Economic Times reported that HMT Ltd has plans to invest INR 200 crore for expanding tractors capacity, engine production and roll out premium watches as part of its strategy to reach INR 3,000 crore of turnover in the next 5 years.
The company has also sought INR 450 crore package for debt restructuring and infusing money for capital expenditure from the Centre.
Mr G Sridhar CMD of HMT Ltd said that "We will invest a sum of INR 200 crore for ramping up the production capacity of tractors and engine in next 2 years."
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 2 years at its Pinjore plant.
Mr Sridhar said that "Our intention is that our sales from tractors should reach INR 1,800 crore in next 5 years."
Currently, its turnover from agriculture implements including tractors stands at INR 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.
He said that "We will target youth segment and institutions for our new watches and we plan to clock sales of INR 50 crore during next fiscal and INR 450 crore in next 5 years from this segment."
At present, watches contribute INR 20 crore for HMT.
He added that the price range of watches will between INR 2,500 and INR 15,000.
He further added that "The company has sought INR 450 crore from Central government for the purpose of debt restructuring and fresh investment. HMT has long term debt to the tune of INR 130 crore. We are looking to achieve group sales of INR 3,000 crore comprising INR 1,800 crore from tractors, INR 600 crore from machine tools and INR 450 crore from watches."