HMT Ltd today invited expressions of interest for divestment in four of its subsidiaries. These include HMT Machine Tools, HMT Watches, HMT Chinar Watches, and HMT Bearings. The expressions of interest have to be submitted by August 2, officials told Business Standard.
HMT proposes to divest a 74 per cent stake in these four subsidiaries. Ernst & Young has been appointed global advisers for the disinvestment process. The company also proposes to divest or invite joint venture partnership for its tractor group as well as its subsidiary HMT (International) Ltd.
In the year 2000, the company had been restructured into HMT Ltd, the holding company with the tractor business and the other business groups had been spun off into subsidiaries.
The machine tools subsidiary is a multi-tool and multi-location unit involved in manufacturing of machine tools, printing machines and presses.
With a 30 per cent market share, the subsidiary has 11 units and clocked a turnover of Rs 209 crore in the last financial year.
HMT Watches has four units with an installed capacity of 7 million watches per annum. The company recorded a turnover of Rs 139 crore in 2001-02.
HMT Bearings is involved in manufacturing ball- and roller- bearings. Its sole production unit at Hyderabad has an installed capacity of 2.8 million bearings and had a turnover of Rs 52 crore last year.
HMT Chinar manufactures watches and has units in Srinagar and Jammu.
