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No work is complete without the guidance of very special people. At the end of endeavor, I
would like to thank profoundly everyone who directly and indirectly assisted me in this task.
I wish to express my deep sense of gratitude to my internal guide, Sir Manajunath Reddy,
for his able guidance and useful suggestions, which helped me in completing the report.
No wards can adequately express our heartfelt gratitude and respect for Mr. Jerome kujur,
Assistant General Manager (HR), for his kind permission to take up a project in this
esteemed organization and also for his timely guidance in the conduct of our project.
I would also like to thank Mr. K. Shridhar, General Manager for his encouragement and
cooperation in carrying out the project work.
I would like to express my heartfelt thanks to the staff of HMT (INTERNATIONAL) Ltd for
providing their diligent guidance and constant support through the course of our project.




I, RAJASHRI MASEWADI, hereby declare that the report entitled ORGANIZATIONAL STUDY
AT HMT (INTERNATIONAL) LIMILED, BANGALORE, submitted in partial fulfillment of the
requirement for the degree of master of business administration (MBA), to Bangalore
University, under the guidance of Sir. Manajunatha Reddy is my original work and not
submitted for the award of any other degree, diploma, fellowship or other similar title of

Place: Bangalore

Rajashri masewadi

HMT Fast Forward
It was in the early post independence era that, HMT began in a small way to meet a big

'To manufacture mother machines to build modern industrial India'.

HMT was conceived by the Government of India in 1949, and was incorporated in 1953,
with the objective of producing a limited range of machine tools, required for building an
industrial edifice for the country.

THE 1960's:
 Success achieved in the initial years in absorbing the technology and in attaining
production competence far ahead of the original plans.
 The Company launched a bold plan of diversification and expansion. RESULTED -
Duplication of the Bangalore Unit and the set up of new units at Pinjore, Kalamassery
and Hyderabad.
 In 1967, recession struck the Indian Engineering Industry, Machine tools
consumption reduced highly. The recession brought two latent strengths of HMT
1.The urge to survive
2. The urge to survive and the confidence to innovate.
With these strengths at full play, the Company emerged from the recession:
 With the world's widest range of machine tools and associated services under a
single corporate entity.
 Action plans firmly launched for diversification into Tractors, Presses and Press
Brakes, Printing Machines, Die Casting and Plastic Injection Molding Machines,
Horological Machinery, etc., which were considered to have economic cycles that are
different from those of machine tools.
 With a Watch Factory already established in 1961-62, additional capacities for watch
production were contemplated to provide a greater cushion against cyclical
fluctuations in capital goods markets and also to meet the burgeoning demand for
 With export markets of enormous potential under active development.

THE 1970's:
The 70s witnessed the fructification of all the diversification plans as envisaged.HMT setup
 HMT International Limited as a subsidiary company to channel HMT's products and
technical services abroad.

 Two more units for manufacture of Watches, one at Srinagar and one at Tumkur
HMT took over Machine Tool Corporation at Ajmer as its sixth machine tool unit.
THE 1980's:
In the 80s, HMT as a part of vertical integration efforts, launched units to manufacture
 Watches at Ranibagh
 Watch Cases at Bangalore
 Stepper Motors at Tumkur
 CNC Systems at Bangalore
 Ball screws for use on CNC Machines at Bangalore Also,
HMT took over Indo-Nippon Precision Bearings Ltd, a state owned unit as a subsidiary,
which was renamed HMT-Bearings Ltd.
HMT took over Praga Tools Ltd as another subsidiary.
THE 1990's:
The Company restructured itself into 5 Business Groups.
Machine Tools, Watches, Tractors, Industrial Machinery and Engineering Components as
part of Business Reorganizations.
The New Millennium:
HMT is now restructured with addition of 3 more subsidiaries to those already existing. HMT
now comprises of 6 subsidiaries under the ambit of the Holding Company which also
manages the Tractors business directly.
 HMT Machine Tools Limited, Bangalore
 HMT Watches Limited, Bangalore
 HMT Chinar Watches Limited, Jammu
 HMT Bearings Limited, Hyderabad
 Praga Tools Limited, Hyderabad
 HMT (International) Limited, Bangalore


Indian export industry is highly regularized by government organization Like Ministry of
Commerce, Commodity Board, Export Inspection Council, Export Promotion Council, Public
Sector Trade Houses, and advisory Bodies.
After Globalization international trade has gained lot of importance and the country has
realized the importance of export promotion and is taking steps to improve the
international trading transactions. Government with a view to improve the marketing
infrastructure has established export-trading houses for the promotion of exports. The
organization was established with a motive for being an international agent for wide range
of the organizational products and also for other Indian products.
The high growth of exports was because of the following reasons,
 Increase in price competitiveness of Indian Exports due to increase in world price
 There was a boom in Agro-Based exports such as oil cakes, marine products and
 Increase in the exports of projects in the middle eastern countries
 New Markets emerged in oil producing countries with boom in oil prices
 Increase in the quantum index of exports
Between 1980 and 1991 there was a decline of exports due to fall in Dollar value, slowdown
of World Trade, Gulf Crisis, Political upheavals in Eastern Europe, Movement of Exchange
rates, Law and order problem, and so on .
Trading Houses (TH) are independent companies staffed by international trade experts.
They are business intermediaries between manufacturers and the foreign buyers or
consumer of goods and services. Trading Houses export, import and engage in third country
trading of goods and services produced by other companies by acting as:
 International traders who buy and sell products for their own accounts
 Export agents who act on behalf of another party and are paid commission
 Export management companies which handles a portion of the parent company’s
exports, and can engage in counter-trade, if necessary
 Purchasing agencies which supply foreign companies
In the prevailing context of an increasingly global economy and with strong foreign

competition on international and domestic market, Treading Houses and their
understanding of the foreign markets play a more important role. Trading Houses handle
50% of export to destination outside.
Expertise in foreign markets

By buying through a Trading Houses, manufacturers can benefit from Trading House’s
unrivalled knowledge of the foreign markets. Trading Houses are specialized in export
finance and management and can minimize financial risks. They are conversant with
overseas buyer’s needs and market requirements.
In addition, Trading Houses can tailor their services to the needs of manufacturers and
buyers. They manage the risks associated with international trade transactions by
establishing long-term business relationship with foreign clients and by carefully monitoring
developments in overseas markets


HMT Limited, with a diverse range of products, over 18 manufacturing units and a
countrywide well established marketing network restructured its various businesses into
different subsidiaries under the ambit of a holding company. The constituent subsidiaries of
HMT Limited are as below while the holding company retains the Tractors Business Group.

HMT LTD. Head office, Bangalore

Sl. No. Name of Subsidiary % Holding

1. HMT Machine Tools Limited 100
2. HMT Watches Limited 100
3. HMT Chinar Watches Limited 100
4. HMT International Limited 100
5. HMT Bearings Limited 97.25
6. Praga Tools Limited 51.00
The Holding Company with its Corporate Head Quarters at Bangalore forms the hub for the
activities of the different subsidiaries. The Holding Company while ensuring good corporate
governance also pursues strategies such as
Creation of strategic alliances,
Development of brand equity,
Provision of strategic planning inputs,
Interface with regulatory agencies,
Creation and maintenance of data warehouse with suitable corporate informational data for
the use of all subsidiaries.
It has had technical collaboration with over 30 leading International Engineering Companies
for manufacture of various products. HMT's diversified product range include in Machine
Tools, Watches, Tractors, Printing machines, Presses, Die casting and Plastic Injection
Molding machines, Food processing machinery, CNC systems, Ball screws etc.
Today, HMT is a multi-product, multi-technology engineering complex with strengths
comprising of:
16 Manufacturing units (22 Product Division)
Assets worth over US $ 250 million
Annual turnover of US $ 300 million
ISO 9000 accreditation
The widest range of machine tools, ranging from General purpose lathes to CNC
turning/machining centers.

Source of qualified and experienced manpower


HMT's range of products are marketed internationally by its subsidiary, HMT (International)

Ltd. HMT(I) also exports machine tools and other engineering products manufactured by
other reputed firms in India backed by efficient after-sales-service. HMT (I)'s global network
extends over 38 countries with 60 representations to service its clientele world-wide.
Backed by HMT(I)'s strong technological base and formidable resources, HMT(I) over the
years, has come to be recognized as a reliable source for project expertise in a spectrum of
engineering fields, covering manufacturing, maintenance and training projects. HMT (I) also
offers a comprehensive package of consultancy, technical and engineering services from
concept to commissioning on turn-key basis. Its track record includes prestigious projects in
Algeria, Indonesia, Kenya, Malaysia, Mauritius and Tanzania, UAE, Maldives and other
HMT (I) has also arrangements with reputed Associates in different disciplines/fields to offer
technology as required in specific fields.

HMT (International) has been recognized as "MINIRATNA" by Government
of India for its continued excellence in export performance

Strategic Business Plan

Strategic focus:

HMT (International) Ltd has adopted a strategic approach, focused on SECTORS, PRODUCTS,
& MARKETS to exploit short & medium term business opportunities and has also embarked
on market development plan for the future.
Emphasis is on:-
 Building on core competencies of HMT Machine Tools Limited, HMT Watches
Limited, HMT Bearings Limited and Tractor Group of HMT Limited.
 Thrust on project & Consultancy expertise in Engineering & Entrepreneur
Development & Training.
Strategic Initiatives for long term growth:-
1. Focus on high value machine tools in the target markets.
2. Enter into-ups with machine tool manufacturing in India.
3. Pursue Non-MEA Projects and for more share in MEA projects.
4. Build on the expertise in the implementation IT Projects.
5. Aggressive marketing through frequent marketing visits.
6. Renewed marketing efforts through project site offices.
7. Tie up with other industrial houses and agencies to widen the basket for project.
8. Undertake trading & imports for the PUSs under DHI.
9. Implementation of Salary/ Wage revision to prevent attrition of skilled personnel as
well as to attract fresh talent.


HMT started manufacturing machine tools in 1953 in technical collaboration with Oerlikon
of Switzerland. Starting with High Speed lathe H22 today has probably the widest range of
machine tools in the world spanning center lathes to sophisticated CNC Turning &
Machining Centers and flexible manufacturing systems. HMT Limited has incorporated
“HMT MACHINE TOOLS LIMITED” as its fully owned subsidiary. “HMT MACHINE TOOLS
LIMITED” (HMT-MTL) is a Multi unit, Multi location, Multi technology Company
manufacturing a wide variety of “STATE-OF-THE-ART” Machine Tools. HMT-MTL has its ISO
9000 certified manufacturing units at five locations with each unit specialized in a particular
family of Machines. The Sales and Service network is spread across the length and breadth
of the country

hmt radial drill

HMT single colour machine28


HMT (I) offers a comprehensive package of consultancy, technical & engineering services
from concept to commissioning on turnkey basis in the areas of engineering, technical
training and entrepreneur development. HMT (I) also offers Technical & management &
consultancy Services covering Market research, Demand Studies, Project Formulation &
Appraisal Studies, Project Design & Engineering, Project Management, etc. Including
Modernization/Rehabilitation studies for the various types of Engineering projects. HMT (I)
has set up many prestigious projects in different countries.
Business Domain

Training projects

The present need of developing countries is to empower the youth with technical
and entrepreneurial skills, which will serve as a rock-bed of industrial development. HMT(I)
with its experience is setting up training centers in many developing countries, plants and
provides assistance on a turnkey basis, to set up project for strengthening the technological

competency in newly industrialized and developing countries
HMT (I) has set up training centers in:
 Indonesia
 Iraq
 Nigeria
 Malaysia
 Maldives
 Mauritius
 Senegal
HMT(I) imparts training in variety of technical trades such as machinist, tool design, tool and
die making, sheet metal fabrication refrigeration and air-conditioning, civil engineering,
electrical, electronics, information technology etc.
HMT (I) also offers short term training programme in
 Maintenance and reconditioning of machine tools
 CNC technology
 Mechatronics


1. Machine Tools, Die-Casting
2. Machines
3. Printing presses, Sheet Metal &
4. Fabrication Workshops
5. Tractors & Other Agricultural Machinery & equipment including Pumps &
6. Cutting Tools including Hacksaw Blades & Hand Tools
7. Water Meters, Gas Meters &
8. Regulators
9. Diesel Engines
10. Automobile Ancillaries like Shock Absorbers, Filters, Clutches, Propeller Shafts,
Cylinder Liners, Valves, Wheels, V-Belts etc.
11. Consumer Durables such as Watches Straps, Watch Cases, Clocks, Fans, Pressure

Cookers, Sewing Machines
12. Powder coating line on Aluminum products
13. Builders Hardware
14. Bearings
15. LPG Cylinder Manufacturing Unit
16. Mini Cement Plants
17. Steel Rolling Mills, Wire Rod Mills
18. Steel Wire Ropes & Link Chains
19. Rice Milling Units
20. Welding Electrodes
21. GLS Lamps & Lamp Fittings
22. Electrical Motors & Transformers
23. Standard part such as Fasteners, Springs, Oil Seeds, ‘O’-Rings, Other Rubber
Moulded parts
24. Ferrous & Non-Ferrous Foundry including Alloy Steel Foundry
25. Forge Shop
26. Tool Rooms
27. Maintenance & Re-conditioning Workshops (both transport & industrial) &
Spare parts Manufacturing Shops
28. Industrial Estates, Common Facility Centers & General Engineering Workshops
29. Barrel Drum Manufacturing Units
30. Railway Rolling Stock & Railway Accessories Forging/Machining Lines & Flexible
Manufacturing Systems


Based on the strengths of this invaluable technical expertise accumulated over the years,
HMT (I) has been recognized as a reliable source for project expertise in a spectrum of
engineering filed to offer optimum solution keeping in view the requirement of the Clients.
The files cover Manufacturing Maintenance and Training Projects.
HMT (I) offers a comprehensive package of Consultancy, Technical & Engineering service
from the stage of ‘CONCEPT TO COMMISSIONING’ on a Trunkey basis which including:

 Market Research & Product Survey
 Complete Package deals (Demand Survey, Production, Pricing and Marketing
 Project Identification & Formulation, Project Profiles, Pre-Feasibility Reports
 Feasibility Reports/Techno-Economic Surveys
 Details Project Reports
 Replacement, Modernization & Cost Reduction Studies
 Project Evaluation Studies
 Project Engineering Services
 Technology Transfers & Collaboration Services
 Supply, Installation of Plant & Machinery
 Training & Rendering Expert Services
 Trunkey Project Engineering & Implementation
 Machine Tool Re-Engineering Services
 Each of the above capabilities would cover the following areas:
 Markets
 Products
 Methods
 Production Technology
 Economics
 Plant Facilities
 Engineering Standards
 Training & Development

Development of Small & medium Enterprises (SMEs)

Development of Small & medium Enterprises (SMEs) is the rocked for industrialization & is
the key for achieving Self sufficiency/reliance for developing countries.
HMT, Holding company acquired considerable expertise in execution of Turnkey Projects
through the duplication projects since 1960s. Over five decades. HMT has contributed to the
industrial process in India & abroad through its service for small, medium & large scale
sector with a proven track record. It is no wonder that HMT (I) has a proud Track Record of

success and satisfied customers in many parts of the world.
HMT (I) markets this experience through four pronged approach:
 Setting-up of Entrepreneur and Technical Development Centers (ETDC)
 Providing intense machining facilities through Common Facility Centers
 Small & Medium Enterprises Services Institutes (SMESI)
 Cluster of various SMEs
 The focused Objectives of the above concepts include:
 Technical & Commercial Guidance
 Offer capital intensive precision facilities
 Generate a pool of high skilled technicians and master craftsmen
 Develop trainee entrepreneurs and technocrats with capabilities to set up
Offer modular Short-term courses to Industry & Institution sponsored technicians.


EDTC helps to develop skill infrastructure through imparting technical & entrepreneurial
skills required to set up SMEs. It also helps to generate employment and strengthen
infrastructure. The skill development is through an adequate mix of theory, practical and
On-the-Job training. The annual intake for such Industrial Development Centre
suggested/proposed could be about 150 students or as enquired for identified course of
One or Two years duration. Some of the areas covered under ETDC are:
1. Tool & Die making
2. Tool Design
3. Maintenance
4. Automobile Reconditioning
5. Electronics
6. Refrigeration & Air conditioning
7. Textile Technology
8. Information Technology
9. Food Processing Technology

Common Facility Centers (CFCs)

The common facility center provides precision capital intensive facility and basically serve as
nucleus to cater to the machining needs of the SMEs providing high-tech engineering and
manufacturing facilities. These CFCs also provide them the technical and commercial
guidance through qualified and experienced experts in these centers.
 The high-tech facilities primarily cover the following areas:
 Tool Room
 Machine shop covering Metal Cutting & Metal Forming
 Automobile Reconditioning
 Textile Laboratory
 Computer Center
 Food Processing
 Material Testing
Small & Medium Enterprises Service Institutes (SMESIs)

The primary objective of the small & Medium Enterprises Service Institute is to cater to the
needs of the Industrial sector, augment promotion and development of SMEs and serve as
the Nodal Agency for the implementation of government’s policies.
 The key functions of SMESIs:
 Consultancy in Technology, Management, Finance, Marketing etc.
 Interface between Government and SMEs
 Assist SMEs in up-gradation, Modernization and Rehabilitation

Cluster of SMEs:
HMT (I) has the following capabilities to assist and advice in setting up cluster of SMEs for
products or process manufacturing depending on the availability of infrastructure and
supply of raw materials:
 Preparation of Detailed Project Report (DPRs)
 Technical Know how

 Supply of machinery & equipment
 Installation & Commissioning


Heralding an era of Green Revolution in India, HMT launched manufacture of Tractors in
collaboration with Zetor of erstwhile Czechoslovakia. Starting with 20 HP Tractor today HMT
manufactures tractors in the range of 20-75HP at its plants in Pinjore, Mohali and
Hyderabad The tractors have *Powerful fuel efficient engines with low emissions * Power
Steering * Roll Over Protective Structure for safety * Hydraulic Brakes * Dual Clutch for
travel and PTO operations * Extra power for deep ploughing and high back up to for extra
lugging capability * Lower noise levels * Spark Arrestors * Sleek modern aesthetics The

above models are available in Coastal Special, Hauler Models. HMT also offers Orchard
Specials in 25 HP range. HMT (I) offers various Implements such as - Disc Plough * Mould
Board Plough * Rotavator * Disc Harrow * Ridger * Cultivators *Land Levellers * Roto
Slasher * Trailers * Seed drill * Sugar cane Planters * Threshers.


HMT Limited, the first company to start watch manufacturing in India, today has "HMT

WATCHES LIMITED" as its fully owned subsidiary. It manufactures Eco Friendly Mechanical
(Hand wound & Automatic) and Quartz Analog watches. The manufacture of wristwatches
started as part of diversification strategy of HMT in the year 1962, under Technical
collaboration with CITIZEN Watch Company of Japan with a manufacturing unit at
Bangalore. HMT WATCHES LIMITED comprises of three manufacturing units at Bangalore,
Tumkur and Ranibagh while its marketing headquarters is based in Bangalore. The product
range of HMT WATCHES LIMITED includes more than 1500 models to choose from catering
to all segments of the market, from Economy to Premium and Young to the Old. HMT brand
enjoys a very high brand equity in the India Market. The brand has consecutively been
adjudged as one of the best Indian brands in surveys by leading agencies in the country.
HMT brand continues to be the main stream brand among major watch dealers in the
domestic market. The Quality and Reliability of HMT watch has been the main selling
feature and attraction for the consumer.
HMT started manufacturing wrist watches since 1962 and today we have four
integrated Manufacturing units, employing highly skilled work force, producing over
7-million high quality watches/watch movements per annum in hundreds of designs,
in mechanical and quartz. The technology for the manufacture of watch movements
and watches has been acquired from citizen (Japan).
HMT watch manufacturing units have ISO-9001 certification.
our products conform to absolutely rigid quality standards and are well accepted in
the international market. We are regularly exporting our watches/watch movements to
countries in the middle east, south east and Japan.

HMT WATCHES are master pieces in engineering excellence and are designed to give years
of trouble free service.


Mechanical Watches


Hand wound



Quartz Analog Watches





















Special Watches


Institutional Orders Catalogue


HMT (I) offers a wide range of bearings, components, workshop equipment, laboratory
equipment and commodities. The variety spans * Machined Components * Pressed Parts &
Sheet Metal Components * Ferrous & Non-ferrous Castings * Forging * Die-cast Parts * Dies
& Moulds * Ball Screw Assembly * Industrial Furnaces * Compressors * Transmission belts *
Welding flux, welding rods and equipment * Workshop & Factory Equipment * Metrology &
Inspection Equipment * Scientific & Laboratory Equipment apart from Industrial &
agricultural Commodities.


HMT (I) provides expert services in the field of setting up of IT Training & Software
Development Centers. HMT (I) also undertakes software projects in the areas of trading,
management of training centers, etc.


HMT (I) is emerging as a nodal agency for imports of engineering components, equipment,
machinery, electrical systems, machine parts etc., and engineering commodities like special
steels, wood pulp, paraffin wax, coal, optic fiber etc. HMT (I) has acquired agencies for
products like ball screws, auto tool changers, interchangeable turret type milling heads etc.,
and has been able to source a whole gamut of engineering products from abroad for Indian
industries looking for imports.

1. Shri A.V.Kamat Chairman
2. Dr.Surjit Matra Govt.director
3. Shri Rajeev Kher Govt.director
4. Shri K S N Reddy Managing director
5. Shri Thomas Oommen Director (international marketing)


The regional Top Export Trophy – Services Exporter (Non SSI) for the year 1998-99 from
EEPC, Southern Region, Chennai.
The All India trophy for Highest Export for the year 1997-98 from EEPC, Calcutta
The regional Top Export Trophy – Services Exporter (Non SSI) for the year 1998-99 from
EEPC, Southern Region, Chennai.
The All India trophy for Highest Export for the year 1997-98 from EEPC, Calcutta
The regional Top Exporters Shield – Project for the year 1996-97 from EEPC, Chennai.
The regional Top Exporters Shield for the year 1995-96 from the Engineering Export
Promotion Council, Madras during the year 1995-96.
The certificate of Export Excellence – Non-SSI under the Machine Tool Panel Institute
The all India special shield for export of Engineering Products under the Non-SSI Category
for the year 1994-95 instituted by the Engineering Export Promotion Council, Calcutta
Engineering Export Promotion council Calcutta for the year 1995-96
The all India special shield for export of Engineering Products under the Non-SSI Category
for the year 1994-95 instituted by the Engineering Export Promotion Council, Calcutta

The all India special shield under the category of New Product Exporters- Non-SSI from the
Engineering Export Promotion Council, Calcutta for the year 1994-95
The all India special shield for the year 1992-93 in the category Turnkey Industrial Projects -
- Non-SSI from the Engineering Export Promotion Council, Calcutta for the year 1993-94
The regional Top Exporters Shield for the year 1991-92 in the category ‘Other
Trading/Export Houses’ from the Engineering Export Promotion Council, Madras during the
year 1993-94
The all India special shield for the year 1991-92 in the category New Product - Non-SSI from
the Engineering Export Promotion Council, Calcutta during the year 1992-93
The regional Top Exporters Shield for the year 1991-92 in the category ‘Other
Trading/Export Houses’ from the Engineering Export Promotion Council, Madras during the
year 1992-93
The all India special shield for the year 1989-90 in the category Turnkey Industrial Projects -
- Non-SSI from the Engineering Export Promotion Council, Calcutta for the year 1990-91
The regional Top Exporters Shield for the year 1988-89 from the Engineering Export
Promotion Council, Madras during the year 1990-91
The all India special shield for the year 1988-89 in the category Turnkey Industrial Projects -
- Non-SSI from the Engineering Export Promotion Council, Calcutta for the year 1990-91
The All India Top Exporters Trophy for the year 1986-87 and 1988-89 from the Ministry of
Commerce New Delhi, during the year 1992-93 exports performance during 1987-88 by
engineering Export Promotion Council. (Award function held on 28 September 1988).

The all India special shield under the category of Capital Goods- Non-SSI was award for
outstanding export performance during 1985-86 and 1986-87 by engineering Export
Promotion Council. (Award function held on 9
may 1988 at new Delhi).
HMT (I) was selected by the ministry of Commerce, Government of India for Award
“certificate of Merit” for meritorious performance in the field of exports of Non-Electrical
Machinery, Equipment, Machine Tools and Light Engineering Goods for the year 1984-85.
(Award function held on 26
March 1988 at New Delhi).
Award for export excellence given by engineering Export Promotion Council in recognition
of achieving highest export performance during 1984-85 at all India level among Non-SSI
Exporters in Machine Tool Panel. (Award function held on 30
October 1986 at new Delhi).
The regional Top Exporters Shield in Group of ‘Other Export Houses’ for the year 1984-85
Awarded by Engineering Export Promotion Council, Madras. (Award function held on 4

June 1986 at Bangalore).
HMT (I) was selected by the ministry of Commerce, Government of India for Award
“Certificate of Merit” for meritorious performance in the field of exports for the year 1982-
82. (Award function held on 8
January 1986).
The all India special shield under the category of Capital Goods- Non-SSI awarded for
outstanding export performance during 1983-84 by engineering Export Promotion Council.
Awarded for outstanding export performance during 1982-83 in the category of ‘Other
Export Houses’ in Southern Region by engineering Export Promotion Council.
Awarded for outstanding export performance during 1982-83 in the category of Non-SSI
Exporters in Machine Tool Panel by Engineering Export Promotion Council, Calcutta

Awarded for outstanding export performance during 1981-82 in the category of ‘Other
Export Houses’ in Southern Region by engineering Export Promotion Council.
Awarded for excellent export performance during 1981-82 by Engineering Export Promotion
Council, Calcutta at All India level in the category Non-SSI Exporters in Machine Tool Panel.
Awarded by Engineering Export Promotion Council, Madras for outstanding export
performance for 1980-81 in category of ‘Other Export Houses’ in Southern Region.
Awarded by Engineering Export Promotion Council for outstanding export performance for
1979-8o in category of ‘Other Export Houses’ in Southern Region.
Awarded by Engineering Export Promotion Council for outstanding export performance in
the group of Civil construction and industrial project during 1979-80
Awarded by Meritorious performance in the field of exports during 1978-79 by the ministry
of Commerce, Government of India, New Delhi.
The All India Top Exporters shield had been Awarded by Engineering Export Promotion
Council for excellent export performance during 1978-79.
HMT (I) was adjudged by Engineering Export Promotion Council as the top export for 1977-
78 among the export houses merchant Exporters in the Southern Region.
Awarded by Engineering Export Promotion Council in recognition of outstanding export
performance in the Export of Engineering Goods – Machine tools and Wrist Watches during
By the ministry of Commerce outstanding export performance during the year 1975-76

Awarded by Engineering Export Promotion Council for outstanding export performance
during the year 1975-76.
Awarded by Engineering Export Promotion Council for outstanding export performance in
the Export of Machine tools and Wrist Watches during 1975-76.
For outstanding export performance in the field of exports during the year 1973-74.
Awarded by Engineering Export Promotion Council for the best export performance in the
panel Machine Tools in the year 1971-72.
Awarded by Mysore state Export Promotion Advisory Board in Recognition of Export
performance during the 1970-71 in respect of Machine Tools of value Rs.114.86 lakhs.
Awarded by Engineering Export Promotion Council in recognition of outstanding export
performance in the Export of Engineering Goods viz., – Machine tools and Wrist Watches
during 1970-71.
Awarded by Mysore state Export Promotion Advisory Board in Recognition of best export
performance in the year 1967-68.
Awarded by Engineering Export Promotion Council in recognition of outstanding export
performance in the Export of Engineering Goods viz., – Machine tools and Wrist Watches
during 1967-68.


“Our Vision & Mission, commitment in delivering quality products & services in order to add
value to the operations of our clients, maintain Total Quality in our processes, achieve
excellence in the customer relationship, to meet their expectations and to manage the
business on commercial lines in the most fair, honest, ethical and transparent manner for the
benefit of the Customers who are our partners in progress.”

 To satisfy the interest of all the Stakeholders through planned growth in accordance
with Road Map for growth
 Be a market-driven company and continually strive to ensure stakeholder value and
satisfaction by pursuing excellence.
 Provide shared infrastructure and services for business development, marketing and
customer support to HMT’s subsidiaries.
 Market globally products and services from quality-conscious Indian and overseas
 As a good corporate citizen, be a proactive, integral and responsible member of the
communities and environment in which we operate
 Offer quality products/services at competitive prices to the clients.
International marketing of products from the subsidiaries of HMT Limited, viz., HMT
Machine Tools Limited, HMT Watches Limited, HMT Bearings Limited and as well as from
other Indian reputed manufacturers.
Setting up of engineering projects abroad for manufacturing
Technical services for engineering projects

Training in development of technical & entrepreneurial skills and agriculture.
Importing of quality engineering goods, for HMT’s manufacturing units and other Indian
Engineering Industries.
 Machine Tools for metal cutting & metal forming, plastic processing, die casting and
printing machinery
 Watches, movements and movement components
 Tractors, trailers and implements
 Projects & Services
 Machined components, forgings, castings and engineering equipment
 Imports of engineering goods
 The products exported are serviced through a network of agents.
They serve the recipients of their technical services through their network of agents. Their
citizens are
 Agents for Machine Tools, Tractors and Projects
 Distributors for their range of watches
 Their Clients and end users of their machine tools
 Farmers/ organizations who use their tractors
 Governments/Ministries purchasing products directly from HMT(I)
 Governments/organizations for whom HMT(I) has set up projects
 Students who pass out of the institutions set up by HMT(I)
 Individuals who use their range of watches
 Watch manufacturers who use their movements and movement components
 Customer delight is their objective. It is towards this objective that HMT(I) today is
an ISO 9001-2000 company to serve its clients better
 Their products are built with high standards of design, manufacture and quality
control at HMT’s manufacturing units

 Impart necessary training to the users wherever requested for effective usage of the
 Provide adequate after sales service during the warranty period and thereafter
 Train the technical personnel with their Agents
 Provide adequate operation and service manuals


 To encourage the modernization of industries through the supply of engineering
goods service of world class excellence.
 To maintain technological leadership through continuous efforts to update product
technology and manufacturing methods.
 To globalize their operation by developing a mix of international markets and
 To ensure a satisfactory return on capital employed to meet the growth needs and
aspirations of the stakeholders.
 To present an active, pleasant and productive working environment.


Established in 1974 HMT (I) ltd, has grown both in size and stature with a network extending
to over 38 countries including representations in over the 70 countries.
HMT (I) has always scored very high on dependability and superior quality in products and
services as is reflected by its growing client all over the world. HMT (I) ltd, offers easy and
consistent access to reliable technology vast experience assimilated over the year enables
comprehensive projects Engineering packages to be offered.
HMT (I) is recognized by many leading international organizational organizations such as
UNIDO, UNOD, ADB, AFDP and World Bank for its outstanding performance international
trading and export of products and services in the following diverse area.
 Machine Tools industrial machinery
 Watches and watch components
 Tractor and automotive parts
 Projects and services
 Engineering components and products
 Commodities
 Software and its products and service &
 Support staff.

HMT's Milestones

1953 Machine Tools I Bangalore Karnataka
1961 Machine Tools II Bangalore Karnataka
1962 Watch Factory I Bangalore Karnataka
1963 Machine Tools III Pinjore Haryana
1965 Machine Tools IV Kalamassery Kerala
1967 Machine Tools V Hyderabad Andhra Pradesh
1971 Tractor Division Pinjore Haryana
1971 Die Casting Division Bangalore Karnataka
1972 Printing Machinery Division Kalamassery Kerala
1972 Watch Factory II Bangalore Karnataka
1973 Precision Machinery Division Bangalore Karnataka
1975 Machine Tools VI Ajmer Rajasthan
1975 HMT (International) Ltd. Bangalore Karnataka

1975 Watch Factory III Srinagar Jammu & Kashmir
1978 Watch Factory IV Tumkur Karnataka
1981 HMT Bearings Limited Hyderabad Andhra Pradesh
1981 Quartz Analog Watches Bangalore Karnataka
1982 Watch Factory V Ranibagh Uttar Pradesh
1982 Specialised Watch Case Division Bangalore Karnataka
1983 Stepper Motor Division Tumkur Karnataka
1985 Ball Screw Division Bangalore Karnataka
1986 CNC Systems Division Bangalore Karnataka
1991 Central Re-conditioning Division Bangalore Karnataka


It faces competition from both public sector companies and private sector companies. It
mainly faces the serious competition in the sector of tractors and watches but it faces less
competition in other sectors. In case of tractors, competitors are Mahindra and Mahindra,
John Deer, Sonalika, Sivaraj, Escorts and so on.
In case of watches, HMT (I) has been washed by its competitors. It faces competition from
Titan, Sonata, Orpat, and Timex and so on.
Pioneer in machine tools business in India. Leading manufacturer of conventional and CNC
Largest machine tools manufacture in the private sector. Collaboration with German
machine tools manufacturer.
ACE Designers Ltd. is a leading manufacturer of CNC turning centres and Auto lathes is a
part of the ACE group of companies that manufacturers and export CNC machine tools,
grinding machines, turrets etc. to Europe and USA group.
Batliboi ltd is among the leading engineering and machine tool manufacture in India.
Lakshmi Machine works is a leading engineering and machine tools manufacturing company

Organization structure:

It is defined as structure of relationship resulting from functional differentiation downwards
of primary or organization function.

a) Hierarchy of Authority
In HMT (i) Ltd. Span of management is not fixed and it is not the same everywhere. it varies
from department to department.
b) Authority of responsibility
In HMT (i) Ltd. Authority is decentralized i.e. dedicated to various levels of management
c) Decision making process
Decision making process is the key part of manager’s activities. In HMT (i) Ltd. The
departments are at liberty to take decisions regarding day to day activities.
d) Span of control
It indicates the number of subordinates who report directly to a manager. Determination of
appropriate span of management is very important

Hierarchy & Organizational structure


Business Groups in HMT (I) Ltd

Product Projects Commercial Finance





With HMT’s strong technological base, hmt (I) Ltd, over the years, has been recognized as a
reliable source of project expertise in a spectrum of engineering fields, covering
manufacturing, maintenance and establishment of training projects also imparts training in
different fields like
 computers
 Industry base etc.
HMT (I) offers a comprehensive package of consultancy, technical and engineering services
from concept to commissioning on a turnkey basis.
Service package
 Market research and product surveys
 Project identification, formulation and appraisal
 Project design and engineering services
 Technology transfers and collaboration services
 Supply, installation of plant and machinery
 Training and expert services
 Turnkey project engineering and implementation
 Technical, project management and consultancy services
 Machine tool re-engineering/refurbishing services
Training projects
The present need of developing countries is to empower the youth with technical
and entrepreneurial skills, which will serve as a rock-bed of industrial development. HMT(I)
with its experience is setting up training centers in many developing countries, plants and
provides assistance on a turnkey basis, to set up project for strengthening the technological
competency in newly industrialized and developing countries
HMT (I) has set up training centers in:
 Indonesia
 Iraq
 Nigeria
 Malaysia
 Maldives
 Mauritius
 Senegal

HMT(I) imparts training in variety of technical trades such as machinist, tool design, tool and
die making, sheet metal fabrication refrigeration and air-conditioning, civil engineering,
electrical, electronics, information technology etc.
 HMT (I) also offers short term training programme in
 Maintenance and reconditioning of machine tools
 CNC technology
 Mechatronics
Track record of technical services rendered:
Assignment abroad:
 Establishment of company standards, through deputation of experts to machine
sazi, Tabriz, Iran
 Study for tractor factory modernization for state enterprises for mechanical
industries, Iraq.
 Technical assistance to ALMO.
 Technical services in tool room and training centre, DIJIK, Indonesia.
 Deputation of experts in the field of maintenance of machine tools phase-I,
SNVI/CVT, Algeria
 Technical services in the field of maintenance of machine tools and equipment, tool
setting and tool making, ENTC/CMTL, Algeria
 Deputation of experts in the field of reconditioning of machine tool phase –II and III,
SMVI/CVT, Algeria
 Technical services in the reconditioning of machines, ENAMAC, Algeria
 Technical services for setting up regional maintenance bases, Algeria
 Technical services for industrial maintenance of telecommunication factory, Algeria
 Technical service for phase-I,II & III, central tool room, border general
establishment, Iraq
 Study for setting up of machine tool plant for specialized institute of engineering,
 Technical assistance in reconditioning of GLS lamp making machinery, Tanzania
national development corporation (NDC) , Tanzania
 Technical assistance for establishing engineering design and tool centre, Ethiopia.

 Deputation of experts of a project to industrial and vocational training board, IVTB,
 Deputation of a project manager to implement course in industrial maintenance,
IVTB, Mauritius.
 Project study for artificial limb project, Uzbekistan.
 Technical services for machine tool in Nigeria for UNIDO.
 Study for revival of machine tool factory for government of Nigeria.
Assignments in India:
 Training of technical instructors from Indonesia
 Training of tractor technicians from Ethiopia
 Training of technicians in metal cutting trades from Ethiopia
 Technical training of the officers from tool room and tool design, Sri Lanka,
international development bank.
 Training on appreciation of enterprise resource planning software package
 Training on Tanzanian personnel, from small industries development organization,
(SIDO) Tanzania
 Training of experts from Vietnam
Project track record of turnkey and semi-turnkey projects:
 SONELGAZ, Algeria, for manufacture of gas meters/ water meters and regulators.
 Maintenance – cum- machine tool reconditioning shop, SNVI/CVT, Algeria
 Eight common facility centers for SIDO, Tanzania
 GLS lamp manufacturing unit for CEILMAC, Tanzania
 ARCEDEM, supply of machines, equipment and services, Nigeria.
 Advance training centre for ministry of youth and sports, Malaysia
 Mechanical training centre SOTI, Iraq
 Small industries development organization, Mauritius
 Prof. Upadhyaya training centre for Govt. of Mauritius
 Training centre assembly unit for associated electrical industries, Kenya
 Hack saw blade project, for Rambhai and co. Kenya
 Welding electrodes manufacturing unit for Rambhai and co. Kenya
 Defence industry commission (DIC) Ethiopia.
 Iran machine making and industrial development organization (IMIDO), Iran
 GLS lamp assembly unit for galaxy enterprises ltd Botswana
 Gulf metal foundry, UAE- joint venture
 Maldives institute of technical education, Maldives
 Entrepreneur technical development, Govt. of Senegal
 Tool room centre, Turkmenistan

 Tool shop extension project, Nepal

On-going project of HMT (I)
Ministry of external affairs and Govt. of India considered a request of Govt. of
Myanmar and asked HMT to submit a proposal. A team from HMT went and visited
Myanmar for a field study.
Observations by the ministry:
No technical training indicated and hence opportunity for youth to take up
employment is limited.
Recommendations of the team:
In line with the requirements of ministry of industry, Govt. of Myanmar, it is
proposed to set up Indo-Myanmar industrial training centre. IMITC will cater to the needs of
youth of age 15-20yrs who have appeared or passed matriculation exam.
It is proposed to utilize Govt. of India’s assistance.
 To supply identified machines, equipment, tools and instrument and other
items for the technical trades identified.
 To impart training to the Myanmar instructors in India
 To depute Indian experts for erection, commissioning of suppliers to the project

Counterpart participation from Govt. of union of Myanmar
It is proposed that the Govt. of Myanmar provide at its cost counterpart
participation the following for the project
Nomination of an agency for implementing the project on behalf of Govt. of Myanmar
Provide adequate land with provision for future expansion
Architectural designing and construction of building with all infrastructure facilities including
air-conditioning of selected areas

The administration of IMITC will arrange the required man power for administration and
running of IMITC.
 Facilities required at IMITC pertaining to class room, office furniture, material
storage, auxiliary equipment etc. which are not covered in the list of equipment
planned for supply from Govt. of India
 Arrange port clearance, customs clearance of goods shipped from India
 Waiver or payment of customs duty, taxes, levies and other duties
 Identification/selection of qualified personnel for conducting classes and also for
deputation of India for training
 Payment of salary at Myanmar during deputation of the above personnel, the pocket
allowance during their stay in India and the travel insurance.
Project cost:
Project cost forming part of Govt. of India assistance for the supplies and technical
services is Rs. 1474 lakhs
Project schedule:

Sep 2008 Submission of report by HMT(I)
Oct 2008 Signing of MOU between Govt. of India & Govt. of Myanmar for
implementation of the project.
Oct 2008 Signing agreement between implementing agency and GOI.
Dec 2008 –
Feb 2009
Visit and preparation of detailed implementation report.
Jun 2009-
Sep 2009
Training in India
Jun 2009-
Oct 2009
Shipment of supplies
Aug 2009 Deputation of Indian experts to Myanmar
Dec 2009 Commencement of activities at IMITC, Pakoku

Previous project of HMT (I)
Indo-Tajik modern engineering work shop (ITMEW)
The embassy of India had organized a visit to Tajik technical university for a study
and detailed discussion on the project. A two member team did a field study for the setting
up of a tool-cum-training centre at Dushanbe the main proposal was to set up a new
ITMEW, by removing old machines and replacing them with modern machines like turning,
milling, grinding, electro discharge machines and CNC machines.
Observations by the team
Technical university has a mechanical lab, but there is an existence of old machines
and also there is no vacant place.

Export and Import department

This department makes a preliminary market research with regard to market potential and
how best it may be tapped in the interest of the export business.
Stages of export marketing:
The task of planning the approach towards export market involves following steps:
 Basic data collection
This may be through desk research from published source of information.
 Planning and marketing strategy:
On the basis of variables obtained from the desk research a marketing strategy
regarding the product, pricing, packing promotional techniques etc. for the market in
question may be arrived.
 Implementing the marketing strategy:
Implementation of the strategy is the most vital step. This must be done after carefully
analyzing the strategy and undertaking a swot analysis of the source
 Identification of overseas agents.

 Establishing contacts with diplomatic mission’s

Emerging markets and opportunities for the Indian exporters:
As a monetary step to promote exports, the ministry of commerce has pulled of a
miracle in a bid to overshoot an ambitious export target of US$ 75 million by the end of the
century. An analysis of trade destinations reveals that approx. 70-80% of Indian exports is
being made to principal trading partners of India.

1. 15 destination countries have been identified as principal trading partners of India
they are as follows:
a. USA, Belgium, Italy, CIS, Bangladesh, Singapore, Netherlands, France, South
Africa, Thailand and African countries.

2. The other important aspect of marketing is that the responsibility does not end with
just delivering of goods. After sales service should be provided to take care of
trouble free service of the goods.

3. Market research is also required to be adopted on the continuous basis, which helps
an exporter assess the prevailing market situation i.e. demand for the required

4. The aspects of market research are:
a. Scanning of the market,
b. Adaptation of the marketing strategy (marketing mix)
c. Collecting latest market information (updated and relevant/reliable) etc.
Procedure for exports:
 Quotation/ perform invoice
 Purchase order/ agreements/ contracts
 Purchase order on supplier
 Letter of credit and financial documents
 Pre-shipment documents
 Shipment documents
 Negotiation of documents
 Receipt of remittance (sales proceeds)
Settlement of disputes is done through Arbitration and Conciliation.

Work flow model

Identification &
receipt of enquiry
Contact with
Follow up
Enquiry review
To customers
Registration of
Enquiry details
Offer submission
Circulation of
enquiry to
Follow of offer Approval of offer
Offer of customer Order realization Customer order
Neagotation with
customer &
Order acceptance Order execution
Arrange HMT (i)
Record sales
dispatch to
Conclusion of
Maintaince of file

Facilitating Imports of HMT units:

1. Receipt of LC requests from HMT
units for establishment of import
Receipts of LC requests from HMT units
along with relevant document that would
 Copy of p.o. already placed if any
 Details of requirements as applicable
 Order conformation from supplier, if
 LC details.
2. Approval for establishing import LCs
This will be done taking into consideration
value of exports orders available with the
unit/anticipated export order in pipe line.
3. Recording of orders
Orders received from units for import LC
establishment will be recorded in the weekly
report format FM-IM-006. Record would be
maintained for the cumulative orders
received during the year.

4. Release p.o. by HMT(I) on the
overseas supplier
If the unit has already placed a p.o., then
p.o. number of units which will be quoted by
the supplier in subsequent correspondence,
otherwise a fresh p.o. shall be issued to the
overseas source.
5. Establishment of LC by HMT(I) Copy of LC will be faxed to the unit.
6. Follow up
Follow up for delivery with the overseas in
generally done by the unit themselves. If
required, this will be done by HMT(I)
7. Receipt of dispatch details
Copy of bill of lading/AWB, invoice and
packaging list will be obtained from the
supplier (through fax). Also, the original
documents will be obtained through mail.
8. Recording of sales
Sales will be recorded in the weekly report
as per format FMT-IM-2006. Record would
be maintained for the cumulative sales
during the year.
9. Entering into a high sea sales The ownership of the goods shall be

agreement with the unit transferred to the customers by entering
into a high sea sale agreement format FM-
IM-007 after dispatch of goods and before it
lands in Indian seaport/ airport. Copy of the
high sea sales agreement will be forwarded
to the finance department


Documentation, shipping and logistics:
When preparing to ship a product overseas, the exporter needs to be aware of
packing, labeling, documentation and insurance requirements. Because the goods are being
shipped by unknown carriers to distinct customers, the new exporter must be sure to follow
all shipping requirements to help ensure that the merchandise is:
 Packed correctly so that it arrives in good condition.
 Labeled correctly to ensure that the goods are handled properly and arrive on time
and at right place
 Document correctly to meet local and foreign government requirements as well as
proper collection standards; and
 Insured against damages , loss and pilferage and, in some cases, delay

Because of the variety of consideration involved in the physical export process, most
exporters, both new and experienced, rely on an international freight forwarder to perform
these services.
Freight forwarders:
The international freight forwarders acts as an agent for the exporter in moving
cargo to the over destination. These agents are familiar with the import rules and regulation
of the foreign countries methods of shipping, government export regulation, and the
documents connected with foreign trade
Freight forwarders can assist with an order from the start by advising the export of
the freight costs, port chargers, consular fees, cost of special documentation and insurance
cost as well as their handling fees- all of which helps in preparing price quotation. Freight
forwarders may also recommend the type of packing for best protecting the merchandise in
transit; they can arrange to have merchandise packed at the port or containerized. The cost

for their services is a legitimate export cost that should be figured into the price charged to
the customer.
When the order is ready to ship, freight forwarders should be able to review the
letter of credit, commercial invoices, packing list and so on to ensure that everything is in
order. They can also reserve the necessary space on board an ocean vessel, if the exporter
desires. If the cargo arrives at the port of export and the exporter has not done the required
arrangements, freight forwarders can make the necessary arrangement with customs
brokers to ensure that the goods comply with customs export documentation regulations. In
addition, they may have the goods delivered to the carriers in time for loading. They may
also prepare the bill of lading and any special document required. After shipment, they
forward all documents directly to the customer or the paying bank if desired.
While packing an item for export, the shipper should be aware of the demands concerned
with export packaging. Four problems must be kept in mind when an export shipping crate
is being designed:
 Breakage
 Weight
 Moisture
 Pilferage
Most general cargo is carried in containers, but some is still shipped as break bulk cargo.
Besides the normal handling encountered in domestic transportation, a break bulk shipment
moving by ocean freight may be loaded aboard vessels in a net or by a sling, conveyor chute
or other methods, putting added strain on the package.
Various types of packing are:
12mm ply wood sheets; sides joined with good seasoned jungle reapers of size 4”X1” are
used. Runners of size 3”X5” height is provided at the base for easy handling cases. These
cases are made of nails/bolts and nuts

Good seasoned jungle wood reapers of the size 4”X1” are used. Runners of size 3”X5” height
is provided at the base for easy handling cases. The inner side of the carte is lined with 50
GSM transparent polythene plastic sheets.

12mm single sheet base with good seasoned jungle wood runner of size 3”X5” height is
provided at the base for easy handling of cases.
The given item have to be initially wrapped with bubble and corrugated sheets and gunny
wrapped with plastic strapping

The given items have to be shrinking wrapped with plastic strapping for both ocean and air
shipments, freight forwarders and carriers can advise on the best packaging. Marine
companies are also available for consultation. It is recommended that a professional firm be
hired to package for export if the exporter is not equipped for the task. This service is
usually provided at a moderate cost.
Specific marking and labeling is used on export shipping cartons and containers to:
 Meet shipping regulations,
 ensure proper handling
 conceal the identity of the contents,
 Help receivers identify their shipment.
Exporter needs to put following markings on the cartons to be shipped:
 shipper’s mark
 country of origin (exporter’s country)
 weight marking (in pounds or in kilogram )
 number of packages and size of the cases (in inches or centimeter)
 handling marks (international pictorial symbols)
 cautionary marking, such as( “this side up” & ”use no hooks”)
 port of entry (importers port)
 Labels of hazardous materials.
Legibility is extremely important to prevent misunderstanding and delay in shipping letters
is generally stenciled onto packages and containers in waterproof ink. Marking should
appear on the three feces of the container, preferably on the top and on the two ends or
two sides. Any Old markings should be completely removed.
Taking all the controls on the international trade into consideration and also the risk
factors involved, the documentation commands a very important and vital role in exports. In

the entire documentation in the export trade can be basically divided into 2 categories as
stated below

Pre-shipment document are those which the exporter has to generate, authenticate, submit
to the concerned authorities and departments etc. and get the necessary clearance, prior to
the actual shipment of the cargo so that the cargo can be moved out of the country validly
and the exporter can receive the proof of shipment. The pre-shipment documents are
generally prepared when the export cargo is produced and prior the shipment

Some of the pre-shipments documents are:

Anybody wishing to export will have to prepare this invoice and submit the same in the
standardized format.

This is also a standardized, mandatory document and exporters will have to prepare the
same and submit to customs for clearing the cargo and no other form of packing list will be

Since the entire activities are done through EDI, where ever the shipping bill is filled under
EDI scheme, separate GR forms are not demanded. Instead the foreign exchange copy of the
shipping bill performs the role of GR forms. The bank also asks for a self-declaration form to
be filled up and submitted by the exporter along with the foreign exchange copy of the EDI
shipping bill and both these documents together performs the function of GR
4. ARE -1 FORM
This is a very important regulatory document prescribed by the central excise department
for the exemption/drawback of the excise duty. This exemption can be availed by two

Under the first method, the exporter can pay the excise duty, like what is being done in the
domestic trade, export the cargo and then bring the proof of export and draw back the duty
paid earlier
Alternatively, the exporter can export the cargo without making the payment of excise duty.
This method is known as exporting under Bond/ LUT. Here the exporting firm has to execute
a legal undertaking with the central excises department in the prescribed format. This is
called a LUT and will be signed by an authorized signatory of the organization.
This undertaking will bind the exporter to bring the foreign exchange as revenue of
exports and also to submit the necessary proof of exports to the satisfaction of the excise
pay excise duty,
export and
apply for draw
back of duty
export with out
payment of
excise duty-
under LUT

department. On submitting such LUT, the department will verify the same and if found ok,
shall give an acceptance letter. Exporter will quote this acceptance number and the
organization can remove the goods without payment of excise duty and export the same
Shipping bill is made through EDI system these days in many of the customs offices,
manual shipping bills are to be submitted as per the approved format available. In any case,
whether EDI or manual, shipping bills is a statutory document prescribed for the export. In
fact shipping bill will be the only document accepted by any government department as a
proof of shipment and hence this should be treated as a primary document of export.
If specified in the export order, L/C etc. or if the commodity is a notified item, this
will become a pre-shipment document and otherwise this will be considered as a post-
shipment document. Exporters can get this certificate generally from the concerned
chamber of commerce against the submission of the filled forms along with copies of
invoice, packing list etc. and pay the specified fees.
Even though the certificate of inspection is not a mandatory document, it will get into such
category if the buyer’s order/ contract or the L/C etc. specifies this as a document required
pertaining to the export activity. Fundamentally, the specified inspecting authority will issue
this document. The inspecting authority may be varying as per the contractual conditions.
Depending up on the conditions of the order or L/C either the buyer may inspect or they
may engage an independent inspecting authority for inspecting and certifying. In some
cases the certificate will even be issued by the manufacturer himself, if such certification is
specified in the order.

Standard post-shipment documents are:
 Customs attested invoice
 Customs attested packing list
 Copy of export order/copy of L.O.C
 Commercial invoice

 Consular invoice
 Bill of lading/ air way bill
 Certificate of Origin
 Certificate of inspection (if specified)
 Bill of exchange (draft)
 G.R Form/SDF(duplicate)

Common payment terms:
Here the exporter ships the goods and then forwards the shipping documents to the
buyers directly or through the banking channel and receives payments directly or
through the bank by way of credit
Here the exporter affects shipping of goods and then forwards the documents through
his banker to the banker to the banker of the buyer who in turn hands over documents
to the buyer only when the payment is made or authorized by him.
Under this term, the exporter arranges the shipment of cargo and then uses his bank as
agent to forward shipping documents to the buyer through their bank. The buyer’s bank
arranges for acceptance of the BOE payment from the buyer before releasing shipping
documents as per the terms agreed by seller and buyer.
Here the exporter receives the full payment in advance before the cargo is shipped.
 Realization of export proceeds The bank as per the payment terms and the
instructions of the exporter forwards the export documents to the credit-opening
bank and negotiates the payment and on realization credits the proceeds to the
account of the seller.

Finance is regarded as the life blood of any organization. The activities of finance
department are carried out regularly for the efficient commencement of the business like
planning for funds, rising of funds, allocation of funds and controlling of funds.
Financial management is that managerial activity which is concerned with the planning and
controlling of the firm’s financial resource.
Performance of the company:
The company achieved a sales turnover of 250 crores during the previous year with
comparative drop of 20.39%.
Financial function:
Main accounts:
They are involved in preparing balance sheet and fund management. They control
and coordinate the other entire departments. They work as per the statutory requirement
of company law. They monitor all the transaction with the finance department.
Inward billing section:
They are linked with purchase and stores department. They work as per the
statutory requirement of entry tax and excise duty.
Outward billing section:
Their main job is sales billing and they deal with follow up and collection. They work
as statutory requirements of excise, service tax and sales tax.
Here, they start when they receive an order acceptance copy from the production and
planning department. A delivery voucher is received, then the invoice is prepared and the
goods are dispatched.
They are involved in time office, calculation of salary and wages. They work as per
the statutory requirement of the Gratuity act, income tax and labor law.

Time office:
As the unit has got 70 personnel and has provision of sick leave, half paid sick leave,
casual leave, earned leave and compensatory leave. Controlling attendance is a herculean
task, which is being managed by this section through ERP technology; punch cards and
sectional leave application once in a month.
As the volume of the transaction of the company is huge, it is all the more necessary
to have pre-audit of all the activities before being affected.
Internal audit:
They comply with the provisions of companies act, 1956. The units have their own internal
audit for all the sections which conduct routine audit of all the activities in the forgoing
Cash budget and sales budget are prepared on the time gap of 5 years.
Final accounts of the units
Final accounts are generated by the system as per the head office guidelines. These
accounts will be consolidated at the group level. All the final account will be prepared as per
the company requirements.

a. Internal audit: this unit has an independent internal audit reporting to head office. It
will check the auditing system, regularly day to day transaction and finalization of
b. Statutory audit: statutory auditors are appointed by the board of directors based on
the recommendations of comptroller and audit general. The statutory auditors audit
the books of accounts and issue audit reports they also perform tax audit.
c. Government audit: HMT (I) being a public sector undertaking, it is covered by
government audit i.e. comptroller and audit general (CAG) as per section 169 of
companies act. The government audit will carry on the proprietary audit and submit
the reports to (CAG); in turn (CAG) will submit the reports to public accounts

committee i.e. parliamentary body. Government auditors will also review the final
accounts after the statutory audit.

Working capital
Management of the working capital refers to the administration of current assets
and currents liabilities. The general manager is assisted by other financial executives and
Factors influencing the working capital in HMT (I) are as follows:
i. Credit policy allowed on purchases
ii. Inventory levels maintained
iii. Taxation policy on payments
iv. Availability of loans, funds an easy terms

Responsibilities of finance department:
 to ensure that the prescribed rules and procedures have been followed and that the
canons of financial proprietary have been observed in the procurement
 to extend necessary help in minimizing the lead time
 To have effective inventory control on the material procurement.
 To be responsive to the changes in production programme and changes in
requirement of the material.
 to avail maximum credit facilities from vendors so that working capital are managed

Role of finance in overseas transaction
Export credit insurance – policies:
Exporters are open to significant risk at the best of times due to political and economic
changes due to increasing international trade and globalization. Payment for goods shipped
by an exporter are open to certain risk, unless the payment has been received in advanced
or by letter of credit conformed by a bank in India. To expand the business by taking on new
buyers, entering new markets and products, the exporters has to issue them on credit
terms. This involves risk of non-payment of invoice beyond their control. Exporter credit
insurance is designed to protect exporters from the consequences of the payment risk and
enable them to expand their overseas business without fear or loss.
Export credit insurance provides guarantees to banks to protect them from the risk
of loss inherent in granting various types of finance facilities to exporters.
Some of the companies which provide export credit insurance are:
 export credit guarantee corporation (ECGC)
 New India assurance company


Human resource plays an important and effective role in promoting good and harmonious
relation between employees and employers for growth and development of the country.
HRM is concerned with the people dimension in management. Since every organization is
made up of people acquiring their skills, motivating them to high level of performance and
ensuring that they continue to maintain their commitments to the organization are essential
to achieve in organization objectives. This is true regardless of the organization,
Government business, education, health, recreation or social action. Getting and keeping
good people is critical to the every organization, whether profit or non-profit, public or
The Purpose and Objectives of HRM:
The purpose of human resource management is to improve productivity ethically, and
socially responsible. The HR departments exist to support the managers and employees as
they pursue the organization strategies. The purpose and objectives guide the practices of
HR management that is also commonly called personnel management. Objectives are
benchmarks against which the actions are evaluated. The objectives set by the HR
department can be broadly categorized as;
a) Organization Objectives: The HR department exists to assist managers and employees
achieve pre-determined organizational goals. The HR department is not an end in itself; it is
only a means of assisting managers with their HR issues.
b) Functional Objectives: To maintain the department’s contribution at a level
appropriate to the organizational needs. Resources are wasted when HR management is
more or less sophisticated than the organization demands.
c) Social Objectives: To be ethically and socially responsive to the needs and challenges of
the society.
d) Personal Objectives: To assist employees in achieving their personal goals at least in so
far those goals enhance the individual contribution to the organization. The personal
objectives of the employees must be met if employees are to be maintained, retained and

Human Resource Management Activities:
Human Resource activities are actions that are taken to provide and maintain organization.
Small companies may not have a HR department, large organization have HR department
that perform all HR activities.
The key HR activities are as follows:
1) Human Resource Planning
2) Recruitment, Selection and Placement
3) Training and Development
4) Promotion and Transfer
5) Performance Appraisal
1. Human Resource Planning: Designing performance appraisal systems, introduction
job-rotation, feed-back ad counseling mechanism, training systems, career development
exercise, and team-building exercise are part of the HRD department role. They should
constantly keep planning these and introducing changes in then.
2. Recruitment, Selection and Training: It is the function of personnel department in
HR to recruit the best candidates in the files and engineering, finance, marketing,
production, personnel, etc. So it favors the objectives requirement. HMT (I) favors
systematic scheme of centralized requirement. The different ways by which recruitment is
done are advertising in newspapers, internal recruitment done in HMT (I), and campus
recruitment. But from the past eight years due to financial losses in HMT (I) recruitment has
stopped, except in critical areas.

3. Training and Development: It is one of the most important in MTB, which gives
training not only to the employees but also to the students and customers. For the
employees nearly six months training is given as job training. Students are selected every
year before August 15 and they are given training in different department like purchase,
sales, personnel etc. according to their interest.
4. Promotion and Transfer: It is on line basis of results of the PA. Promotions are
influenced by the time period granted for a particular post as well as by the vacancies
arising due to retirement and separation of employees. Transfers strengthen job rotation
system job exposure and experience to enrich the feelings of oneness and belonging and to
prevent monotony transfer.

Products Department
Production is the focus of marketing and marketing efforts. Product is the sum-total of
physical and psychological satisfaction it provides to the buyer. A product is the sum-total of
parts like material used in is construction and its ability to perform, its packaging, its brand
and the intangible associated with it – all that speak about its personality or image. The
product mix is the composite of product offered for sale by the firm, over a period of time.
HMT (International) limited was established in 1974 as a wholly owned subsidiary of HMT
limited for export of HMT product. HMT (I) markets its product range through a global
network that extend over 40 countries to service its clientele worldwide. HMT (I) today
connects a large and diverse clientele base with a population of over 14,000 machines in
more than 70 countries. HMT (I) offers:
 Manufacturing Solution – CNC & General Purpose Machine Tools for metal cutting &
metal forming, Plastic Injection & Die-casting Machines, Heavy Duty Presses,
Machine Tool Accessories, Cutting Tool and Workshop Equipment.
 Printing Machines.
 Food Processing Machinery & Dairy Equipment.
 Refurbishing & Reconditioning of Machine Tools.
 Agricultural Development & Farm Mechanism Equipment covering Agricultural
Machinery such as Tractors (25, 35, 45, 49, 59 and 75 HP), Tractor drawn implements
and other auxiliary equipment such as Drill Rigs, Sprinklers, Drip Irrigation
Equipment, etc.
 Watches-Hand wound, Automatic and Quartz, Watch Movements and Components.
 Engineering Components, Consumables, Row Materials, Castings, Forging and
Machined Components.
Responsibility and authority:
Head of the Department:

1. Overall In-charge of Product Group
2. Monitoring the Function of Sales Execution
3. Guiding the Staff to achieve the target
4. Approval authority for all orders on suppliers
5. Planning of Business Strategies for the Group
6. Commercial Activities
7. Monitoring System & Procedure


HMT (I) Ltd was established in 1974 as wholly owned subsidiary of HMT Limited focusing on
exports of HMT products, other engineering products, projects and services. Over the years
company’s products have many reputed Indian manufacturing of machine tools and
engineering product, besides HMT’s products.

1. Skilled man power
2. Technical base in diverse files
3. Availability of basic raw materials
4. Wide range of products at industry level
5. Strong & visible industry association (IMTEM)
6. Component manufacture capabilities (foundry casings)
7. Business acumen
8. Tooled up machines/ Complex customs built machines
9. Backed by the manufacturing expertise of the holding company and its subsidiary
products such as machine tools, tractor and watches
10. Wide experience in exports since last 36 years
11. Exported more than 18000 machine tools, 2000 tractors and 14lkh watches
12. Marketing network in 40 countries and exports to over 75 countries
13. Products are based on technical know-how acquired from world leaders
14. Proven experience in execution of turnkey projects in the international market.
15. Backed by technical and skilled manpower from HMT’s subsidiaries.
1. Market reach is limited by resources
2. Company’s core strengths not known adequately abroad
3. Lack of competitive edge against low cost countries (China, Taiwan)
4. The sickness of the main branch (HMT) is affecting the prosperity of HMT (I)

5. Free access to international market directly by manufacturing and other trader
increases competitive pressure.
6. Higher interest rates in relation to developed countries making HMT product less
7. Poor process capability, low volumes of production
8. No focus on exports and global markets
9. Lack of proper vision & guidance
10. Wide technological gaps in manufactured goods, technically obsolete.
1. New opportunities in engineering and services exports on account of free trade
WTO regime.
2. Vast opportunity in Africa for medium technology and medium priced goods as
alternatives to high-end technology product from western countries.
3. Increasing stress on agriculture in African countries open up market for export of
machinery, engineering and technical services .(e.g. Tractors)
4. Win market share from high cost competitors in Japan, Germany & USA.
5. Liberalized economic conditions prevailing in India making the make or buy
decisions easier.
6. Equipped with better system to component with China.
7. Large & growing domestic markets in areas such as
 Consumer durables
 Automotive components & accessories
 Casting / forging
1. Non-competitive prices and delivery slippage pose a threat to retain customer
2. Cumbersome products which makes decision making a difficult and time consuming
3. Emergence of china, Taiwan and East European manufacturers with aggressive
marketing is a major threat to company’s exports

4. Strengthening of Indian rupee has made Indian products and services uncompetitive
5. Competition from international players manufacturing in India.
6. Emerging new machines to manufacturing countries – China, Taiwan, &Republic of


 Poor quality of machines
 Lack of performance reliability (high break-down times)
 Inconsistency in accuracy
 Poor process capabilities
 Leakage of Hydraulics
 Poor aesthetics
 Lack of safety features
 Failure of electric & electronic parts
 Poor after sales service


The growing competition and technological developments in this sector are having
inevitable effects on the Indian machine tool industry as a whole. The HMT machine tool Ltd
is facing typical problems in the emerging globalization scenario as under.
 Manufacturers sell different design of machine-verity is too large.
 HMT machine tool has a regular system for determining unserviceable or damaged
stores, raw materials and finished goods.
 Materials are classified as ‘A’,’B’ and ‘C’ class items.
 The units have maintained proper records showing full particulars including
quantitative. Details and situation of fixed assets.
 The unit has maintained up to date records and submitted to respective authorities.
 Inventory has been physically verified during the year by the management.
 Majority of respondents perceived HMT as a global player and market leader in
developing countries.
 The major kind of agent used by the company is training and orientation
 Exports are high.

Other aspect

The company has not been utilizing whole installed and licensed capacity of its
machines efficiently which has intern resulted in low production.
 Interruption of trade union is more in the work of management.
 Lack of utilization of infrastructure.
 The technology is not advanced. This is one of the reasons for low productivity. Thus
production process is costly and time consuming and overhead costs are high.
 Government is not industrializing at fast pace.
 Absence of centre of excellence for research and development.
 Idle time is more; there is no proper time management in HMT.
 Motivation of employees is less.
 Less concentration on domestic market.
 Lack of training including the concept of 5S.
 No recruitment and selection in corporate office.
 After 1993, salaries are not revised.
The study is carried out as a part of curricular requirements MBA (Bangalore
University), gave me a real exposure to the operation procedure of the company. It helped
me to gain the practical knowledge about the various activities, which are carried out in the
HMT is very popular name among every Indian because of its innovation technology,
quality, assurance and durability to its people or customer. HMT has created the brand
image that symbols machine tools to manufacture, tractors to the framers and watches to
millions of people in India.
Today, HMT’s machine tools expertise had been developed to an extent that HMT
can design and develop any kind of machine from simple lathes and CNC machines to
flexible manufacturing system. Today HMT is multi-technology, multi-products company.

HMT’s commitment is clearly reflected in the fact that has an exclusive machine tool unit
spread across the country.
In the changed market condition the organization needs to focus on the customer
satisfaction, in reaching out their goal. The management has to constantly upgrade
technology product profile internal work process and plant & machinery in the end
ultimately it is the employees who will change the performance of the company.
Therefore motivation should be of maintaining interpersonal relationship among


The company should make efforts in making the whole use of installed and licensed capacity
 Infrastructure should be utilized at optimum level.
 The company should update its technology so that it can beat the competitor’s price
and also produce higher quality products.
 Machines must be replaced in order to reduce the cost of production
 Government should liberalize some policies in order to take necessary decision by
 Development in R&D is required.
 The company should reduce inefficiency, absenteeism and idle time.
 The companies concentrate on motivation, incentive schemes and should liberalize
promotion strategies.
 Upgrade the training programmers in order to increase the efficiency of workers in
or dear to increase the efficiency of workers.
 Recruit skilled employees so as to replace existing employees, as most of them are at
retirement stage and should encourage them to take VRS (voluntary retirement
 The company should adopt modern costing system.
 Major part of revenue earned is spent on payment of interest. Therefore measures
should be taken to reduce the amount of credit.
 The company has to concentrate more on credit policy for speeding the collections
of accounts receivables.


Web site:
2. WWW.hmt (I).com
1. Company broachers
2. Previous Reports