These watches, available in gold, silver and a mixture of gold and silver cases, are manufactured at the company's Jalahalli facility near Bangalore. The company has entered into a manufacturing and marketing alliance with Tennmax Industrial Ltd of Hong Kong for the purpose.

The new product aimed at the lower-end segment is available in the range of Rs 350 to Rs 650. The company aims to sell around one million HMT Tennmax watches this fiscal.

The domestic watch market is expected witness a demand for 100 million units by the turn of the century. "Initially the company's focus will be on the domestic market. HMT International, the export arm of HMT Ltd, will market these products in major countries in future," senior company officials said.

Since thedomestic market for watches during the current fiscal was estimated at about 55 million, the decision to unveil an international brand will help the company utilise its excess production capacities.

For better utilisation of its manufacturing facilities, HMT also plans to offer projects for assembly of watches. Yet another strategy that the company has been aiming is the supply of products under original equipment manufacturer (OEM) basis mainly to foreign players entering the domestic market.

The company, which reported a net loss of Rs 47.79 crore (Rs 24.97) for the first quarter ended June 30, 1998, also plans to export movement components of watches to major countries.

With a 23 per cent marketshare in domestic watch production, HMT plans to restructure its marketing function to enhance brand and distribution equity for streamlining channel management. For the watch business group of HMT, the Indian Institute of Science is also undertaking a study to suggest such strategies.

Last year HMTincreased the product portfolio with the introduction of quartz alarm watches, electro luminescent watches and slimline elegance watches. It also launched natural gem series in ladies Utsav segment to cater to the premium niche market. The company also repositioned its regular quartz range under a new brand `Sangam' targeting the middle price segment.