HMT plans to divest part of stake in tractor divisionnews
11 May 1999

HMT Ltd,,is considering divesting a portion of its stake in its tractor division in favour of a strategic partner so that the division can be spun off into a separate company. It is understood to be holding talks with Mahindra and Mahindra in this regard.

The tractor division had sold 19,000 tractors in 1998-99.

Meanwhile, the company is planning a joint venture for assembling tractors in South-East Asia. The joint venture partner will import CKD parts and assemble tractors. The venture is being worked out through HMT's wholly-owned trading arm, HMT International.

According to HMT International's executive director M.S. Zahed the tie-up is likely to be finalised later this year. HMT International's stake and the investment required for the venture are yet to be worked out.

HMT International is also planning a joint venture for assembling watches in West Asia. At present, the company has a joint venture partnership with Gulf Metal Foundry LLC, to make castings for the petroleum industry.

HMT's software division expects a higher turnover on account of its ERP package, Vikas. It has some Y2K-related assignments from state-owned industrial units.

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HMT plans to divest part of stake in tractor division