Koyo Seeks Partnership In Hmt Bearings

Koyo of Japan is set to stage a comeback by becoming a joint venture partner of HMT Bearings Ltd, which has attained the status of mini ratna status thanks to its profitable operations.

Koyo was having a cosy relationship with the bearings division earlier as technology provider. Now it wants to become a joint venture partner with financial and technical stake, said an official of HMT.

According to sources in HMT, Koyo has been in touch with the company even before bearings division was given the status of mini ratna and the talks have reached advanced stage now.

Following the decision of the Department of Public Enterprises, the Union government has accorded mini ratna status of HMT Bearings Ltd, the Hyderabad-based subsidiary of HMT.

Thanks to this status the company has gained autonomy in matters pertaining to joint venture partner selection, setting up of new subsidiaries and launching market penetration drive overseas.

HMT Bearings Ltd has as on March 31, 1997, posted a turnover of Rs 44 crore to have a very healthy net profit level of Rs 4.37 crore.

The company had declared a dividend of 15 per cent against 10 per cent in the previous year.

The company has been making all three types of bearings in taper roller bearings, ball bearings and cylindrical roller bearings and has a national market share of 4.5 per cent for taper roller bearings and little less than 10 per cent in cylindrical roller bearings.

It has been exporting bearings to Lanka Motors of Colombo for years.

Currently, HMT Bearings expansion project is on and it will have an installed capacity of 7 million bearings a year when the expansion project was completed by the year 2000.

Currently the capacity of the unit is 3.14 million bearings an year.

According to company sources once the capacity expansion reaches 7 million annual turnover would touch Rs 250 crore and a profit after tax of Rs 25 crore.