Public sector brand, HMT Watches is planned to shut down its business operations since it has been unable to keep up with the evolving trends. It is partnering with online retailer Flipkart to sell 3,000 of the last of its stock online. The company’s final inventory includes around 1 lakh pieces having worth more than INR 10 crore, hence the firm is trying to tie-up with other online retailers as well such as eBay and Snapdeal.
As per an TheTradeBoss.com report, both HMT Watches and HMT Chinar Watches have got the board of directors nod to down their shutters because it’s net loss rose to INR 242 crore in 2012-13 from INR 224 crore an year earlier.
“The company has been unable to keep pace with changing technologies. The production quality dropped, leading to fall in sales,” a company official said.
The government has also initiated work on a voluntary retirement scheme for its 1,025 employees. HMT has four units including in Bangalore, Karnataka, Uttarakhand, while HMT Chinar Watches has extended its operations in Jammu and Srinagar.
It is possible that what the company has been failing to achieve by traditional means, it can achieve online. The nostalgia factor might hit those who might have forgotten about this indigenous brand which was once doing good. And considering the reach of the online players, the farewell might be befitting to the brand.
Related Tags:Public sector brand, partnering with online retailer Flipkart, HMT Chinar Watches