Hindustan Machine Tools was incorporated in 1953 by the Government of India as a machine tool manufacturing company.

Over the years diversified into watches, tractors, printing machinery, metal forming presses, die casting & plastic processing machinery, CNC systems & bearings. Successful technology absorption in all product groups through collaborations with world renowned manufacturers and further strengthened by continuous in-house R&D. Today, HMT comprises six subsidiaries under the ambit of a holding company, which also manages the tractors business directly. HMT Limited has 18 manufacturing units.The constituent subsidiaries are given below while the holding company retains the tractors business group. HMTs tractor business commenced its operations in 1971 in technical collaboration with M/s MOTOKOV, Czechoslovakia. HMT started the operation with the manufacture of 25 HP tractor at the manufacturing plant in Pinjore, Haryana state. Over the years, it has developed tractors ranging from 25 HP to 75 HP. HMT Limited took over Praga Tools Limited as one of its subsidiaries 1988[1]. Praga Tools Limited was established in May, 1943 as Praga Tools Corporation Limited to manufacture machine tools with its head quarters at Secunderabad. It was renamed as Praga Tools Limited in 1963. It is mainly involved in manufacture of machine tools including CNC machines

HMT started manufacturing Wrist Watches since 1962 and today we have four integrated manufacturing units, employing highly skilled work force, producing over 7 million high quality watches/Watch movements per annum in hundreds of designs, in Mechanical and Quartz. The technology for the manufacture of Watch Movements and Watches has been acquired from Citizen, Japan. HMT Watch manufacturing units have ISO-9001 certification. Our Products conform to absolutely rigid quality standards and are well accepted in the international market. We are regularly exporting our Watches/Watch Movements to countries in the Middle East, South East and Japan. HMT Watches are Master Pieces in Engineering Excellence and are designed to give years of trouble free service.

HMT Watches

The history of HMT, which has been a pioneer in manufacturing watches in India. ... HMT's turnover of watches is around Rs 200 crore a year.
In the year of 1953, HMT Limited was founded in technical collaboration with Mademoiselle Oerlikon of Switzerland. The famous watch company of India is the fabricator of many a new product including machine tools, printing machines, presses, food processing machinery and others. It has successfully collaborated with thirty renowned international engineering companies over the years for the production of diversified items. In 1962, HMT Limited which is a Government of India undertaking, began creating wristwatches. Now the manufacturer boasts of 4 integrated manufacturing units which fabricate more than 7 million cutting-edge quality timepieces every year. The team of expert watchmakers and innovative designers make their creativity blossom in the categories of quartz and mechanical. The company of Citizen Watches of Japan aids HMT by offering the technology for the production of watch movements. One can completely rely on HMT watches because of the high-tech engineering excellence. The HMT Watch manufacturing units have acquired the certification of ISO_9001. Because of their unputdownable quality HMT watches have cut a niche market in innumerable countries of the South East, Middle East and last but not the least Japan. The HMT watches enunciate technology and aestheticism. Each stage of the production guarantees a level of skill and craftsmanship which becomes worthy of the customers money. The company pays meticulous introspection to the quality of components used in manufacturing the timepieces. The buyers of the HMT watches are guaranteed diligent and long years of service. In short HMT wristwatches satisfy the customers in every aspect.

End of 2nd Traveling Report hmt Watches is a division of "Hindustan Machinery and Tools" and is located in Bangalore, about 1.5 hours flight South East of Bombay pretty much in the middle of the Subcontinent. hmt is obviously pushing their employees to retire early and that the days of producing hmt Watches might be over very soon. Interestingly most Indian's

By Paul Delury
There has been great endeavor by watch designers, and watch companies, over the years to catch the public's attention with something different, something new. Some companies have simply embellished the conventional watch designs, adding features to the dial or case, even removing the dial altogether.

Why Hmt watches gone for turnaround process? Directors REPORT - 2000-2001 (Holding Company) Your Director's have pleasure in presenting their 48th Annual Report together with the Audited Accounts of the Company for the year ended March 31 2001, Report of the Statutory Auditors and the Comments there on as well as the Review of Accounts by the Comptroller and Auditor General of India. Turnaround Plan

Rs. 1,150-cr. turnaround plan for HMT

By Our Special Correspondent BANGALORE, SEPT. 19. The Union Minister for Heavy Industries and Public Enterprises, Mr. Manohar Joshi, has assured the management and employees of the public sector Hindustan Machine Tools that the Centre would consider levying appropriate tariffs on import of machinery and watches. The minister discussed implementation of the Rs. 1,150-crore turnaround plan for the ailing public sector giant, approved by the Union Cabinet on July 18, 2000, with the management, the employees' union and officers' association. Later speaking to presspersons, Mr. Joshi noted that he had acted on the promise regarding HMT which he had made at a press conference here on November 24, 1999. It was the biggest ever support extended to a public sector undertaking. The turnaround plan included fresh infusion of Rs. 250 crores as equity and the issuance of bonds worth Rs. 469 crores guaranteed by the Government of India. He emphasised that the task of his ministry had not been completed with the provision of guarantee and infusion of cash. It would periodically monitor the targets set out in the turnaround plan and the MoU signed in that regard. The levying of tariffs would protect HMT, in particular, and the domestic machine tool industry, in general.

To a question, the Shiv Sena leader agreed that the continued import of second-hand machine tools was affecting the machine tool industry in the country. He, however, noted that a decision on stopping such imports had to be taken by the Union Commerce Ministry. He pointed out that the import of watches and components from China was affecting the HMT's watch unit. As part of the turnaround plan, subsidiaries had been formed for machine tools and watch units and the watch factory at Srinagar. The tractor unit had been converted into a holding company. The subsidiaries would enter into joint ventures and it was expected that they would bring in a capital of Rs. 250 crores in the next few years. At the same time, he emphasised that the HMT subsidiaries had to improve their functioning to attract private investment. No one would enter into a joint venture with a sick company. Mr. Joshi assured the company of assistance in realising the outstanding amounts from the various government departments, other PSUs, Defence and Railways. The machine tool unit of HMT depended on purchases by the Defence Ministry to the extent of 35 per cent of production and the Railways for 20 per cent. The HMT had 19,000 employees and a voluntary retirement scheme was being implemented. He noted that the turnaround plan had to be implemented over a period of five years and he was confident the HMT would stage a recovery. The plan envisaged the turnover of HMT going up by 51 per cent in the next five years. The employee costs were expected to come down from 29.5 per cent to 17.4 per cent in the five years. The disposal of nonperforming assets was expected to fetch Rs. 220 crores. To improve its competitiveness, HMT had started investing in networking through a private network and adopted the concept of business process re- engineering. ``I want to help the HMT in all respects,'' Mr. Joshi declared. The Chairman and Managing Director of HMT, Mr. N. Ramanuja, and the other directors briefed the Union minister about the functioning of the company.

The year 2000-2001 has been momentous for the Company in many ways. The Turnaround Plan submitted by the Company to the Government was approved by the Government on August 11, 2000. All actions as envisaged in the Turnaround Plan were initiated by your Company in a time bound manner in accordance with a Memorandum of Understanding signed with the Government for implementation of the Turnaround Plan. Steps were immediately initiated for manpower and financial restructuring through Voluntary Retirement Scheme and settlement of overdues to Financial Institutions and Banks. As regards the organizational restructuring, a Scheme of Arrangement was formulated with the help of a reputed Consultancy firm. The Scheme was duly approved by the Members and Creditors of the Company. Your Directors are pleased to inform you that the Central Government have approved the Scheme of Arrangement for the restructuring of your Company under Section 393 of the Companies Act, 1956, vide Orders dated 30.3.2001. Consequently, the operations of the Company for the year under review cover only the restructured organization. The business of Machine Tools and Watches will now form part of separate Subsidiary Companies in the name of HMT Machine Tools Limited, HMT Watches Limited and HMTChinar Watches Limited (for Watch Factory, Srinagar Division). All the assets and liabilities of the respective businesses of the Company as on 1.4.2000 have been transferred and vested in the concerned Subsidiary Companies in terms of the Scheme of Arrangement approved by the Central Government.

Operating Results
The Operations of your Company in the first financial year after restructuring, resulted in a Net Profit before Tax of Rs.24.41 Crore as compared to a net loss of Rs.296.91 Crore incurred in the previous year in the pre-restructured form. The financial highlights are as follows: (Rs. in lakhs) 2000-2001 1999-2000 Gross Profit Depreciation Interest Net Profit/(Loss) (before tax) Income Tax Net Profit/ (Loss) after tax Reserves withdrawn Balance carried to Balance Sheet 2441 2548 4989 3569 446 682 2441 (19875) 1507 8309 (29691) (29691) 225 (29466)

In view of the accumulated losses of the previous years and in order to conserve valuable resources, your Directors are not in a position to recommend any Dividend on the Equity Share Capital for the year 2000-01.

Be a market leader in all our products and services Be a market driven company by technological and process innovations To provide quality products at competitive price for addressing national and International markets To pursue sound and ethical business practices for the benefit of the customers and the stake holders

MISSION As a good corporate citizen, be a proactive, integral and responsible member of the community and environment in which we operate. Promote the interest of the stake holders through planned business growth To develop and retain human skills necessary for Corporate growth and performance excellence To improve and sustain the quality of work life for employees To provide value for money products to customers in order to achieve customer delight

HMT WATCHES evolution driven by Commitment Quality of products / services Harmonious growth Expectations Consumer obligations

Grievance redressal Transparency in business

Benefit gained by hmt watches:

According to M.S. Zahed, HMT's Chairman and Managing Director, the company has gone through a number of business and socio-economic cycles. "When we were set up there was nothing like a capital goods sector in the private sector. So the government decided to create centres of self-reliance, disperse development to different parts of the country [when HMT gave back one factory to the nation every year], create schools of technicians, save foreign exchange... . This is how it was until the 1970s. In 1980, HMT decided to be more global, and with many countries wanting intermediate and appropriate technologies the focus was on turnkey projects. In the early 1990s, thanks to globalization, India opened its doors and became a market for the world's products. HMT's employees had to absorb all these changes, and change in a large organization is difficult," Zahed says. With India not being an industrialized society, unlike the developed world "where even today not much importance is given for productivity", it has been difficult to change the mindset of the workforce, he says. "In the post-liberalization phase, the growth of the service sectors has squeezed the manufacturing sector. But being the second most populous country in the world it is imperative that manufacturing once again comes to the fore. For this, we have to encourage consumerism and increase productivity. Today our per capita consumption is very low," he says.

HMT watches are the very standard and popular watches in India. The HMT brand watches are used and trusted the most by all the Indians in India. The HMT Company is producing these watches since a very long time or since more then 50 watches. I have been using the HMT watch, which is very old. But it is still working very well and no complaint. Once in a year I give this watch for servicing and also for cleaning. I can still use it for many more years without any problem it seems. The cost of these watches is not more and not even less but the quality and the durability of these watches is very good. I have got another HMT watch as a gift on my wedding by my friend and even that watch is very attractive and looks very grand. I love it because it is the best for me to ever use.

HMT set to close five unviable units soon

C.R. Sukumar HYDERABAD, Dec. 20 HMT Ltd, the public sector conglomerate with major interests in machine tools, watches and tractors, has initiated steps towards closing down five of its unviable units by the month-end - one each in Aurangabad and Guwahati and three in Hyderabad. Following the turnaround plan approved by the Government recently, the company has also incorporated subsidiaries for its machine tools and watches businesses so as to divest its holding up to 74 per cent in these two subsidiaries soon. ``The units to be closed down include the food processing unit located at Aurangabad, miniature battery unit at Guwahati, and watch case division, lamps unit and central metal forming institute - all the three located at Hyderabad,'' HMT sources told Bus iness Line. After the Government's approval of the turnaround plan, the company has signed an MoU detailing various actions to be taken on a time-bound manner both by the Government and the company. In terms of the MoU, the Government has to convert the loan of Rs 39.7 crore into equity and also write off interest dues of Rs 12.74 crore. Further, the Government will have to infuse funds to the tune of Rs 250 crore as equity contribution so as to enable the company liquidate the entire outstanding statutory dues, clear the dues of financial institutions by entering into a one time settlem ent (OTS) with them and retire high cost debts. On its part, the company has to announce voluntary retirement scheme (VRS) for 454 employees of the five unviable units to be closed down, stipulating a limit of three months to avail of the facility. The Government has agreed to provide a guarantee for the bonds to be issued by the company to the tune of Rs 469 crore for the VRS aimed at retiring a total of 6,493 employees by March 31. Of this, 4,293 employees will be offered VRS during the current f iscal year and the balance 2,200 employees in the next fiscal. Further, according to sources, HMT had to convert its machine tools and watch group into subsidiaries by the month-end and divest up to 74 per cent in these subsidiaries later. The company would have to convert its watch factory located at Srinagar into a separate subsidiary. The Government will extend budgetary support as grant in aid for a period of three years to meet the actual wages and salary of the employees of this subsidiary. The Government has also agreed to provide guarantee for a period of two years to the company for availing working capital loans to an extent of Rs 40.43 crore for the watch subsidiary.

In line with the MoU signed with the Government, HMT had already incorporated two separate subsidiary companies - HMT Machine Tools Ltd and HMT Watches Ltd - which would take over the business of machine tools and watches of the company, sources said. As a part of the turnaround plan, the tractor division would be retained with the holding company for subsidiarisation and disinvestment on a time bound basis. HMT had also incorporated a separate subsidiary company - Chinar Watches Ltd - with its regist ered office located at Jammu for taking over the watch factory at Srinagar, sources added.