HMT to adopt new strategy for revival

The loss-making HMT Watches Ltd has devised a multi-pronged strategy for its revival by introducing new models, infusing fresh capital, sale of its surplus land at Ranibagh in Uttarakhand and other places and also through various tie-ups with stores, malls and post offices.

HMT Managing Director S Paulraj, discussed plans of the company’s revival with top state government officials including principal secretary industrial development Rakesh Sharma.

Under the new plan worked out by the department of industry, State Infrastructure and Industrial Corporation of Uttarakhand Limited (SIDCUL) would enter into a joint venture with HMT to revive the Ranibagh manufacturing unit by infusing fresh capital.

Significantly, SIDCUL is credited for setting up key industrial estates like Haridwar and Pantnagar where India’s top-notch companies set up big shops. “We have discussed this plan and we will have one more round of discussion in October with the Uttarakhand government,” Paulraj told Business Standard. On the other hand, the HMT is also expecting the central government’s intervention to infuse a capital of Rs 300 crore which is needed for its revival. In this regard, a report prepared by the PriceWaterhouse Coopers on the revival plan of the HMT Watches would shortly be kept before the Board of Reconstruction of Public Sector Enterprises (BRPSE), he said. Further he said that he is expecting a positive decision by the government on the revival plan.

“A capital of Rs 300 crore is needed for the revival of the HMT,” said Paulraj. The company expects 36 percent growth in the current fiscal after recording 27 percent growth last year. Paulraj was in Dehradun to announce partnership with post offices in the state to sell the new products introduced by the company. The company is introducing an array of new models of various hues and colours with attractive prices.

During the current fiscal, HMT would introduce 75 models.

“So far, we have already introduced 31 models and the demand is growing,” said Paulraj.

Paulraj also said the company is also looking forward for tie-ups with stores and malls across the country to increase its visibility. Besides, the company wants to retail its watches in all the 1.5 lakh post offices in the country. “Uttarakhand is the seventh state where we are now selling our watches through post offices,” said Paulraj.

BS