HMT revival plan makes no headway

Plans to revive the loss-making HMT Watches Ltd's factory at Ranibagh in Uttarakhand are making no headway despite efforts by top politicians in the state.

N D Tiwari, former Uttarakhand chief minister, claimed recently that the Centre had approved a Rs 834 crore revival plan for the factory, and took credit for the purported initiative. But the HMT management denied the report, saying no such plan had been worked out.

"We have not received any intimation regarding the revival plan of HMT Watches," said HMT Managing Director S Paul Raj. On previous occasions, leaders like Union Water Resources Minister Harish Rawat and the former chief minister, Ramesh Pokhriyal Nishank, had made efforts to revive the factory.

The company has for the past few years been expecting a Central government package that would nurse it back to health. "We have sent a proposal to the Centre for a revival package of Rs 1,500 crore," said Paul Raj. HMT Watches has also hired a consultant, which however did not submit a positive report.

The strategy involves introducing new models, infusing fresh capital, selling surplus land at Ranibagh and other places, and entering into tie-ups with retail outlets, malls and post offices.

HMT Watches has also been discussing revival plans with top state government officials including the additional chief secretary, Rakesh Sharma. One such plan, worked out by the state's department of industry, provided for the cash-rich State Infrastructure and Industrial Corporation of Uttarakhand Limited (Sidcul) to enter into a joint venture with HMT to revive the Ranibagh factory by infusing fresh capital.

Sidcul is credited with having set up key industrial estates in Haridwar and Pantnagar where some of India's leading companies have built factories.

HMT Watches expects the Central government to intervene and infuse fresh capital of Rs 300-500 crore, which is needed for the company's revival. A report on the company, prepared by Pricewaterhouse Coopers, will shortly be placed before the Board for Reconstruction of Public Sector Enterprises (BRPSE), Paul Raj said. He said he expects a positive decision by the Union government on the revival plan.

The company intends to introduce an array of new models at attractive prices. Paul Raj said HMT Watches is also looking to have tie-ups with stores and malls across the country to increase visibility. It also wants to retail its watches in all of India's 150,000 post offices.