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HMT's watch division ticking away to glory

Though hit hard by the onslaught of private manufacturers and the grey market, the watch division of the public-sector Hindustan Machine Tools Limited will cross a major milestone in June when it produces its 100 millionth chronometer.

HMT's watch business group has been in trouble ever since the economic liberalisation programme began in 1991. In 1998-99, it incurred a loss of Rs400 million over a sales turnover of Rs1800 million. Yet, that too was an achievement, since the loss had been brought down from Rs600 million in 1997-98.

HMT chairman and managing director N Ramanuja said in Bangalore that the restructuring that began recently should put the watch group on the road to recovery.

He said some of HMT's 'vintage' watch models, including the mechanical Janata, are still popular in other countries. Repeat orders are being received even from Japan. And all 25,000 pieces of the special edition watch released to coincide with the golden jubilee of Indian independence were sold out.

HMT now has more than 2,000 models and 500 more are likely to be added this year.

Ramanuja said HMT, which has been selling 100,000 watch cases every month to Tennmax of Hong Kong, has also started marketing Tennmax watches under a co-branding licence.

He said the watch unit was hit severely by the competition because of the social obligations the company has to meet as a public-sector unit. In the past, the division has subsidised the losses suffered by other operations of HMT in far-flung areas of the country.

He quoted as an example the button cell-manufacturing unit in Guwahati, Assam. The cost of production there is more than double the cost of the imported cells that are being sold to HMT by Japanese electronics and consumer goods giant Hitachi.

This year HMT plans to produce five million watches. Last year it built 3.2 million pieces.

Ramanuja said the country has a huge demand for over 40 million watches a year. And the three major domestic brands -- HMT, Titan and Timex -- together produce only 11 million pieces.

For the first time, HMT will this year participate in the annual World Watch, Clock and Jewellery Shop in Switzerland from April 29. Access for participation in the prestigious show was hitherto denied to India. Persistent efforts by the Union commerce ministry made it possible, Ramanuja said.

Besides HMT, Titan and a few jewellery exporters will also participate in the show that attracts almost 60,000 high-profile visitors. HMT will display a range of watches to match the theme 'Elements of Life -- Earth, Sky, Wind, Fire, Water'.

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