HMT Bearings Ltd. ("HMTB") was incorporated in 1964 under the name of Indo Nippon Precision Bearings Limited. The Company was promoted as a state public sector company by the Government of Andhra Pradesh in technical collaboration with M/s Koyo Seiko Co. Ltd., Japan. It commenced commercial production in 1970. In 1980 the Company became a central public sector undertaking after it was made a subsidiary of HMT Limited ("HMTL"). The vision of the company is to produce & market bearings and other engineering components of world class excellence through total performance leadership. Company is strictly adhered to the standards, specifications stipulated in ISO-9001-2000.
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• Change in demand of Automobiles and Manufacturing sector (Fate of Bearing industry depends on the sales of vehicles)Recession hit the auto sector in 2002-2003, which resulted in low production. Data extracted from Annual Report of HMT 2002-2003.
• Change in prices of Steel(steel prices appreciated 40% since January 2002)
• High Employee Cost .Retrenchment could not be worked out (burden of salaries and pension)
• No buyers were available.
• Most of the big players are having either technical or financial collaboration with leading auto manufacturers.
• Limited Suppliers
• Liquidity crises
New Product Service
• Strive continuously to assure highest standard of service
• Strive to attain international standards to become globally competitive
• Acknowledge all correspondence within a reasonable time of its receipt
• Adhere to the delivery schedules
Incorporated in the year 1964, HMT Bearings Ltd., was the only company of its kind in the public sector set-up to manufacture Ball & Roller Bearings. Financial Position
Undifferentiated products or services
• Lack of associated product
• Similar products other competitor companies was manufacturing with added features and services
Lack of formal strategic planning
• No formal strategy to enhance market share
Low export performance (10% of its sales)
• Lack of export marketing capabilities
• Lack of financial resources to sustain inventory levels necessary to be kept
• Lack of subsidized participation in trade fairs and trade missions
• Legacy of Ministry approvals and other red tapeism for travel abroad unlike the flexibility that the private sector enjoys.
New Product opportunities
Mergers or strategic alliances
New market segments
• Major threat was from unorganised players in market for replacement of ball bearing.
• Austin Engineering Company Ltd. (since 1973)
• Premier (India) Bearings Ltd. (since 1975)
• Classic Bearings (since 1992)
New, innovative product or service
• Lack of modernization of manufacturing facilities.
• Huge Technology Gap
• Limited Product range (Ball Bearing Lines, Cylindrical Roller Brg Lines, Tapper Roller Bearing Lines, CNC versatile Grinding lines) compare to competitors range.
• Design tends to be market...