HMT Ltd - Stock Valuation and Financial Performance

HMT was conceived by the Government of India in 1949, and was incorporated in 1953, with the objective of producing a limited range of machine tools, required for building an industrial edifice for the country. as a Machine Tool manufacturing company.

With the success achieved in the initial years in absorbing the technology and in attaining production competence far ahead of the original plans, the company launched a bold plan of diversification and expansion which resulted in the duplication of the Bangalore Unit and the setting up of new units at Pinjore, Kalamassery and Hyderabad.In 1967, recession struck the Indian engineering industry and the consumption of machine tools dipped drastically. The traumatic years of recession did indeed serve to bring to the fore two latent strengths of HMT, namely, the urge to survive and the confidence to innovate. With these strengths at full play, the Company emerged from the recession.

With a Watch Factory already established in 1961-62, additional capacities for watch production were contemplated to provide a greater cushion against cyclical fluctuations in capital goods markets and also to meet the burgeoning demand for watches.

The 70s witnessed the fructification of all the diversification plans as envisaged by the company. Then HMT setup, HMT International Limited as a subsidiary company to channel HMT's products and technical services abroad, and two more units for manufacture of Watches, one at Srinagar and one at Tumkur.

HMT took over Machine Tool Corporation at Ajmer as its sixth machine tool unit.

In 1990s the company restructured itself into five Business Groups viz., Machine Tools, Watches, Tractors, Industrial Machinery and Engineering Components as part of Business Reorganisation.

In the new millennium HMT was restructured with addition of three more subsidiaries to those already existing. HMT now comprises of six subsidiaries under the ambit of the Holding Company which also manages the tractors business directly.

To navigate through the challenges of the new millennium, HMT seeks strategic alliances from global leaders to synergise its own strengths with symbiotic inputs from the partners.

The products of the company include: Machine Tools, Watches, Bearing, Tractors, Printing Machinery and Food Processing MachineryHMT MACHINE TOOLS LIMITED is the subsidiary of the company having its manufacturing units at five locations with each unit specialized in a particular family of Machines. The Sales and Service network is spread across the length and breadth of the country.

HMT WATCHES LIMITED: It manufactures Mechanical and Quartz Analog watches. The manufacture of wristwatches started as part of diversification strategy of HMT in the year 1962, under Technical collaboration with CITIZEN Watch Company of Japan with a manufacturing unit at Bangalore.

The product range of HMT WATCHES include more than 1500 models to choose from catering to all segments of the market, from Economy to Premium and Young to the Old.

HMT CHINAR WATCHES LIMITED: HMT, the first company to start watch manufacturing in India has incorporated 'HMT CHINAR WATCHES LIMITED' as its fully owned subsidiary on 4th September 2000 with Jammu as its head quarters.HMT manufactures mechanical and quartz range watches.

HMT Bearings Limited: It was formerly known as Indo-Nippon Bearings & was incorporated in the year 1970. It is the only company of its kind in the public sector set up to manufacture Ball & Roller Bearings. The company was established in technical collaboration with M/s Koyo Seiko Co. Ltd., Japan an internationally reputed manufacturer of Bearings.

In the year 1981, the company became a subsidiary of HMT. The manufacturing unit is located in Hyderabad and marketing and sales offices cater to the whole of India.The company designs, manufactures and supplies Ball Bearings, Cylindrical Roller Bearings and Taper Roller Bearings.

HMT (INTERNATIONAL) LIMITED: It was set up in 1974 as a wholly owned subsidiary of HMT, to undertake exports of goods manufactured by HMT and other leading Indian manufacturers. HMT (I) is headquartered at Bangalore and has a global network extending over 38 countries with 67 representations to service its clientele worldwide. HMT(I) has sold over 12,500 machines in more than 70 countries with efficient after sales service.

Praga Tools Limited: HMT took over Praga Tools Limited as one of its subsidiaries with the transfer of majority of the share holding in the year 1988.Praga Tools has contributed to the development of machine tool industry in the country and created a vast band of skilled technicians..

Milestones achieved

         YEAR       UNITS / DIVISION  

• 1953  Machine Tools I  
• 1961  Machine Tools II  
• 1962  Watch Factory I  
• 1963  Machine Tools III  
• 1965  Machine Tools IV  
• 1967  Machine Tools V  
• 1971  Tractor Division  
• 1971  Die Casting Division 
• 1972  Printing Machinery Division  
• 1972  Watch Factory II  
• 1973  Precision Machinery Division 
• 1975  Machine Tools VI  
• 1975  HMT (International) Ltd. 
• 1975  Watch Factory III  
• 1978  Watch Factory IV  
• 1981  HMT Bearings Limited  
• 1981  Quartz Analog Watches 
• 1982  Watch Factory V 
• 1982  Specialised Watch Case Division  
• 1983  Stepper Motor Division  
• 1985  Ball Screw Division  
• 1986  CNC Systems Division  
• 1991  Central Re-conditioning Division 

Awards/ achievements

• 1960-61 Outstanding Performance by President of India
• 1961-62 Outstanding Performance by President of India
• 1970-71 Excellence Performance in Exports by Govt. of Mysore
• 1971-72 Outstanding Export Performance by Govt. of Mysore
• 1971-72 Outstanding Export Performance by EEPC
• 1975-76 National Award for Outstanding Export Performance by Ministry of Commerce
• 1978-79 Best Product at IMTEX - 79 by PMT & FIE
• 1982-83 Export Excellence by EEPC
• 1981-82 Best Product at IMTEX - 82 by FIE Foundation
• 1982-83 Export Excellence by EEPC
• 1982-83 Meritorious Performance in the field of Export by Ministry of Commerce
• 1983 Best Corporate Performance by Harvard Business School Association of India & Economic Times
• 1983-84 Most Effective Organisation by Foundation for Organisation Research (FORE)
• 1983-84 Best Productivity by Organisation Research (FORE)
• 1983-84 Export Excellence by EEPC
• 1984-85 Best Productivity by National Productivity Council
• 1984-85 Export Excellence by EEPC
• 1984-85 Meritorious Performance in the field of Export by Ministry of Commerce
• 1985-86 Best Product at IMTEX – 86 by CMTI - PMT Trust
• 1985-86 Best Product at IMTEX - 86 by FIE Foundation
• 1985-86 Best Productivity by National Productivity Council
• 1985-86 Export Excellence by EEPC
• 1986-87 Export Excellence by EEPC
• 1986-87 Excellence in Productivity by CEI
• 1986-87 Best Productivity by National Productivity Council
• 1987-88 Export Excellence by EEPC
• 1987-88 Best Productivity by National Productivity Council
• 1988-89 Company Standards by Bureau of Indian Standards
• 1988-89 Best Product at IMTEX – 89 by CMTI - PMT Trust
• 1988-89 Best Product at IMTEX – 89 by FIE Foundation
• 1988-89 Outstanding Performance in Industrial Safety by National Safety Council
• 1988-89 Best Productivity by National Productivity Council
• 1988-89 Best Company for HRD Practices by CEI
• 1990  National Award for R&D Efforts in Industry - 1990 in the Mechanical Industrial Sector by Dept. of Scientific and Industrial Research
• 1990-91 Best Productivity by National Productivity Council
• 1990-91 Tech. Development for Machine Tools, Bangalore by Directorate General of Technical Development
• 1991-92 Best Productivity by National Productivity Council
• 1992 National Safety by National Safety Council
• 1994 Best Performance in Company Standardisation by Sir Jahangir Ghandy Trophy
• 1995 Best Products at IMTEX - 95 by CMTI - PMT Trust Award
• 1995 Best Product at IMTEX - 95 by FIE Foundation
• 1995-96 Regional 'Top Exporters Shield' by Engineering Export Promotion Council, Chennai
• 1996-97 Regional 'Top Exporters Shield -Project Exporters' by Engineering Export Promotion Council, Chennai
• 1997-98 All India Trophy for Highest Exporters by Engineering Export Promotion Council, Kolkata
• 1998 Best Product at IMTEX – 98 by FIE Foundation
• 1998 Best Products at IMTEX - 98 by CMTI - PMT Trust Award
• 1998-99 Regional Trophy for Highest Exporters in the Group  - Services Exporter by Engineering Export Promotion Council, Southern Region, Chennai
• 2001 Best Product at IMTEX – 2001 by FIE Foundation
• 2001 Best Products at IMTEX – 2001 by CMTI - PMT Trust Award