Titan vs Timex

Titan

Introduction

Titan Industries is the world's fifth largest wrist watch manufacturer and India's leading producer of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys brand names. It is a joint venture between one of India's most respected business organizations, the Tata Group, and the Tamil Nadu Industrial Development Corporation (TIDCO).[2] Its product portfolio includes watches, accessories and jewellery, in both contemporary and traditional designs. It exports watches to about 32 countries around the world with manufacturing facilities in Hosur, Dehradun, Goa and manufactures precious jewellery under the Tanishq brand name, making it India's only national jewellery brand. It is a subsidiary of the Tata Group.

Contents

1 Watch division

2 Precision Engineering Division

3 Jewellery division

4 prescription eyewear

Watch division

Titan watch division was started in 1987. At launch it was the third watch company in India after HMT and Allwyn. Titan formed a joint venture with Timex, which lasted until 1998, and setup a strong distribution network across India. As of 2010, Titan watches account for a 60% share of the total Indian market and are also sold in about 40 countries through marketing subsidiaries based in London, Aden, Dubai and Singapore. Titan watches are sold in India through retail chains controlled by Titan Industries. Titan Industries has claimed to have manufactured the world's slimmest wrist watch - Titan Edge.

Precision Engineering Division

Precision Engineering Division of Titan was started in 2002. It has become one of the leading manufacturers of Precision Parts for Automotive and Aerospace Industries.

The Diverse Product range includes pointers, dashboard clusters like Fuel Gauge, Temperature Gauge, Gear Shift Indicators, Clocks for Automobiles and any kind of Injection molded Plastic parts, Electromechanical Assemblies for automobiles, all kinds of pressed and turned parts for automobiles. The Tooling Sector of Precision Engineering Division manufactures all kinds of Press Tool, Molds, Jigs, Fixtures for various industries.

Titan Automation Solution, a part of Precision Engineering Division is a leading Automation Solution Provider for all kind of industries. They made significant contributions to add value during the product development stages of the low-cost water purifier, Tata swach, developed by Tata Chemicals. The Automation Solution applied its precision engineering capabilities to supply automation solutions for the development of special assembly presses that enabled mass production of Tata swach.

Jewellery division

Tanishq is currently the most prominent jewellery brand of India, and it pioneered the concept of branded jewellery and ornaments in India. The name Tanishq has been formed by combining "Ta" (the first two letters of Tata) and "Nishk or Nishkh" (meaning gold coin or necklace in Sanskrit).

Tanishq is India's largest jewellery brand with a wide range of jewellery in 22Kt pure gold studded with diamonds or coloured gems. It is the fastest growing jewellery brand in India. Tanishq, established in 1995, challenged the established family jewellery and introduced new rules in precious jewellery; a category as old as civilization. Tanishq challenged the age-old jeweller's word with Tata's guaranteed purity. Tanishq's initial foray into the jewellery business was a failure though. Tanishq at first introduced 18 Kt gold jewellery advertising 18 Kt as the 'international standard.' This less pure gold was completely rejected by the market dominated by (purported) 22 Kt gold. Later on, it exploded the market with facts about rampant impurity across India. It introduced technology-backed challenge in a category completely governed by blind individual trust. Tanishq introduced innovations like Karatmeter, the only non destructive means to check the purity of gold; machine made jewellery, which offers superior finish and value to the customer and handcrafted jewellery which is influenced by various jewellery traditions of India.

Prescription eyewear

Titan Eye + offers a wide range of optical products from stylish and contemporary frames and sunglasses to the latest lenses and contact lenses. Titan Eye + also provides an array of optometric services. The friendly environment at the stores and the specially trained retail as well as clinical staff make the customers’ experience pleasant and productive. The PEW business is Titan's latest retailing venture. The company now has 48 stores under the "Titan Eye+" brand across the country. Over the next few years the company plans to expand to 250 stores

AWARDS ACHIEVED The company has been awarded the following distinctions: No.1 Brand in the Consumer Durables category in the "Brand Equity" Survey of The Economic Times Won the Young Design Entrepreneur of the Year at the National Institute of Design and Business World Retail Asia and Media Magazine ± Singapore adjudged Titan Industries as amongst the leading Retailing Companies in India. Titan has won the Brand Leadership award at the India Brand Summit. The Time Products Division of the company was awarded the JRD QV Award in 2006.

Introduction of titan watches

Titan Industries is the world's fifth largest and India's leading manufacturer of watches. The company has manufactured more than a 100 million watches till date; and has a customer base of over 80 million. The umbrella brand Titan is one of India's leading watch brands that brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling. The brand Titan is committed to offering its consumers watches that represent the compass of their imagination. Titan's customers are therefore consistently introduced to exciting new collections, which connect, with various facets of their deep−rooted yearnings for self-expression. The new brand philosophy of Titan, encapsulated in the words "Be More", touches this as well as all other aspects of the brand. The Titan brand architecture comprises several collection and sub−brands, each of which is a leader in its segment. Notable among them are: Titan Edge The world's slimmest watch which stands for the philosophy of "less is more"; Titan Raga the feminine and sensuous accessory for today's woman, Nebula − crafted in solid 18k gold and precious stones. Several other popular collections like Heritage, Aviator, Regalia, Octane & WWF also form a part of the Titan wardrobe. Today, the Titan portfolio has over 60% of the domestic market share in the organised watch market. The company has 247 exclusive showrooms christened World of Titan', making it amongst the largest chains in its category backed by 700 after−sales−service centers. The company has a world−class design studio that constantly invents new trends in wrist watches

Profile

• TIL, 1987 under the name Titan Watches Limited (TWL)

• With the diversification of TWL into jewelry in 1994, the company changed its name to TIL

• In June 2004 - diversified into other lifestyle products like eyewear by extending its watch sub-brand Fast track

• launched perfumery with a new brand Evolve, in early 2005

• Manufactures over 6.6 million watches every year

• Titan now has 60% of the organised watch market in its pocket. 

• Essentially positioned as a premium brand

• 350 different models at the launch stage

• available in 30 countries

• 2,500 dealers across the world

Vision

To be a world-class, innovative and progressive organization and to build India’s most desirable brands

Mission

To create wealth for all our stakeholders by building highly successful businesses based on a customer-centric approach, and to contribute to the community.

Sales and Marketing Titan launched totally a new product, quartz analog watch was an entirely new product for India in 1987. Titan’s marketing strategy was initially built around five features: A product of international quality; Indian designs; Competitive prices; An intensive advertising and promotion campaign; and Specialized retail shops to control the presentation, since the general quality of

watch merchandising in India was low.

This ambitious marketing program was intended to position Titan watches as high-quality, fashionable timepieces, available in clean and comfortable surroundings, priced higher than other watches then on the market but not beyond the reach of millions of potential purchasers. It was not a program, therefore, that would place Titan watches in direct competition with, say, mechanical watches from HMT. The marketing program would introduce to India the type of promotional effort familiar in most developed countries. In order to be successful, however, all facets of the program had to come together: attractive designs, high-quality products, sufficient Inventories, a logistical support system and, a well-timed promotional campaign. Accomplishing these multiple tasks in a timely way was a monumental undertaking for a new, untested company.

Strategy evaluation

Titan banks on Cutting edge technology that has helped Titan create value-for-money price and the result is extraordinary marketing presence in about 40 countries, with a network of some 3,500 retailers abroad and high volume of domestic presence. Till date Titan is able to single-mindedly convey a point of differentiation that strikes the consumer then whether it is in terms of price (Sonata) or extraordinary beauty (Slim “Edge” watches). But the point is that whether the Strategies which Titan is following will take Titan to a position of global uniqueness: a brand which brings information and ideas together from around the world, to fulfill human needs in novel ways and still go on for profitable growth. But maybe what's required is a campaign with executional variety a TV campaign that uses attention-getting devices to drive home the message. This would require greater creative risk. But then, if the stakes are reaching gigantic proportions it's time to get one's eyes in.

Titan has segmented the market on the basis of the following variables: Demographic: The segmentation here is done on the basis of social class i.e.

working class, middle income group etc. since marketing is potentially and intimately connected with the “ability to pay” this segmentation is meaningful in analysing buying patterns of a particular class.Age, children, young, adults, Social class: upper, middle and lower come in this category.

Psycho graphic : In Psychographic segmentation buyers are divided into different groups on

the basis of lifestyle and personalities. People within the same demographic group can exhibit very different Psychographic profiles. Lifestyle : professionals, affluent Personality: adventurous, “cool”, traditional Behavioral: Benefits: functional, attractive, reliable, Occasions: gifts, special occasions

Geographical: Region: Europe, Middle-east

Complementing this segmentation Titan is pursuing a three-pronged strategy Create a separate brand for the lower end of the segment. Create new (sub) brands for unaddressed segments, like kids. Re-aim existing sub-brands (Raga, Classique and Regalia etc) to attract specific customer segments, like businessmen, women etc.

BRAND POSITIONING STRATEGIES Attribute Positioning:

First to bring Quartz watches to the Indian market. This helped to penetrate the market and gain a market share. Raga, Classique and Regalia

Benefit Positioning: The Fastrack Digital range offers the customer a functional watch that is attractive and has superior style.

Competitor Positioning: With the entry of Omega, Tissot etc into the market who are catering to the upper end of the market titan has tried to reposition itself by increasing the price range.

Quality or Price Positioning: In Indian market, Sonata is a perfect example of Price positioning, titan came up with this segment when it was facing heavy competition.

Values and Standards

Creativity and Innovation Passion for excellence Corporate Citizenship Total customer orientation Employee appreciation Performance culture and teamwork

MAJOR COMPETITORS

Domestic Level-HMT Maxima-quartz Casio

International level-Espirit SwatchCitizenTag HeuerSeiko Cartier

MARKETING MIX

4P’S

Products

Edge Raga Octan

WWF Heritage Orion Nebula Sonata Exacta Spectra Dash Regalia Fastrack Royale Classique Xylus Titan Bandhan watches

Place

World of Titan Showrooms

Traditional Outlets Non Traditional Outlets

Time Zone

PRICE

Pricing Objectives 1.Survival (i.e. Titan Exacta)2.Market share (i.e. Titan Sonata)3.Market skimming (i.e. Titan Nebula)4.Product quality

Pricing method 1.Product line pricing 2.Promotional pricing

Application of pricing strategy 1.Lower segment 2.1000 plus segment

PRICE RANGERaga Diva- Rs 4000-9500Zoop- Rs 5200- 6000Nebula- Rs 26000- 85000Octane- Rs 5250- 7000Orion- Rs 3200- 7500Fastrack- Rs 500-4500

Promotion

Public relation Gift concept Promotion On Occasions

Advertising media: Television Print Internet

Sales promotion Sponsorship Seasonality Promotion through Contests

Titan brand ambassador:

Titan Brand: Aamir Khan Sonata: Mahendra Singh Dhoni Raga: Gul Panag, Rani Mukherjee Xylys: Rahul Bose � Fastrack: John Abraham �

Titan tagline:Be more � Fast track tagline:How many you have?

Segmenting and targeting

Three distinct market segments

The segments were arrived at using benefit & income level as the bases

High income / elite consumer

– fashion accessory not as a mere instrument showing time.

– willing to buy a watch on impulse

– price tag did not matter

– Nebula, aurum, royale, etc

Mid – segment consumer

– Preferred some fashion

– Price did matter.

– Not purchase a watch without comparing various offers in the market

– Raga, edge, flip, fast track, etc

Lower-income consumers

– time-keeping device

– Bought mainly on the basis of price.

– Sonata, dash, etc.

• Initial targeting

• Sex: Men & Women

• Social-Cultural: Urban & upper middle class

• Styles: Hip, Contemporary & Sporty

• Behavioural: Frequent buyers, have a variety to choose from.

• Recently aiming at students in the 16- to 22-year age group, belonging to SEC A and B, in the top 30 towns. The communication promotes the idea that owning several watches is acceptable.

• Previously positioned itself as a college goer's watch but students don’t have high disposable income as young executives.

• So aimed at executives in the 22 to 25-year age group.

SWOT Analysis of Titan Watches

Strengths

a) The varied offerings to diverse segments with a clear cut positioning.b) The quality of watches is impressive.c) Innovation is core to its strategy.d) Visual Merchandizing has been Titan’s strength ever since its inception.e) Good retail network by “WORLD OF TITAN”f) Excellent customer service.g) International tie-ups with Hugo Boss and Tommy Hilfiger.

Weaknessesa) Waterproof watches not a part of its kitty.b) Rural India does not form a substantial part of customer base.c) Kids are fascinated with mobile phones rather than watches and incidentally, they show the time.

Opportunitiesa) Under-penetrated market for watches as only 35% (approximately) of Indian population possesses watches.b) Watches positioned as a fashion wear rather than just utility products.c) With a changing consumer attitude, people like to possess multiple watches for different occasions and events.d) Huge market in the exchange business.e) Introducing waterproof watches.f) Rural market may be tapped.

ThreatsFrom competitors -a) Japanese- Citizen, Casiob) Swiss- Rolex, Omega, Rado, Tissot, Tag Heur, etc.c) Chinese watchesd) Unorganized sector/ Grey market.

e) Mobile phones and wall clocks are a substitute to watches.f) The fashion trend keeps on changing.

POSITIONING Positioning Strategies Since its introduction, Titan has been positioned as a premium brand, providing high quality products. With its numerous sub-brands catering to different segments, the challenge that Titan faces is to create a strong brand image. It follows different positioning strategies, these strategies can also be analysed in the present context of Sonata, Fastrack, dash and Raga, Classique and Regalia as ; Attribute positioning: When the company launched its products, it was the first to bring quartz watches to the Indian market. The company successfully leveraged this to penetrate the market and gain a market share. Raga Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power dressing now has a new weapon! Regalia as Magic in gold and unique futuristic material, finely crafted sleek cases and patterned dials with special appliqué flowing into intricately designed bracelets. A unique combination of an all-gold and bicolour look, the 'Regalia' range represents the essence of dress-wear. Raga has been differentiated and positioned as Exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique. An exciting collection that includes decorative motifs, 'kadas', studded bracelets and a first of its kind three-in-one watch. The designs are inspired by traditional Indian as well as contemporary motifs and are expressed in ropes, 'kadas' and ornamental bracelets. Crafted exclusively for the sophisticated woman, who wears silver jewellery with elan, the Silver Raga makes a perfect accessory that completes a woman's wardrobe.

User positioning: Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000 and Fastrack range). The Fastrack range is seen as being contemporary, sturdy andreliable. The advertising, packaging and merchandising of this range is young, vibrant and ‘cool’ (the ad line says “Cool watches by Titan”)

Benefit positioning: The Fastrack Digital range offers the customer a functional watch that is also attractive. The digital watch has a “techno-geek” image, but Titan seeks to differentiate its offering on the basis of superior style and attractiveness.

Competitor positioning: With the entry of several foreign watchmakers into the market, Titan had to counter the threat. Most of the entrants are catering to the upper end of the market- Omega, Tissot, Cartier etc. Titan already had the Tanishq brand in this segment. However, it

has tried to reposition this brand by increasing the price range to encourage more customers.

Quality or price positioning: In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as ‘value- for- money’: reasonably priced (less than Swiss watches and higher than Japanese), attractively styled and of good quality. In India Market Sonata is a perfect example of Price positioning, titan came up with this segment when it was facing heavy competition from lower end segment

Titan has been positioned as a premium brand, providing high quality products Titan initially pioneered the concept of "Gifting watches". Customers who were fed up with ugly time machines welcomed the brand Titan. Re- Positioning as a fashion accessory. Watches were perceived as a onetime buy and consumers seldom owned multiple watches. Titan pushed the concept of"Matching Watches to Clothes" in the recent commercials

Porter’s 5 Forces

Degree of rivalry

Increased number of firms Low switching cost

Barriers to entry

Cluttered market Lack of differentiation

Threat of substitute

No close substitute

Buyer’s power

Price sensitivity

Supplier’s power

No strong supplier Lack of bargaining power Rise of china, Taiwan as low cost supplier

Balance Sheet of Titan Industries

------------------- in Rs. Cr. -------------------

Mar '06Mar '07 Mar '08 Mar '09 Mar '10

12 mths

12 mths

12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 82.28 44.39 44.39 44.39

Equity Share Capital 42.28 44.39 44.39 44.39

Share Application Money 0.00 0.00 0.00 0.00

Preference Share Capital 40.00 0.00 0.00 0.00

Reserves 150.30 283.06 391.78 506.85

Revaluation Reserves 0.00 0.00 0.00 0.00

Networth 232.58 327.45 436.17 551.24

Secured Loans 148.84 172.67 188.11 116.76

Unsecured Loans 119.09 74.34 69.78 58.65

Total Debt 267.93 247.01 257.89 175.41

Total Liabilities 500.51 574.46 694.06 726.65

Mar '06Mar '07 Mar '08 Mar '09 Mar '10

12 mths

12 mths

12 mths 12 mths 12 mths

Application Of Funds

Gross Block 420.42 515.48 558.07 593.04

Less: Accum. Depreciation 243.97 264.34 285.61 318.56

Net Block 176.45 251.14 272.46 274.48

Capital Work in Progress 19.56 15.97 9.99 19.52

Investments 27.02 27.02 47.39 7.66

Inventories 374.39 677.48 1,021.09 1,202.69 1,340.33

Sundry Debtors 90.12 92.06 96.45 106.22

Cash and Bank Balance 38.29 50.73 51.91 54.69

Total Current Assets 502.80 820.27 1,169.45 1,363.60 1,495.66

Loans and Advances 150.96 179.06 111.34 128.82

Fixed Deposits 0.00 0.00 0.00 0.00

Total CA, Loans & Advances 653.76 999.33 1,280.79 1,492.42 1,821.65

Deffered Credit 0.00 0.00 0.00 0.00

Current Liabilities 363.89 571.26 842.68 974.00 1,172.28

Provisions 26.72 151.96 73.90 93.44

Total CL & Provisions 390.61 723.22 916.58 1,067.44 1,307.02

Net Current Assets 263.15 276.11 364.21 424.98

Miscellaneous Expenses 14.31 4.21 0.00 0.00

Total Assets 500.49 574.45 694.05 726.64

Contingent Liabilities 64.22 76.01 58.41 65.46

Book Value (Rs) 45.55 73.77 98.26 124.18

Profit & Loss account of Titan Industries

------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 1,509.92 2,181.69 3,098.20 3,926.09 4,703.12

Excise Duty 41.19 46.22 47.35 44.34

Net Sales 1,468.73 2,135.47 3,050.85 3,881.75 4,674.42

Other Income -9.74 4.71 -4.39 -5.91

Stock Adjustments 72.58 246.22 297.89 178.67

Total Income 1,531.57 2,386.40 3,344.35 4,054.51 4,794.70

Expenditure

Raw Materials 981.62 1,620.65 2,431.79 2,940.86 3,561.05

Power & Fuel Cost 10.02 11.55 13.90 16.11

Employee Cost 109.41 157.40 189.66 234.20

Other Manufacturing Expenses 3.46 5.60 5.96 8.99

Selling and Admin Expenses 248.68 331.79 358.05 427.47

Miscellaneous Expenses 41.01 69.63 84.12 86.20

Preoperative Exp Capitalised -0.89 -0.52 -0.02 -0.09

Total Expenses 1,393.31 2,196.10 3,083.46 3,713.74 4,349.78

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 148.00 185.59 265.28 346.68

PBDIT 138.26 190.30 260.89 340.77

Interest 31.71 33.07 39.44 68.46

PBDT 106.55 157.23 221.45 272.31

Depreciation 19.66 25.59 29.73 41.76

Other Written Off 0.00 0.00 0.00 0.00

Profit Before Tax 86.89 131.64 191.72 230.55

Extra-ordinary items -0.93 -0.20 2.57 -10.92

PBT (Post Extra-ord Items) 85.96 131.44 194.29 219.63

Tax 12.34 37.32 44.02 60.68

Reported Net Profit 73.62 94.33 150.27 158.96

Total Value Addition 411.69 575.44 651.68 772.88

Preference Dividend 2.72 0.39 0.00 0.00

Equity Dividend 13.32 22.19 35.51 44.39

Corporate Dividend Tax 2.25 3.83 6.04 7.54

Per share data (annualised)

Shares in issue (lakhs) 422.76 443.89 443.89 443.89

Earning Per Share (Rs) 16.77 21.16 33.85 35.81

Equity Dividend (%) 30.00 50.00 80.00 100.00

Mar '06

Mar '07 Mar '08 Mar '09 Mar '10

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 3.00 5.00 8.00 10.00 15.00

Operating Profit Per Share (Rs) 35.01 41.81 59.76 78.10 98.29

Net Operating Profit Per Share (Rs) 347.41 481.08 687.29 874.48 1,053.05

Free Reserves Per Share (Rs) 32.14 61.70 85.95 110.68 148.39

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 10.07 8.69 8.69 8.93 9.33

Profit Before Interest And Tax Margin(%) 8.69 7.46 7.71 7.84 8.02

Gross Profit Margin(%) 8.50 7.85 7.72 7.85 8.04

Cash Profit Margin(%) 6.32 5.59 6.01 5.73 6.75

Adjusted Cash Margin(%) 7.52 5.73 6.01 5.73 6.75

Net Profit Margin(%) 4.98 4.40 4.92 4.08 5.34

Adjusted Net Profit Margin(%) 6.19 4.54 4.92 4.08 5.34

Return On Capital Employed(%) 27.07 29.20 34.19 42.68 48.67

Return On Net Worth(%) 31.65 28.81 34.45 28.83 34.55

Adjusted Return on Net Worth(%) 49.76 30.00 35.27 32.84 35.39

Return on Assets Excluding Revaluations 8.26 72.82 98.26 124.18 163.19

Return on Assets Including Revaluations 8.26 72.82 98.26 124.18 163.19

Key Financial Ratios of Titan Industries

------------------- in Rs. Cr. -------------------

Return on Long Term Funds(%) 40.07 39.64 43.48 46.80 48.67

Liquidity And Solvency Ratios

Current Ratio 1.08 1.04 1.12 1.31 1.39

Quick Ratio 0.70 0.42 0.27 0.26 0.35

Debt Equity Ratio 1.60 0.75 0.59 0.32 0.10

Long Term Debt Equity Ratio 0.76 0.29 0.25 0.20 0.10

Debt Coverage Ratios

Interest Cover 4.58 6.72 11.78 10.54 15.26

Total Debt to Owners Fund 1.60 0.75 0.59 0.32 0.10

Financial Charges Coverage Ratio 4.89 5.85 6.77 5.14 7.05

Financial Charges Coverage Ratio Post Tax 3.94 4.63 5.56 3.93 5.89

Management Efficiency Ratios

Inventory Turnover Ratio 3.94 3.16 3.06 3.29 3.53

Debtors Turnover Ratio 17.57 23.44 32.37 38.31 46.78

Investments Turnover Ratio 4.09 3.26 3.06 3.29 3.53

Fixed Assets Turnover Ratio 7.92 10.68 6.17 7.33 8.33

Total Assets Turnover Ratio 2.93 4.18 4.84 5.85 6.37

Asset Turnover Ratio 3.49 4.72 6.17 7.33 8.33

Average Raw Material Holding 34.72 34.62 31.16 26.81 24.99

Average Finished Goods Held 66.42 90.80 104.30 100.77 90.75

Number of Days In Working Capital 64.50 46.55 42.98 39.41 39.63

Profit & Loss Account Ratios

Material Cost Composition 66.83 75.89 79.70 75.76 76.18

Imported Composition of Raw Materials Consumed

24.21 29.68 56.37 45.06 66.15

Selling Distribution Cost Composition 10.54 9.99 8.15 7.94 7.66

Expenses as Composition of Total Sales 6.31 5.64 4.66 3.41 2.17

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 21.95 27.69 27.64 32.66 31.01

Dividend Payout Ratio Cash Profit 17.18 21.76 23.08 25.87 25.01

Earning Retention Ratio 82.46 73.18 73.00 71.32 69.72

Cash Earning Retention Ratio 85.64 78.78 77.37 76.70 75.47

AdjustedCash Flow Times 2.41 2.01 1.40 0.79 0.23

Mar '06

Mar '07 Mar '08 Mar '09 Mar '10

Earnings Per Share 16.77 21.16 33.85 35.81 56.39

Book Value 45.55 73.77 98.26 124.18 163.19

Cash Flow of Titan Industries

------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 86.88 131.65 202.30 230.56 321.32

Net Cash From Operating Activities 121.79 126.03 102.22 159.61 341.90Net Cash (used in)/fromInvesting Activities

-34.36 -90.63 -61.75 -57.27 -31.64

Net Cash (used in)/from Financing Activities

-92.69 -23.54 -38.60 -99.75 -177.95

Net (decrease)/increase In Cash and Cash Equivalents

-5.89 12.44 1.18 2.59 132.32

Opening Cash & Cash Equivalents 44.18 38.29 50.73 52.24 54.83

Closing Cash & Cash Equivalents 38.29 50.73 51.91 54.83 187.15

TimexCompany Profile

Timex Group designs, manufactures and markets innovative timepieces and jewelry globally. Timex, founded in 1854, has expanded to become Timex Group, a privately-held company, with several operating units and over 5,000 employees worldwide.

One of the largest watch makers in the world, Timex Group companies include the Timex Business Unit (Timex, Timex Ironman, Opex, TX, Nautica, Marc Ecko); Timex Group Luxury Watches (Valentino, Salvatore Ferragamo); Sequel (Guess, Gc) and Vertime (Versace, Versus).

Timex Group built its reputation as the pioneer in timekeeping by harnessing the power and possibility of time. From the first clock and wristwatch we produced through data integration - from classic, time-honored designs through exclusive, luxury collector's pieces - Timex Group companies continue to deliver unparalleled quality to highly diverse and global customers.

Milan to Hong Kong, design sensibility and creativity inspire multiple lifestyle

brands. From the hallmark everyday watches on which we built our reputation, to exclusive, high-end offerings, we are equipped to meet the needs of our brand partners.Timex Group India has one of the most powerful portfolios of brands in the watch industry. With technological innovation and cutting-edge design, we recognize the tremendous opportunity to leverage the reach and appeal of each brand’s individual identity, personality and customer base. With our global organization and breadth of expertise, we bring our partners from concept through design, manufacturing to distribution, to meet and exceed the brands’ criteria for success

Mission Statement Bringing innovation and reliability to a broad consumer

base. Timex is committed to staying relevant to today’s changing

consumer and lifestyle needs by:

Creative, technologically advanced product design

Incorporating an accessories focus in our approach

Bridging active and healthy lifestyle needs

Bringing technology closer to the sports consumer

SEGMENTATION o YOUTH

o KIDS

o HIGH END

o FASHION

o SPORTS

Marketing mix

4P’s

Product

Throughout its history, the Ecko watch brand has evolved with a renowned

heritage in unlimited innovation and pioneering fashion. It is the arbiter of

trend-defining, dynamic brands and products that continually excite and

inspire their customers.

Nautica watches for men and women combine distinctive styling, bold

colors and unique design. Inspired by sailing and the sea, the Nautica

watches’ functionality reflects an energetic lifestyle and fuses the best of

classic American style with the latest technical innovation.

Opex is a young, audacious brand that embodies contemporary French

sensibility. Designed in Paris for women and by women, Opex timepieces

are the ultimate expression of trendy, stylish femininity. Inspired by the

rhythm of the prêt-à-porter collections, Opex reinvents itself each season.

Engineered in Germany, the TX movement platform was developed over

five years with zero compromises. Using the finest materials – premium

sapphire crystals, sculpted dials and hands, the finest leather, and an

etched case back – every TX timepiece incorporates four independent

motors, each driving a specific function.

The unique Ferragamo collection are a brilliant tribute to the Italian

tradition of design and craftsmanship. From the automatic styles with

sapphire crystal glass to the GMT chronograph and the Automatic

precious Tourbillon movement, this collection evokes the iconic stature

of Salvatore Ferragamo’s groundbreaking designs.

The combination of Swiss technology with distinctive Italian style, Versace

timepieces are the embodiment of international glamour – sophisticated,

elegant and refined. Versace’s watch collections are designed in

accordance with the Maison’s intrinsic style and characterized by the iconic

Versace logo.

An icon of Italian haute couture, designer Valentino Maison’s design

aesthetic is brought into modernity with the creation of timepieces that

express his values: exclusivity, elegance, flawless craftsmanship, quality

and beauty. Based on the culture of couture, the Valentino watch

collection encapsulates the concept of time in a tangible way.

Versus watches are urban and youthful, dynamic and confident. The 2009

Versus collection of timepieces emphasizes the use of bold, edgy design. It

embodies the novel combination of fine materials and the insatiable

attention to impressive detailing.

Price

Timex Chronographs T27601 Rs. 5,595 Timex Formals A047 Rs. 835 Timex Formals LX00 Rs.1485 Timex watch EJ04 Retro Range Rs.400 Timex Steel UT09 Rs.1345

PROMOTION Timex -The Official Timekeeper India Open2006 Timex amongst Top 50 power brands in the US Timex introduces special offer this Valentines for Cupid Struck

hearts TIMEX Brand Ambassador Brett Lee unveils the "new look"

TIMEX in 2009 Timex is the official licensors of the ICC cricket world cup in

India in 2011

Place

Traditional Outlets (only 6)

THE TIME WALK

Non Traditional Outlets � 20 service centers in India

Timex Corporation’s new retail strategy

The Indian subsidiary of American watch major Timex Corp has charted a retail strategy for the current year.

Timex Watches has charted a dual strategy by which it would have larger, more youth-centric exclusive outlets called "Time Factory" in major cities, and a smaller model for tier-two cities.

"We are planning to open 10 new "Time Factory'' outlets across 10 cities by the end of this year. At the same time, we will increase the number of Timex exclusive outlets from 6 to about 40 in 2006. Watch sales are increasingly being driven by impulse purchases," Mr Salil Sadanandan, Vice-President (Marketing), Timex Watches Ltd, said.

Further, keeping in view the double-digit growth in the watch market last year, Timex is targeting to double its top line in three years. It had sales of about Rs 83 crore in the last fiscal.

"We are optimistic about growth. The trends in the market have been encouraging, with multiple ownership of watches on the rise. Also a watch is increasingly being looked upon as a fashion accessory," Mr Sadanandan said.

The company has also been test marketing other brands from its international portfolio and now plans to take the FCUK and Opex brands national from March. While Opex brands are priced at between Rs 2,000 and Rs 5,500, FCUK watches are more expensive at Rs 4,000-9,000.

Balance Sheet of Timex Group India

------------------- in Rs. Cr. -------------------

Mar '06

Mar '07 Mar '08 Mar '09 Mar '10

12 mths

12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital51.2

051.20 51.20 51.20 51.20

Equity Share Capital10.1

010.10 10.10 10.10 10.10

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital41.1

041.10 41.10 41.10 41.10

Reserves -7.56 -5.24 0.22 7.67 9.08

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 43.6 45.96 51.42 58.87 60.28

4Secured Loans 0.00 0.00 0.00 0.00 0.00

Unsecured Loans30.9

89.06 0.45 6.03 0.00

Total Debt30.9

89.06 0.45 6.03 0.00

Total Liabilities74.6

255.02 51.87 64.90 60.28

Mar '06

Mar '07 Mar '08 Mar '09 Mar '10

12 mths

12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block69.6

059.83 61.26 35.54 34.68

Less: Accum. Depreciation55.5

146.22 41.42 20.97 21.92

Net Block14.0

913.61 19.84 14.57 12.76

Capital Work in Progress 0.00 4.89 0.00 0.21 0.26

Investments 0.00 0.00 0.00 0.00 0.00

Inventories19.8

720.51 19.99 24.87 32.37

Sundry Debtors38.6

446.08 49.58 60.30 62.81

Cash and Bank Balance 4.51 5.56 5.21 5.68 6.94

Total Current Assets63.0

272.15 74.78 90.85 102.12

Loans and Advances 7.33 6.31 6.77 10.54 9.98

Fixed Deposits26.6

30.03 4.02 0.02 4.27

Total CA, Loans & Advances96.9

878.49 85.57 101.41 116.37

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities32.9

239.03 48.66 45.57 57.98

Provisions 3.53 2.95 4.91 5.72 11.13

Total CL & Provisions36.4

541.98 53.57 51.29 69.11

Net Current Assets60.5

336.51 32.00 50.12 47.26

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets74.6

255.01 51.84 64.90 60.28

Contingent Liabilities 2.23 4.96 2.73 2.60 7.72

Book Value (Rs) 0.25 0.48 1.02 1.76 1.90

Profit & Loss account of Timex Group India

------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 99.64 115.22 133.29 132.19 137.66

Excise Duty 2.30 1.98 1.49 2.95 1.89

Net Sales 97.34 113.24 131.80 129.24 135.77

Other Income -1.64 1.80 1.31 2.40 2.39

Stock Adjustments -1.60 1.10 -0.75 4.42 5.34

Total Income 94.10 116.14 132.36 136.06 143.50

Expenditure

Raw Materials 47.82 62.09 65.84 65.00 80.12

Power & Fuel Cost 1.23 1.22 1.51 1.21 0.61

Employee Cost 12.20 13.26 15.33 15.05 14.85

Other Manufacturing Expenses 0.52 0.30 0.44 0.38 0.19

Selling and Admin Expenses 22.64 28.96 34.21 37.93 36.87

Miscellaneous Expenses 3.31 3.75 4.48 5.33 4.14

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 87.72 109.58 121.81 124.90 136.78

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 8.02 4.76 9.24 8.76 4.33

PBDIT 6.38 6.56 10.55 11.16 6.72

Interest 2.00 1.23 0.88 0.87 0.32

PBDT 4.38 5.33 9.67 10.29 6.40

Depreciation 3.26 2.31 2.59 2.34 2.29

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 1.12 3.02 7.08 7.95 4.11

Extra-ordinary items 0.54 0.19 -0.13 1.04 1.75

PBT (Post Extra-ord Items) 1.66 3.21 6.95 8.99 5.86

Tax 0.51 0.69 1.48 1.54 1.25

Reported Net Profit 1.15 2.52 5.45 7.45 4.62

Total Value Addition 39.90 47.49 55.98 59.89 56.66

Preference Dividend 0.00 0.00 0.00 0.00 2.74

Equity Dividend 0.00 0.00 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.47

Per share data (annualised)

Shares in issue (lakhs)1,009.5

01,009.50 1,009.50 1,009.50 1,009.50

Earning Per Share (Rs) 0.11 0.25 0.54 0.74 0.19

Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00

Book Value (Rs) 0.25 0.48 1.02 1.76 1.90

Key Financial Ratios of Timex Group India

------------------- in Rs. Cr. -------------------

Mar '06

Mar '07 Mar '08 Mar '09 Mar '10

Investment Valuation Ratios

Face Value 1.00 1.00 1.00 1.00 1.00

Dividend Per Share -- -- -- -- --

Operating Profit Per Share (Rs) 0.79 0.47 0.91 0.87 0.43

Net Operating Profit Per Share (Rs) 9.64 11.22 13.06 12.80 13.45

Free Reserves Per Share (Rs) -0.75 -0.52 0.02 0.76 0.90

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 8.23 4.20 6.99 6.78 2.83Profit Before Interest And Tax Margin(%)

4.84 2.13 5.01 4.92 1.11

Gross Profit Margin(%) 4.88 4.80 5.03 4.97 1.14

Cash Profit Margin(%) 6.41 4.20 5.71 5.71 4.92

Adjusted Cash Margin(%) 6.41 3.99 5.71 5.71 2.49

Net Profit Margin(%) 1.17 2.19 4.11 5.71 3.38

Adjusted Net Profit Margin(%) 1.17 1.97 4.11 5.71 3.29

Return On Capital Employed(%) 7.43 7.61 14.17 11.57 10.02

Return On Net Worth(%) 45.44 5.48 52.87 41.95 9.80

Adjusted Return on Net Worth(%) 119.88 46.84 48.37 28.72 -8.50Return on Assets Excluding Revaluations

0.25 0.48 1.02 1.76 1.90

Return on Assets Including Revaluations

0.25 0.48 1.02 1.76 1.90

Return on Long Term Funds(%) 12.71 9.11 14.29 12.76 4.45

Liquidity And Solvency Ratios

Current Ratio 1.44 1.54 1.58 1.77 1.68

Quick Ratio 2.12 1.38 1.22 1.49 1.22

Debt Equity Ratio 28.48 10.32 4.03 2.65 2.14

Long Term Debt Equity Ratio 16.24 8.46 3.99 2.31 2.14

Debt Coverage Ratios

Interest Cover 3.01 4.30 10.57 11.30 35.99

Total Debt to Owners Fund 28.48 10.32 4.03 2.65 2.14

Financial Charges Coverage Ratio 4.40 5.30 11.29 11.33 15.56Financial Charges Coverage Ratio Post Tax

3.20 4.94 10.13 12.26 22.63

Management Efficiency Ratios

Inventory Turnover Ratio 5.02 5.61 6.68 5.32 4.25

Debtors Turnover Ratio 2.69 2.67 2.76 2.35 2.21

Investments Turnover Ratio 5.02 5.65 6.68 5.32 4.26

Fixed Assets Turnover Ratio 1.40 7.02 2.16 3.64 3.91

Total Assets Turnover Ratio 1.31 2.06 2.55 1.99 2.25

Asset Turnover Ratio 1.40 1.90 2.16 3.64 3.94

Average Raw Material Holding 73.23 49.96 47.95 60.55 51.77

Average Finished Goods Held 49.15 46.44 36.24 52.31 59.30

Number of Days In Working Capital 223.87 116.07 87.43 139.60 125.29

Profit & Loss Account Ratios

Material Cost Composition 49.12 54.82 49.95 50.29 59.00Imported Composition of Raw Materials Consumed

39.89 39.11 40.14 45.59 49.81

Selling Distribution Cost Composition 13.20 14.77 15.83 19.26 18.57Expenses as Composition of Total Sales

10.50 4.96 5.47 6.65 5.26

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit -- -- -- -- 24.79

Dividend Payout Ratio Cash Profit -- -- -- -- 11.18

Earning Retention Ratio 100.00 100.00 100.00 100.00 128.58

Cash Earning Retention Ratio 100.00 100.00 100.00 100.00 29.08

AdjustedCash Flow Times 4.92 1.97 0.06 0.81 --

Mar '06

Mar '07 Mar '08 Mar '09 Mar '10

Earnings Per Share 0.11 0.25 0.54 0.74 0.19

Book Value 0.25 0.48 1.02 1.76 1.90

Cash Flow of Timex Group India

------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 1.66 3.21 6.93 2.64 5.88

Net Cash From Operating Activities 2.94 3.67 16.78 -18.65 11.53

Net Cash (used in)/fromInvesting Activities

-4.74 -6.21 -3.84 10.21 0.19

Net Cash (used in)/from Financing Activities

28.34 -23.01 -9.31 4.92 -6.21

Net (decrease)/increase In Cash and Cash Equivalents

26.54 -25.55 3.64 -3.53 5.51

Opening Cash & Cash Equivalents 4.60 31.14 5.59 9.22 5.70

Closing Cash & Cash Equivalents 31.14 5.59 9.22 5.70 11.20

Comparison - Titan and Timex

Advertisements Celebrity Price � Distribution channel � Parent company Matching watches to clothes vs. sports watch Large product line R&D

RECCOMENDATIONS

�PRODUCT

Should make more designs trendy watches for the gen x

More variety for girls watches.

Should launch a different product line E.g. Eye wear, bags, laptops.

Better CRM-increase in consumer affluence

Attractive packaging

�PROMOTION

Using Indian celebrities in the ads which focus on Indian context like festivals

Funny or impressive punch line.

Special offers

Colourful banners

PRICE

Youth watches between Rs.500-1800 Sports watch- Rs1200-6000 Men’s and women’s collection- Rs800-6200 �

PLACE

Increase the number of Exclusive outlets Name the showroom under the name of TIMEX