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HMT Bearings Faces Restructuring Deadline
Hindustan Machine Tools Group Ltd. (HMT, India), undergoing a long-term, government-funded turnaround effort, has cleared HMT Bearings (Hyderabad).
Overseen by the Board for Reconstruction of Public Sector Enterprises, HMT Bearings' revitalization plan has just recently been approved by the Indian Cabinet Committee on Economic Affairs and funded with Rs 520 million (USD $11.5 million) -- Rs 170 million for CapEx and Rs 100 million for working capital.
HMT Bearings manufactures ball bearings, tapered roller bearings, and cylindrical roller bearings in sizes from 20mm to 260mm OD. The division expects to record fiscal 2006 sales in the neighborhood of Rs 400 million to Rs 450 million, ($9 million to $10 million) but says it still lacks sufficient operating capital to continue without guaranteed government funding.
Government holdings in HMT Bearings currently stand at 97.25%. Koyo (JTEKT; Japan) owns the other 2.75%
Early in 2006, HMT Bearings announced it was in the market to establish a joint venture or strategic partnership with another bearing manufacturer. Koyo was reportedly approached, but reportedly said it wanted out of its HMT position, not a larger piece.
If the looming December deadline for finding a joint venture partner passes without action, the Indian government is likely to extend the deadline again, if only for lack of alternatives.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| PAP7560P10 bearing | 75 | 80 | 60 |
| PAP7550P10 bearing | 75 | 80 | 50 |