New Delhi: HMT watches, a well known brand once, established in 1961 is set to close down its operations.

The government has decided to wind up the watch company as it is reeling under losses since 2000, according to a daily newspaper report.

The watchmaker is even unable to pay salaries to its employees. The company has a manpower of 1,105 employees.

Set in collaboration with Japan’s citizen watch, the company has been posting losses year-by-year. The firm posted a loss of Rs 242 crore in 2012-13 as compared to a loss of Rs 224 crore in 2011-12.

In 2000, HMT Watch Business group was restructured as HMT Watches Ltd. However, the company started making losses soon after, following which a revival plan was mooted and approved by the BRPSE in 2006.