rs 3.19
crores.
- The Comp. undertook to diversify into the field of precision meterological & measuring
instruments at Srinagar. Govt. approval was obtained during 1979-80 & negotiations were in
progress for foreign collaboration.
- The Comp. undertook to set up a factory in Aurangabad, a backward area in Maharashtra, for
manufacture of dairy machinery.

- Industrial license was obtained & a technical collaboration agreement was entered into with
Fortschritt Landmaschinen Export-Import of German Democratic Republic [FLMs].
- In order to increase the capacity of tractor manufacture from 12,000 to 15,000 per annum, the
Comp. undertook to set up a second line of assembly operations at Mohali, Punjab.
- The Comp. submitted a feasibility report to Govt. for the manufacture of electronic watches. The
Comp. concluded a MOU with Hitachi & Citizen of Japan.
- The Comp. offered technical collaboration to Industrial & Commercial Development Corporation
of Kenya [ICDCs] to set up a plant for manufacture of machine tools in Kenya.
- The Comp. entered into an agreement with the Federal Govt. of Nigeria to set up a plant for
manufacture of machine tools in Nigeria. A new Comp. under the name Nigeria Machine Tools,
limited was incorporated in Lagos.
- With effect from 12th September, the name of Comp. was changed from Hindustan Machine
Tools, limited to HMT Ltd.
1979 - All shares issued to Govt. of India.
1980 - The Comp. entered into a collaboration agreement with Pegard S.A. of Belgium for adding
new models to the existing range of Horizontal boring machines.
1981 - The Comp. proposed to manufacture silver oxide miniature batteries in collaboration with
Hitachi-Moxcell Ltd., Japan. These would be used in electronic & quartz watches.
- The Comp. received an industrial licence for production of one million stepper motors required
for electronics watches.
- The subsidiary formerly known as Indo Nippon Precision Bearings Ltd. changed its name to
HMT Bearing limited on 1st December.
1993 - To capture the growing urban market for fashionable watches, two new brands viz.,
`Ramani' for gents & `Utsav' for ladies were launched.

- Equity shares subdivided. 504, 19,400 shares issued to Government of India.

1995 - All shares issued to Govt. of India.
1996 - The Comp. has decided to convert Lamp Division into a separate wholly owned subsidiary.
- All shares issued to Govt. of India.
1997 - Production also suffered due to slowdown in the economy coupled with stiff competition
from imported machines.
- The Tractors Group launched a 45 HP Coastal Special model tractor for application in coastal
areas on Commercial basis.
- A 59 HP model tractor with Power Steering was also launched during the year. Orchard Special
model tractor in 25 HP range was developed & was under test marketing. Modernization cum
Expansion plan for Tractor division was chalked out for increasing the production capacity of
Tractor division to 30,000 tractors at a cost of Rs 110 crores in the next two years.
- The entire networth of this subsidiary was eroded & a reference was made to BIFR as a sick
Comp. under the Sick Industrial Companies [Special Provisions] Act, 1985.
- All shares issued to Govt. of India.
- The public sector HMT has indigenously manufactured four-colour offset printing press for first
time in the country in its unit at Kalamassery.
- The HMT has introduced three new models the HMT 3022, HMT 3522 & HMT 4511 coastal
special have been fitted with fuel efficient engines & heavy duty transmission.
- The machine tools division of HMT has entered a new area of manufacturing with press tools &
dies.

- The Machine tools division has also entered into a joint working arrangement with MS Giana,
Italy, for manufacture heavy duty CNC lathes for defence sector. This range of products will be
built for first time in the country.
- HMT has signed a memorandum of understanding with the Union government under which it is
expected to increase its turnover to Rs.1, 160 crore & post a net profit of Rs.10.45 crore for the
year ended March 1998.
- HMT introduced ADD & dater watches priced at Rs.750/900 in September. On August 15 the
Comp. launched Swarna series.
1998 - HMT International Ltd, a wholly-owned subsidiary of HMT, has bagged a Rs.13-crore
order for setting up an Entrepreneur Technical Development Centre [ETDCs] at Dakar in Senegal.
- HMT International has already set up successfully training Algeria & the Maldives. A batch of 17
Senegalese instructors has already undergone training at HMT international training centre in
Bangalore.
- The Comp. is launching 15 new models in the automatic day/date range.
- HMT would issue 41, 25,000 ordinary shares of Rs.10 each to the government. The Comp. board
has recently approved the allotment of these shares. The Comp. had already approached the
Bangalore Stock Exchange for issuing these shares to the government. A total of 10, 06, 45,165
equity shares of Rs.10 is listed with the bourse.
- Machine tools giant HMT is in touch with world number one MT manufacturer Yamazaki Mazak
to enter into a possible alliance to manufacture the latter machine cutting tools under a buy-back
arrangement.
- HMT Ltd has bagged the FIE award for best quality, design & aesthetic appearance of product at
IMTEX '98.

- HMT Ltd today announced a special voluntary retirement scheme [VRSs] for its lamp division
employees under which those who opt for it can remain at home with half their pay till such time
that the public sector behemoth receives its due from the National Renewal Fund.
- HMT International Ltd., a wholly owned subsidiary of HMT Ltd., which has recently diversified
into software exports, has entered into a strategic alliance with A1- pha data LLC of Abu Dhabi, a
part of $500 million US group. The two companies would jointly develop software business for
HMT Erp Solutions Vikas.
- An MoU [memorandum of understandings] signed between the Government & HMT has
delegated power to HMT to sanction schemes for incentives cum rewards.
- The Government is making a fresh bid to privatise HMT Tractors, a profit-making unit under the
fold of public sector major HMT Ltd.
- HMT has two fully-owned subsidiaries now - HMT [Internationals] Ltd, which is a trading
Comp. & HMT [Bearings] Ltd, which manufactures ball & roller bearings. It also has a partlyowned subsidiary - Praga Tools Ltd - based in Secunderabad.
- The union minister of state for industry released a new HMT automatic day date watch Ranjit
incorporating euro-style dial, & a new ladies watch Preeti.
- The HMT division has a capacity of manufacturing 18,000 tractors.
- The Comp. has introduced 350 range of Citizen watches in Mumbai along with its latest EcoDrive models, which absorb power thorough any source of light.
- The Comp. has entered into a manufacturing & marketing alliance with Tennmax Industrial
limited of Hong Kong.
- HMT Ltd has been named as one of top ten brands in India by a recent survey conducted by
A&M-ORG-MARG. HMT has been ranked as the top seventh brand among the main brands in the
annual survey that covers 60 brands from all over the country. HMT is also the only public sector

Comp. whose brand has features among the top ten in the survey. The brand has emerged as
seventh from the 22nd position held last year.
- The Comp. also proposes to convert 30% of loan component into equity.
- Citizen Watches [Indias] Limited, is a joint venture between the Citizen Watch Company, Japan
which holds a 51 per cent stake & Doshi Time Industries holding 49 per cent stake. It has a total
paid up capital of Rs eight crores.
- An MoU [memorandum of understandings] signed between the Government & HMT has
delegated power to HMT to sanction schemes for incentives cum rewards.
1999 - The Industry Ministry has directed the state-owned Hindustan Machine Tools to explore
possibilities of joint venture formation for its watch division.
- The Comp. has tied up with Tennmax of Hong Kong & is currently marketing the HMT-Tennmax
brand in India.
- After Kenya & Nigeria, HMT had signed a MoU for setting up a watch assembly unit Zimbabwe.
- The shareholders of Hindustan Machine Tools Ltd [HMTs] approved a proposal to increase the
company authorised share capital to Rs 200 crores from the present Rs 135 crores.
2000 - Icra has assigned an LAAA [SOs] rating & an MAAA [SOs] rating to the Hindustan
Machine Tools [HMTs] bonds of Rs 469 crore 10-year tenure & Rs 40.43 two-year tenure.
- HMT [Internationals] Ltd., a wholly owned subsidiary of HMT Ltd., has been awarded the EEPC
trophy for its achievements in export of technical services during the year 1998-99.
2001- Mr Manohar Joshi, Union Minister for Heavy Industries & Public Enterprises, has unveiled
the HMT 4922 tractor at a launch ceremony organised at Pinjore, Chandigarh. With the
introduction of new actor,
2002

-HMT Ltd has informed that consequent upon relinquishing of charge of Chairman and Managing
Director, Tractor, upon resignation by Mr R A Sharma on July 04, 2002 Mr M S Zahed, Director,
Organisation and Management has taken additional charge of post of Chairman and Managing
Director, Tractor of Company.
2003
-HMT Ltd has informed BSE that pursuant to Order dated January 9, 2003 from the Department of
Heavy Industry, Ministry of Heavy Industries and Public Enterprises, Government of India, New
Delhi, Shri M.S. Zahed, Chairman and Managing Director [Actings] & Director [Organisation and
Managements] has been appointed as Chairman and Managing Director of Comp. for a period of 5
years from the date he assumes charge of post or till the date of his superannuation or until further
orders, whichever is earlier. Shri.M.S Zahed assumed charge of post of January 09, 2003.
-HMT enters into Memorandum of Understanding with PNB, UCO Bank & State Bank of Mysore
& has launched SBM-HMTAgri Farm Scheme to promote Agriculture mechanisation in south
India.
-Pinjore Unit of HMT at Chandigarh is facing a financial crisis & turnover has dropped to 50-60cr
-Shri Naresh Chaturvedi has been appointed as a part time official Director on the Board of
Directors.
-Shri Navin Kumar, Joint Secretary to GOI has been appointed as Part Time Official Director on
the Board of Directors of company.
2004-HMT limited has informed that the equity shares of Comp. have been delisted from the
Bangalore Stock Exchange Limited, the Regional Exchange for HMT Limited, with effect from
January 3, 2004.
-HMT signs agreement with UK-based Trantor for high power tractors
-HMT bags CMTI-PMT Trust Award
-HMT enters into a Technology Collaboration Agreement with M/s Trantor Vehicles Ltd

-HMT limited enters into a Technology Collaboration Agreement with Trantor Vehicles limited
U.K.
-Signs MoU with State Bank of India [SBIs] for tractor finance
2005
-HMT inks agreement with ONGC, MRPL
2006
-HMT Ltd has Shri. R Asokan, Director [Finances], Department of Heavy Industry, New Delhi has
been appointed as Part-time Official Director on the Board of Comp. vide Presidential Order dated
October 30, 2006, with effect from October 30, 2006
2007
-HMT Ltd has appointed Shri. N Gokulram, Additional Secretary and Financial Adviser, Ministry
of Heavy Industries and Public Enterprises, as Part-time Official Director on the Board of Comp.
vide Presidential Order dated January 22, 2007, with effect from January 22, 2007 & until further
orders vice Shri. R Asokan, Director [Finances], Department of Heavy Industry, New Delhi.
- Dr. Surajit Mitra has been appointed as Part-time Official Director on the Board of Comp. vide
Presidential Order F.No.5[35s]/1995-PE.X [Vol.IIs] dated March 06, 2007, until further orders
with effect from March 06, 2007.
2008- HMT limited has informed that Shri B.S. Meena has been appointed as Part-time Official
Director on the Board of HMT Limited vide Presidential Order F. No. 5 [35s]/ 1995- PE. X dated
January 25, 2008, until further orders with effect from January 25, 2008.
- Hmt ltd has appointed Shri S. Behuria, Additional Secretary and Financial Adviser to
Government of India, Ministry of Heavy Industries and Public Enterprises, New Delhi, as Parttime Official Director on the Board of HMT Limited vide Presidental Order F. No. 5[35s]/1995-

PE.X dated October 14, 2008, until further orders with effect from October 14, 2008'. Further the
Comp. has submitted the List of Directors of Comp. as on October 14, 2008.
- HMT Ltd has appointed Shri S G Sridhar, General Manager [Technicals], Hindustan Latex Ltd,
as Director [Operationss] on the Board of Comp. with effect from December 15, 2008, vide
Presidential Order dated October 22, 2008.

VISION & MISSION OF INDUSTRY:

Our Vision and Mission
Our Corporate Vision

Our Corporate Mission

To establish ourselves as one of the worlds
premier companies in the engineering field
having strong international competitiveness
To achieve market leadership in India through
ensuring customer satisfaction by supplying
internationally

competitive

products

and

services
To achieve sustained growth in the earnings of
the group on behalf of shareholders
BOARD OF DIRECTORS OF INDUSTRY:
Board of Directors
Name
Mr. A K Mohapatra
Mr. B S Meena
Mr. A V Kamat
Mr. K Kipgen
Mr. S K Kampasi
Mr. S K Tuteja
Mr. S G Sridhar
Dr. Surajit Mitra
Mr. S Behuria
Dr. N B Ballal
Mr. Prakash Sharan

PRODUCT RANGE:
MACHINETOOLS

Designation
Non Official Part Time Director
Director
Chairman & Managing director
Director
Director
Director
Director [Operationss]
Director
Part Time Director
Director
Executive Director

WATCHES
TRACTIOS
BEARINGS

SWOT ANALYSIS:
STRENGTH
(1)It is a public company.
(2) Budgeted by the government.
(3)Least bothered for finance.
(4)Profitable company for the government.

WEAKNESS
(1)Lack of proper planning.
(2) Lack of proper organization of work.
(3) Inability to complete jobs on time.
(4)The company is handled by the government so lack of entrepreneurial approach to the problems
of the firm.

OPPORTUNITIES
(1)The company can be privatized to make best use of its resources
(2)Strict supervision can achieve better results.

THREATS
(1)Competitors: titan, Timex, Citizen Watch etc are the biggest threats.
(2)Model: many luxury & varieties of watches are competing in the market nowadays.

(3)old fashion design: HMTS products quite old fashioned when other brands are manufacturing
innovative & attractive products.

OBSERVATION:
(1)Very good security arrangements.
(2)Location was quite outside the city.
(3)The plant was well managed.
(4)That is a government company.
(5)No cooperation between the workers & their supervisors.
(6)Standards set were not actualized even 20%.
(7)Lack of proper irrigation facilities.
(8)Lack of a good canteen.
(9)Lack of medical facilities.
(10) Least Cooperation.

RECOMMENDATION:
The company must be privatized to achieve better results. There must proper planning. The
planning process is completed by the persons who dont have any link with the factory. The
execution should be done on the time for that they must increase the production. There must be
strict supervision on the workers to complete the tasks on time.

CONCLUSION:
HMT was pioneer in mechanical watch in India. However in the passage of time; Hmt has lost its
position as they could not produce the product as per the customer needs & preferences.