CHAPTER-I

INDUSTRY PROFILE
1.1 INTRODUCTION
The present demand for wrist watches in India is estimated between 12 million and 15
million per year. However, at present domestic production are only 7-2 million watches. The
balancing being met by watches brought into India from abroad. A growth projection for industry
as whole is estimate to be 6% per annum.
This explains the positive reaction of the existing manufactures in the market to the
new entrants. The government recent decision to throw open electronic digital watch
Manufacture to the private sector with foreign share (up to 4%) is expected to encourage more
new watch industries. Predictions in the industry are that a shift from the present manufacture of
Automatic & mechanical watches are inevitable. The current trend in the Indian markets is
towards the more sophisticated models. All over the world mechanical wound watches & to
some extent the automatic watches have given way to quartz & digital watches.
For the customer more competitors means a greater variety & choice, latest design &
models, guaranteed after sales service & quality products from collaborative ventures with the
worlds renowned watch manufacture.

1.2 THE HISTORY OF TITAN

Early 2001, when Indian consumers rated titan ahead of all other brands as the most
admired brand in India across all products categories, he did not surprise people that a 13 year
old had managed to upstage many older and more well-known brands it was expected titan to
achieve such things, it was so natural.
It was also a fitting tribute a brand, which had not only revolutionized the Indian was
industry, but also brought in world-class bench marks in product design, quality and retailing in
to India. Back in the early 80s, the Tata group had identified the watch category as potential
consumer market for the Tata to enter.
In those days of pre-liberalization the watch market, like most consumer market in India,
was way behind the rest of the world. The technology in vogue was the reliable, but outdated
technology, which used the unwinding of a mechanicals spring to tell time. Not only was the
accuracy of time keeping not good enough, but the bulky mechanical movement did not permit
the creation of sleek product. The industry was dominated by the public sector which had
brought in watch industry in to India, enjoyed tremendous goodwill in the market, but had not
really invested in evolving itself and its consumers styling still remained basic, choice was
limited.
The watch shops were narrow, dingy and typically located in the older, traditional
markets of the city. The companies themselves did not have much contact with the retailers,
preferring to sell through wholesalers, doing well that way. There was hardly any need for
consumer contact or research. It was a sellers market. All this affected the consumers. Watches
remained a time-keeping device, so one watch was enough. Since the quality watch was quite
good, it lasted quite a while and the consumers did not change it for 10, 15, 20 years. And when
did the change it, they did not pay a high price for the new piece because, what the hell, they
were buying another time-keeping device.
Advertising was expenditure-titan saw this as a vital investment. Right from day 1, titan
invested significantly in advertising and in that process created a set of memorable and effective
properties over the years.
To-day, in early 21 st century India, it is taken for branded that a watch is a fashion
accessory. Titan dominates the market, with a 60% share of the organized sector market. Titans
quality record is impressive, its sales and service net work is wide and deep, and its net work of
2

exclusive show rooms, The World of Titan, is one of the most prestigious and most visible
retained brands in the country, offering world-class levels of shopping and customer service.
Titan was built on this principle over the last 15 years, almost after a year:
1. In 1989, it was Aqua, the trendy range for the youth, colorful, small and smart and
affordable plastic watches for the youth.
2. In 1992, it was Raga, the ethnic India, for the sophisticated India women who
appreciated such things.
3. In 1993, it was Insignia, very distinctive and international-looking top-end .watches,
for those seeking exclusitivity and status.
4. In 1994, it was PSI 2000, rugged, sporty and very masculine watches with serious
sports features for those with the penchant for adventure.
5. In 1996, it was Dash, the cute and colorful range for kids.
6. In 1997, it was Sonata, the affordable, good quality range for the budget-conscious.
7. In 1998, it was Fast rack, the cool, trendy, funky range for the young and young-atheart.
8. In 1999, it was Nebula, the solid gold and diamond-studded range of luxury watches
for those affluent people to whom gold is a precious acquisition.
9. In 2001, it was Steel, the smart and contemporary collection for the young 21 st
century execute.
10. In 2008, the brand has collections like the Octane, Diva, WWF and Zoop-each of
them unique and fascinating.
11. In 2011,it has launched Xylys, the Premium Swiss Watch Brand debuts in Agra.
Titan also chose invest heavily into show cashing all this innovation to the consumer
through advertising. The catalogue ads also helped customers to shop off the page and almost
decide which model they wanted to pick. Retailers also became used to seeing customers
walking in to shops with newspapers cuttings, asking for the model shown there. This approach
continues to this day, with mostly the same effect.
Another successful customer-facing aspect about Titan has been its stores. The concept of
exclusive brand stores was almost non-existent. In a pioneering effort that dramatically altered
industry standards, The World of Titan born. Located in the newer parts of the city, with a good
frontage and lay out, the show room immediately stood out on the street and attracted walk-ins.
This experience now has over 255 branches and has penetrated the width and breath of
India. Helping the brand increase sales, increase price premium, sell the more expensive

watches, improve image, keep competition at bay and keep the brand name salient on the high
streets of the country.
Titan has also dune the seemingly impossible reverse thing: taking Indian quality to
international markets. Since starting export operations in a Small scale to the Middle East in the
yearly 90s to exploit the resident NRI population, Titan has come a long way. Moving into the
European market in the mid-nineties and Asia Pacific in the late nineties, Titan to-day sells in the
U.K, Spain, Portugal, Greece, Singapore, Dubai, Malaysia, Oman, Philippines and many more
countries. The customers are no longer only NRIs. They are the Thais the Greece, the Arabs; the
Filipinos-through a combination of contemporary style, great quality and great prices, Titan has
put together an irresistible proposition for the people of these countries. With over 100 million
satisfied consumers and track record of breaking the rules, Team titan spaces the 21 st century
with a mix of passion, excitement and energy.

CHAPTER -II
COMPANY PROFILE
2.1 TITAN COMPANY PROFILE

Titan Industries Ltd., incorporated in 1984, a joint venture between the Tatas and the
Tamil Nadu Industrial Development Corporation Limited, a Government of Tamil Nadu
undertaking.
The Company has its registered office in Hosur and its corporate office at Bangalore.
Engaged in the manufacture and marketing of quartz wristwatches since the year 1987. Since
1994, has diversified into manufacturing and marketing of precision jewelry & jewelry watches,
clocks & Bracelets in separate divisions. Reported a turnover of Rs.797.90 crores for the year
ended 2002-03.
Watches
Titan is worlds sixth largest manufacturer brand in quartz watch manufacturing.
Clocks
Titan has become the approved vendor for supply of dashboard clocks to Ford Cars, UK.
Jewelry
Titan manufactures and market its jewelry products under the brand name Tanishq.
Tanishq, Indias only national jeweler offer gold and gem-set jewelry (in 22 and 18 carat gold) in
over 6000 traditional, western and fusion looks. Jewelry products are manufactured in fully
integrated manufacturing plant with state-of-the art equipment.
The Tarnish retail chain currently includes 66 exclusive boutiques in 57 cities, making it
Indias first and largest jewelry retail store chain.
VISION
To be a world-class, innovative and progressive organization and to build Indias
most Desirable brands.
MISSION
5

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

Commitment towards excellence by all employees.

Continual improvement in all key process.
Meet or exceeds customer expectations. Quality is achieves by.
Developing employee through education and training.
Conformance to quality and environmental systems.
Driving quality Initiatives with supplier and partners.
Conformance to statutory and regulatory requirements.
Prioritization and allocation of proper resources.

VALUES AND STANDARDS

Total customer orientation
Customers take precedence over all else, always.
Employee appreciation
We value and respect Titanians and endeavour to fulfill their needs and aspirations.
Performance culture and teamwork
At Titan Industries, high performance is but a way of life and is nurtured by teamwork.
Creativity and Innovation
Driven by innovation and creativity, they focus on smarter approaches and newer
Technologies.

2.2 TITAN DIVISIONS

2.2.1 MANUFACTURING DIVISION

Watch division
Quartz analog wrist watches
Jewellery division
Precision jewellery watches
Bracelet and new business division.
6

 Metallic bracelet and pieces.

CONTRACT MANAFACTURING / ASSEMBLY SERVICES
TTPL provide a complete complement of manufacturing sevices from proto type to
production to include mechanical, electronic & system level assembly, prototyping new product
introduction, printed circuit as board assembly, in-cicute testing, functional testing, final system
box build.By utilizing its considerable supply chain management capability, TTPL provides
complete turnkey services to its customers. TTPL does not compromise on quality while meeting
the customer demands to shorten time to market.
Lean manufacturing concepts are an integral part of the manufacturing methods
employed at TTPL and provide significant benefit to our customers by reading factor lead times,
increasing inventory turn rates, and allowing TTPL to dynamically & efficiently respond to
customer schedule changes.TTPL supports printed circuit board assembly services for a variety
of technologies including COB, thru-Hole, SMT & BGA.
Control manufacture /services includes;

Complete products including plastic / mechanical parts

RFID solutions
Smart card / SIM card solution
Sensors

Printed circuit board assembly capabilities include;

Thru-Hole
SMT
COB
BGA
Ultrafine pitch
Flexible circuits
Programming of ICS
Conformal coating
No clean soldering
Lead free soldering

2.2.2 PRECISION ENGINEERING DIVISION

7

Leveraging precision engineering core competencies from watch making, Titan initiated a
Precision Engineering Division in 2002,catering to global majors across industry verticals like
aerospace, automotive, oil & gas, engineering, hydraulics, solar and medical instruments.
With an investment of $10 million, the setup has four main business units

Precision Engineering Components & Sub-Assembling(PECSA)

Machine Building & Automated solutions
Tooling Solutions
Electronic Sub-assembling

Precision Engineering Division is ISO 9001:2000 and ISO 14001:2004 certified.

Additionally the unit catering to Aerospace segment is AS 9100B certified and the unit catering
to automotive segment is TS 16949 certified.
The Division has demonstrated consistent quality and delivery performance through several
customer accolades like the ford Q1 award and the continuous improvement award received
from the CEO of UTC, Louis chenevert.Depicting a significant and progressive growth drive,
listed below are some of the Divisions top customers.

PRECISION ENGINEERING COMPONENTS AND SUB ASSEMBLES (PECSA)

PECSA has a staff-of-art facility, which manufactures components and sub-assemblies as:
Automotive components

Dash-board instrumentation
Automotive clocks and pointers
Parts for fuel-injections pumps, transducers & turbochargers
Hydraulics (automotive & industrial)
Oil and Gas
Medical Instruments

This facility touts the latest precision machinery

CNC turning center

CNC 3 & 4 axis milling centers
CNC 5 axis milling centers
CNC automates
8

High-end tool grinding

ID grinding
Centre-less grinding
Multi-spindle lathes

PECSA is accredited with the following certifications

Aerospace Quality management system: AS 9100B

Automotive Quality management system: TS 16949:2002
ISO 9001:2000
Environmental management system: ISO 14001:2004
Certification of Quality clinic by Hamilton Sundstrand
The unit has received numerous customer recognitions. Some of these are
Customer Driven Excellence Model-Ford Q1
Recipient of the continuous Improvement Award from UTC in November
2008

The strong engineering capabilities of the unit include Design configuration control
& management and variation control ect.The unit uses unigraphics pro-E, Inventor , Catia &
auto CAD extensively for design and integration.
PECSA is experienced in a variety of graded materials such as the AMS grades of
aluminum & aluminum alloys, stainless steel, titanium, inconnel, monel, wasp lay,Haynes alloy,
hi-chrome and hi-nickel Alloys. The units expertise and capabilities
Also extended to various special processes like

Vacuum and controlled atmosphere heat treatment furnaces

Cadmium plating, gold and silver plating, nickel plating and hard chrome plating.
Anodizing, heat treatments, passivation, and vacuum hard ending
Solid film lubrication, and chrome plating on ABS-PC

A state of art metrology facility in PECSA is appropriately equipterWith precision instruments

including

CMM
Roundness tester
Co ordinate measuring machine
Contour tester

The unit has acquired requisite experience to support global locations with vendor
managed inventory and electronic data inter change capability. The supply chain is integrated
using SAP R3 &EDI with customers portal.
MACHINE BUILDING AND AUTOMATION SOLLUTIONS
Machine building & automation functions commenced at TITAN INDUSTRIES
LIMITED in 1990.The drive was intended to appease increasing demands for product quality,
sophisticated technology and a pent-up urge for self-reliance in this particular field. Initially, the
venture kick- started by designing &manufacturing automation and machine tools to address
specific in-house watch division requirements. Impetus picked up when in 2003 operations
propelled in to the automotive and electronic segment, debuting what is now a full-fledged
revenue spinner branded Titan automation solution.
With acclaimed expertise in high precision component manufacture and assembly, titan
automation solution offer major automotive and electronic markets, turnkey automation solutions
in fields of assembly & testing systems.
Titan has the technical competency to design and development:

Linear transfer assembly lines

Robotic welding and assembly lines
Vision based solutions
Part feeding and handling systems
Pick & place units-pneumatic & Servo
PLC, CNC and SCADA Based Control systems

Titan Automation Solutions is equipped with the following:

Autodesk Inventor for 3D and 2D modeling

SAP for Supply Chain management
EPLAN for control circuit designs
MS-Projects project management & Tracking

The Division has provided automation solutions for a variety of assemblies in the
automotive industry.
Titan AS has developed, for other industries, a number of solutions as listed bellow;
Assembly of watch movement / Mechanisms
10

Electronic circuit Board Assembly & Testing

Telecom connecter Assembly Machines
Pencil Quality Inspections
Safety Mask Assembly Lines & Endurance Testing of Bearings

2.3 ORGANIZATION CHART

ORGANIZATION CHART
Managing Director
Chief Operating Officer
(COO)

Vice president of

Chief Manufacture

Sales & Marketing

General Manager
(GM)Of sales

Officer (CMO)

GM of

General

marketing

Regional sales

Marketing

Manager

Manager

Manager

Manager

Engineers
11

Area sales
Manager

Sales officer &Retail sales Manager

2.4 DEPARTMENT AND THEIR FUNCTIONS

Human resource
Recruiting and selecting of employees and maintaining good relationship between
employer and employees.
Marketing
To study and evaluate market conditions and to promote corporate product image
through value based decision.
Purchase
The procurement of material, tool, land consumables to the various departments to
ensure and uninterrupted functioning of organization.
Sales
To develop new dealers and ensure the constant flow of products to the market as
per demand and consumer needs.
Plant services

12

Monitoring and maintaining the essential service like power supply, compressed air
supply etc..,

CHAPTER-III
FUNCTIONAL DEPARTMENTS
3.1 HUMAN RESOURCE DEPARTMENT
The company has a total of 4,934 permanent employees as on 2011, working in various
departments including corporate office, company owned show rooms, factories and other units,
they also have various trainees, contract workers and apprentices who are hired on a job work or
on a temporary contract.
Employees are classified into different levels, namely:
E Level: It constitutes the workmen at the factories.
L Level: It constitutes junior to middle management.
R are those employees who work in both watch and jewellery division.
(Retail outlets).
Senior Management level.

Qualification
Undergraduates
Diploma and ITI
Graduates
Post Graduates
MBAs
Professionals
Total

Number of Employees
900
900
1200
383
190
196
4,934
13

Percentage
29
18
29
12
5
6
100

3.1.1 RECRUITMENT FLOW CHART

Recruitment

Lateral entry

Entry Level
MT
Designer
GET
GT

Internal sources

External sources

CA

1. Internal mobility

1. Application data bank

2 .E to L level

2. Accessing job through portal database

3 .Transfer

3. Posting Ads through jobsites

4. Group mobility

4.Inter job posting on titan

5. News paper advertisement
6. Manpower consultancy.

In case of recruitment for the vacancies approved by the Management, the recruitment
will be done automatically except if the indenting section wants to postpone or advance it, in
which case they have to send a separate note for it.
As far as possible internal mobilization of people would be looked into and in case of non
availability of the right manpower within the company, we may either refer to the application

14

bank or advertise. Recruitment will be carried out according to the standards specified in the
recruitment Standards Annexure.

3.1.2 PROCESS OF SELECTION

Category
Operator Trainee (OPT)

Selection Process
Psycho Diagnostic Test (PDT)
Written Test, (WT), Practical Test (PT),
Interview, Medical & Security Verification
(SC)

Craftsperson Trainee (CPT)

Graduate trainee

PDT, WT, PT, Interview, Medical & SV

PDT, WT, Intelligence Quantitative Test
(IQT), Interview, Medical, SV & Personality
Test

Technician Trainee / Supervisor Trainee (TT/

PDT, WT, IQT, Interview, Medical, SV &

ST)

Personality Test

Programmer Trainee / Engineer Trainee /

PDT, WT, Interview, Medical & Personality

Personnel Officer Trainee (PT /E T / POT)

Officer Trainee (OT)

test.
Group Discussion (GD), Interview &
Medical

Management Trainee (MT)

GD, Interview & Medical

Others Up to L3

PDT, WT if needed, Interview, Medical & SV

L4 to L5

GD if needed, Interview by Panel, f needed

to be seen by VP concerned Medical &
Business Head

15

L6 and above

Candidate Panel Interview / Concerned VP

Interview candidates will be reimbursed their traveling expenses depending upon the
category, if they travel beyond 40 kms radius from place of interview.
For L1, L2, L3, L4, L5 category actual to and bus fare will be paid. If the travel by train,
second class train fare will be paid.
For a Managerial position either first class train fare or air fare will be reimbursed as
being mentioned in the call letter. The decision will be made by the respective VP and Head of
Human Resources.
3.1.3 PERFORMANCE APPRAISAL
Performance Appraisal is an objective assessment of an individuals performance
against well defined bench marks. The performance appraisal method followed is based on the
subordinate relationship, whereby the superiors rate their subordinates.
Respecting and valuing employee:

Fairness
Improving quality of life
Human approach
Empowerment of people
Partnering
Encouraging people innovation.

3.1.4 TRAINING AND DEVELOPMENT

Training is an ongoing processes aimed at capability building of the employees at all
levels. Training programs are classified into the following categories:
Skills
Knowledge
Behavioral

General Provision
16

 It is the companys policy to provide appropriate learning opportunities to assist

employees in gaining job related skills and knowledge that will contribute to
improved performance and career development.
All training educational programs will be coordinated through the Human
Resource Department.

Development Planning
The Human Resource Department. In consultation with managers and supervisors
will ascertain group and / or individual training needs. Every employee is eligible to request as
formal development plan which is realistic, job related and upon completion would result in
greater employee capability
Training Centre
The company has a full fledged and well equipped training Centre at Hosur, which
is used for conducting in-house programs.
The training programs are conducted in two-ways:
In-house using internal facility
Customized programs using external faculty.
Training Calendar
The training needs are consolidated at the beginning of the financial year and a training
calendar is designed. The calendar provides the information regarding the dates of the various
programmes, the time duration, the faculty (internal or external) and it is circulated to all the
departments.

Nominations for the respective training programmes are receive from the

department heads well in advance and the program is organized accordingly.

17

 Workmen capability building

Training and development for unionized employees at the manufacturing units is
focused on skills programs like personal touch to address interpersonal are related issues were
conducted.
Employee retention/ Incentive plans
Company has an annual appraisal system in place and pursuant to this system,
performance linked pay, annual variable pay and/or commission is paid to the employees.
The performance of the employees is classified into namely:
Extremely High performer
High performer
Good performer
3.1.5 COMMITTEEIES
Quality Committee
Quality Committee plays an important role in implementing the various quality
concepts and improvement schemes, which form part of the world class Manufacturing
concepts.
Safety Committee
Safety Committee takes care of the employees safety in their work place. It also
ensure the fulfillment of various requirements under factories act.
Canteen Committee
Canteen Committee is a statutory compliance under the factories act and plays a vital
role in the quality of food and also helps in fixing the menu of the canteen on a monthly basis.

18

3.1.6 POLICY AND PROCEDURE

Exit policy

Resignation
Notice period
Authorized signatory to issue the relieving letter.
Exit interview.

Educational Policy
College level/ Professional Courses:
Full time regular employees may take college level / professional courses for
position related and career related purposes, including study for a professional
degree.
For an employee to take advance of this privilege, his / her course of study must
be:
Approved by a Department / Unit head and Human Resource Department
Related to the employees current position or part of an approved career related
program.

3.2 MARKETING DEPARTMENT

TITAN enjoys a 60% market share in Indias organized watch market and straddles all
ends of the value chain from economy to luxury. With over 500 showrooms and 12,000 Cobranded showrooms in India TITAN is amongst the largest retail network in India
19

 TIME PRODUCT DIVISION

TITAN

FASTRACK

XYLYS

SONATA

JEWEL DIVISION

TANISHQ

GOLDPLUS

3.2.1 MARKETING MIX

PRODUCT

PRODUCT
PRICE
PROMOTION
PLACE

20

Quality and leadership are the two main terms for the Titan. As to achieve the marketing
objectives this aspects should also be considered.
a. Product line: To increase the sales, the differences in the prices of the watches are
justified by the features.
b. Product pyramid: Portfolio of Titans product is of 3 distinct price-range that can
be defined in general, as Popular, Mid, and Premium. At the popular segment, the
emphasis is on in volumes but not in margins. At the premium segment, the
emphasis is on profits and image but not in volumes. Obviously, company giving
more emphasis at the top of the pyramid as profits at the top of the pyramid is very
high. This pyramid guided the strategy of Titan.
c. Product strategy: Titan was first focused only on the premium segment of the
watch market. As per the product strategy they took, Titan moved in to the mass
market for watches. To widen base, Titan created new segments and increasingly
focusing on segments individually. In the past few years Titan has took a lot of
initiatives to focus on specific segments.
d. Product Quality: Quality and leadership are synonymous to Titan. It seeks to
achieve both through their value for products compared to their prices.

PRICE
As achieve our marketing our marketing objectives, we can do some change in the

pricing .The main consideration will be in changing price are followings.

a. Survival
In case of some of the watches titan prices them according to the features .The Exacta
is a simple steel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga
through pricing policy.
b. Market share
As we know that 70% of sales in watches come from the lower segment, therefore by
pricing Sonata at 350 onwards with guarantee.

21

Titan prices its world watches which compared equal to an international players like
Calvin Kline where a customer pays 4 times as value of the world watch, therefore market with
low prices to international players to gain market share.
c. Market Skimming
In Indian watch industry there is no one offering pure gold watches, watches in pair,
jewellery watches. Here Titan offers there product with the Indian touch in its design, the
product, the love.

PROMOTION
a. Promotional pricing
As by opening new shops such as the world of Titan buy directly from

the dealer and hence the element of middleman is not there. Here the retailer in this category
buys watches for 17-18% lesser than MRP and hence they are able to get the 17% profit margin
on sales. It is managing to successfully convince to the customer of the perceived value of
WORLD WATCH using hoarding all around the city, increasing buyer image, trust worthiness,
innovation, differentiation, value for the product.

b. Price discount and allowances

Every year Titan comes with a price discount sale on the MRP of the watches.
The allowance varies from one segment to another.Titan introduces a contest on cartoon network
in india.com which invites children to use creativity and design watch.
c. Type of advertising
Titan believes in making its ads clean, well made, touch on emotional chord. As
the company is using celebrities or superstars that is Amir Khan for the Titan watches.
As here we can say that a female actress would be more effective for the promotional purpose. It
can be Katrina Kaif, as now she is one of the popular actresses in Bollywood.
d. Promotion on occasion

Titan is one of the companies which formally believe in the policy of promotion
the product based on the occasions.
22

PLACE
Keeping in mind about the young trendy and fashionable consumers, Titan distributes

its product and set up world of titan in different region. The consumers life style in India,
especially in urban area (because the turnover in urban area is 210 million, while the turnover in
rural area is 90 million) plays a significant role in the success of Titan.
a. Time Zone

Titan Industries brings together the countrys leading watch brands under one roof,
providing the customer with variety in brands, looks and price ranges and also efficient aftersales service. These 1142 Time Zones located across 89 towns which offer its customer the
complete watch shopping experience.
b. Value Mart
These outlets sell surplus stocks of Titan watches at reduced prices. By doing these
it offering fabulous value for money with the same warranty as a regular full-priced watch enjoy.
However these shops would not be placed in the main locations and not working as a normal
shops. This is to make the customer go to the shop rather than the shop calling the customer and
hence the locations are not very suitable for shopping.

c. Sonata Stores

Sonata stores are also an Authorized Service Centre for Sonata & Titan brands.
Sonata store meet the large scale demand for the watch and also to attract customers in
more. These shops had full stocks of the watch in demand whereas the others could
afford to maintain only limited stock.
3.2.2 ENVIRONMENTAL ANALYSIS
The marketing environment
Competitive Forces
There are lots of competitor in wrist watch segment which directly or in directly
affecting the titan watches industry. The major players are
Domestic Level
HMT
Maxima-quartz
Redo
23

Casio
International level
Espirt
Swatch
Citizen
Tag heuer
Seiko
Cartier
Giordano
Fashion Houses
Dkny
Gucci
Adidas
Nike
Bvlgary
Among all these competitors, Maxima-quartz and HMT are major players .The

strength and weakness of the companies varies from segment to segment.

Expectation from the competitor

As we all know that marketing mix is basically consist of 4 ps i.e. price, product, place and
promotion.
Price
Advantage: competitor of mid-price segment will capture the whole market.
Disadvantage: competitor of premium price segment will enjoy the more market.
Product
Advantage: Increased in the quality will increase the cost which will give benefit
to the competitor.
Disadvantage: Quality decrease will help competitor to capture the whole market.
Place
Advantage: more number of places of operation will make the competitor week.
Disadvantage: less number of places of operation wills leads to wipe out from the
market.
Promotion
Advantage: Increase in sales promotion will affect more market share.
Disadvantage: decrease in sales promotion give benefit to the competitor.
Consumers view

As we know that Inflation is in double digit figures, but the people who lives in urban
area or metro city, are having optimistic view towards economy.
24

People think that the economic condition of our country will be improved in the near future.

Purchasing power of consumers

BRAND

PURCHASIN

CATEGORY

FAST TRACK
EXCTA,SONATA,

POWER(PRICE) RS.
550-1,430
595-1,430

YOUTH
LOWER MIDDLE CLASS(Office

TITAN
SPECTRA
ROYAL
RAGA
BANDHAN
REGALIA

650-1,830
960-2,830

wear)
COMMON CLASS
UPPER- MIDDLE CLASS

1,420-4,000
1,675-8,085
1,725-7770

UPPER CLASS
COUPLES
UPPER MIDDLE CLASSUPPER CLASS

EDGE

4,500-24,200

BUSINESS CLASS

The companys watch sales grew by 18.8 per cent and its income increasing from
Rs255.34 crores during the second quarter of last year to Rs303.45 crores during the second
quarter of this year.
On the basis of the above table and profit figure we easily understand consumer buying
power in target market

25

 Spending habit of consumers

Despite of high inflation, high oil prices and high volatility in gold prices, watch
segment of Titan Industries doing well in the current fiscal. For these, watch segment sales
income increased from Rs.168.83 crores during the first quarter of last year to Rs.171.89 crores
during the corresponding period this year. These data indicate that consumers spending pattern
is increasing respective target market.
From the above information we can easily understand that consumers buying more of
Titan wristwatch. There are few reasons behind the growth in sales of Titan .They are as follow.

Brand name
Quality of the products
Features ,which differentiate from others
Attractive models
New innovation

3.3 SYSTEMS DEPARTMENT

The IT requirement of Titan is fulfilled by the systems department.

The system

department is integrated in its set up and is located at Hosur plant. The system department
26

primarily caters the hardware as well as software needs of Titan. It supports its manufacturing,
sales, finance and all the functions. The following chart shows the brief functions of the systems
department.

Systems
Hardware

Software

Hardware

Software

Certification

Certification

Maintenance

Maintenance

Outsourcing

Outsourcing

Development

Development
Up gradation

27

The whole of Titans manufacturing activities, marketing, finance, planning are integrated
through one of the leading and quality enterprise resource planning software called SAP R3.
The main advance of this software is that it can take care of the entire activities of the plant.
3.3.1 THE ADVANTAGES OF SAP
Inventory reduction
Product lead timer education
Better utilization of machines
Better planning
Seamless integration with marketing
Lean manufacturing
Better Management Information System
Integration of SBUs (Strategic Business Units)

3.4 PRODUCTION DEPARTMENT

Titans

state-of-the-art

which

and

jewellery

manufacturing plants are located in Hosur in the

southern state of TamilNadu spread over 55000
square meters of build-up space Titan employs
about 3000 highly skilled personnel.
Titans watch manufacturing facility was set
up in 1987 in Hosur, India, with initial technical
Know how from Europe and Japan. Over the years, the company has grown to become one of
the largest integrated watches manufacturing units in the world

28

MANUFACTURE FLOW CHART

Manufacturing

Module

Case

Auto turning Gear

Hobbling
Stepper Motor
Module Press Shop
Ebauche
Treatment

Case Press shop

Case Machine Shop
Case Polishing Shop
Case Plating
Ion Plating
Case Assembly

Assembly

Casing
Module

3.4.1 PRODUCTION FUNCTION

Auto-Turning

The manufacture of all cylindrical watch components.

Assembly

Planning and supervising process of assembly watch case parts.

Case polishing

Buffing and polishing watch cases to improve surface

finish.
Case plating

Providing a various surface coating to case parts and

straps.
Costing

Comparing actual and standard value and so find out the variance in order to reduce
the cost.
29

 Designs

Design innovation and the preparation of standards technical design incorporating

manufacturing details of finished products.
Excise

Full of documentation for both excise duty and service tax of finished goods and
manufacturing.
Gears and assembly

The production of all gears required for watch manufacturing.

Inspection and quality control

Complete quality control through all stages of manufacturing and assembly.

Press shop

The production of steel metal components required for the manufacture of watch
module.
3.4.2 MANUFACTURING PROCESS CHART

Watch and its parts

Watch

Movement Parts

Movement Parts

Appearance parts

Case Dial Hands Strap

Or

Main Plate (EBAUCHE)

Pressed components
30

Turned components

Electronic components

Any watch can be primarily divided into 2 parts; which is the appearance parts and
movement parts. The appearance parts are the visible parts of the watch, which serve both the
aesthetic and functional purposes and include the case, bezel ring, crown, dial, hands, strap and
crystal. The movement parts are the mechanism of the watch that enables it to depict time. The
more functions of a watch the greater the number of parts.
They have the facilities to manufacture all the parts of a watch. The subsidiary in Goa
manufactures and sources to their movements and integrated circuit boards while their unit in
Hosur manufacturers all the Assembly parts. Though they have the capacity of manufacturing
watch bracelets, they outsource the same as it is more cost effective.
3.4.3 DEPARTMENT PROCESS FLOW CHART (MANUFACTURING)

Realize of product order and material requisition by PPC

(production planning control)

Raw material from stores/previous operation and PPC

Carry out production as per the work instruction

Dispatch the components as per procedures

Inspect the components as per procedure

31

3.4.4 DESIGN AND DEVELOPMENT

This is one of the core strengths of Titan. The designs department is well equipped
with workstations and computers to enable the designers to have free hand.

The designs

department uses to latest softwares like AutoCAD, Pro Engineer where in all their solid
modeling, drafting is carried out.

They have excellent co-ordination between various

departments to support the manufacturing activities. Various developments has enabled the
designs to be flexible and in line with manufacturing as well as with the market. The types of
design is product design tool design packaging design. Design innovation and the preparation of
standard technical designs incorporating manufacturing details.
Tooling

The tool room is equipped with CNC wire cutting machines capable of handling upto
0.03mm wire, precision CNC milling, Jig Boring, Spark EDM Cylindrical grinding and other
supporting machines. The tools manufactured are Progressive dies, multi station cross
travel combination tools, multi-cavity prevision moulds, forming dies, cutting tools, high
precision step drills, jigs and fixtures.
Press working

Stamping presses of 25T and 35T capable of handling upto 130 SPM, friction screw
presses, hydraulic presses up to 300T, 25T secondary operation presses with die cushion, and
hot forging press. The products are precision forgings in stainless steel and brass, complex
stainless steel sheet metal parts with high accuracy, coined parts in Stainless steel,
compacting.

Precision turning

About 200 machines comprising of sliding head stock automats (Peterman P3 and
P7), CNC sliding head stock automats (CINCOM) and CNC turning centers. Titan currently
handles precision turned parts for telecom industry and speedometer parts apart from the
regular watch parts.
32

 Modeling

35T and 75T Aurburg and 25T Batten field closed loop CNC. The products are
precision watch movement parts, dashboard pointer parts, speedometer parts.
Surface finishing

Automatic polishing and buffing facilities for round parts, flexible components (such
as bracelets), super finishing of small / miniature / slender parts (by planetary tumbling), fine
sand blasting and staining.
Plating / coating

Wet plating capable of heavy plating of precious metals and PVD coating.
Automation / Machine building

Integrated facility for design, fabrication and commissioning of Assembly automation

and special purpose machines.

3.5 FINANCE DEPARTMENT

The finance department is common for the watch and precision engineering
division.
The finance department is lifeblood of organization. The main role of finance
department is supporting manufacturing is that they process orders, release payment to the
suppliers. The main sources of income are through sales collection; inter corporate deposits and
other short-term loans. Besides these, disbursement of of salaries to the employees,
reimbursement of travel expenses and other small time purchasing activities. They also supports
manufacturing in arriving at Make or Bye decision. Product costing is also done here. The
product costing is done by calculation the utilization of machines and other fixed costs. The
costing method that is followed is standard costing method.

3.5.1 TYPES OF WORKING CAPITAL

Working capital may be classified on the bases of time as follows.
33

 PERMANENT WORKING CAPITAL

Permanent or fixed capital is required by a business to maintain minimum level
of stock of raw materials, semi manufactured and manufactured products and to pay expenses
such as wages, salaries, rents, interests, etc. Permanent working capital may be two kinds.

a. Initial Working Capital

Immediately after a companys formation, for sometimes a
company will need relatively large working funds to discharge its liabilities on
account of purchase of raw materials, payment of wages, salaries, so this referred
to as initial working capital
b. Regular or normal working
It is represented by the excess of current assets over current liabilities and has to
be maintained by the company. A business will always have to maintain level of stock of
different items like raw materials, semi-manufactured and manufactured goods only than the
circulatory process of cash being converted in to stores of raw materials/finished goods and back
into cash can continue without hindrance and generate a surplus in the hands of the company
every time and this capital is called regular working capital.
TEMPORARY WORKING CAPITAL
The amount of temporary working capital will depend on when and what purpose it
is needed by the company will need such capital either because of the materials required by it are
available only during a particular season because of their special circumstances. They are of two
types
a. Seasonal Working Capital
It is to meet the financial needs of seasonal periods. Thus it is used to buy raw
materials, which are available only during a particular season.
b. Special Working Capital
It is required to meet situation, which cannot be foreseen and
therefore no advance preparation can be made to face them as they arise. For instance there may
be an abrupt increase in demand for the goods and services produced by a company, it may
succeed in securing a big contract or a large order for execution of which large investment has to

34

be made a current assets. So the capital required for such circumstances are called as special
working capital.
3.5.2 OPERATING CYCLE
DEBTORS

SALES

FINISHED GOODS

CASH
OPERATING
CYCLE

WORK IN
PROGRESS

CREDITORS

PURCHASES
RAW MATERIALS
Working capital also known as circulating capital because the capital is invested recovered
and reinvested repeatedly during the year. A firms profitability determined partly by how it
manages its working capital, which determines the efficiency of the man
OPERATING CYCLE
1. Conversion of cash into raw materials:
Purchase of raw materials.
2. Conversion of raw materials into work-in-progress:
Process of production.
3. Conversion of work-in-progress into finished goods:
Process of production.
4. Conversion of finished goods into accounts receivable:
Sale of goods-debtors and bills receivable.
5. Conversion of accounts receivable into cash:
Receiving cash from debtors and bills receivable.
35

3.5.3 MANAGEMENT OF WORKING CAPITAL

Working capital management involves efficient management of different
element/components of working capital such as cash, inventories, account receivable and
accounts payable.
a. Management of cash
Cash is the important of the working capital of a concern. It is like the blood
stream in the human body and gives operating strength it is a business firm. Without
cash, the firm cannot procure resources and supplies required to perform business
operations. Without adequate cash, operations of firms business come to standstill.
b. Management if inventory
Every enterprise needs inventory for smooth running of its activities. It serves as
a link between production and distribution process. There is generally the time lag
between recognition of a need and its fulfillment. The greater the time lag the higher
requirement for good also necessities the need for inventory.
c. Receivable management
Receivables are current assets representing amount due to the firm as a result of
the sale of goods or services on credit in the ordinary course of business. Receivable also
refers to short-term advances, prepaid expenses and debtors.
d. Management of accounts payable
Management of accounts payable is important as management of accounts
receivable. The objective of accounts receivable management is to collect receivables
promptly on the other hand, the aim in case of accounts payable is to prompt payments
and processing of payments for the benefit of the company.

36

3.5.4 COMPARATIVE STATEMENTS

COMPARATIVE BALANCE SHEET 2008-2009
Particulars

2008

2009

Increase or Decrease

Percentage (%)

Amount (Crores)
Sources Of Funds
Total Share Capital

82.28

44.39

-37.89

-46.0501

Equity Share Capital

42.28

44.39

2.11

4.990539

40

-40

-100

Reserves

150.3

283.06

132.76

88.33001

Net worth

232.58

327.45

94.87

40.79027

Secured Loans

148.84

172.67

23.83

16.01048

Unsecured Loans

119.09

74.34

-44.75

-37.5766

Total Debt

267.93

247.01

-20.92

-7.80801

Total Liabilities
Application of funds

500.51

574.46

73.95

14.77493

Gross Block

420.42

515.48

95.06

22.61072

Less: Accum. Depreciation

243.97

264.34

20.37

8.349387

Net Block

176.45

251.14

74.69

42.32927

Capital Work in Progress

19.56

15.97

-3.59

-18.3538

Investments

27.02

27.02

Inventories

374.39

677.48

303.09

80.95569

Sundry Debtors

90.12

92.06

1.94

2.152685

Cash and Bank Balance

38.29

50.73

12.44

32.4889

Total Current Assets

502.8

820.27

317.47

63.14041

Loans and Advances

150.96

179.06

28.1

18.6142

Total CA, Loans & Advances

653.76

999.33

345.57

52.85885

Current Liabilities

363.89

571.26

207.37

56.987

26.72

151.96

125.24

468.7126

Total CL & Provisions

390.61

723.22

332.61

85.15143

Net Current Assets

263.15

276.11

12.96

4.924948

Miscellaneous Expenses
Total Assets

14.31
500.49

4.21
574.45

-10.1
73.96

-70.58
14.77752

Preference Share Capital

Fixed Deposits

Provisions

37

 COMPARATIVE BALANCE SHEET 2010-2011

Particulars

2010

2011

Increase or Decrease

Percentage (%)

Amount (crores)
Sources Of Funds
Total Share Capital

44.39

44.39

Equity Share Capital

44.39

44.39

Reserves

391.78

506.85

115.07

29.37108

Net worth

436.17

551.24

115.07

26.38192

Secured Loans

188.11

116.76

-71.35

-37.9299

69.78

58.65

-11.13

-15.9501

Total Debt

257.89

175.41

-82.48

-31.9826

Total Liabilities

694.06

726.65

32.59

4.695559

Gross Block

558.07

593.04

34.97

6.266239

Less: Accum. Depreciation

285.61

318.56

32.95

11.53671

Net Block

272.46

274.48

2.02

0.741393

9.99

19.52

9.53

95.3954

47.39

7.66

-39.73

-83.8363

1,021.09

1,202.69

181.6

17.78492

Sundry Debtors

96.45

106.22

9.77

10.1296

Cash and Bank Balance

51.91

54.69

2.78

5.355423

Total Current Assets

1,169.45

1,363.60

194.15

16.60182

Loans and Advances

111.34

128.82

17.48

15.69966

1,280.79

1,492.42

211.63

16.5234

842.68

974

131.32

15.58361

73.9

93.44

19.54

26.44114

Total CL & Provisions

916.58

1,067.44

150.86

16.45901

Net Current Assets

364.21

424.98

60.77

16.68543

694.05

726.64

32.59

4.695627

Preference Share Capital

Unsecured Loans

Application of funds

Capital Work in Progress

Investments
Inventories

Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions

Miscellaneous Expenses
Total Assets

COMPARATIVE BALANCE SHEET 2011-2012

38

Particulars

2011

2012

Increase or Decrease

Percentage (%)

Amount (crores)

Sources Of Funds
Total Share Capital

44.39

44.39

Equity Share Capital

44.39

44.39

Reserves

506.85

679.99

173.14

34.16001

Net worth

551.24

724.38

173.14

31.40919

Secured Loans

116.76

72.79

-43.97

-37.6584

58.65

-58.65

-100

Total Debt

175.41

72.79

-102.62

-58.5029

Total Liabilities

726.65

797.17

70.52

9.70481

Gross Block

593.04

624.33

31.29

5.276204

Less: Accum. Depreciation

318.56

361.7

43.14

13.54219

Net Block

274.48

262.63

-11.85

-4.31725

19.52

12.29

-7.23

-37.0389

7.66

7.63

-0.03

-0.39164

1,202.69

1,340.33

137.64

11.44435

106.22

93.61

-12.61

-11.8716

54.69

61.72

7.03

12.85427

Total Current Assets

1,363.60

1,495.66

132.06

9.684658

Loans and Advances

128.82

200.99

72.17

56.02391

125

125

125

1,492.42

1,821.65

329.23

22.06014

974

1,172.28

198.28

20.35729

93.44

134.74

41.3

44.19949

1,067.44

1,307.02

239.58

22.44435

424.98

514.63

89.65

21.09511

726.64

797.18

70.54

9.707696

Preference Share Capital

Unsecured Loans

Application of funds

Capital Work in Progress

Investments
Inventories
Sundry Debtors
Cash and Bank Balance

Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets

CHAPTER-IV
SWOC ANALYSIS
39

A summary of the strength, weaknesses, opportunities and threats of Titan Industries is given
below.
STRENGTH
Strong brands
Strong retailing, distribution and supply network
Design experience
Integrated manufacture
Leading market position
Focus on quality
Experienced management and technical
The stretegy
Style: Titan first introduced the style concept in India and projected the watch as a
fashion accessory. Nowadays style is a very much evident factor among the youth. So, Titan
makes the peoples life more glorious by making stylish wristwatch.
Models: Titan offers the best and the biggest range to customers to choose the watch of their
choice with an affordable price. It offers about 14 different names with about 1000 plus different
varieties with a watch for literally everyone.
Exclusive products: Today Titan holds the pride for say that its products both within the
country and internationally run in battle position. Its EDGE is the slimmest watch in the world
position.
Contribution of owned brands and retail: The profit is accounted by being in the retail
space, which is booming.

WEAKNESSES
40

 Inefficient implementation of the plans

No efficient plans to retain the employees
Improper integration of the departments
Pricing: The average price of Titan in mid-price segment is very high than the other
competitors. Average price for Titan is Rs.1100 while the price for HMT isRs.550. In the midprice segment the company is not performing up to the mark due to the lack of choice of
consumers.2.
Market share: As the average price of Titan wristwatch is far more than the other
competitor, Titan has less market share. The market is more demonstrate by middle class people
and for them Titan is quite costly. Among 75% market share is in mid-segment and Titans
market share is between 18-20% that is far lower than HMT and Timex.3.
Globalized: The company is not sufficiently globalized in spite of being the market leader
in the Indian soil.
OPPORTUNITIES
Plant location
Growing customer demands
Attraction of the talented people
Ever growing demand for the brands
Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan because
there is demand for the products. - Gold watches and pairs are used during the wedding
occasions. The fast track brand is promoted in month of June-August when schools and colleges
re-opens.

41

Gifting concept: Titan started as a brand, which was associated with gifting and relations.
Exchanging offer: The Titan gives the exchange offer for any old watch, of any make, in any
condition functional or otherwise and get a flat discount of 25% on the purchase of a brand new,
stylish and technologically advanced watch from Titan.
CHALLENGES
Increasing competition
Lack of international awareness
Prediction of the customer tastes and performance
Competitor: Lots of foreign brands are entering in our country with their branded watches.
As the removal of quantitative restrictions on import watches lead to a threat to Titan
Premium segment: As in premium segment Titan is getting threats from reputed
international brand such as Espirit, Swatch and Citizen.
Mobile: Nowadays people can get the time and the other feature on mobile phone. So, the
need of wristwatch is in decreasing trend

CONCLUSION

42

Titan being the market leaders of the Indian watch market industry they are facing
very stiff competition, They are enjoying a good market share. Titan to change its business model
to suit todays requirement. Titan has diversified itself from watch manufacturing to create itself
a name in fashion accessories and aeronautics tools. To maintain a good relationship with the
customers they itself directly entering into the market by keeping their own stores to give proper
service to customers. To attract the peoples they are using the most popular stars such as
M.S.Dhoni as their brand ambassador, thus Titan has converged all its focus on Customer
orientation. The company has adopted World class manufacturing practices like TQM,
TPM, JIT 5S etc., to have value addition for its products and customers.
Titan has now adopted a lean manufacturing style from the contemporary one. The
products that are customer driven and highly market sensitive. The manufacturing capabilities
have been made flexible to suit the market need. This type of products is very well reached to the
consumers by their various marketing strategies.

BIBLIOGRAPHY
Reference Books
43

- K Aswathappa Human Resource &Personnel Management TMH 2005.

- A. NoeJohn R. Hollenbeck Patrick Wright Human Resource Management TMH 2006.
-

Philip Kotler Marketing management (Millennium edition), prentice hall of India

P (ltd), New Delhi 2001

Aakar Day, Kumar, Essential of Marketing

Prasanna Chandra, Financial Management, Theory and Practice, Tata
McGraw-Hill Publishing Company Ltd, 5th Edition, 2001.

I. M. PANDEY Edition 2006

Reference websites
http://www.titanworld.com/
http://www.tata.com/
http://www.google.com/

44