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Chapter No. 1


1.1 Introduction
Wrist Watches form an integral part of the personality of individuals in the present
era. Earlier seen as a luxury item, they are now witnessing a fundamental change in
perception, and are now gaining respect as an essential utility item. For the watch
industry, time seems in its favour what with the liberalization of the Indian market
coupled with the rising purchasing power of the young and consumerist Indians.
Indian watches market was for long dominated by public sector organisations like
Hindustan Machine Tools Ltd. (HMT) and Allwyn (also famous for its refrigerators
once upon a time!), and has now left the pioneers far behind or nowhere in market by
private sector enterprises like Titan, Sonata, Ajanta and Timex along with foreign
entities jostling for display space in the smallest of shops selling these products.
Before the establishment of HMT as the dominant player in the Indian markets
initially, the country was solely dependent on imports to meet the internal demand.
However, establishment of HMT as the leading player in the wrist watch segment in
the 1960s, changed the scenario.
In post liberalization India, the market stood to witness intensive competition between
foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex,
Frderique Constant, Mont Blanc, Swatch, and many others. Many watch makers
have made significant inroads in the industry and others are in the process of
establishing themselves, currently.
Besides this, buyers are extremely choosy about the brand and type of wrist watches
they wear. Being extremely brand conscious, their tastes have evolved over the years
and have gone beyond the realms of durability to choose in terms of aesthetics and
elegance. Thus it is a buyers market with multitude of designs that have entered and
flooded the market place.
The size of the watch market currently is estimated to be around 40 to 45 million
pieces annually. The organized sector alone contributes up to 30 percent of this figure,
and the rest of the demand is being met by the unorganised grey sector. This data is
significant indeed in view of the socio economic distribution of the Indian populace.


More than 58 percent of the population is under twenty five and more than 80 percent
of the population is below 45 years of age.
In the end, though India is still considered to be a difficult market to penetrate, due to
reasons like price sensitiveness and its largely unorganised sector. However, with the
right planning and the right partners and experienced collaborators, it is expected that
both international and domestic watch manufacturers will do well in the Indian

1.2 History
Patek Philippe created the first wristwatch in 1868 for Countess Koscowicz of
Hungary. In 1880, Constant Girard (Girard-Perregaux) developed a concept of
wristwatches, made for German naval officers and ordered by Kaiser Wilhelm I of
Germany. Two-thousand watches were produced, which represents the first important
commercialization of wristwatches for men; wristwatches were mostly worn by
women until the First World War.
In 1904, Brazilian aviator Alberto Santos-Dumont asked his friend Louis Cartier to
come up with an alternative that would allow him to keep both hands on the controls
while timing his performances during flight. Cartier and his master watchmaker
Edmond Jaeger soon came up with the first prototype for a man's wristwatch called
the Santos wristwatch. The Santos first went on sale in 1911, the date of Cartier's first
production of wristwatches.
Indian Watch industry is estimated to be around 1600 crores and Titan is riding on top
of it with a market share of over 50%.

This is a super brand that has changed the way we look at ( or wear) watches. A
marketing success story, Titan is a brand that will be of interest to most of the
marketers. Titan , a brand from TATA was launched in 1987. During that time Indian
watch market was dominated by HMT . At that time watches were seldom stylish and
was catering to the basic need of knowing the time. Titan changed all that. With its
stylish watches and smart advertising ,Titan took the market by storm. Titan infact
changed the way watches was manufactured and marketed in India. HMT , a public


sector company seldom bothered to respond.

1.3 Indian Wrist Watch market
50 million wristwatches are sold in India every year. Notwithstanding the presence of
global players and the opening up of the market, the Indian market has always been
dominated by a single player. In the past, till the late 80s, in the mechanical era,
HMT dominated the market. And after that it has again been the domination of a
single company, Titan. Today Titan has almost 65% market share of the organized
watch market in the country. The organized watch market itself is estimated at 35% of
the total industry size.
In value terms the size of the organized market is estimated at around Rs. 1500 crores,
which means that the average price of watches sold even today is less than Rs.1000!!!
Watches are typically segmented into specialist watches and fashion watches. All
International watch brands have a clear position as to where they belong. In India
most sales are in the fashion segment and this fine distinction has not yet been used by
marketers. Male watch buyers far outnumber females and account for around 65% of
sales. Students are the largest segment of buyers accounting for approximately 30% of
the sales.
Since penetration is still low and the unorganized sector big, this industry has a lot of
scope to grow both in value and volume. The jury is still out though whether the
Indian companies like Titan will lead this growth or the global majors like Seiko,
Citizen etc. After all the domestic players have hitherto grown because of a retail
strategy and the wining global players are clearly focused on product


1.4 About Wrist Watch
Mechanical movement
Compared to electronic movements, mechanical watches are less accurate, often with
errors of seconds per day, and they are sensitive to position, temperature and
magnetism. They are also costly to produce, require regular maintenance and
adjustment, and are more prone to failure. Nevertheless, the craftsmanship of
mechanical watches still attracts interest from part of the watch-buying public.
Skeleton watches are designed to leave the mechanism visible for aesthetic purposes.
Traditional mechanical watch movements use a spiral spring called a mainspring as a
power source. In manual watches the spring must be rewound periodically by the user
by turning the watch crown. Antique pocketwatches were wound by inserting a
separate key into a hole in the back of the watch and turning it. Most modern watches
are designed to run 40 hours on a winding and thus must be wound daily, but some
run for several days and a few have 192-hour mainsprings and are wound weekly.
Automatic watches
Automatic watch: An eccentric weight, called a rotor, swings with the movement of
the wearer's body and winds the spring
A self-winding or automatic watch is one that rewinds the mainspring of a mechanical
movement by the natural motions of the wearer's body. The first self-winding
mechanism was invented for pocket watches in 1770 by Abraham-Louis Perrelet, but
the first "self-winding", or "automatic", wristwatch was the invention of a British
watch repairer named John Harwood in 1923. This type of watch allows for constant
winding without special action from the wearer; it works by an eccentric weight,
called a winding rotor, which rotates with the movement of the wearer's wrist. The
back-and-forth motion of the winding rotor couples to a ratchet to automatically wind
the mainspring. Self-winding watches usually can also be wound manually so they
can be kept running when not worn or if the wearer's wrist motions are inadequate to
keep the watch wound.


Chapter No. 2


Company Profile

Concise description which, among other items of information, includes
(1) firm's history,
(2) number and quality of its human, financial, and physical resources
(3) organizational and management structure,
(4) past, current and anticipated performance, and
(5) its reputation, and the standing of its goods or services.

Titan Watches
2.1 Introduction
Being the world's fifth largest integrated own brand watch manufacturer, Titan
Company has created and sold more than a 150 million pieces the world over.
With a production rate of over 15 million watches per annum and a customer base of
over 135 million globally, Titan Company owns manufacturing and assembly
operation centres in Hosur in Tamil Nadu , Dehradun, Roorkee, Pantnagar in
Uttaranchal and an Electronic Circuit Boards (ECB) plant in Goa, all in India.
Capturing the important market segments and the changing fashion trends, Titan
Company has brought forth four core watch brands:
Titan which is designed for the mid-premium segment
Fastrack which is crafted to fit the trendy fashion space with a focus on the youth


Sonata which is created for the mass market and has emerged as Indias largest
selling watch brand
Xylys which is fashioned for the premium market, aiming at the connoisseur and
new-age achiever
The Titan brand architecture comprises several sub-brands, each of which is a market
leader in its own space. Notable among them are: Titan Edge, Titan Raga, Nebula and
several other collections like Zoop, Orion, Purple, Obaku, Automatic, Tycoon,
Bandhan, Octane and the HTSE series. The Titan brand portfolio owns over 60% of
the domestic market share in the organized watch market.
Titan Company's pride possession, a world-class design studio for watches and
accessories, is the place where some of the most coveted creations have been
Exclusive World of Titan and Fastrack showrooms and over 11,000 outlets in more
than 2,500 cities in India make these much-sought-after watches available to the
buyers. The watches are also offered internationally in 32 countries, with a special
focus on the Middle East and Asia Pacific regions.
Helios, India's multibrand watch retailer offers an unmatched range of the latest
designs across 30 international brands in addition to Titan brands. The after-sales
service, a benchmarked operation with a large network of exclusive service centres
spread across the country, is one of the operation units with one of the fastest
turnaround time in the world.


2.2 Product Line of Titan watches
Fastrack Cool, Trendy and Funky:
The latest trend in the fashion industry is the Titan Fastrack
watches. Currently, people are using watches as a fashion
necessity. This is an accessory that you need in order to achieve
an elegant and sophisticated look. A watch has several benefits
to offer. First and foremost, it helps in keeping time. In todays
world people are wearing watches as jewels. This is the reason
why a lot of effort is exerted in finding the right fastrack
watches. There are varieties of titan watches that you can choose
from. The watches come in different designs, styles, colors and size. There is always
something for you. All you need is to take your time and find the right one.

The quality of Titan Fastrack watches is incredible. It is important to know that the
watches are provided at an economical price. This is something that has led to the
increased popularity of the watches. Many people from different parts of the world
can afford the accessories. Currently, there is high demand of the watches. Many
women have realized that the watches are helping in making fashion statements.
Furthermore, they are adding some femininity to your looks. The allure of the watches
is irresistible it will actually make heads turn.
Sonata Pride and Confidence:
Titan Sonata SF Watches is the second group. These are
the most price friendly watches, which can be found in
either digital or analogue. They are most bought by teens.
Next is the Titan Sonata Solid Steel collection. In this
group, there are 24 models and are designed to suit young
adults. They are mainly made with a steel finishing. Titan
Sonata delightful duo is also a group that is amongst
Titan Sonata watches. They come as a pair suiting a couple since one has a
rectangular dials which suits men and the other watch is similar but designed with a


feminine taste. Notably, this brand of watches portrays a delicate golden finishing.
They are ideal for wedding and special anniversary gifts.
Titan Sonata watches that are Gold plated are also a member of this group. As the
name suggests, this series of watches have a finishing that is gold plated. Majority are
built with gold plated strap. However, some consist of leather straps. This brand is
quite popular with the middle aged. Despite being fairly priced, they are durable and
some in this group are waterproof. The watches are also manufactured with a great
deal of style and technology.

Nebula- Designed for distinct tastes and likes:
Exquisite, explicit designs are some of the words you could use
to describe titan nebula watches. Available in bracelets and kada
for women, strap made of classic leather or pure gold for men
and some with pearls and diamonds, this line of watches is a
serious ingenious way of combining character, style, elegance
and technology. Basically, its a wrist watch that personifies
success, style, class, technology above reproach and taste at the
same time. Speaking of taste, Titan Nebula watches are designed
for distinct tastes and likes. Basically, its a luxurious watch but affordable.
Titan Nebula watches are manufactured by Titans, established in 1984. They are in
fact, responsible for many series of world class watch designs that are sold in over 32
countries. The company was established under a joint venture between Tamil Nadu
Industrial Corporation and the TATA Group. Today, the company stands out as one
of the best manufacturers of watches in the world and has also ventured in jewelry
market, Tanishq being its own brand. It also manufactures the Sonata brand of


Edge TO give you the fashionable edge over your peers:
Titan Edge watches are unique and very fashionable.
Wearing the watch on your wrist will give the impression
of classiness and individuality. The watch comes in a
slim and sleek design which will sway you to get one for
yourself originally from India, Titan Edge watches will
offer the wearer the best service, just as anyone would
desire in a watch. Design, function, style and budget are
what you should look for in a good watch collection.
Titan Edge is the best collection that will give you a combination of values. The
designer watch is both stylish and caters for the needs of everyone whether in
business or in sports. Owning a watch has never been this easy. The watches are
available online and once you place your order and pay for the product, the watch is
delivered to your address
Titan Edge watches are pocket friendly and their benefits are numerous after
purchase. The fashionable watch collection matches the value of your money and
gives you pride when wearing it. Always ensure that the watch is within your budget
as you compare the distinct features of each model placed on the display shelf. The
watches are designed for both men and women. The men will love the gold and silver
branded watches designed especially for them while the ladies will enjoy the simple
feminine and elegant watches that will accessorize their outfits.
Raga Flora-Elegant and Unique:
First and foremost, it is important to understand that
there is a wide range of titan flora watchesavailable.
These watches are mainly designed to cater for the
needs of women who want an elegant and accessorized
look. These are the perfect accessories that you require
in order to make your look elegant and unique. The
watches can be worn during different occasion whether


it is formal or casual situations. The designing of the raga watches is inspired by the
exotic flowers. There is a large collection of watches which are aiming at adding
sensuality. Furthermore, they will help in adding sparkle to your looks.
Due to the fact that there is a large collection of the watches, it is advisable that you
should take your time and select the best watch that meets your needs and
preferences. One thing that you will definitely love about the flora watches is the fact
that they help in adding some femininity to your looks. The watches are elegantly
designed in unique flower forms. They are also embellished using crystals. The flora
watches are available in different colors and finishes such as steel and gold. You can
buy different colored watches so that you can match them with different outfits.

Zoop For kids:
Titan zoop watches are a must have in order to make
your wardrobe complete. The advantage of these
accessories is that they help in making bold fashion
statements. Actually, they will make heads turn in
whichever place you will be at. The amazing issue is
that despite the attractive designs of the watches, they
are provided at an affordable price. The watches come
with different colors, sizes, styles and designs. The
advantage of the watches is that they help in adding
some femininity to your looks.
Titan zoop watches have good quality. This is something that makes them to last for
long while they are still efficient in their operation. The watches are manufactured by
titan industries which are reputable. There is a wide range of watches that will meet
your preferences. The watches are readily available in various local outlets and online
sites. In order to benefit from amazing deals, it is advisable that you should shop for
the watches online. This will not only help to save your time but also energy.
Remember that you should take your time and compare the prices. This will help you
to go for an outlet that is offering the watches at a good discounted price.


2.3 Vision and Mission Statement
We create elevating experiences for the people we touch and significantly impact the
world we work in
We will do this through a pioneering spirit and a caring, value-driven culture that
fosters innovation, drives performance and ensures the highest global standards in
everything we do.

Hmt Watches
2.4 Introduction
Long years ago we made a tryst with destiny, and now the time comes when we shall
redeem our pledge declared our beloved Prime Minister Pandit Jawaharlal
Nehruji at the stroke of midnight of August 14, 1947 as India attained independence.
This led to a phase of vigorous initiatives in agriculture, industry, infrastructure and
other such core sectors to make independent India self-reliant.
HMT was entrusted the vital task of building machine tools and in 1953 the first
Machine tool factory was set up in Bangalore.
Panditjis vision to bring-in a sense of time consciousness among the Indians, his
belief that India was capable of manufacturing precision components generated the
pace for setting up a watch manufacturing unit within the country. In 1961,
Government of India entrusted the job to HMT due to its capability, name and fame
amongst the public sectors.
HMT set up a watch manufacturing Unit at Bangalore in collaboration with M/s
Citizen Watch Co., Japan in 1961. As the first manufacturer of Wrist watches in the
country, HMT successfully absorbed the totally new precision manufacturing
technology for mass production, and assembly of micro sized components. This tryst


with firsts continued and led to launch of Indias first Automatic Day-Date watch ,
first Quartz watch , first Braille watch, first Ana-Digi watch and so on.
The first batch of Hand Wound Wrist Watches was released by the Honble Prime
Minister Pandit Jawaharlal Nehru.
Popularity and demand of watches was increasing which led the company to expand
its capacity. Accordingly, the expansion was done as mentioned below.
In 1972, Watch factory II was set up alongside the Bangalore Factory to manufacture
Automatic Day Date Watches with Japanese Technology.
Watch factory III was set up at Srinagar in 1972 with the entire Technical Knowhow
from HMT engineers.
In 1975, Watch factory at Bangalore was further expanded to manufacture Main
Spring, Hair spring and Shock absorber components. By this, HMT totally acquired
the technology of Mechanical Watch making.
Later on HMT set up manufacturing facility to produce 2 million watch components
sets at Tumkur and Ranibagh in the year 1978 and 1985 respectively and watches
were assembled at various assembly units spread over the country. This was done
with the objective of dispersal of Industry and creation of employment besides
catering to the demand for the product which got accepted very well in the market. In
line with the market trend , Watch factory at Tumkur was partially converted to
manufacture Quartz Analog Watches in collaboration with M/S Citizen Watch Co,
Japan. To cater to the Niche market, a specialized watch case manufacturing facility
was set up at Bangalore in 1983 .The project was implemented with in-house
expertise, without any foreign collaboration .
Since 1985 , HMT Watches has been actively involved in making Floral Clocks, Solar
Clocks, International Clocks, Master-Slave clocks and Tower Clocks. The Garden
clock at Bangalore thrills thousands of visitors everyday.
In the year 2000, HMT Watch Bussiness group was re-structured as HMT Watches
Limited (a Wholly Owned Subsidiary of HMT Limited).


HMT Watches, having over 100 million satisfied customers, is a household name in
the country and enjoys a good Brand Equity.
2.5 Product Line of Hmt Watch
Elegance It all about you :
A watch that is truly a sight to behold. The HMT elegance is
adorned with classic styling. And equipped with all the
features of a precision time keeper. Elevating watch making to
a fine art. It is normally seen in places frequented by the
luminaries of the society.

Utsav- The well-dressed watch :
The scintillating masterpiece is a tribute to the eternal beauty of
women. Sporting dials embellished with colourful motifs, the utsav
watch weaves a kind of timeless appeal around it. Utsav is in fact
created as an inseparable companion to the contemporary women of

Sangam-Absolutely modern, Absolutely Indian:
Unveiling a watch personifying an unique blend of the east and
west. The sangam offers perfect harmony to men and women
who live international lifestyle without forgetting their Indian
roots. In other words it is modern and yet absolutely Indian.


Sona- Good as Gold:
The sona watch object of sheer majesty Aptly name
sona, meaning gold, this watch comes with a gold case
leather strap what`s even better, it is priced very

Mechanical-Desh ki dhadkan:
Who said rugged and sturdy things can`t look beautiful? One
look at the mechanical range of watches will make you
change your mind immediately. Those watches are elegantly
crafted and enshrined in a well-designed case to offer a quiet
dignity to the wearer.

2.6 Vision and Mission Statement
To provide high quality and trend setting watches that combine performance with
value pricing
To introduce a broad range of watches and clocks to satisfy all segments of society
To strengthen HMT Brand and create lasting impression on the customer
To develop innovative business model that supports production and marketing
To develop and launch new models with contemporary styling
Focused approach on optimum utilization of resources


Chapter No. 3


Marketing Strategy
3.1 Marketing Mix
Definition of 'Marketing Mix'
The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market.

Definition: The marketing mix refers to the set of actions, or tactics, that a company
uses to promote its brand or product in the market. The 4Ps make up a typical
marketing mix - Price, Product, Promotion and Place. However, nowadays, the
marketing mix increasingly includes several other Ps like Packaging, Positioning,
People and even Politics as vital mix elements.

Description: What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production,
segment targeted, ability of the market to pay, supply - demand and a host of other
direct and indirect factors. There can be several types of pricing strategies, each tied
in with an overall business plan. Pricing can also be used a demarcation, to
differentiate and enhance the image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum
level of performance; otherwise even the best work on the other elements of the
marketing mix won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer
and making it easy for her to buy it is the main aim of a good distribution or 'place'
strategy. Retailers pay a premium for the right location. In fact, the mantra of a
successful retail business is 'location, Promotion: this refers to all the activities
undertaken to make the product or service known to the user and trade. This can
include advertising, word of mouth, press reports, incentives, commissions and
awards to the trade. It can also include consumer schemes, direct marketing,
contests and prizes.

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the
business plan for a company and handled right, can give it great success. But handled
wrong and the business could take years to recover. The marketing mix needs a lot of
understanding, market research and consultation with several people, from users to
trade to manufacturing and several others.


Marketing mix of Titan watches

Product strategy:
Product strategy titan started making and marketing over 6 million watches
titan used an aggressive approach in producing its product.

Usually the quality of watches were contemporary in style titans produced new
models and dials at regular intervals.

Titan started producing quartz watches.

It produced more than 1000 models in corporate world trends.

Titan produced watches which matched ones dress on occasions and even it
produced jewelry watches.

Finally it launched nebula which were gold plated watches.

Pricing strategy :
Titan prices according to the features and value delivered. They get the maximum
market share from Sonata. Since there is no one offering pure gold watches and
jewellary watches so it is able to skim the market with their distinct products. Titan
comes out every year with a price discount sale on watches. The differences in the
prices are justified with its important features and style. They are trying to maximize
their profits with the help of different product mix.
Initially titans produced watches were sold at a mere price rate.

Gradually titan quartered two distinct segments - RS 9000 to RS 15000
(medium category) and RS 15000 to RS 80000 (top of the line category). It
emerged its business by successfully tapping the middle and the upper market
segments which produced watches costing more than RS 500.

It conferred a dominant position in the market by pricing its watches at a
range of RS 350-500


It even produced high priced watches for the upper class society named-
NEBULA costing around 5950-32000

Designed watches for children DASH and priced them at a cost of RS 250-

And finally in the year 1999-2000 titans sales turnover came to RS 630 cr. ,
net profits were 19.2 cr. And watch business generated 20% return on capital

Promotion strategy:

Promotion strategy Titan , started promoting both of its kinds mechanical
and quartz. The promotion was so vigorous that market got an impression
titans the first to produce quartz watches , but HMT had already introduced it
back in 1981 It started selling and promoting its watches in two segments
person to person gifting , and using it as a corporate gift.
Titan made its product available at localities such as , bookstores , gift shops
and boutiques.

It followed a principle , ONCE YOU HAVE TARGETTED YOUR

Titan voted for showrooms idea and started franchising a network of trends
titan showrooms. It spent over RS 20 cr /yr.

For promotion in the initial years One of its SALES PROMOTION scheme
was GOLD BONAZA , which offered a first prize of jewelry worth RS 1.5
lakhs and RS 1 lakhs in cash.

Further it allocated a promotion budget of RS 42 cr. As compared to 35 cr.
The prev. Year.


Place strategy:

PLACE STARTEGY The companys watches are currently sold in about 40
countries of the world , through marketing subsidiaries based in London ,
Dubai , and Singapore.

It has more than 6000 retail shops spread through out the country , covering
1200 towns. Currently titan has spread over 350 shops in the UAE , OMAN ,

Marketing mix of Hmt watches

Product strategy:
HMT Watches , a pioneer in horological industry in India since 1961, welcomes you
to its products from the Brand name known for decades for its accurate time keeping
and trouble free performance that lasts a life time. The models come in a wide range
of attractive designs and prices, there surely is a model to suit your taste and pocket.
HMT watches unveils its stupendous creations. Watches that are an exquisite blend of
form and function, of style and substance.

Elegance, Utsav, Sangam, Sona, HQ, Inox Gold, Inox, Economy from Quratz
collections and Mechanical - handwound and automatic series, the Braille, the Pocket
Watch- each a true masterpiece in its class, representing the most exhaustive range of
watches in the country. Come , discover HMT watches. It will change the way you
look at time.


Price strategy:
For lower segment attractive pricing and discounts would be helpful hmt set prices
according to the type of customers .

For students
600-1500 Price range: functional quartz, digital, attractive colors.

Labors Price range: 400-1000
carefree, not money conscious, wants cool

farmers price range
1500-2500 Product: steel or gold make, quartz/analog, rich looks on big festivals
when he has a good harvest

Urban youth Price range:
1000-5000 Product : flankier, trendy, attractive, must go with the style, colorful.

Festival discount: HMT also provide festival discount to their customer which
increase their sale

Promotion strategy:
Customers can choose the color and dial shape for the low end watches, but for the
high end ones customers can have choice of choosing functions(alarm, chronometer,
cosmographetc.) at a little extra premium. company can launch a second campaign for
its new product series with a tag line WATCH YOURSELF. This campaign would
be targeted towards urban and fashionable youth whose demands keep changing with
the latest fashion. Company will capitalize on the current fashion trend and make
watches according to the market demand Company can also improvise the website by
providing features of online shopping, exhibiting various designs, new products, store
locations etc. Ladies can come and choose their colors, style, matching jewelry etc.
They will have an option to customize their needs. Special orders for marriages and
engagements will be considered. Promotions can be done through TV and ladies
specific events like teej, raksha bandhan, karva choth, etc.


Place strategy:

HMT's Watch Factory at Bangalore (WFB) was established in 1961 to manufacture
Hand Wound Watches in technical collaboration with Citizen Watch Co., Japan. This
Unit has facilities to manufacture all the required watch components under one roof.

A second unit was established in the same premises in the year 1972 to manufacture
Automatic Day Date Watches. In 1990 the activities of this factory were Broad
banded to include Quartz analog watch production also.

3.2 Segmentation, Targeting, Positioning(STP)


Segmentation : Identifying al segments for the product/service. Many of the resources
listed in module 3 will be helpful to you when you develop segments. To be useful,
segments should be:
Accessible (can you reach them)
Distinct from one another

The objective of segmentation is to find attractive markets. Strategies include
Break market into components
Regroup into market segments
Select which segment to target



Positioning is an essential component -- and skill - in good marketing. Perceptual
maps are used to determine the position of a product, firm, person, service or idea.
Positioning maps, or perceptual maps can be simple, yet very effective marketing
tools. One definition of Positioning Theory is: the science of perceptual strategy. It is
based on a theory that strategy can only be planned in the mind of the consumer, not
the marketplace*.

It is important to understand the levels of competition because positioning applies at
all levels of competition. For example:
Product Level (e.g., Pepsi vs. Coke)
Category Level (e.g., Cola vs. Root beer)
Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company)
Industry Level (e.g., Beverage Industry vs. Snack food Industry)

What is target?. This is the real goal/objective in market that marketer want to reach.
As a simple questions are :
What percent of the population uses the product at all?
What percent uses your brand?
How does that compare to competing brands?
What is the demographic profile of the product category?
Which media reach the users of this category?

Segmentation, Targeting, Positioning(STP) of Titan Watches:

Segment Watch brands from luxury to sporty to fashion
Target Group Mid and Premium Market Working men and women
Positioning Not just a watch, but a style statement


A market comprises of different consumers possessing innumerable tastes and
preferences. Depending on their marketing approach and the nature of the products
marketerscan adopt different level s of segmentation. The levels of market
segmentation are:
Segment Marketing
Individual Marketing
Niche Marketing
Local Marketing

Marketers target more than one segment when it is noteconomically feasible to design
products and services for individual segments. The focusof segmenting the market
will be on providing enhanced service to the customer byoffering
products that will satisfy the needs and wants of customer in that particular segment to
a large extent. Segmentation is also sometimes identifying,capturing and retaining
potential new markets.
Titan has segmented its business into three main categories:


Individual Marketing is the extreme level of segmentation in which marketers focus
on individual customers.
Titan has not applied this for its marketing.
A niche is more narrowly defined group, typically a smallmarket whose needs are not
well served. Marketers usually identify niches by dividing asegment into sub
segments or defining a group seeking a distinctive mix of benefits.
In a study conducted to study the customers of watch market, it is revealed that 42%
of them are youth. So, TITAN tried to target this by:
introducing FAST TRACK
price offering from Rs 500(affordable)
watches with style statements
Marketing programs being tailored to the needs and wants of local customer groups.
The prominence of local marketing has also become verydominant.
All the products of TITAN are addressed to all the customers as a whole. Localized
products are not available. But some products which are available in UK have some
pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal
Nehru,etc. so that the customers can identify the product with those dignitaries


The first is the single segment with a single product. In other word, the marketer
targetsa single product offering at a single segment in a market with many segments.
For example, Titans sub brand, Raga is targeting the upwardly mobile ladies in the
upper premium segment.
Secondly, the marketer could ignore the differences in the segments, and choose to
aim asingle product at all segments i.e. the whole market. For example, Sonata
and Fast track brands of Titan are targeting mass and mid premium segment.
Finally , there is a multi-segment approach. Here a marketer will target a variety
of different segments with a series of differentiated products. For example, Titan
itself provides with the number of different brands/products which are targeting
differentsegments in the market. Following is the table which represents the various
sub brandsand their targeted segments of TITAN.

Segmentation, Targeting, Positioning(STP) of Hmt Watches:

Segment Mass Market looking for watches and accessories
Target Group Lower and Middle income groups
Positioning Reliable and quality product for the masses


3.3 Boston Consulting Group Matrix
The growth-share matrix (aka the product portfolio, BCG-matrix, Boston matrix,
Boston Consulting Group analysis, portfolio diagram) is a chart that was created by
Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations
with analyzing their business units or product lines. This helps the company allocate
resources and is used as an analytical tool in brand marketing, product management,
strategic management, and portfolio analysis.Analysis of market performance by
firms using its principles has called its usefulness into question, and it has been
removed from some major marketing textbooks.

To use the chart, analysts plot a scatter graph to rank the business units (or products)
on the basis of their relative market shares and growth rates.
Cash cows are units with high market share in a slow-growing industry. These units
typically generate cash in excess of the amount of cash needed to maintain the
business. They are regarded as staid and boring, in a "mature" market, and every
corporation would be thrilled to own as many as possible. They are to be "milked"
continuously with as little investment as possible, since such investment would be
wasted in an industry with low growth.


Dogs, more charitably called pets, are units with low market share in a mature, slow-
growing industry. These units typically "break even", generating barely enough cash
to maintain the business's market share. Though owning a break-even unit provides
the social benefit of providing jobs and possible synergies that assist other business
units, from an accounting point of view such a unit is worthless, not generating cash
for the company. They depress a profitable company's return on assets ratio, used by
many investors to judge how well a company is being managed. Dogs, it is thought,
should be sold off.
Question marks (also known as problem children) are business operating in a high
market growth, but having a low market share. They are a starting point for most
businesses. Question marks have a potential to gain market share and become stars,
and eventually cash cows when market growth slows. If question marks do not
succeed in becoming a market leader, then after perhaps years of cash consumption,
they will degenerate into dogs when market growth declines. Question marks must be
analyzed carefully in order to determine whether they are worth the investment
required to grow market share.
Stars are units with a high market share in a fast-growing industry. They are
successful question marks and become a market leader in a high growth sector. The
hope is that stars become next cash cows. Stars require high funding to fight
competitions and maintain a growth rate. When growth slows, if they have been able
to maintain their category leadership stars become cash cows, else they become dogs
due to low relative market share.


Boston Consulting Group Matrix of Titan watches:
Stars- Stars represent business units having large market share in a fast growing
industry.. Example- Fastrack.
Cash Cows- Cash Cows represents business units having a large market share in a
mature, slow growing industry Example- Titan, Sonata.
Question Marks- Question marks represent business units having low relative market
share and located in a high growth industry. None of the brands of Titan Industry falls
under this cell.
Dogs- Dogs represent businesses having weak market shares in low-growth markets.
Titan brand does not fall under this cell.

Boston Consulting Group Matrix of Hmt watches:
Stars- Stars represent business units having large market share in a fast growing
industry.. Example- Mechanical.
Cash Cows- Cash Cows represents business units having a large market share in a
mature, slow growing industry Example- Sona
Question Marks- Question marks represent business units having low relative market
share and located in a high growth industry. Example- Sangam
Dogs- Dogs represent businesses having weak market shares in low-growth markets.
Example- Elegance.


3.4 SWOT Analysis
SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to
evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project
or in a business venture. A SWOT analysis can be carried out for a product, place,
industry or person. It involves specifying the objective of the business venture or
project and identifying the internal and external factors that are favorable and
unfavorable to achieving that objective. The technique is credited to Albert
Humphrey, who led a convention at the Stanford Research Institute (now SRI
International) in the 1960s and 1970s using data from Fortune 500 companies. The
degree to which the internal environment of the firm matches with the external
environment is expressed by the concept of strategic fit.

Setting the objective should be done after the SWOT analysis has been performed.
This would allow achievable goals or objectives to be set for the organization.
Strengths: characteristics of the business or project that give it an advantage over


Weaknesses: are characteristics that place the team at a disadvantage relative to
Opportunities: elements that the project could exploit to its advantage
Threats: elements in the environment that could cause trouble for the business or
Identification of SWOTs is important because they can inform later steps in planning
to achieve the objective.
First, the decision makers should consider whether the objective is attainable, given
the SWOTs. If the objective is not attainable a different objective must be selected
and the process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to
make the analysis useful and find their competitive advantage
Swot analysis of Titan Watches:
1. Large network of exclusive stores and service centres
2. High Top of the mind recall, especially for the Mid market segment
3. Different sub-brands under the brand Titan have been successful in their
positioning based on Demographic segmentation
4. One of the worlds top five and Indias biggest watch manufacturer
5. Titan watches are exported in over 40 countries
6. Watches as a fashion accessory
7. Quality or price positioning Brand image


8. Market segments with large potential: women, youth, children, sportsmen, the
budget-conscious and, of course, the big spenders.
9. Customer value and offered after sales service in a showroom environment.
1. Premium category Titan brands like Xylys have been camouflaged by the Titan
brand Image of being a mid-market player
2. Havent penetrated the global market as some other international watch makers
3. Main USP is low cost watch.
4. Lack of futuristic approach
5. Lack of flexible thinking
1. India is an under penetrated market for watches
2. Global expansion and tie-ups with global watch and Jewellry brands
3. Nearly 34 million watches are sold through gray market channels.
4. Currently, sales in India stand at an low number of 25 watches per 1,000 people,

5. Exchanging offer
6. Rural market
1. Broad Target segment may lead to lack of focus in Brand strategy
2. Stiff Competition faced by foreign brands, particularly in the premium segment
3. Too many players will dilute the market & the profit margin


4. Low priced China watches
5. Mobile phones
Swot analysis of Hmt Watches:
1. Market leader in Mechanical watches
2. Honest Brand Image with excellent brand equity
3. High Emotional connect with its customers
4. One of the most trusted names in the Indian watch industry
5. Advertising and marketing with celebrities add more value to the products
6. Also has an expertise in tower clocks, solar clocks and population clocks
1. Entry of international and other brands has restricted its market share
2. Brand has been unable to reposition with the changing times
3. Limited global presence as compared to some other international brands
1. Can leverage its reliable image by right advertising
2. Product range can be expanded to more market segments
3. Global penetration would help brand grow and target youth worldwide
1. Declining demand of Mechanical Watches
2. Lack of innovation in design can lead to decline in sales
3. With lots of options available, brand switching is quite high


Chapter No. 4


Primary Data

4.1 Research Study

Research objective:
The objective of research is to understand preference between Titan VS Hmt Watches
brands. And the reason behind failure of Hmt

Research Methodology:
The research is descriptive research wherein on-field survey is done with the help of
questionnaire. Questions are formulated with the help pilot analysis

Research sample:
30 respondents were selected for research

Research location:
Customer using wrist watch across Mumbai were selected for study

Research limitations:
1. Only 30 respondents were selected for survey due to time and geographical
2. Some biasness by respondents cannot be ruled out


4.2 Analysis and Interpretation

Sex Male 70% Female 30%

As per the survey conducted, in that 70% survey forms where filled by the
male and remaining 30% survey forms where filled by female.

This point state that more males are interested in wrist watch then the females

Male Female


18-25 25-35 35-40 above 45
yes no

Age category

In this research it is observed that buyers in age group of 18 25 years were
50% of the total buyers whereas buyer in age group of 25 35 is 47%, in 35-
40 is 3%, and there were no buyers above 45 years of age.

It shows that majority of the buyers fall in the age group of 18-25 and 25-35
i.e. total of both is 97%.
Do you usually wear wrist watch ?


television newspaper hoarding word of mouth

In this 87 % of respond had said yes and remaining 13% said no.
From here onwards the further survey is conducted with this 87 % responder
who said yes

1. How often you wear wrist watch?

69% of responders are regular user of wrist watch.
From the 87 % of responders some said that they wear watch only few
days a week. i.e. 12%
19% of responders fall on occasionally.

2. From where do you came to know about this brand ?

Regularly few days a week occasionally


Televisions advertise help the company to attract 38% of respond.
As per the watch industry customer cannot be reached as there want according
to the taking use of newspaper 19 % and hoarding 8 %
But, here the word of mouth plays a major role with 38 %

3. Which of these brands is trustworthy?

Here Titan is suggest as a best trustworthy brand from the other brands like HMT,
Citizen. 100% of the responder suggested Titan
4. Which brand of wrist watch do you wear ?

Titan Hmt Citizen rolex tissot


satisfied somewhat satisfied somewhat dissatisfied dissatisfied
As per the standard, purchasing power the brand had been different from
person to person here 71% of the responders wear Titan watch which
acquiring major parts in the Indian watch industry.
And other brands like Hmt 0%, Citizen 18%, Rolex 4% and Tissot 7%.

5. How satisfied are you with your watch that you wear most often as mentioned
in Q5 above?

Around 77% of the respond were satisfied with the watch brand they wear. And
somewhat satisfied are only 23% and no one is dissatisfied with their watch they use.
6. What features do you consider while purchasing a watch?

style brand image quality price


self decision friends peer group celebrities
Major purchase are made in the area of style 35% and brand image 23% which goes
upto 58%.
Other than the quality and price the customer r seeing for the style and brand.
7. What motivates you to make your purchase?

Self-decision purchase is the more from the report of the survey.i.e 58%
Then the suggestion from the friends 31% and peer group 7% comes to around 38%
There are some people who attract through celebrities they are 4 %
8. What additional feature would you like to go for?

day,month and date temperature alarm stopwatch


Hmt Titan Rolex rado timex
Major customers are interested to have day,month and date on their watch. The
companies can take advantage of this and they can acquire more customers.
Then the next thing the customer are also want of temperature and alarm on the
9. What is your price range when you buy a watch?

While purchasing some product the customer always see toward the price range they
are looking for according to the survey, 42% of responders said they prefer to buy
watch from the price range of 1500-2000.
Then comes the range from 500-1000 where 28% and then range from 1000-1500.
The least is the range of above 2000
10. If you want to purchase a wrist watch which brand will you prefer?

500-1000 1000-1500 1500-2000 above2000


Major of respond going for the brand of Titan here 84% of the customer interest is
acquired. Even though the other foreign brand a lacking behind like rolex and rado
8and 4 % respectively. And the brand timex is just 4 %.

4.3 Recommendation as per survey.

These are the mistakes which Hmt had Made.
Product Few Designs as compared to competitors. There is less emphasis on
product research and development. HMT has not been able to be a leader in
Quartz watches segment & underestimation of this segment. Another flaw in
its product strategy was scant attention to aesthetics and packaging of its

Price HMT positioned the quartz watches as the space age generation watches
& charged high prices for this category which means that only the affluent
middle aged consumer could afford it.

Place Didnt strategize its established marketing network according to
growing competition. Since retailers have enough foreign brands they were
simply not interested in HMTs home grown products as a result it had to sell
through its 13 branch offices for Machine tool equipment. In mid 80s HMTs
selective retailer policy began going against it. the retailer margins provided
by HMT were 2% less than what its most prominent competitor, Titan.

Promotion Though HMTs advertising was distinctive and did cater to the
lifestyle segment, it failed to communicate the uniqueness of HMTs quartz
design vis--vis other HMT watches


Some of the recommendations for the Hmt watches
Product Create competitive advantage by differentiation through technological
leadership. The products should be developed to enhance quality and features
matching customers tastes and preferences and there by increasing buyers
value. Mid & Premium segment: In this segment HMT should seek
differentiation by providing better designs
Conduct market survey Involve leading market research organization along
with your sales force. Do it periodic every six month; Involve retail-shops,
shopping centers, department stores, dealers, sales force. Most popular brands,
trend of consumers etc. Competition Competition among brands has been also
getting stronger, and a lot of effort to keep sales has been required. Watches
without an appeal, watches without clear marketing hardly attract consumers
in the market glutted with commodities. Train agents to set forth clear brand
vision and efficient campaign.
Competition Shift to quality with new added value.. Provide consumers with a
lot of information select their watch wisely and professionally according to
their own taste. Distribution Prepare retailer to meet the changing consumers
trend. Watches just displayed in showcases cannot sell. It is absolutely
necessary to present them together with the background such as original story
of the watch, its functionality and benefits of after sales service. Pricing In the
lower end HMT should seek to achieve cost advantage by exploiting the
differences in cost behavior. The pricing strategy can be to undercut main
competitor by 10%, using market penetration strategy. Promotion Special
focus on sales during festive time like Diwali, Christmas along with discount
offer & finance schemes. Go for innovative and stylish ad campaign that
reflects the aspirational, independent and modern dimensions of the watch


As per survey conducted :
1. Do you think that Hmt can overcome their Failure ?

54% of the responders believe that Hmt can recover the failure by using this strategy
which are stated above.

2. What can Hmt do to Overcome their failure? ( the answer given by the
responders who said yes to the above question)

Many of the responders have even forgot the brand Hmt, so the company should
improve their promotional activity

yes no
product line distribution channel promotional activity features all the above


Chapter No. 5


5.1 Conclusion

After going through all the observation, analysis and inference it can be concluded
that though there are many factors associated with watch purchase decision, some of
the factors like purchasing power, comfort, pricing factor, style, brand image, quality.
And customer are also want additional features like stopwatch, temperature,
day,month and date.

The watch producing company can make sure that they take the use of this features
which the customer are demanding by which the company sales can be increased. As
the brand Titan had acquired the Indian watch industry. Most of the customers who
purchase watch they came to know their brand through the marketing communication
of Word of mouth, so the company should maintain a good market reputation with its
current and future customers.

Has many of the responders on the survey have replied that the brand Hmt can
overcome their failure by improving the factors like product line, distribution channel,
promotional activity and features. Hmt been a government company can see towards
it and ensure that they can re-launch their watches in the market.

It is very clear from the study that even though watch industry is on rise, Hmt is not
able to capitalize on the market. Titan is clearly front runner into the watch category
with Fastrack and Sonata etc,; however Hmt does not have such good brands in the
portfolio. Thus Hmt needs to focus more on its watch category. I am very sure that
with its a government company , Hmt can turn around game of the watch industry.


Marketing management Phillip kotler
Strategic Management Dr.K.Govinda Bhat

Titan Company Store.
378, N.C. Kelkar road, opp. Dadar Emporium Dadar West Mumbai- 400 028

Buy Branded Watches for Men & Women, Wrist watches Online in india
Watch - Wikipedia, the free encyclopedia
Titan Watches



NAME: ___________________
AGE: 18-25 25-35 35-45 Above 45

Qualifying Question: Do you usually wear wrist watch? Y N
Proceed if answer is yes. If No, thank and terminate the interview.

1. How often you wear a wrist watch?
Regularly few days a week occasionally

2. What are the various brands of wrist watches you know?
Titan HMT Citizen Others

3. From where do you come to know about this brand?
Television Newspaper Hoarding Word to

4. Which of these brands is trustworthy?
Titan HMT Citizen Others

5. Which brand of wrist watch do you wear?
Titan HMT Citizen Others

6. How satisfied are you with your watch that you wear most often as mentioned
in Q5 above?

Satisfied Somewhat satisfied somewhat dissatisfied


7. What features do you consider while purchasing a watch?

Style Brand image Quality Price

8. What motivates you to make your purchase?
Self-decision Friends Peer group Celebrities

9. What additional feature would you like to go for?
Day, month and date Temperature Alarm Stop

10. What is your price range when you buy a watch?
500-1000 1000-1500 1500-2000 Above

11. Rate the brands of wrist watches below on the aspects provided on a 5 point
scale 1- below average, 2 average, 3 good, 4-very good, 5-

12. If you want to purchase a wrist watch which brand will you prefer?
HMT Titan Other (Specify) ________

13. Do you think that HMT can overcome their failure?
Yes No

14. What can HMT do to overcome their failure? (Ignore if your answer for
previous question was No)
Titan HMT
a. Style
b. Durability
c. Technology
d. Brand name

e. Price
f. Overall


Improve product line Improve distribution channel
Improve promotional activity Other (Specify) ______



Newspaper Articles
The age of luxury watches
By Chencho Sherin Thomas - THIRUVANANTHAPURAM
Published: 23rd October 2013 10:41 AM
Last Updated: 23rd October 2013 10:41 AM
Lustrous gold in all its glory was the Malayalis only idea of accessorising until a few years
ago. In those days, the oval shaped watch set in yellow gold adorned every housewifes wrist
like a proud piece of jewelry. While men went berserk for square dials and wide gold bands,
women adored the sheer feminine designs that came with affordable tags. Later brands like
Rado and Omega became the Gulf returnees luxe trophies. When Indian watches such as
HMT and Alwyn disappeared in a heap, came Titan as a breath of fresh air with its array of
novel designs in the 80s. And recently, luxury brands such as Rado, Tissot, Calvin Klein and
Gucci entered Kerala market with a bang. Ardent watch lovers couldnt stay away from the
lure of luxury watches for long.
Today, a wristwatch for a Malayali is a style statement that reveals his taste for good life.
Kerala markets first witnessed a watch revelation in the early 2000s with Titans Fastrack.
It arrived in loud colours, snazzy designs and affordable price ranges easily becoming the first
choice of youngsters. At the time, owning a Fastrack was even an issue of pride for the youth.
Following Titans footsteps, many a watch brand came with innovative and fluid designs that
shook the market. Calvin Klein, one of the current favorites among watch aficionados, has a
wide range of feminine and masculine time-tellers.
For a man, a watch signifies his personality since that is the only ornament he may wear.
Hence, ever since I started earning, it was my dream to own a good watch. During those days
Rado with all its sheen was a Gulf returnees signature style and I did not want that tag
attached to me. I did my research and bought my first Tissot, which was comparitively less
known in Kerala, from Bombay in 2000, says Aravind, an entrepreneur.
The times have changed and the same youngsters who vouched for Fastracks for its style and
popularity are now favouring Tissot and Rado for their quality and brand value. Feminine
designs and thin straps are no more a fad among ladies; they go for chunky dials and fat metal
chains as their wrist buddy.
The concept of spending less on a watch is pass. Today, we have customers who buy three
or four luxury watches as a collection, says Reneesh, manager of the newly established
Malabar Watches in the city. The outlet which has exclusive ranges of Swiss luxury brands
such as Rado and Tissot swears that the Kerala crowd is ready to spend as much as ` 4 lakhs
on a piece of metal.
When the IT crowd go for the informal Calvin Kleins and Casios, the business class is all for
Omega, Rado and Tissot. Brands like Cartier, Bvlgari, Tag Heur and Chopard are yet to arrive
in Kerala markets, but that does not stop watch lovers from owning them. Those who travel
abroad find time to browse through watch shops until they stumble on their best bargain.


When I returned after my studies in London, I had brought back eleven watches with me, all
belonging to big brands like D&G and Calvin Klein. I bought all of them during sale seasons
and got them at good prices, says Ananya, a hotelier.
Swatch watches, a hot favourite among youngsters for its vivid patterns, have recently
released a range of touch screen watches. The youngsters are looking for novelties and they
will certainly experiment if something new is in the market, says Reneesh.
Style Plus, a lifestyle store in the city which also has a range of imported watches, has
DKNY, Tommy Hilfiger, Guess, Fossil, Diesel, Police and Titan in its collection. The shop
says Guess, known for its gaudy styling, is one of the most sought-after brands in the city.
Even though there are many takers for the imported brands, Titans demand is no less. The
women still come asking for Titans Raga range. While youngsters are all for style and
design, the middle-aged men and women prefer traditional brands such as Citizen and Titan,
says the watch sales man of Style Plus.
The current trend shows that it is not only the elite class that goes for expensive watches. The
middle-class youth who clinch jobs at a young age like to splurge on brands rather than going
for replicas.
I believe a watch represents ones personality. My belief is that it is better to not wear a
watch rather than going for a replica of a branded watch, says Diya, a software engineer.

HMT revival plan makes no headway

Plans to revive the loss-making HMT Watches Ltd's factory at Ranibagh
in Uttarakhand are making no headway despite efforts by top politicians in the state.

N D Tiwari, former Uttarakhand chief minister, claimed recently that the Centre had
approved a Rs 834 crore revival plan for the factory, and took credit for the purported
initiative. But the HMT management denied the report, saying no such plan had been
worked out.

"We have not received any intimation regarding the revival plan of HMT Watches,"
said HMT Managing Director S Paul Raj. On previous occasions, leaders like Union
Water Resources Minister Harish Rawat and the former chief minister, Ramesh
Pokhriyal Nishank, had made efforts to revive the factory.

The company has for the past few years been expecting a Central government
package that would nurse it back to health. "We have sent a proposal to the Centre for
a revival package of Rs 1,500 crore," said Paul Raj. HMT Watches has also hired a
consultant, which however did not submit a positive report.

The strategy involves introducing new models, infusing fresh capital, selling surplus


land at Ranibagh and other places, and entering into tie-ups with retail outlets, malls
and post offices.

HMT Watches has also been discussing revival plans with top state government
officials including the additional chief secretary, Rakesh Sharma. One such plan,
worked out by the state's department of industry, provided for the cash-rich State
Infrastructure and Industrial Corporation of Uttarakhand Limited (Sidcul) to enter into
a joint venture with HMT to revive the Ranibagh factory by infusing fresh capital.

Sidcul is credited with having set up key industrial estates in Haridwar and Pantnagar
where some of India's leading companies have built factories.

HMT Watches expects the Central government to intervene and infuse fresh capital of
Rs 300-500 crore, which is needed for the company's revival. A report on the
company, prepared by Pricewaterhouse Coopers, will shortly be placed before the
Board for Reconstruction of Public Sector Enterprises (BRPSE), Paul Raj said. He
said he expects a positive decision by the Union government on the revival plan.

The company intends to introduce an array of new models at attractive prices. Paul
Raj said HMT Watches is also looking to have tie-ups with stores and malls across the
country to increase visibility. It also wants to retail its watches in all of India's
150,000 post offices.