The loss-making HMT Watches Limited has devised a multi-pronged strategy for revival by introducing new models, infusing fresh capital, through sale of its surplus land at Ranibagh in Uttarakhand and other places and also through various tie-ups with stores, malls and post offices.
The company’s Managing Director S Paulraj, who was here this week, discussed plans for the company’s revival with top state government officials including Rakesh Sharma, principal secretary, industrial development.
Under a plan worked out by the department of industry, the 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. SIDCUL is credited with setting up industrial estates like Haridwar and Pantnagar. “We have discussed the plan and will have one more round of discussions in October with the state government,” Paulraj said.
On the other hand, the HMT is also expecting the Centre’s intervention to infuse a capital of Rs 300 crore for its revival. In this regard, a report prepared by Price Waterhouse-Coopers on the revival plan would shortly be placed before the Board for Reconstruction of Public Sector Enterprises (BRPSE), Paulraj said. 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 HMT,” Paulraj said. The company expects a 36 per cent growth in the current fiscal after recording a 27 per cent growth last year.
Paulraj was in Dehradun also to tie up with post offices in the state to sell the company’s new products. The company is introducing an array of new models with attractive prices. During this fiscal, the company would introduce 75 models. “So far, we have already introduced 31 models and the demand is growing,” he said.
Paulraj said the company is also looking forward for tie-ups with stores and malls across the country to increase its visibility.
Moreover, 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.