Background of HMT

Set up in 1961 by the Government of India, Hindustan Machine Tools (HMT) is engaged in the
manufacture of machine tools, industrial machinery, watches, lamps, tractors, printing machines,
etc. HMT has a tie-up with Citizen, Japan, and sources its know-how from Hitachi Maxwell. A
tie-up was also entered into with the Verson group, UK, in the field of metal forming and allied
equipment. A new tie-up was also finalised in 1993-94 envisaging establishment of a new joint
venture -- Clearing-HMT Metal Forming -- for process engineering and marketing services for
metal forming machinery and equipment. It also has a tie-up with Pivano Bindari, Italy, for
manufacturing and selling binding equipment. The company's machine tools division at Ajmer
bagged the national award for excellence in indigenous production of defence stores under the
mechanical engineering category. The company's division in Bangalore was awarded the
National Award for technology development in 1990-91. The company's three more units --
Watch Factory, Tumkurand Rainbagh, and Specialised Watch Case Division, Bangalore --
obtained ISO 9001 accreditation. The Company has received the approval of the Government of
India August 1, 2000 for the turnaround plan submitted by the Company. Consequently the
company signed a Memorandum of Understanding with the Government of India on August 11,
2000 detailing various actions to be taken on a time bound manner both by the Government and
the Company. As per the restructuring plan, two separate Subsidiary Companies i.e. HMT
Machine Tools Ltd and HMT Watches Ltd have been incorporated and these subsidiaries will
take over the business of Machine Tools and Watches of the Company. Disinvestment process of
HMT Ltd was initiated along with the subsidiaries viz HMT Machine Tools Ltd,HMT Watches
Ltd, HMT Chinar Watches Ltd and HMT Bearings Ltd. EOI from the bidders for acquiring 74%
Equity in HMT Machine Tools Ltd, HMT Watches Ltd, HMT Chinar Watches Ltd & HMT
Bearings Ltd was received inititally and interested parties for these companies are under process
for further action on the same. Among this, The company conidered to amalgamate a subsidiary
Praga Tool Limited with the Company during 2005-06 and HMT (International) Limited, HMT
Tractors Limited are also the subsidiaries of the company. During 2002-03, The company
entered into a Technology Collabration Agreement with Trantor Vehicles Ltd for the
manufacturing and marketing of transport tractor and Multi Utility Vechicles. Further the new
high-powered TRANTOR with suspension is slated for commercial production. During 2004-05,
An Emission Testing Lab with an investment of 4 Crore to upgrade each of the engines to
conform to emission norms is being set up by the Company. During 2004-05, The Company has
increased the installed capacity of Machine Tools to 1479 Nos with the increase of 90 Nos.