There was a time when flaunting an HMT (Hindustan Machine Tools) watch on one's wrist was a mark of prestige. With the slogan 'The Heartbeat of the Nation' in the 90s, the HMT brand became synonymous with watches. Over time, however, with the advent of modern designs and features, including the era of smartwatches, HMT slowly vanished from the market as the company ceased production. Yet the winds of change are stirring hope for an HMT comeback, with the company's shares experiencing a significant uptick following the news.
Renewed Hope for HMT Under Modi 3.0
Under the leadership of PM Narendra Modi, the new phase of governance, dubbed Modi 3.0, has begun, with plans to revamp various state-owned enterprises. Central Minister HD Kumaraswamy held a pivotal meeting with the management of Hindustan Machine Tools Limited, the manufacturer of HMT watches, discussing a revival proposal. Minister Kumaraswamy has requested details on the business metrics, including turnover and net profit.
Source: aajtak
Company Shares Hit Circuit Limits for Two Consecutive Days
Following the key meeting regarding the HMT Watch business, the impact was directly visible on Hindustan Machine Tools Limited's shares. The stock market witnessed a dramatic rise in HMT shares, hitting the upper circuit limit as soon as the market opened for the week.
The enthusiasm continued into Tuesday, with shares experiencing a 4.99% increase as the 7530 crore INR market capitalization of the company closed at 62.53 INR per share. From a price of 56 INR on June 21st to 59.56 INR on Monday, the price surged to 62.53 INR on Tuesday.
The Inception of HMT in 1961
Inspecting the journey of HMT watches, production commenced under the era of Prime Minister Jawaharlal Nehru. The foundation of Hindustan Machine Tools heralded the production of HMT watches in India since 1961. Initially, the company partnered with Japan's Citizen Watch Company to begin manufacturing. The first watch from HMT was dedicated to Prime Minister Nehru himself. By the 70s and 80s, the brand's progress soared, and by the 90s, it grew into a beloved symbol of stature across all classes.
Source: aajtak
As Times Changed, HMT Halted Operations
HMT watches were accessible to every societal segment, with models ranging from 300 INR to 8000 INR in showrooms. At its peak, the brand offered 3500 models in the market. However, the liberalization of the 90s brought a slew of competitors, including the Tata Group's Titan, which provided fierce competition. With the globalization of Indian markets, the watch business became extremely competitive, and HMT failed to upgrade. As demand diminished and losses mounted, the company ultimately decided to halt HMT Watch production.
