HMT eyes `3,000 cr sales in 5 yrs

PRESS TRUST OF INDIA

Chandigarh, Dec 1: State-owned HMT LtdBSE 0.61 % has plans to invest Rs 200 crore for expanding tractors capacity, engine production and roll out premium watches as part of its strategy to reach Rs 3,000 crore of turnover in the next five years.  The company has also sought Rs 450 crore package for debt restructuring and infusing money for capital expenditure from the Centre.
 "We will invest a sum of Rs 200 crore for ramping up the production capacity of tractors and engine in next two years," Company's CMD S G Sridhar told reporters today at CII-AgroTech here.  As per proposed capex plan, the company intends to treble tractor manufacturing capacity from 10,000 units per annum to 30,000 units per annum in two years at its Pinjore plant.
 "Our intention is that our sales from tractors should reach Rs 1,800 crore in next 5 years," he said. Currently, its turnover from agriculture implementsBSE 4.95 % including tractors stands at Rs 225 crore.  Over the past several years, HMT has not been able to penetrate in tractors' segment as its market share in this segment is quite negligible in comparison to market of other brands.
 The company sold just 4,000 tractors last fiscal while the total market size of tractors in the country is 5.25 lakh tractors.
 HMT has also firmed up plans to roll out premium range of watches for elite segment. "We will traget youth segment and institutions for our new watches and we plan to clock sales of Rs 50 crore during next fiscal and Rs 450 crore in next five years from this segment," he said. At present, watches contribute Rs 20 crore for HMT.  The price range of watches will between Rs 2,500 and Rs 15,000, he said.  Asked about financial assistance from Centre, Sridhar said that the company has sought Rs 450 crore from Central government for the purpose of debt restructuring and fresh investment. HMT has long term debt to the tune of Rs 130 crore.
 "We are looking to achieve group sales of Rs 3,000 crore comprising Rs 1,800 crore from tractors, Rs 600 crore from machine tools and Rs 450 crore from watches," he said.

Lastupdate on : Sat, 1 Dec 2012 21:30:00 Makkah time
Lastupdate on : Sat, 1 Dec 2012 18:30:00 GMT
Lastupdate on : Sun, 2 Dec 2012 00:00:00 IST




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