Press Esc to close
Wednesday 28 June 2017
News updated at 10:46 PM IST

HMT likely to get revival package by beginning of FY'11

Last updated: 05 February, 2010
Mumbai, Feb 4 (PTI) 11:49 IST

Public sector enterprise HMT Watches is likely to receive a revival package from the government by the beginning of the next financial year for plant upgradation and revamping marketing strategy, a top company official said.


"We have already submitted a revival plan to the government and we expect to get the package by the beginning of FY'11. We then plan to strongly focus on marketing and brand-building of our watches," HMT Watches Managing Director S Paulraj said without divulging further details.

It is, however, understood that the package would be somewhere in the range of Rs 700-750 crore and the company could break-even by end-FY 11 with its help, he said.
With an eye on the rural market, the Bangalore-based mini-ratna plans to enhance its marketing set-up and launch advertising campaigns for wider publicity, besides roping in new dealers this year.

"We want to strengthen our brand in the rural market, where bigger brands such as Titan are not present (in a big way). We see a huge potential in the smaller cities. HMT still has a good image and we want to leverage this," Paulraj said.

HMT will invest on brand-building this year, including in advertising, he said.

The company plans to launch a range of trendy and sporty watches and hopes to attain a sizeable share of the Rs 4.2 crore watch-market in the next 2-3 years.

The new range of watches would be available in the price range of Rs 500-2,500, he said.

"We expect a 150 per cent growth from the current level by end of next fiscal. By FY'12, we hope to achieve 400 per cent growth. Despite some existing financial constraints with the revival package, we expect to break-even by FY'11," the HMT official said.

The 48-year old company, which is writhing under a severe financial crunch since the past few years, also plans tie ups with few international brands in the high-end luxury watches segment with an aim to compete with leading brands like Titan, Esprit and Citizen.

"We are looking at a few joint ventures with some international brands to make high-end watches. We are in talks with a few parties and in a year or two we will enter the luxury segment as well," Paulraj added.

The company will also use some of the funds (from the revival package) to modernise its units and double production, he said.

At present, despite having a capacity of 60 lakh watches per annum, HMT manufactures only 5 lakh units from all its five facilities, he said.

Its plants are located at Bangalore, Kalamassery in Kerala, Hyderabad, Ajmer in Rajasthan and Pinjore in Haryana.

"We are looking at doubling our production this year and by FY'12, we are expecting to produce 20 lakh units per annum. We will focus more on mechanical watches now," he added.

Go to Top

Photo Gallery
Bollywood actors Jackie Shroff, Sharbani Mukherjee and choreographer Sandip Soparrkar with yoga...

Bollywood actors Jackie Shroff, Sharbani Mukherjee and choreographer Sandip Soparrkar with yoga...

A participant shows a placard during a silent protest 'Not in My Name' against the targeted...

A participant shows a placard during a silent protest 'Not in My Name' against the targeted...

A group of Buddhist monks stand in a line during a religious ceremony at a temple in Colombo...

A group of Buddhist monks stand in a line during a religious ceremony at a temple in Colombo...

An employee works at the open joint stock company 'Borisovskiy Zavod Medicinskikh Preparatov'...

An employee works at the open joint stock company 'Borisovskiy Zavod Medicinskikh Preparatov'...

Russian President Vladimir Putin, center, toasts at a meeting with graduates of military...

Russian President Vladimir Putin, center, toasts at a meeting with graduates of military...

A duck and her little ones swim in Danube river on a hot summer day in Vienna...

A duck and her little ones swim in Danube river on a hot summer day in Vienna...

A group of journalist protest outside the National Palace for the slain journalist Salvador Adame...

A group of journalist protest outside the National Palace for the slain journalist Salvador Adame...

Noted historian and writer Ramchandra Guha along with other citizens holding placards during...

Noted historian and writer Ramchandra Guha along with other citizens holding placards during...

A barber attends a customer at the closed Burrabazar during a bandh against GST...

A barber attends a customer at the closed Burrabazar during a bandh against GST...

Bollywood actress Sridevi, in a traditional Bengali attire, speaks as former Indian cricket...

Bollywood actress Sridevi, in a traditional Bengali attire, speaks as former Indian cricket...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.