Hmt organization study report 2014

MACHINE TOOLS LIMITED, BANGALORE
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CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT (CUIM)
Declaration
I TIRTHANKAR SUTRADHAR, had carried out the internship project
"ORGANISATIONAL STUDY", at HMT MACHINE TOOLS LIMITED Company, Bangalore
and is an independent study under supervision and guidance of my internal guide Prof. PADMA
SRINIVASAN of MBA department of CHRIST UNIVERSITY OF INSTITUTE
MANAGEMENT Bangalore & external guide Mr. RAVINDRA and Mr. SUDHAKAR, A.G.M.
HRD of HMT MACHINE TOOLS Limited Company. Now submitted to CHRIST
UNIVERSITY for the partial fulfillment of University regulation course for the award of Master
of Business Administration.
I further declare that this report is based on the original study undertaken by me and has not
formed a basis for the award of any Degree of CHRIST UNIVERSITY or other University.
Date: TIRTHANKAR SUTRADHAR
Place: (Register No.)
Signature ……………………..

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INTRODUCTION
TO
ORGANISATION STUDY

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INTRODUCTION
Organizational studies, sometimes known as organizational science, encompass the
systematic study and careful application of knowledge about how people act within
organizations. Organizational study, sometimes, is considered a sister field for overarching
designation that includes the following disciplines:
 Industrial and organizational psychology
 Organizational behavior
 Human Resources and Management.
Whenever people interact in organizations, many factors come into play. Modern
organizational studies attempt to understand and model these factors. Like all modernist
social sciences, organizational studies seek to control, predict and explain the
Organizational Behavior. There is some controversy over the ethics of controlling worker's
behavior, as well as the manner in which workers are treated. As such, organizational
behavior or OB have at times been accused of being the scientific tool of the powerful.
Those accusations notwithstanding, OB plays a major role in organizational development,
enhancing organizational performance, as well as individual and group
performance/satisfaction/commitment. The organization study is the systematic learning
process about an organization to understand the different roles of each members in the
organization. In organization study, the different roles, namely, interpersonal roles,
decisional roles and informational roles of various members are evaluated and how it
affects the functioning of the organization is analyzed. In this work, HMT Machine Tools
Limited at Bangalore was selected for the organization study.
An industry, which has undergone a radical shift in its paradigm thinking, the Indian
machine tool industry is later recognized as a provider of cost-effective high quality lean
manufacturing solutions. The industry resiliently supports all its users to enhance
productivity as well as improve competitiveness, for the betterment of the final customer.
Being an integral sector, growth of the machine tool industry has an immense bearing on
the entire economy, especially India's manufacturing industry. And it is even more crucial

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for development of the country's strategic segments such as defense, railways, space, and
atomic energy.
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. With the 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 which resulted
in the duplication of the Bangalore Unit and the setting up of new units at Pinjore,
Kalamassery and Hyderabad.
OBJECTIVES OF THE STUDY:
 To familiarize with the business organization.
 To familiarize with the different departments in the organization and their
functioning.
 To understand how the key business processes are carried out in organizations.
 Understand how information is used in organization for decision making at various
levels.
 To relate theory with practice.
METHODOLOGY OF THE STUDY:
 Both primary and secondary data is collected from the organization.
 Primary data is collected through interviews with employees at various levels.
 Secondary data is obtained from company manuals especially quality manuals,
company web site and other magazines.
 Direct observation is used to understand the production process.
PERIOD OF STUDY
The study was held from 10/03/2014 to 08/03/2014.

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LIMITATIONS OF THE STUDY
 The findings need not be conclusive but only indicative.
 Area of concentration was mainly HMT Machines Tools Limited, Bangalore.
 The time span of this project was limited to collect all the information.

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Chapter-1
Industry profile

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1. INDUSTRIAL PROFILE
An industrial which has undergone a radical shift in its paradigm thinking, the Indian machine tools
industry is now recognized as a provider of cost- effective high quality lean manufacturing solutions.
The industry resiliency supports all its users to enhance productivity as well as improve
competitiveness, for the betterment of the customer.
Being an integral sector, growth of the machine tool has an immense bearing on the entire
economy, especially India's manufacturing industry and is even more crucial for development of
the company's strategic segments such as defence, |railways, space & atomic energy. World over
too, industrialized advanced countries have created niches on the back of a well, indigenous
machines tools have the highest impact on capital output ratios. Machines tools consumption of
Rs.100crores truly support the advancement of the country's engineering sector, output of which to be
worthoverRs.150000crores.
1.1 HISTORICAL BACKGROUND
Machine tools were manufactured as early as 1890, but were poor in quality and lacked
standardization. After 1930 machine tools of a reasonably good quality began to be produced in India
principally by P N DATTA & COMPANY in Calcutta. Cooper engineering works at Satara & The
Indian Machinery Company at Dasnagar near Calcutta. These enterprises, which were the pioneer
of the machine tools making in India, Made mostly sliding, surfacing and screw cutting lathe of the
head stock types. However all the enterprises suffered from the absence of the ready, Market for
then &products, mainly because of competition from established Manufactured in England.
The Outbreak of the 2nd
world war India became the main base of supply &production of
the war materials for the British & the ally's army in the east. There was tool, although, import of
machines tools continued on a reduced scale.
Throughout 1936 & 1940 the situation became increasing more precarious. In 1941 the
government of India passed the machine tools control over whose main object was to make
an inventory of machine tools that could be obtained in India & Regulate & improve

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production so as to meet the needs of the ordinance factories & other war industries. The
machines tools control laid the foundation of machine tool industry in India.
1.2 MANUFACTURING RANGE
The Indian machine tools industry manufactures almost the complete range of metal cutting &
forming tools. Customized in nature, the products from the Indian basket comprise conventional
machine tools as well as Computer Numerical Controlled machines (CNC). There are other
variants offered by Indian manufactures too, including special purpose machines, Robotics,
handling systems & TPM friendly machines & provide further value additions at lower & lower
cost to meet specific requirements of users. Based on perception of the current trends and
demands, CNC segment could be the driver of growth for the machine tool industry in India.
1.3 CURRENT TRENDS
A slowdown in the Indian company since mid-1999 had its fallout on prospects of Indian machine
tool manufactures. The Indian machine tools industry is facing lack of adequate business
opportunities that has stemmed from sluggish in the home market of all user industries.
1.4 EXPORT PERFORMANCE
In the view of an imminent slowdown in the Indian economy, most Indian machine
tool manufacturers focused on potential overseas marketers for business opportunities.
Indian machine tools are currently exported to over 50 countries major one being USA,
Italy, Brazil, Germany & the Middle eastern countries Lathes And Automates, Presses,
Electro discharge machines from Indian basket are generally favored in overseas markets
primarily due to their cost competitiveness as compared to that available elsewhere. The
visions of Indian machine tool industry are now step out and establish a relative presence
in other potential markets. World over market leaders have been those who have looked to
increase their presence beyond their national frontiers.

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1.5 INDUSTRY STRUCTURE
Machine tool industry in India comprises about 450 manufactures with 150 units in the
organized sector. Ten major companies of the industry contribute almost 70% of
production of India. And over three quarters of total machines total production in the
country comes out of ISO certified companies. Many machines tool manufacturers have
also obtained CE marketing Certification, in keeping with the requirements of the European
markets. The industry has an installed capacity of over Rs. 10000 million & employees a
workforce totaling 65,000 skilled and unskilled.
Bangalore is considered as hub for the Indian machine industry. The city for instance house
HMT Machines Tools LTD, a company that manufactures nearly 32% of the total industry's
output.
Machines tool industry in India is scattered all over the country. The hub of manufacturing
activities however is concentrated in places like Bangalore, Jalandhar & Ludhiana in
Punjab, Pune in Maharastra.
1.6 MACHINE TOOLS
Machines tools industry is in a position to export general purpose & a standard machine
tool to even industrially advanced countries. During last four decades, the machine tool
industry in India has established a sound base & there are around 160 machine tool
manufactures in the organized sectors as also 400 units in the small ancillary sector.
The industry however lacks in engineering capability to undertake very high precision
CMC machines. Some companies have taken manufacture of CMC machines, but there is
an upgrade R&D in this field. Indian machine tools are manufactured to the international
standard of quality, precision & reliability.
A number of collaborations have also been approved for bringing in the latest technology
in the field of modern machines tools and the industry is now exporting conventional as
well as CMC high tech machine tools. In the field of R&D, central manufacture technology
institute, Bangalore has been doing research for more appropriate designed machine tools.

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Chapter-2
Company profile

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2. PROFILE OF THE COMPANY
2.1 INTRODUCTION TO HMT
Dr. S.M. Patel started HMT limited as a HINDUSTAN MACHINE TOOLS LTD in 7th
February
1953 in technical and financial collaboration with OERLIKON, machine tools works for
Switzerland. The first product produced by machine tools was H22 lathe on 6th
October late of
government of India bought the shares held by OERLIKON transforming HMT as a
government of India undertaking. Hindustan Machine Tools ltd Bangalore is one of the major
machine tool Factory in India. It is located at Bangalore having 16 factories 24 divisions and had
33000 employees in 10 different states during 1990’s.
2.2 INTRODUCTION TO MACHINE TOOLS LTD
HMT Ltd the pioneer in machine tool industry in India and infrastructure of a diversified range
of products has incorporated "HMT Machine Tools Ltd" as its fully owned subsidiary on 9th
august 1999.
HMT machine tool ltd (HMT - MBX) is a multi - unit, multi - location, multi-technology
Company manufacturing a wide variety of 'STATE-OF-THE-ART’ machine tools. HMT
Machine Tools Ltd has its location at 5 location, with each unit specialized in a 'particular
family of machines. The sales and services network is spread across the length and breadth of
the country.
All the manufacturing units of HMT Machine Tools are ISO 9001 certified. HMT factory which
is located in Bangalore it covers area of 103 acres, colony area 278 acres, Industry area 22
acres. Totally it occupies 403 acres. HMT is providing benefits to their employees like, medical
benefits, canteen facility, conveyance allowance, education facility etc. other than the
prescribed salary.

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PROFILE OF THE ORGANISATION
2.3 BACKGROUND & INCEPTION
Hindustan Machine Tools is a public limited company started in 1955 & first output is given in
1955.
HMT ltd was incorporated as HMT LTD on 07/03/1953 and Pandit Jawaharlal Nehru
inaugurated HMT & remarked it, as "HMT is gift to country & jewel of country"
2.4 OBJECTIVES:
 To build mother machines.
 To produce needs of country like agriculture, transportation & defence.
 To encourage the modernization of Indian industry through supply of
engineering goods and services of world class excellence.
 To maintain technological leadership through continuous efforts to update
production technology & manufacturing methods.
 To globalize operations by developing a mix of international markets and
business.
 To ensure a satisfactory return on capital employed to meet growth needs &
aspirations of our stakeholders, to present an active, pleasant & productive
working environment.
 To improve & sustain quality of work life for employees of country.
 To develop & retain human skills & talents necessary for corporate growth &
performance excellence in all functions.
 To achieve sustainable competitive advantage through value edge and
technological leadership in products & services of company.

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2.5 NATURE OF THE BUSINESS CARRIED
HMT ltd, the pioneer in machine tools industry in India & manufactures of a diversified range of
products has incorporated "HMT MACHINE TOOLS LIMITED" as its fully owned subsidiary on 9th
august 1999. "HMT MACHINE TOOLS LIMITED" (HMT-MTL) is a> multi-unit, multi-location,
Multi technology Company manufacturing units at five locations with each unit specialized in a
particular family of machines. The sales & services network is spread across the length and breadth
of the country. As leading manufacturer of machine tools in India HMT-MTL provides the best of
products in terms of technology, productivity and cost effectiveness Comprehensiveness
customer support services including application engineering, customer and after sales services.
All the manufacture units of HMT-MTL are ISO 9001 certified.
2.6 CORPORATE VISION
To be leading Global Engineering CONGLOMERATE focused on CUSTOMER
DELIGHT in our fields of endeavor.
2.7 CORPORATE MISSION
 To achieve a growth percentage above the industrial average of machine tool sectors within 5
years.
 Focus and aim for achieving positive gross margin in year 2013-14.
 To achieve sustained growth in the earnings of the company on behalf of shareholders.
 Focus on to achieve 80% capacity utilization of facilities and resources by 2017-18 from
present level of 61%.
 Introduce at least one new product by each unit every year with contemporary technologies
through In-house R & D, Joint Partnerships, Sourcing and Acquisitions.
 Achieve higher productivity through upgradation modernization, reduction in rejection &
rework, value engineering, waste elimination, developing alternative source and Effective
Financial Planning and Control.
 To achieve a sales turnover of per employee from Rs.6.67 L (2011-12) to Rs.26 L by 2017-
18.

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2.8 CORPORATE GOALS:
 To be a Rs.1000 Cr. Company by 2020 with Miniratna status.
2.9 CORPORATE STRENGTHS
Various Strategies of HMT
 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.

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2.10 AWARDS OF EXCELLENCE:
1961, 1962 President’s Certificate of Merit for All Round Performance.
1964-65 Institution of Engineers’ Best Design Award for Grinding/Lapping Machine
1969,
1970,1975,
1976, 1981,
1984
National Safety Award for outstanding performance in Industrial Safety
1983 Best Productivity Performance in Machine Tool Industry Sector.
1984 1984 1984-89 National Productivity Council Award
1989
FIE Foundation Award for Excellence in Design at IMTEX 89 for 6-Axes
CNC
Gear Hobbing Machine
1992
DGTD National Award for Technology Development for CNC Heavy Duty
Lathe,
L60 CNC
1995
CMTI-PMT Foundation Award for Excellence in Design at IMTEX 1995 for
CNC
Precision Chucker PC 10
2001
CMTI-PMT Foundation Award for Excellence in Design at IMTEX 2001 for
CNC
Sliding Head Automat A 16 CNC
2004
FIE Foundation Award for Excellence in Design at IMTEX 2004 For CNC
Surface
Grinding Machine SSG
2013
FIE - Foundation award for excellence in Design at IMTEX 2013 for VT
MC 500 5A

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2.11 HMT's MILESTONES:
YEAR UNITS / DIVISION LOCATION STATE
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 Specialized Watch Case Division Bangalore Karnataka
1983 Stepper Motor Division Tumkur Karnataka
1985 Ball Screw Division Bangalore Karnataka
1986 CNC Systems Division Bangalore Karnataka

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1991 Central Re-conditioning Division Bangalore Karnataka
2.12 HMT LIMITED – HOLDING COMPANY:
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 holding company in 2001. The constituent subsidiaries of HMT Limited are
as below while the holding company retains the Tractor Business Group.
Sl No. Name of Subsidiary % Holding
1 HMT Machine Tools Ltd. 100
2 HMT Watches Ltd. 100
3 HMT Chinnar Watched Ltd. 100
4 HMT International Ltd. 100
5 HMT Bearing Ltd. 97.25
1953 Hindustan Machine Tools Limited - 1978 HMT Limited - 2000 HMT Machine Tools limited

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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
1. HMT MACHINE TOOLS LIMITED:
The HMT Machine Tolls Limited is engaged in the manufacturing and marketing of general
purpose machine tools, Special Purpose machine, Computer Numerically Controlled Machine
Tool, Precision machinery system, Printing machines, Metal Forming presses, Die-casting and
plastic Injection molding machines.
THE PRODUCT RANGE OF MACHINE TOOLS BUSINESS GROUPS:
The Machine Tools Factory is situated in 5 places:
a. Bangalore
b. Hyderabad
c. Kalamassery
d. Ajmer
e. Pinjore
The product range at particular locations are as follows:
a. Bangalore:
o Heavy duty Lathes
o Single and Multi-spindle automates
o Radial drilling Machines
o Multi Spindle drills
o Cylindrical and surface grinders
o Gear Cutting Machines

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o Laser cutting hobbers
o CNC turn mill centres
o Fine Boring Machines.
b. Hyderabad:
o Special Purpose Machines
o Horizontal Machine centers
o FMS
o CNC Horizontal Boring machines
c. Kalamassery:
o CNC Turning Centres
o Turn Mill centers
o Center Lathes
o Offset Printing presses
o Paper cutting machines
d. Ajmer:
o Grinding Machines
o SPM Grinders
o CNC Grinders
e. Pinjore:
o FMS and FMC
o Horizontal Machine centers
o Vertical Machine centers
o Milling Machines
o Broaching Machines

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2. HMT WATCHES LIMITED:
In the year 1961, HMT set up a watch manufacturing Unit at Bangalore in collaboration with
M/s Citizen Watch Co., Japan. The first batch of Hand Wound Wrist Watches manufactured
at this factory was released by then Prime Minister of India, Jawaharlal Nehru.
In 1972, HMT expanded its watch manufacturing capacity with a set up alongside the
Bangalore Factory to manufacture additional watches. In 1975, Watch factory at Bangalore
was further expanded to manufacture Main Spring, Hair spring and Shock absorber
components.
HMT set up additional manufacturing facilities to produce watch components sets at Tumkur
and Ranibagh in the year 1978 and 1985 respectively. Watch factory at Tumkur was partially
converted to manufacture Quartz Analog Watches in collaboration with M/S Citizen Watch
Co, Japan. To cater to the Niche market, a specialized watch case manufacturing facility was
set up at Bangalore in 1983.
Since 1985, HMT Watches has been involved in making Floral Clocks, Solar Clocks,
International Clocks and Tower Clocks, most popular among them being the Garden clock in
Bangalore. In the year 2000, HMT Watch Business group was re-structured as HMT
Watches Limited, a wholly owned subsidiary of HMT Limited.
3. HMT CHINAR WATCHES LIMITED:
HMT Chinar Watches Limited is also one of the subsidiaries engaged in the manufacture of
Chinar model watches located in Srinagar, Jammu and Kashmir State.
4. HMT BEARINGS LIMITED:
HMT bearings limited is one of the subsidiaries engaged in the manufacture of different
types of industrial bearings, situated in Hyderabad.

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5. HMT INTERNATIONAL LIMITED:
HMT International Limited is engaged in the export of HMT’s range of product worldwide.
HMT also marked other Indian Engineering Products in World market and backed up by
good sales and service network. It also undertakes turn key projects and technical service for
developing countries.
Various production unit of HMT around India

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2.13 ACCOLADES – OVER THE YEARS:
2.13.1 OUSTANDING PERFORMANCE:
YEAR AWARD INSTITUTED BY
1960-61 Outstanding Performance President of India
1961-62 Outstanding Performance President of India
1983 Best Corporate Performance
Harvard Business School
Association of India &
Economic Times
1983-84 Most Effective Organization
Foundation for Organisation
Research (FORE)
2.13.2 EXCELLENCE IN EXPORTS:
1970-71 Excellence Performance in Exports Govt. of Mysore
1971-72 Outstanding Export Performance Govt. of Mysore
1971-72 Outstanding Export Performance EEPC
1975-76
National Award for Outstanding Export
Performance Awards confered upon HMT (I)
to be excluded
Ministry of Commerce
1981-82 Best Export Performance EEPC
1982-83 Export Excellence EEPC
1982-83
Meritorious Performance in the field of
Export
1984-85
Meritorious Performance in the field of
Export

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1985-86 Best Export Award
Chamber of Commerce &
Industry, AP
1995-96 Regional "Top Exporters Shield"
Engineering Export Promotion
Council, Chennai
1996-97
Regional "Top Exporters Shield -Project
Exporters"
Council, Chennai
1997-98
2002-03
All India Trophy for Highest Exporters
Council, Kolkata
1998-99
2001-02
2002-03
Regional Trophy for Highest Exporters in the
Group - Services Exporter
Council, Southern Region,
Chennai
2.13.3 BEST PRODUCT/TECHNOLOGY:
1964 Best Design Award Industry of Engineering"s
1978-79 Best Product at IMTEX - 79 PMT & FIE
1981-82 Best Product at IMTEX - 82 FIE Foundation
1985-86 Best Product at IMTEX - 86 CMTI - PMT Trust
1987 VASVIK Industrial Research Award VASVIK, Bombay
1988-89 Best Product at IMTEX - 89 CMTI - PMT Trust
1990
National Award for RD Efforts in Industry -
1990 in the Mechanical Industrial Sector
Dept. of Scientific and Industrial
Research
1990 Best Product at PRINTK-90
Press Category Technology
Award
1992
National Award for Technology
Development
DGTD

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1995 Best Products at IMTEX – 95 CMTI - PMT Trust Award
1995 Best Product at IMTEX – 95 FIE Foundation
1998 Best Products at IMTEX – 98 CMTI - PMT Trust Award
2001 Best Product at IMTEX – 2001 CMTI - PMT Trust
2001 National Award for Best R&D Efforts DSIR, Govt. of India
2004 Best Product at IMTEX-2004 FIE Foundation
2004 Best Product at IMTEX-2004 CMTI-PMT Trust
2013 Best Product at IMTEX-2013 FIE Foundation
2.13.4 PRODUCTIVITY:
1983-84 Best Productivity Organisation Research (FORE)
1984-85 Best Productivity National Productivity Council
1986-87 Excellence in Productivity CEI

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2.13.5 STANDARDIZATION & QUALITY/SAFETY:
1969 National Safety National Safety Council
1988-
89
Company Standards Bureau of Indian Standards
1988-
89
Outstanding Performance in Industrial Safety National Safety Council
1990 Lowest Average Frequency of Accidents National Safety Council
1994 Best Performance in Company Standardisation Sir Jahangir Ghandy Trophy
2.13.6 HUMAN RESOURCE:
1988-89 Best Company for HRD Practices CEI
1989-90
Valuable Contribution & Significant
Encouragement to the cause of the Industrial
Engineering Profession in India

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2.14 CORPORATE STRENGHTS OF HMT:

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Chapter-3
ORGANIZATIONAL
STRUCTURE

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3.1 ORGANIZATION STRUCTURE OF HMT BANGALORE LIMITED:

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GENERAL MANAGER
JOINT GENERAL MANAGER
DEPUTY GENERAL MANAGER
ASSINTANT GENERAL MANAGER
MANAGER
DEPUTY MANAGER
FOREMAN
SUPERVISORS
JUNIOR SUPERVISORS
WORK GRADE EMPLOYEES

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Today, HMT comprises six subsidiaries under the ambit of a Holding Company, which also manages
the Tractors Business directly. In India HMT is built on a strong foundation of technical
knowhow acquired from world leaders in machine tools such as OERLIKON, GILDMEISTER,
LIEBHERR, FRITZWERNER, PEGARD & SIEMENS. HMT'S broad range of machine tools
covers General Purpose Machines, Special Purpose Machines CNC Machines to meet the
application needs of every engineering industry.
HMT'S units have ISO 9001 certification confirms to national standards for quality. HMT is the
backbone of Indian engineering industry supplying varieties of machine to suit the needs of various
industries.
By acquiring state of art technology from time to time, HMT started manufacturing watches,
Tractors, Die casting, plastic moldings and Food processing machinery. The new addition to HMT is
HMT INTERNATIONAL, which is providing services across the globe.
3.2HMT’sQUALITYPOLICIES
 To maintain quality leadership in all PRODUCTS & SERVICES.
 Total customer satisfaction through Quality Goods and Services.
 Commitment of management to Quality.
 To create a culture amongst all Employees towards total quality concept.
 Total quality through performance leadership.
3.3CUSTOMER SERVICE
 Wide marketing network manned by qualified & trained sales & service
engineers
 Service outlet at customer doorsteps in major industrial locations.
 Critical spare parts available at Field Offices.
 Customer training programs on Macaronis in addition to normal machine oriented training
for machine tools. Manufacturing Units supplement customer support for tooled-up and high
technology machine tools.
 Customer Component manufacture to suit customers' needs.

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3.4 INFRASTRUCTURE
 CNC Machines for Metal Cutting & Metal Forming.
 CNC Coordinate Measuring Machines.
 Heat Treatment Facilities.
 Precision Measuring & Inspection Facilities.
 Facilities for calibration of Measuring & Testing equipment.
Following products and provides various services:
a. Machine tools
b. Watches
c. Tractors
d. Printing Machinery
e. Pressures die casting and plastic injection molding machine
f. Precision Ball Screw
g. Dairy Machinery
h. Reconditioning Services

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Chapter-4
PRODUCT PROFILE

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4.1 MACHINE TOOLS
The machine tools produced by HMT now cover almost the full spectrum of general - purpose
machine tools as well as sophisticated machine like CMC grinders, and CMC turret, punch press and
automated equipment like FMC & FMS, HMT'S customers for machine tools are from the following
sectors.
 Automobile and auto ancillary industries
 Railways
 Defense
 Agriculture machinery
 Mining and metals
 Industrial machinery
 Power equipment
4.1.1 GENERAL PURPOSE MACHINES
• Lathe machine (turning machines)
• Drilling and boring machines
• Shaping machines
• Grinding machines
• Radial drilling machines
4.1.2 SPECIAL PURPOSE MACHINES
• Heavy duty lathes
• Gear cutting machines
• Multi spindle and single automatic lathes.
4.1.3 CNC TURNING CENTER
• CNC slant bed turning center.
• CNC turn mill center.
• CNC twin spindle chucker.
• CNC vertical drilling and boring machine.

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• CNC special purpose machine.
• CNC cylindrical grinding machine.
• CNC internal face grinding machine.
• CNC gear hobbling machine.
The above mentioned machines tools are manufactured in two or three different sizes according
to the need of customers.
4.2 WATCHES
The first watch factory was setup in Bangalore in early 1960's. HMT then produced barely
15000 watches, but now the watch production around 7 million with 2 factories in Bangalore,
one each in Srinagar, Tumkur and Ranibagh. The watch range models include hand wound
mechanical watches to top - lien quartz and analog and digital watches. HMT has so far sold
over 75 million.
The following are the various models manufactured by H.M.T
 Ladies watches.
 Gents watches.
 Hand wound and automatic watches.
 Pocket watches.
 Quartz watches.
 Analog alarm watches.
 Digital alarm watches.
 Electro luminescent watches

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4.3 TRACTORS
The agricultural sector in India felt the need for modern farming method. This promoted HMT to
start the manufacture of tractors at Pinjore. As with other major diversification of HMT, bulk of the
equipment for the manufacture of tractors was produced by HMT itself - a natural result considering
HMT'S excellent capabilities in machine tools manufacturing.
Reputed as one of the top tractor manufacturer in India, HMT has a sustained high production level
and market acceptance. It is alone of the brand leaders in the country today. HMT manufactures of 25,
35, 45, 59, 57 HP capacities.
4.4 PRESSURE DIE CASTING & PLASTIC INJECTION MOLDING MACHINE
As a pioneer of industrial technology HMT identified this area in 1970 and had a tie up with Buhler of
Switzerland one of the most respected in this field in the world. Today with it wide range of Die -
casting and injection molding machine HMT is well poised to provide the necessary support to the
emerging mass production culture. Recently HMT has also had tie up with Reihauser of the West
Germany for the manufacture of large capacities plastic extrusion machinery.
4.5 PRINTING MACHINE
Printing machinery division is the part of machine tool business group in keeping with its spirit of
indignation and with a view of assist in the country plan for the eradication of illiteracy in the
country HMT diversified into the field if printing of machines in 1972 and located factory in
Kalamassary (Kerala). In collaboration with societal Napoleon of Italy HMT manufactures some of
the best offset and letters press machines its wide range comprise single and four color printing
machine.
4.6 PRECISION MACHINE
HMT manufactures wide range of ball screw used in various CNC machine tools and various
engineering application. The company installed a ball screw division at Bangalore in 1986 in
collaboration with CARL ZESSIS JEAN of Russia.

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This ball screw has high mechanical efficiency superior positioning accuracy with a low wear and
long life. This manufacturing range covers Ball Screws in size depending upon the size.
Precision Ball Screw have wide application in machine tools as mechanical tools as mechanical feed
elements industrial robots material handling equipment, nuclear reactors rail road’s equipment,
medical equipment, printing and paper machinery.
4.7 DAIRY MACHINE
Collaborating with VEB FORTSCHRITT LAND machine of Russia HMT makes
sophisticated machinery for the Indian diary industry at Aurangabad since 1980.
 Product range covers the following:
 Centrifugal cream separator
 Plate heat exchangers
 Chillers
 Pasteurizes
 Continuous butter making machinery
4.8 RECONDITIONING
HMT'S reconditioning expertise offers a comprehend sieve package for reconditioning of old
and run down machines providing new lease of life to old machines about to be scraped. HMT'S
superior technical knowhow and immense reservoir of machine tool manufacturing engineering and
maintaining experience make a HMT'S reconditioning absolute and total.

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Chapter-5
FUNCTIONAL DEPARTMENTS

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5.1 VARIOUS DEPARTMENTS UNDER HMT
5.1.1 HUMAN RESOURCE DEPARTMENT:
HRM is planning, organizing, directing and controlling of the procurement, Development,
compensation, integration and maintenance of people for people the purpose of contribution to
organization, individual, social goals.
HR needs to be given a strong emphasis, as it is the quality of human factor in his organization,
which determines its effectiveness.
5.1.2 OBJECTIVES OF HUMAN RESOURCE IN HMT
 To attract and retain best available young talent in the country in engineering and other
areas like finance, marketing and personal.
 To maintain effective coordination between HRM and other departments.
 HRM department helps in motivating the employees in attaining individual
goals and in retune will lead to attain the organizational goals.
 A qualified applicant for specific type of job.
 To ensure the above objectives by eras of a systematic scheme of centralized recruitment this
will be regular and effective.
5.1.3 SCOPE
The recruitment of professional trainees in engineering and other professional areas like
finance, marketing, HR etc. induction level of executives is at Grade III (PS) for centrally
pooled requirement of units. Recruitment of senior executive at level of corporate cadre
like General Manager will be as per need of unit.

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5.1.4 TITLE OF THE STUDY:
"A study on human resource development and recruitment procedure" at HMT MBX,
Bangalore
5.1.5 STATEMENT OF THE PROBLEM:
The success and failure of any organization is very much influenced by the past and previous
year human resource census.
HMT machine tools ltd is mainly engaged in production of machine tools. The leading HMT
machine tools ltd is public sector undertakings, which is located in Bangalore and have been
striving hard on meeting the competition from their competitors.
Any business enterprise needs human resource for its operations as they are the major
'Source' of fund apart from owners’ funds. From the above statement it is clearly state that they
need to be strong in managing resources and increase their receivables and decrease
the liabilities, to be strong in managing human resource thus it is this problem, which
prompted the researcher to take up the study on human resource development and I
management.
5.1.6 VARIOUS DEPARTMENTS UNDER HRM:

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5.1.7 ESTABLISHMENT SECTION:
Establishment section of HMT Bangalore complex involved with the activities like recruitment,
selection, promotion, and performance appraisal record of day-to-day activities as well as
manpower adjustments. The selection is basically involved with establishment activities.
5.1.8 RECRUITMENT & SELECTION
It is process of selection for prospective employee and stimulating and encouraging them
for job in an organization. Selection is process of putting right person to right job
according to job specification of organization.
5.1.9 PROCEDURE OR RECRUITMENT RULES:
1. Corporate personnel directorate will engage recruitment.
2. It is centralized recruitment by following two methods:
 Campus recruitment
 Recruitment through opens all India advertisement
3. Not less than 50% of vacancies projected and approved in manpower operational
plan in PS 3 for engineering graduates and in various disciplines.
4. Campus recruitment for post of executives in PS 3 for engineering graduate or post
graduate in technical areas or postgraduate diploma holder from recognized
institution only.
5. Mode of selection by group discussion and personal interview by above committee.
6. All India advertisement will be released every year, inviting application from
candidates' possess degree in engineering with minimum marks of 60% who will be
eligible for written test.
7. The result of written test candidate in the ratio 1:6 will be called for interview and group
discussion.
8. Selected candidate will undergo induction training for period of a year.
9. For selection of senior executive at level of corporate cadre will be taken up by
corporate personal directorate once in a year.

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5.1.10 INDUCTION POLICY
• After selection of qualified candidate they undergo management trainee
induction program for a period of one year.
• In one year 3 months are at MDI and remaining months at respective units.
• Purpose of induction program is to acclimatize them into company's working
system and culture.
5.1.11 MDI STRUCTURE OF INDUCTION PROGRAMME
• First month- Classroom training to give brief knowledge of the Company.
• Second month- in plant training at HMT to understand shop floor situations.
• Third month- rotation through R&D, CSB, HMB, CMC, SWCD and head office of
different groups.
5.1.12 NEXT NINE MONTHS
• Fourth-sixth month- Rotation between sections of units.
• Seventh- twelve month- on job training in particular section. The unit chief decides on
which section the trainee has to be placed.
During nine months trainee has a mentor to guide him and after completion of training period he
will be given a functional designation and placed on probation period for a year. After this stage
trainee will be confirmed on his job.
5.1.13 TRAINING AND DEVELOPMENT
Training is the art of increasing the knowledge & skill of an employee for doing a particular
job-By TRIPATI & EDWIN.B.FLIPPO. "Training involves changing of skills knowledge,
attitude or social behavior". By DAVID.DE.CENZO & S.P ROBBINSON. Development
covers not only those activities, which improve job performance, but also those, which bring
about growth of personality, help individuals in the progress towards maturity & actualization of
their potential capacities. So they become not only good employees but better men & women.

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5.1.14 TRAINING PROCEDURE IN HMT (MBX)
A. TRAINING CALENDER:
The training program in HMT is conducted according to the annual training calendar prepared every
year for all categories of workers.
B. IDENTIFICATION OF TRAINING NEEDS:
• Training needs shall be identified by respective needs of department
• Training shall be planned, implemented & reviewed
• There shall also be general orientation awareness & knowledge based training program
including induction program to the
• Trainees in a new areas & freshly recruited personnel.
• Training program for personnel working areas of special purpose
C. SELECTION OF TRAINEES:
Head of all function shall identify training needs &inform to HRD along
with the list of their department, such nominated employees will be
informed to attend the training program.
D. SELECTION OF TRAINING INSTITUTE
HMT is in touch with some of the leading training institutions & these institutions will be asked to
conduct the training program at suitable dates.
5.1.15 TYPES OF TRAINING PROVIDED BY HMT (MBX)
A. APPRENTICESHIP TRAINING:
Training is for period of 3years. Those who apply for apprentice should have passed S.S.L.C on the
date of report. The report says that there are 91 trainees are paid a stipend of Rs.8207 to Rs.10907.

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B. GRADUATE TRAINING:
Training is given for graduates such as B.A, B.COM, and B.E in mechanical & others. The period of
graduate training is for a year and they get a stipend of 19707- PM.
C. SANDWICH TRAINING:
Diploma students are eligible for taking sandwich training. It is for one year. Students are from
various colleges. They are given 3 months basic training & they have their classes. After completing
basic training they will be send to different department for 15days or 1 month and they get stipend of
11407.
5.1.16 PERFORMANCE APPRAISAL AT HMT (MBX)
The appraisal rating done mainly on two factors:
1. Job performance factor.
2. Managerial ability factor.
1. JOB PERFORMANCE FACTOR:
a. Job knowledge
b. Quality of work
o Target fulfillments
o Cost/time control
o Safety consciousness
2. MANAGERIAL ABILITY FACTOR
a. Planning & organization
b. Problem analysis & decision making
c. Interpersonal skills
d. Self-motivation
e. Commitment
f. Responsiveness to change/ innovation
g. Developing subordinates
h. Management of human resources

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5.1.17 PERFORMANCE APPRAISAL RATING:
TOTAL APPRAISAL SCORE RATING
201 & ABOVE OUTSTANDING
151-200 VERY GOOD
121-15O GOOD
BELOW 120 POOR
5.1.18 PERFORMANCE AND TRANSFER POLICY:
 Promotions are channels, which are structured on attendance, performance
appraisal, and induction level.
 The main objective is to organize a system of promotion consistent with skills
and opportunities for various categories of workmen in the company.
 To provide planned growth for different categories of workman.
 To develop workforce with multi skill employees who match the future needs of
organization.
 Transfer is a normally part of exposure and growth in any multiunit company.
 All employees of HMT are liable for transfer from one place to another.
The objective is to fulfill the company need for a total executive in a multiunit,
multiproduct.

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5.1.19 WELFARE DEPARTMENT
It plays a vital role in HMT. HMT being a PSU will have to raise their standards with
respect to safety health and welfare of its employees, the welfare activities of HMT can
broadly classified as follows.
1. Welfare measures inside the workplace.
2. Welfare measures outside the workplace
1. WELFARE MEASURES INSIDE THE WORKPLACE
A. WORKING CONDITIONS:
 Cleanliness, neighborhood, safety.
 Housekeeping, maintaining of lawns, passages and doors.
 Providing safety equipment such as helmets, goggles and first-aid
equipment. Safety training programs for supervisors and workers to avoid
accidents. All machineries are examined periodically to ensure their safe working.
Six safety committees constitute to discuss safety related problem and to take
corrective measures for prevention of accidents.
 Employees are provided with uniforms every year.
B. AMENITIES:
HMT provides number of amenities to its employees in addition to meeting the statutory
obligations under various labor organizations:
 CANTEEN: Canteen is managed by welfare department and provides hygienic
food to its employees at highly subsidized rates.
 TRANSPORT: Company has Vans and Cars and has made arrangement with
BMTC to provide transportation facilities to its employees.
 TOWNSHIP: A self-contained township with modern facilities has been provided
for the benefit of employees. There are around 1676 houses of various types of
allotment to employees and allotment is based on seniority and grade
eligibility.

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 MEDICAL: A 200 bed hospital with all modern facilities is established in the
township to take care of medical needs of employees residing in township and
surrounding areas.
However, if employees are not covered under ESI (Employees State Insurance
Corporation) the company will provide medical facilities. As to say, if the salary is
Rs.10000 or less, the employees will get ESI benefits. And if the salary is above Rs.10000
they will get company's medical facilities.
C. ESI (EMPLOYEES STATE INSURANCE CORPORATION) BENEFITS:
a. MEDICAL BENEFITS: Around 1.61% from employee's salary and 4.75%
from company will be deducted and transferred to ESI.
b. LEAVE: 90 days medical leave per year is provided to each employee.
c. MATERNITY LEAVE: 84 days leave (6 weeks before delivery and 6 weeks
after (Delivery) will be provided to women employees.
d. DISABLEMENT BENEFITS: On the basis of severity of injury benefit will
be provided. In view of amendment to workmen's compensation Act, by amendment
act of 22 of 1984 which regulates compensation for employment injury in respect of
employees not covered under ESI Act and workmen compensation Act is here by
withdrawn with immediate effect consequently, the provision of amended workmen's
Act are made applicable to employees who are now not covered under ESI Act &
workmen's compensation Act.
D. WEALTH:
Benefits like PF, ESI, and Wealth Relief Found will be provided to each employee, 12%
will be deducted from employer and employee's salary, 8.33% towards PF, 3.66%
towards Pension. Compensation for Employment.

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2. WELFARE MEASURES OUTSIDE THE WORKPLACE:
HMT provides benefits outside the workplace such as- Roads, lightening, recreation, pay-
grounds, school, nursery, family residence, bachelor's room, co-operative loans, transports
facilities (buses), financial grants.
5.1.20 GENERAL INFORMATION WITH RESPECT TO HRM
 PUNISHMENT:
Normally when employee is proven to be guilty for his/her job, punishment will be given.
Employees/Management will also be given chance to submit their evidence before the officer
to prove their statement. The officer may be external or internal person. Neither pay nor work
till termination/dismissal.
 EMPOWERMENT:
It is giving full authority to perform a specific task to the employee or group of employees.
Normally it is not practiced in HMT.
 RETRENCHMENT:
It is permanent removal of employee from the organization when there is no production or any
economic instability. It is not practiced in HMT as it is a public sector and it is considered as a
social obligation.
 LEGAL ASPECTS:
It comes into picture when any dispute occurs within employees. Then it is carried to labor
commission court or consultation officers for negotiation or may be directed to civil court. If
they are not satisfied they can file grievance to tribunal office.

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5.1.21 INDUSTRIAL RELATION
In HMT (MBX), Industrial relations deal with either the relationship between the state and
employers and workers in an organizational themselves. This helps to resolve from any kind of
disputes like: misunderstanding, difference of opinions, (or) conflict that arises between an
employer and his workmen. Therefore a high level of understanding and positive relationship
between them, can alone lead to the achievement of organizations objectives. Hence industrial
relation plays an important role.

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5.2. PLANNING DEPARTMENT
Methods of Planning followed by the Planning department are:
5.2.1 PLANNING OF MATERIAL
Under this the planning department plans about the relative materials, which are required to
be used in production. It also checks the availability of equipment.
A. PLANNING OF PROCESS:
Under this the planning department plans the sequence of operations to be performed for
production in time very easily and in a structured pattern to be followed for smooth flow of
operations without excess consumption.
B. PLANNING OF TOOLS:
In this process the planning department takes the decisions regarding the tools, which will be
used for production, and tools will also be produced internally.
C. PLANNING OF MACHINERIES:
This is the process of planning where they plan about the type of machines required and
optimum allocation of machines for the month flow of operations without any interruption.

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5.2.2 ESTIMATION:
 To set performance target
 Machines loading and scheduling
 To set up standards and to study machine utilization and labor performance
 Information regarding the rate of production
 It provides a standard for comparison
 Information regarding delivery data to customer
A. ESTIMATION OF TIME:
It represents the time, which incurred to produce a product. This is done by the work-study etc.
By this planning department can know the amount of time required for the production of a
particular component.
B. ESTIMATIONOFCOST:
It consists of direct material cost, direct labor cost, expenses of overhead, and overhead as per the
percentage of prime cost or production cost. In addition to the above cost elements, the product
cost includes the cost of the following special items: i.e. development cost, engineering cost,
special tool cost, pattern cost etc.
Various Departments under Planning:
a. Design department
b. Engineering department
c. Process production department
d. Inspection
e. Trials and testing
f. Delivery to customer

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5.3FINANCEDEPARTMENT
OBJECTIVES:
• Profit Maximization
• Wealth Maximization
5.3.1 FUNCTIONS OF FINANCE DEPARTMENT:
The various functions on Finance departments are:
• Planning of funds.
• Acquisition of funds.
• Allocation of funds.
• Investment of funds.
• Dividend decision.
• Recording of the transaction.
• Preparing of financial statements.
• Evaluation of financial performance.

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5.3.2 EVALUATION OF FINANCIAL PERFORMANCE
The financial performance evaluated by comparing budgeted statement and actual
statement by using comparative BS, ratio analysis.
Various Sections under Finance department:
 WAGE SECTION
 CASH AND PROVIDENT FUND SECTION
 MAIN ACCOUNT
 OUTWARD BILL SECTION (OBS)
 INWARD BILLING SECTION (IBS):
The materials purchased are classified into various groups:
Group 1 - Stores and Spares.
Group 2 - Purchase of raw materials.
Group 3 - Capital items.
Group 4 - Export machinery.
Group 5 - Foreign purchases.
Group 6 - Miscellaneous expenditure/payment towards freight.
Group 7 - Electrical parts.
Purchase order
Accounts department
Preparations of material inward slip
IBS-Bills
Inspection
Prepare report
Accept
Reject > Reasons

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Out Ward Billing Section Outward billing section is also known as Centralized Billing
Section. In OBS the customers deal with making payment to the company. When the
customer of HMT wants the finished product produced by the company, the customer will
raise the purchase order. The company will make an enquiry regarding the availability of the
product and accept the order given by the customer and prepare a delivery voucher which
includes consignee name, quality, designation of material, spare parts, price, goods carrier,
notes details, parties name and address, PAN no., ECC no., service tax sales tax etc. will be
furnished. It also deals with sale of machinery, spares, accessories, CMC, foundry, casting,
reconditioning, repairs, maintenance etc. and filing of statutory returns is also undertaken.
5.3.3 WAGES SECTION:
Wage section is the section, which deals with regards to the employee's benefits and other
activities of company services provided towards the employees. It is the section, which helps to
keep a better relation between union and management. It deals with all employees and handles
the task of arranging of various payments as per schedule.
There are three punching times:
a. In punch.
b. Lunch punch
c. Out punch
5.3.4 FUNCTIONS OF WAGES SECTION:
i. Time keeping
ii. Salary payment to employees
iii. Incentives payment
iv. Provident Found (PF)
v. Dearness Allowance (DA)
vi. Pension
vii. Income tax
vii. LLIC
ix. Advances
x. Medical polices

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This section deals mainly with the attendance record, salary payments and incentives
payments. There are two types of incentives and they are:
• Direct areas incentives for workers grade
• Indirect areas incentives for officers grade
• Salary includes basic wages, DA, retaining allowances and cash value of food
concession, admissible if any. The salary is considered on the basis of past
service, pension able service, widow pension and withdrawals benefit, as
written in constitution.
5.3.5 CASH SECTION:
Cash section is one of the important sections in finance department. This department handles all
cash dealings. It generates funds for the company and utilizing the funds through proper
investment.
Cash section deals with:
a. Payment made by cash and cheque
b. Receipts and payments of cash
c. The activities through UCO bank, local UCO branch, Punjab national bank
d. Preparation of petty cash book.

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5.4 PRODUCTION DEPARTMENT
5.4.1 HTC DIVISION
HTC division means High Technical Center. As most of operations were done through
computer numerically controlled machines, so it is very well known as the high technical
center. There are 50 employees working under this division. This division consists of two
types of machines, i.e.
1. Vertical machine
2. Horizontal machine
Vertical machines function vertically, i.e. all kinds of drilling, milling, shaping, etc. is done
through in vertical direction. In HMT there are 3 vertical machining centers are available in
HMT division. These vertical machining centers are produced by HMT for in house
manufacturing.

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Horizontal machines are the machines, which are doing the operation horizontally. There are 8
vertical machining centers are available in HMT. There is one imported horizontal machine
also available, which is imported from England and known as KTM machines.
5.4.2 TOOLROOM
Tool room is a store house of all kind of tools, which are used during the milling, grinding,
spinning, turning etc. during production. The tools are normally fitted to the machines so that it
can be able to give a required shape and size to product.
5.4.3 ROUND DIVISION
Rounds are the section where the machining of components with round shape is being done. It
may be of 10 to 700 die meters. There are 35 employees working under rounds division.
Basically this section produces the round shaped components.
5.4.4 NON-ROUND DIVISION
Non-Round Division is just the opposite of the round division as round division involved in
production of round shape products, as same like that non- rounds division involved in
production of round shape products. There are 16 employees working under the non-round
division.
5.4.5 GEAR DIVISION
Gear division produces the components, which were used for house production of 31
machines working together, and to handle all these types of function there are 22 employees
working.

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5.4.6 DIE CASTING DIVISION
HMT'S Die casting machines carters to wide range of applications. From simple components
to high precision industrial components, these machines take care of most dye casting needs.
HMT offers a range of nine models with locking forces ranging from 80 to 1100 tones to
cover a wide range of pressure dye casting of aluminum and zinc components built to high
standards, these machines are subject to stringent performance testing using advanced testing
devices to ensure productivity and reliability.
5.4.7 SPINDLE DIVISION
Spindle division involved with the production of different types of spindles. In this division
there are 19 workmen and 4 staffs were heading this unit. There are different kind of machineries
involved such as, turning, milling mills, keyway milling, thread milling, drilling, cylindrical
grinding, internal grinding, spine grinding, CNC turning etc.
5.4.8 ASSEMBLY DIVISION
Assembly selection involved with the assembly of different parts and components, so that it can
build a complete machine. In this section the machine tool parts were being assembled together to
give a complete shape to product or machine. In this division there are almost 100 employees
working.
5.4.9 BALL SCREW DIVISION
HMT's Ball screw division is the first to indigenize production of precision ball screws. This unit
was started on 1989 with collaboration with Zeiss, Germany. Ball screws are used in machine
tools to convert rotary motion to linear motion and vice versa. Ball screw is a machine tool
component for translating rotary motion to linear movement used for present day CMC machine
tools.

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5.4.10 FACTORS FOR SELECTION
 Degree of accuracy required
 Services load conditions
 Desired service life
 Stiffness
 Permissible clearance or desired preload
 Critical speed
 Bucking load
5.4.11 APPLICATIONS
 Machine tools
 Industrial robots
 Nuclear application and weapon system
 Transport and space system
To produce above components there are different kinds of machine are available which are
used in this division are keyway milling, gear cutting, radial drilling, CMC thread milling,
straightening machine, internal grinding, surface grinding, vertical drilling, heat treatment
machines, cylindrical grinding machines, thread grinding machine, CMC milling machine etc.
5.4.12 FOUNDRY
Foundry is the place where they put the raw materials or scrap into the Furnace and
according to the frame size to produce the components. There may be of big or small size.
These components are normally of heavy parts. There will be 1400 degree Celsius, it is the
largest foundry in south Asia and it has the capacity to molt 5.5 tons, and silicon sand
brought from the Godavari river basin from AP. Cooling period 36 hours in 20 degree
Celsius. The wage grade people are working in this division. In foundry the first procedure
is to make the frame of a product by which they can produce the required component. After
the production of the component they cut it on to different sizes and then send it to the shop
floor for further operation.

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5.4.13 INSPECTION
Inspection is one of the important activities, which is done at the time of production of a
particular component and at the final production of a machine. The inspection is done after
each and every process of a product, so that no error can arise in later period.

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5.5 MAINTENANCE DEPARTMENT:
Maintenance section is very important as for as plant is concerned. The maintenance is varied
from machines to machines because all machines have different features and different
functional qualities.
5.5.1 PROCESS OF MAINTENACE
• Putting the machine into operation
• Refreshing the axis
• Manual operations
• Job operations
• Traverse in increments
• Traversing to machine home position
Maintenance of CNC is done by considering all the factors such as general, voltage
stabilizers, CNC systems, switches, electrical cabinet, drives, AC servo motors, F/B devices
etc. These services are done every quarterly, monthly or yearly. The preventive maintenance may
be of daily, 200 hours, 500 hours, 1000 hours, 2000 hours, 4000 hours, 800 hours it is also done
for electrical also. Safety precautions are on general and housekeeping, operation and services
and maintenance.
Three types of maintenance are carried out in general in the unit, n the area of Mechanical,
Electrical & Civil:
a. Preventive maintenance
b. Periodical maintenance
c. Breakdown Maintenance
5.5.2 PRECISION MACHINERY DIVISION
This division of HMT MBX produces the small components for robotics applications as well
as for CMC machines. There are 150 employees working in three shifts in these divisions. As it
is involved in CMC or Robotics components, so the accuracy level is very high, due to which
they were maintaining the perfect accuracy level. The accuracy level may goes to 1 micron.

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5.6 SALES DEPARTMENT
Joint General Manager
Deputy General Manager
Manager
Supervisor
Clerk
Functional of sales Department:
Heads of Sales
Sales Engineering Sales Execution

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5.6.1 HEADS OF SALES
Engineering/Sales Execution Sections shall be responsible in their respective areas. Heads of
Sales shall be responsible for the overall activities. Each individual employee shall be
responsible with the scope of resources available to him to/ implement and maintain
Quality Systems and Quality Policy requirements. During the absence of Head of Sales, the
Unit Chief decides as to who shall be in charge of these functions.
A. SALES ENGINEERING
Sales engineering prepares the Annual operation plan (AOP) for Sales based on the Marketing
Forecast/ Past Trend. Sales Engineering plans and controls the activities such as submission of
offer to customer and converts them into orders.
B. SALES EXECUTION
Sales Execution activities start with receipt of order. On receipts of order, they coordinate to
build Machines/Procure/Manufacture and ensure delivery of the machine to customer. It has
direct interaction with Design in case of special machine to customer.
5.6.2 PRE ORDER CONTRACT REVIEW
Purpose: To ensure that the required no. of units is capable of building the machine to meet the
customer requirements Scope: Applicable to Unit products.
The enquiries are received in any mode Telecom / Fax /Email /Website / Letter directory
from customer or through Marketing / HMT (international). If requirement is for basic machine,
it will be reviewed with reference to unit's capacity to meet the customer requirement and
offer submitted. If any clarification required, it will be obtained from customer and offer
submitted.

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5.6.3 POST ORDER STAGE
 The Purchase Order on receipt will be scrutinized with respect to offer, checklist and
price list for General Purpose Machines.
 For any deviation / discrepancies noticed, it is taken up with marketing / customer
and resolved mutually.
 The allotment order will be issued to the Head of concerned Assembly (Mechanical
& Electrical), Inspection, Material Engineering, planning and progress.
 For Tooled up machines / Special purpose machines, the applicable machine layout,
tool layout, Fixture layout, etc. shall be sent for customer approval / reference as per
contract. The approved layouts shall be available in designs.
 After the contract is technically / commercially clear, Order Acceptance is released to
customer

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5.7 QUALITY CONTROL DEPARTMENT
Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured
product or performed service adheres to a defined set of quality criteria or meets the requirements of
the client or customer. QC is similar to, but not identical with, quality assurance (QA). QA is defined
as a procedure or set of procedures intended to ensure that a product or service under development
(before work is complete, as opposed to afterwards) meets specified requirements. QA is sometimes
expressed together with QC as a single expression, quality assurance and control (QA/QC).
In order to implement an effective QC program, an enterprise must first decide which specific
standards the product or service must meet. Then the extent of QC actions must be determined (for
example, the percentage of units to be tested from each lot). Next, real-world data must be collected
(for example, the percentage of units that fail) and the results reported to management personnel.
After this, corrective action must be decided upon and taken (for example, defective units must be
repaired or rejected and poor service repeated at no charge until the customer is satisfied). If too many
unit failures or instances of poor service occur, a plan must be devised to improve the production or
service process and then that plan must be put into action. Finally, the QC process must be ongoing to
ensure that remedial efforts, if required, have produced satisfactory results and to immediately detect
recurrences or new instances of trouble.

Page | 65
5.7.1 QUALITY POLICY
HMT Bangalore is committed to Total Customer Satisfaction by supply of Quality Products and
Services through:
 Continuous improvement of technology of product processes
 Innovation and creativity
 Effective implementation of Quality Management System.
 Monitoring the effective realization of Quality objectives and periodical review of its
suitability.

Page | 66
5.8 MATERIAL MANAGEMENT
Material management is an approach for planning, organizing, and controlling all those activities
principally concerned with the flow of materials into an organisation.
The scope of Materials Management varies greatly from company to company and may include
material planning and control, production planning, Purchasing, inventory control, in-plant materials
movement, and waste management. It is a business function for planning, purchasing, moving, storing
material in a optimum way which help organisation to minimise the various costs like inventory,
purchasing, material handling and distribution costs.
The fundamental objectives of the Materials Management function, are acquisition of materials and
services:
 of the right quality
 in the right quantity
 at the right time
 from the right source
 at the right price
From the management point of view , the key objectives of MM are :
 To buy at the lowest price , consistent with desired quality and service
 To maintain a high inventory turnover , by reducing excess storage , carrying costs and
inventory losses occurring due to deteriorations , obsolescence and pilferage

Page | 67
 To maintain continuity of supply , preventing interruption of the flow of materials and
services to users
 To maintain the specified material quality level and a consistency of quality which permits
efficient and effective operation
 To develop reliable alternate sources of supply to promote a competitive atmosphere in
performance and pricing
 To minimize the overall cost of acquisition by improving the efficiency of operations and
procedures
 To hire, develop, motivate and train personnel and to provide a reservoir of talent
 To develop and maintain good supplier relationships in order to create a supplier attitude and
desire furnish the organization with new ideas , products, and better prices and service
 To achieve a high degree of cooperation and coordination with user departments
 To maintain good records and controls that provide an audit trail and ensure efficiency and
honesty
 To participate in Make or Buy decisions
Materials Management thus can be defined as that function of business that is responsible for the
coordination of planning, sourcing, purchasing, moving, storing and controlling materials in an
optimum manner so as to provide service to the customer, at a pre-decided level at a minimum cost.
HMT started with one product in 1953 now dealing 26 products:
Basic of material management at HMT Bangalore:
 Market forecast/sales forecast
 Marketing
 Production

Page | 68
5.9 PURCHASE DEPARTMENT:
5.5.1 OBJECTIVES OF PURCHASE DEPARTMENT:
a. To ensure timely procurement and supply of material.
b. To ensure fair consistent and transparent purchase practices are followed
c. To ensure continuous search for alternate source supply
d. To act as information center for material
e. To ensure investment made on inventory is at optimum level
5.5.1 PURCHASING PROCEDURE:
Following is the procedure involved in the purchase of materials:
a. Indent
b. Material purchase requisite
c. Circulation of enquiries
d. Repairs of offers
e. Comparative statement
f. Recommendations for procurement
g. Proposed for purchase
h. Financial concurrence
i. GM's sanction for purchase
j. Placement of order
k. Confirmation of order
l. Follow up
m. Receipt at stores
n. Preparation of material inward slip
o. Inward inspection

Page | 69
CHAPTER-6
FINANCIAL HIGHLIGHTS OF
HMT
(2011-2013)

Page | 70
Annual Report 2010-2011
BALANCE SHEET AS AT 31ST MARCH 2011
( in thousands)
Sch. As at As at
31.03.2011 31.03.2010
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS
Share Capital 1.1 719,59,91 719,59,91
Reserves & Surplus 1.2 22,70,82 22,70,82
LOAN FUNDS
Secured Loans 2.1 51,55,97 29,53,71
Unsecured Loans 2.2 75,19,50 126,75,47 70,29,78 99,83,49
869,06,20 842,14,22
APPLICATION OF FUNDS
FIXED ASSETS 3
Gross Block 329,00,19 313,29,25
Less: Depreciation 238,57,10 229,77,02
Net Block 90,43,09 83,52,23
Capital Work-in-Progress 69,89 64,36
Machinery & Equipment in transit 2,69,26 10,15,92
and under inspection/erection
INVESTMENTS 4
CURRENT ASSETS,LOANS
AND ADVANCES
Inventories 5.1 78,16,30 95,75,56
Sundry Debtors 5.2 50,45,79 62,78,05
Cash and Bank Balances 5.3 39,05,67 46,92,32
Other Current Assets 5.4 2,70,41 3,10,17
Loans and Advances 5.5 46,34,20 46,64,83
216,72,37 255,20,93
Less: CURRENT LIABILITIES
AND PROVISIONS
Current Liabilities 6.1 154,59,88 141,61,07
Provisions 6.2 141,10,13 126,95,52
295,70,01 268,56,59
Net Current Assets -78,97,64 -13,35,66
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted) 7.1 3,67 5,79
PROFIT AND LOSS ACCOUNTS 7.2 854,17,93 761,11,58
869,06,20 842,14,22

Page | 71
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011
(` in Thousands)
Sch. Year ended Year ended
31.03.2011 31.03.2010
EARNINGS
Sales 8.1 209,02,29 198,44,83
Less: Exise Duty 18,12,33 15,75,37
Net Sales 190,89,96 182,69,46
Transfer to Plant 11,16,86
Other Income 8.3 12,22,80 16,48,89
Accretion/(Decretion) to Work - in -Progress,
Finished Stock & Scrap 8.4 -16,06,00 -14,05,72
187,06,76 196,29,49
Less: OUTGOINGS
Materials 9.1 71,08,01 76,02,00
Personnel 9.2 152,48,41 124,10,07
Depreciation 3.1 9,85,42 7,87,74
Other Expenses 9.3 36,94,07 33,64,18
Interest (Net) 9.4 7,77,00 7,39,26
VRS Compensation - -
Less: Jobs done for Internal use 8.2 -2,19,02 -6,96,77
275,93,89 242,06,48
Profit/(Loss) Before Tax, adjustment for PPA & EOI -88,87,13 -45,76,99
Less: Prior Period Adjustments (PPA) 9.5 4,19,20 3,06
Add: Extra Ordinary Items (EOI) 9.6 - -
Profit/(Loss) Before Tax -93,06,33 -45,80,05
Less: Fringe Benefit Tax 9.7 4 -
Profit/(Loss) After Tax -93,06,33 -45,80,05
Balance carried to Balance Sheet -93,06,33 -45,80,05
Basic Earnings per share of `10/- each -3.36455 -1.65584
10

Page | 72
BALANCE SHEET AS AT 31 ST MARCH 2012
(` In lakhs)
Note As at As at
No. 31-03-2012 31-03-2011
EQUITY AND LIABILITIES
Shareholders’ funds
Share Capital 1 71959.91 71959.91
Reserves & Surplus - Capital Reserve 2.1 2270.82 2270.82
Reserves & Surplus- (P&L) 2.2 (90032.06) (85417.93)
SHARE APPLICATION MONEY PENDING ALLOTMENT 3 - -
Non-Current Liabilities
-Long-terms Borrowings 4 -
Deferred Tax Liabilities(Net) 5 - -
Other Long-Term Liabilities 6 - -
Long-term Provisions 7 8197.07 8251.76
Current Liabilities
5323.04Short-term Borrowings 8 6102.27
Trade Payables 9 4005.90 4174.30
Other Current Liabilities 10 24180.26 17858.78
Short-term Provisions 11 5553.05 5858.37
Total 31457.99 31058.28
ASSETS
Non-Current Assets
Fixed Assets 12
8439.58-Tangible Assets 9043.09
- Intangible Assets - -
- Capital Work -in- Progress 48.90 69.89
- Machinery & Equipments in transit - 269.26
and under inspection / erection
13 - -Non-current Investments
Deferred Tax Assets (Net) 14 - -
Long term Loans and Advances 15 322.91 228.98
Other Non-Current Assets 16 - -
Miscellaneous Expenses not written -off - 3.67
Current Assets
8521.63Inventories 17 7816.30
Trade Receivables 18 5688.55 5045.79
Cash and Cash Equivalents 19 3935.46 3905.67
Short-term Loans and Advances 20 4180.40 4405.22
Other Current Assets 21 320.56 270.41
Total 31457.99 31058.28Please see accompanying notes to the financial statements.

Page | 73
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 ST MARCH 2012
(` In lakhs)
Note Year Ended Year Ended
No. 31-03-2012 31-03-2011
Gross Revenue from Operations 22 24046.13 21068.17
Less : Excise Duty (2195.55) (1812.33)
Net Revenue from Operations 21850.58 19255.84
Transfer to Plant - -
Other Income 24 2071.05 1372.18
Total Revenue 23921.63 20628.02
Expenses :
9982.46Cost of Materials Consumed 25 7108.01
Changes in Inventories of Finished Goods, WIP & SIT 26 (556.06) 1606.00
Employee Benefits Expense 27 13864.29 15248.41
Depreciation and Amortization 28 977.94 985.42
Other Expenses 29 3053.48 3525.59
Finance Cost 30 1598.95 1260.74
Less: Job done for internal use 23 (219.98) (219.02)
Total Expenses 28701.08 29515.15
Profit/(Loss) Before Tax, adjustment for PPA, Excep & EOI (4779.45) (8887.13)
Less: Prior Period Adjustments (PPA) 31 93.24 419.20
Exceptional Items 32 - -
Profit/(Loss) before Extraordinary items and Tax (4872.69) (9306.33)
Extraordinary Items 33 258.56 -
Profit / (Loss) Before Tax (4614.13) (9306.33)
Current Tax - -
Deferred Tax - -
Profit / (Loss) For The Period (4614.13) (9306.33)
Earnings Per Equity Share:
(1) Basic Earnings Per Share of `10 each (1.66816) (3.36455)
(2) Diluted Earnings Per Share of ` 10 each (1.66816) (3.36455)
(3) No. of Equity Shares (Weighted Average Basis) 276599137 276599137

Page | 74
BALANCE SHEET AS AT 31ST MARCH 2013
(` in lakhs)
Particulars
Note As at As at
No. 31.03.2013 31.03.2012
EQUITY AND LIABILITIES
SHAREHOLDERS’ FUNDS
71959.91Share Capital 1 71959.91
Reserves & Surplus -Capital Reserve 2.1 2270.82 2270.82
Reserves & Surplus- (P&L) 2.2 (94396.71) (90032.06)
Share Application Money Pending Allotment 3 - -
Non-Current Liabilities
Long-term Borrowings 4 3554.09 -
Deferred Tax Liabilities(Net) 5 - -
Other Long-Term Liabilities 6 - -
Long-term Provisions 7 7229.90 8197.07
Current Liabilities
6787.79Short-term Borrowings 8 5323.04
Trade Payables 9 5211.12 4005.90
Other Current Liabilities 10 23867.56 24180.26
Short-term Provisions 11 5830.72 5553.05
Total 32315.20 31457.99
ASSETS
Non-Current Assets
Fixed Assets 12
7544.69- Tangible Assets 8439.58
- Intangible Assets 83.94 -
- Capital Work-in-Progress 358.25 48.90
- Machinery & Equipments in transit 936.72 -
and under inspection/erection
Non-Current Investments 13 - -
Deferred Tax Assets (Net) 14 - -
Long-term Loans and Advances 15 1.04 320.99
Other Non-Current assets 16 - -
Miscellaneous Expenses not written-Off - -
Current Assets
10467.83Inventories 17 8521.63
Trade Receivables 18 7080.66 5688.55
Cash and Cash Equivalents 19 1065.32 3935.46
Short-term Loans and Advances 20 4432.38 4182.32
Other Current Assets 21 344.37 320.56
Total 32315.20 31457.99

Page | 75
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2013
(` in laksh)
Particulars
Note Year ended Year ended
No. 31.03.2013 31.03.2012
Gross Revenue from Operations 22 23623.17 24046.13
Less: Excise Duty (2322.16) (2195.55)
Net Revenue from Operations 21301.01 21850.58
Transfer to Plant - -
Other Income 24 1590.98 2071.05
Total Revenue 22891.99 23921.63
Expenses:
10196.26Cost of Materials Consumed 25 9982.46
Changes in Inventories of Finished Goods, WIP & SIT 26 (2,394.13) (556.06)
Employee Benefits Expense 27 13454.47 13864.29
Depreciation and Amortization 28 945.82 977.94
Other Expenses 29 3182.69 3053.48
Finance Cost 30 2202.61 1598.95
Less: Job done for internal use 23 (321.28) (219.98)
Total Expenses 27266.44 28701.08
Profit/(Loss) Before Tax, adjustment for PPA, Excep & EOI (4374.45) (4779.45)
Less: Prior Period Adjustments (PPA) 31 (9.80) 93.24
Exceptional Items 32 - -
Profit/(Loss) before Extraordinary items and Tax (4364.65) (4872.69)
Extraordinary Items 33 - 258.56
Profit / (Loss) Before Tax (4364.65) (4614.13)
Current Tax - -
Deferred Tax - -
Profit / (Loss) For The Period (4364.65) (4614.13)
Earnings Per Equity Share:
(1) Basic Earnings Per Share of ` 10 each (1.57797) (1.66816)
(2) Diluted Earnings Per Share of ` 10 each (1.57797) (1.66816)
(3) No. of Equity Shares (Weighted Average Basis) 276599137 276599137

Page | 76
CHAPTER-7
SWOT ANALYSIS

Page | 77
6.1 STRENGHTS:
 Good brand image.
 Highly reputed public sector unit.
 ISO 9001 standard certification.
 Proven track record of customer satisfaction and goodwill.
 Skilled manpower.
 Well-Established manufacturing unit.
 Huge infrastructure facilities.
 First reputed machine tool has good quality image inland and International.
 Diversification process has been carried out effectively like:
1. HMT Machine tools
2. HMT Watches
3. Chinar Watches
4. Bearings
5. Tractors
6. International
7. Press Manufacturing
8. Food Processing Machines
9. Printing Machinery
HMT branches have been setup in a different states:
1. Bengaluru
2. Hyderabad
3. Kalamassery
4. Ajmer.
5. Pinjore.

Page | 78
6.2 WEAKNESS:
 Delay in implementing new systems.
 It is facing financial crisis and has been incurring losses since 1993.
 Delay in decision making process.
 Wide range of machines in the organization has left to non-concentration.
 Wide gap in communication.
 Immediate planning and execution is carried out slowly.
6.3 OPPORTUNITIES:
 Bulk requirement of machine tools like speed/automated presses, forging likes etc. for defence
production.
 Modernization of railways and plants.
 Renovation and upgrading of Machine tools.
 Increased export requirement for HMT's range of metal firming tools in countries
like Africa and high technology machines by advanced countries like USA.
 HMT can deliver its products very faster to the customer by speeding up the production
process.
 Boom In the infrastructure to benefit HMT entry into earth moving machines or
higher HP tractors.

Page | 79
6.4 THREATS:
 The company has to face severe competition from both international as well as domestic
market.
 Competitors offering high technology machines through collaboration up gradation of
existing products and resorting of flexible prices.
 HMT is lagging behind in current trend technology as compared to MNC players.
 Increasing competition with entry of new manufacturing countries China the prominence
of Taiwan and republic of Korea.
 Rise of 'Regional' distributors selling on 'Stock and Sale' basis, on behalf of foreign
Manufacturers.
 Ageing technology.

Page | 80
CHAPTER 8
FINDINGS, SUGGESTIONS
&
CONCLUSION

Page | 81
7.1 FINDINGS:
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 limited is facing
typical problems in the emerging globalization scenario as under:
7.1.1NEGATIVEASPECTS
1. The company has not been utilizing whole installed and licensed capacity of its machines
effectively which has in turned resulted in low production.
2. Interruption of trade union is more in the work of management.
3. Lack of utilization of infrastructure.
4. 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.
5. Government is not industrializing at fast pace.
6. Absence of center of excellence for Research and Development.
8. Motivation of employees is less.
9. Less concentration on domestic market.
10. Lack of training
11. No recruitment and selection process in place.
12. After 1997, salaries are not revised.
7.2 SUGGESTIONS FOR THE NEGATIVE ASPECTS:
1.The company should make efforts in making the whole use of installed and licensed capacity.
2. Infrastructure should be utilized at optimum level.
3. The company should update its technology so that it can beat the competitors' price and also
produce higher quality products.
4. Machines must be replaced in order to reduce cost of production.
5. Government should liberalize some policies in order to take necessary decisions by management.
6. Development in R & D is required.
7. The company should reduce inefficiency, absenteeism and idle time.

Page | 82
8. The company should concentrate on motivation, incentive schemes and should liberalize
promotion strategies.
9. Upgrade the training programs in order to increase the efficiency of workers in order to increase the
efficiency of workers.
10. Recruit skilled employees so as to replace existing employees, as most of them are at retirement
stage.
11. Major part of revenue earned is spent on payment of interest. Therefore measures should be
taken to reduce the amount of credit.
7.3 CONCLUSION:
Advanced machine tools are vital to the realization of tomorrow’s critical technologies. In the efforts
to survive in this highly competitive environment, companies are engaging in various initiatives such
as expanding their market share by strengthening their sales and production bases through M&A,
developing new products and functions that will give them an edge over other makers, boosting
resilience against recession through production efficiency, and providing fee-paying after services. At
present, differences in competitiveness among companies in the industry are beginning to become
evident. Predictions of economic growth for the machine tool industry are conservative, but positive.
A new spirit of cooperation exists among industry, academia and government to develop programs
that best utilize research resources to help industry resolve problems in the way of progress. There are
even signs that training, a long neglected issue for the machine tool industry, is getting fresh attention.
Meanwhile, pressures for lower cost, greater productivity, and improved quality are forcing even the
most conservative machine-tool users to re-evaluate their equipment and procedures.
The machine tool industry is experiencing both evolutionary and revolutionary change. Key
components such as spindles and motors are improving incrementally while researchers propose
radical new designs for bearings and machine tool configurations. HMT is the leading machine tool
manufacturing company in India. The company has to face tough competition from various
companies. Even in the midst of tough competition from giants it still has a unique reputation of being
the producer of a quality product. Even though the product has goodwill and good demand, the record
shows that the company is running on loss. There are many factors, which contributes to the loss of
the company.

Page | 83
 High fixed overhead
 Lack of young blood in the executive level
 Potentials are not fully utilizing
 Wastage of raw materials
 Conventional Machines are used in large number in the plant
 Lack of Automation
The machine tool industry in India is set for an investment of Rs. 2,000-3,000 cores in the next few
years. Even while the sector had its limitations in meeting the domestic demand, resulting in large
dependence on imports, the sector was poised for an annual growth of 25 per cent. This would help in
reducing imports while increasing its edge in the export market through modern technology induction
and marketing strategies. The future focus would be on closing technology gap between Indian and
international products through increased productivity, achieving higher consistency and accuracy,
introducing modern safety concepts and enhancing research and development efforts.
In HMT Machine Tools Limited Bangalore, as an intern I had enriched experience, I learnt many
things by just being a part of the tam during discussions and meetings. This exposed me to the work
style and outlook of the organization. Observation helped me to great deal in knowing the
organization in its totality.

Hmt organization study report 2014

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