The government has made a decision to shut down HMT watches, which is a completely-owned subsidiary of HMT Ltd, as the company was running into losses from last 14 years straight, according to a report in a leading Indian daily.

The financial health of the company, which as on March 31, 2013 had around 1,105 employees, was so pitiable that it could not even generate enough revenue to pay the salaries of its workers.

According to reports, the company’s net loss had soared up to Rs 242.47 crore in 2012-2013 from Rs 224.04 crore in 2011-12.

Another figure that puts light on the company’s dismal financial health is the fact that it had a staggering loan on its head of around Rs 694.52 crore by the end of March 2012.

A senior official told the leading daily that the government has decided to shut down HMT Watches and HMT Chinar Watches Ltd.

The Board for Reconstruction of Public Sector Enterprises (BRPSE) has already recommended it and the board of directors has also given the go-ahead, the official added.

The company came into inception in 1961 fundamentally to give competition to the enigmatic Swiss watch company.
HMT watches are usually attributed for bringing in first-ever automatic day-date watch Quartz in India alongside introducing Braille watch etc.

The HMT watches were always touted as the Indian response against several foreign watch brands that were brought in illegally in the country. In fact, the company was even urged to double up its productions in the 1970s by then Prime Minister Indira Gandhi.

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