GODREJ and Boyce Manufacturing Company has signed an agreement with HMT Watches to be its national distributor and help boost the brand's falling sales.
Mr Raja Jhangiani, Vice-President and Business Head, Godrej & Boyce's Prima Division, said though Godrej was aware of its inexperience in the watch business and the "plight" of inheriting a business that has very few takers, it decided to enter into the pact because of the "latent potential of the business and the strong brand equity of HMT."
The newly created Retail Distribution Services division of Godrej Prima will provide complete distribution services. This division already provides distribution services to international brands such as Zero B (water purifiers), Brother and Panasonic, for printers and fax machines, apart from products such as digital camerasand retail batteries.
Mr Jhangiani said though the exclusive national distributorship agreement was renewable every year, "we are looking at long-term partnership to grow the market for HMT watches."
Mr M.S. Zayed, Chairman and Managing Director of HMT Group, said the alliance would help boost HMT's sales. The sales projection for the current fiscal is Rs 115 crore.
HMT sold watches worth Rs 20 crore last year with a price band of Rs 500 to Rs 5,000.
HMT Watches, which has been in the red, had sought a revival package assistance from the Government. Mr Zayed said, "We are still awaiting for the clearance."