HMT Machine Tool Ltd

About the Company :

HMT Ltd (HMT) (parent of HMT Machine Tools Ltd) was incorporated in 1953 by the Government of India (GOI) as a Hindustan Machine Tools Pvt Ltd, subsequently renamed as HMT Limited on August 31, 1978. The company was primarily engaged in manufacturing of watches, tractors, printing machinery, metal forming presses, die casting plastic processing machinery, CNC systems and bearings. In 1990, the company was restructured into different business groups such as machine tools business group, industrial machinery business group, tractor business group, consumer business group and food processing business group. In the year 1999-2000, these business groups were regrouped and made subsidiaries of holding company HMT Limited. Machine tools and Industrial machinery business group were clubbed together and renamed as HMT Machine Tools Limited.

HMT Machine Tools Limited (HMTMTL) was registered as a company on August 09, 1999. HMTMTL is engaged in manufacturing of turning, grinding, gear cutting, special purpose machines, die casting machines and plastic injection molding machines, presses and press brakes, printing machines, CNC control systems and precision components. Its manufacturing plants are located at Bangalore, Pinjore Haryana), Hyderabad (Andhra Pradesh), Ajmer, and Kalamassery (Kerala). The major end users of the machines manufactured by HMTMTL are the auto and auto ancillary, railways, defense, agricultural machinery, power and industrial intermediates.

HMTMTL was declared as sick unit under the provisions of the Sick Industrial Act 1985 in FY06 owing to large accumulated losses and complete erosion of tangible net worth. Company was referred to the Board for Industrial and Financial Reconstruction (BIFR) in Dec.2005 [Case No: 501/2006] to determine the necessary rehabilitation measures to be adopted.

BIFR has sanctioned Rehabilitation Package for the company comprising of sanctions, waivers and exemptions from various Government agencies and banks. It sought several concession and reliefs including the merger of the Praga Tools Ltd Hyderabad as per the decision of GOI. Accordingly Praga Tools Ltd. merged with HMTMTL with effect from April 2007.

Over the years the performance of the company has been far below the stipulated performance schemes as approved by the BIFR. Hence the company has requested for certain revival plans from the GoI which is under consideration with the Department of Heavy Industries.