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Titan Company

Presented by:Roll No:1.

Burhanuddin maimoon
Taher rangwala
Akbar malkapurwala
Murtaza kagalwala
Taha pardawala
Taha bharmal

Overview of the economy

Gross Domestic Product

The monetary value of all the finished good and services produced within
a countrys border in a specific time period,through gdp is usually
calculated on an annual basis. it inculdes all of private and public
consumption ,government outleys,investment and exports less import
that occur within a defined territory.
The Indian economy is estimated to have grown at 5% in 2012-13, the lowest
in the last ten years.The decline in the GDP growth was attributable to the
continued global economic slow-down coupled with the poor performance
in the domestic sectors - manufacturing, infrastructure, service and

High levels of inflation and the continued depreciation of rupee were
clearly impacting the growth. The slowdown in growth significantly
impacted the countrys fiscal deficit and widened the Current Account
Deficit. The Capital goods sector remained weak. High interest rates and
inflation resulted in reduction of disposable incomes of households
contributing to the decline of growth in consumer durables and other
discretionary spends.

The price of a nations currency in term of another currency. an exchange
rate thus has 2 components, the domestic currency and a foreign
currency, and can be quoted either directly or a direct
quotation, the price of a unit of domestic currency is expressed in a term
of foreign currency. an exchange rate that does not have the domestic
currency has one of the two currency component is known as cross
currency or cross rate.

On the backdrop of a challenging economic environment in 2012-13, the
Companys income grew by 14.3% to ` 10213.44 crores compared with ` 8932.49
crores in the previous year. Profit before tax grew by 20% from ` 838.44
crores to ` 1006.27 crores and the net profit grew by 20.8% to ` 725.18 crores.


History & Growth
Titan Company Ltd. (formerly Titan Industries Ltd. and Titan
Watches Ltd.) Indian designer and manufacturer of watches, jewelry,
precision engineering components and other accessories including
sunglasses, wallets, bags, belts, fragrances and helmets. It is a joint
venture between the Tata Group, and the Tamil Nadu Industrial
Development Corporation. Titan is the world's fifth largest wrist
watch manufacturer and exports watches to nearly 32 countries around
the world. Some of the well-known brands of Titan include Fastrack,
Sonata, Raga, Edge, Octane, Xylys, Nebula, Zoop, Titan Eye+,
Zoya, tanishq, gold plus and Skinn.
Titan was established in the year 1984, becoming the third Indian watch
manufacturer after HMT and Allwyn. Titan formed a joint venture
with Timex Group, which lasted until 1998, to set up a distribution network
across India. Titan is the 5th largest Watch Manufacturer Company in
TITAN has now become Titan Company Ltd., it is owned and managed by
TATA. The company is divided into four divisions - Watches & Accessories,
Jewellery, Eyewear and Precision Engineering.

Size & structure

Spanning 25-years of growth, the Titan Watch Project became Titan
Watches, Titan Industries and ultimately Titan Company Limited.
Production kept an impressive pace, topping the 15 million plus mark per
year. Three years down the trail produced a dividend of 15% today,
2012, sees a declaration of 175%!
Numerous technologies and sources came into play during this period.
Progress was swift, steady and stamped with characteristic Titan Company
aplomb. This led to innumerable achievements and accolades.
Audaciously challenging the Swiss, Titan now is the world's largest
integrated own brand manufacturer of watches. A major brand player,
Titan stakes claim to 60% of the organized watch market, with over 150
million pieces sold across 32 countries collectively.

In successive events the 'World of Titan' exclusive showrooms

mushroomed nation-wide, currently totalling 367 plus. The main
manufacture facility is situated at Hosur in Tamil Nadu with assembly units
in Dehradun, Pantnagar and Roorkee and an electronic sub assembly plant
in Goa in India.
Titan Company notably left its footprint in Europe in 1993; then came a
major one in the Middle East and the Asia-Pacific regions. Titan now
happily ticks its way across over 30 countries around the globe.
A brief joint venture with the American brand, Timex, between 1992 and
1998, focusing on market mass, prospered. The brand Timex jumped to
2nd place next to Titan, in popularity. On dissolution of the partnership,
Titan reclaimed market share by launching Sonata, an absolute winner,
followed by an astute array of wrist wear - Titan, Fastrack, and Xylys
brands, luxury watches and designer timescapes - a range of outdoor
clocks - defining spectacular landmarks in several cities. Pacing on, the
Swiss and Japanese watch fraternity were justifiably astounded, not only
with the state-of-art Production facility established by Titan, but also with
its highly trained, dedicated, youthful workforce.
Endorsing the Tata spirit, Charles Correa, a world-renowned architect, was
commissioned and fashioned a complete modern township at Mathigiri in
Tamil Nadu, India to accommodate over 2000 Titanians, complete with an
excellent school that doubles as a learning facility for neighbouring district

Diversification accelerates progress. Titans expansion plans in 1993

turned to jewellery, with a brand launch Tanishq in 1996. Then a spate of
new ventures followed suit, Fastrack the youth watch and accessories
line in 2003; Precision Engineering in 2005, Goldplus the standardized
mass marketing of jewellery in 2006 and the Titan Eyewear Division in
2007 - a project of prescription eyewear, complete with specialized
outlets, catering to customers every need.
Catering primarily to a country which views gold as a prime investment,
believes that it is auspicious, and finds it an irresistible adornment,
Titan Company literally struck it rich by its entry into the world of
traditional and designer jewellery. The concept of entering the glitter field,
in order to forge a way out of a foreign exchange crunch of the early
1990s, appealed to Titan Company considerably. And yet again, though

early steps were far from expected, the innovative Titan spirit came to the
fore, turning adversaries into achievement, and how!!
Foreign Exchange being no consequence subsequently caused
Titan Company to focus exclusively on the home market. Tanishq offers a
stunning world of exquisite, precious designer ware through over 160
stores in 89 cities across the nation. Goldplus has a proud market share of
around 40% in the semi-urban and rural scenario, whilst still in its infancy.
These two ventures are a pride to India and to Titan Company, for they
certainly keep value conscious customers happy and contented.

With growing middle-class income, luxury watches have found an eruption
in demand in the post-economic slowdown era. Leading producers like
Titan Industries.
Tastes seem to have changed over the past nine-odd months, with lowend consumers upgrading watches to price points between Rs 8,000 and
Rs 10,000. Titan Industries have, therefore, introduced many new brands
in the high-end segment to leverage market sentiment. In future, if the
trend continues, which is very likely, we will introduce many innovative
and stylish brands to meet consumers demand, said Titan its chief
executive officer, Harish Bhat.
Titan had also introduced the Swiss-made brand, Xylys, in the upper
segment and all these brands have been received well by consumers.
Whatever we produced, we sold, Bhat added.
The Rs 10,000-crore watch industry share has been classified in two parts.
The low range sector, with a price between Rs 500-3,999 dominates, with
over 60 per cent of market share. The Rs 4,000-17,000 range constitutes
30-35 per cent; the rest is with super high-end products. Volume-wise,
about 45 million watches, including clocks, are sold in India annually, with
an annual growth rate of seven to eight per cent.

The international watch market is a highly fragmented market. A large
number of brands, between 200 to 300 compete in the developed and
developing markets. In addition to the traditional Watchmaker brands

like Citizen and Sieko we have the Fashion brands which have taken
significant market share from the traditional brands. Our strategy has
been to position Titan as a value for money brand offering contemporary
designs. In each market where we are present, we have differentiated our
selves from global brands by developing specific collections for the
mainstream buyer and using our retailing experience to create a strong
retail presence.
Our future strategy for watches is to concentrate on markets with a
significant expatriate Indian population (the Middle East) or who have an
India-friendly outlook (South and South-East Asia) in addition to new
countries in regions like Latin America and East Europe. We also propose
to emphasize contemporary styling and expand the Titan watch
collections in these jurisdictions

Income-watches Rs crores






Our business is highly dependent upon the constantly changing needs,
desires and aspirations of our customers
And any failure on our part to meet their requirements may be critical to
our business operations. Our revenues are
Difficult to predict and are likely to fluctuate due to a number of factors,
many of which are outside of our control.
These factors include:
Changes in our pricing policies or those of our competitors;

our ability to successfully anticipate and offer products that our

customers demand;
our ability to successfully launch new products on a timely basis to
reduce our cost structure, including fixedcosts, to streamline our
operations and to reduce product costs;

the timing of our or our competitors new products or product

enhancements or any delays in such introductionsby us;
macro economic changes affecting the purchasing power of our
For the year ended March 31, 2005 our total income was Rs. 1,17,058.78
lakhs as against Rs. 93,164.21 lakhs for March 31, 2004. Our past sales
growth may not be indicative of our growth in the future. Our operating
expenses are budgeted based on our estimates of revenues. A high
percentage of our expenses are fixed, particularly expenses related to our
personnel and facilities, which are fixed in advance for specific periods.
Our operating results may vary significantly from period to period, due to
the seasonal nature of the businesses in which we operate. Our inability to
accurately estimate, assume, predict or forecast future trends may
adversely affect our brand image,
financial performance and customer satisfaction targets.
It may be difficult for us to predict market trends and the tastes
of our customers.
Further we cannot guarantee the retention or expansion of our customer
An important element of our business involves predicting the trends in
fashion and the choices of the customer. Our customs. Though we
constantly strive to meet the expectations of our customers, we may not
be able to meet their fashion and innovation expectations and may not be
able to launch quality products, to address the requirements of our
customers. We may also have to incur additional costs and expenses to
study the market, develop suitable products and effectively market the
same. Our competitors who are engaged in similar businesses and target
the same audience may be able to service the needs of such customers
better than us. We may assume on the basis of our internal estimates that
certain new lines of business may be profitable. Any inability to gauge
market trends, competition and other factors which affect our businesses
could have a serious impact on our brand image, market share and
financial performance. Further, we may be unable to determine the
correct time to launch our products in the market and any time or cost
overruns in such launch could adversely affect our results of operations.

Overview of the company

History and growth

IN 1984 the company was incorporated on 26th July at Chennai by

xerses desai.

In 1992 an MOU was signed with Casio Computer Company of japan to

manufacture to million digital and ana-digital watches.
In 1992 over 150 models were introduced.
Titan is the joint venture between the Tata group and tamilnadu
industrial development corporation.
Titan watches is Indias largest watch and jewelry manufacturer.
Titan is the 6th largest integrated manufacturer-brand for watches
Over 60% share in the domestic market.
Titan watches and jewelry main plants are situated in hosur near
watch assembly plant at Dehradun ,baddi in roorkee ECB plant in goa
jewelry plant at Dehradun.
Investment of U.S. $150million in 450000 sq. ft. state of the art facility.

Retail:With over 969 retail store across a capital area of over 1.3 million sq.ft titan
industries has Indias largest specialty retail network spanning over



Number of



World of
Fast track
Titan one
Gold plus





Regionl office:Titan has its regional offices in Bangalore, Mumbai, delhi and

Manufacturing facilities:Watches- hosur ,roorkee, pantnagar, Dehradun and goa.

Jewelry - hosur, Dehradun and pantnagar.
Precision engineering-bomasandra and hosura.
TITAN EYE + has the largest optical retail network in india.The total
network stood at 223 store across 76 towns with over 150000 sq.ft as on 31st
march 2013.
During 2013-14, the company has augmented plan to add 145 stores in
watches and accessories, 45 stores in jewellery and 55 stores in eyewear.

Present demand& sales

The Rs 10,000-crore watch industry share has been classified in two parts.
The low range sector, with a price between Rs 500-3,999 dominates, with
over 60 per cent of market share. The Rs 4,000-17,000 range constitutes 30-35
per cent; the rest is with super high-end products. Volume-wise, about 45
million watches, including clocks, are sold in India annually, with an
annual growth rate of seven to eight per cent.

Stock performance.


Titan Company reported a growth of 9.4% in income in Q3 over same period
last year and an impressive income growth of 16% for the nine month
period ended December 2014. The overall income in the third quarter,
October to December 2014, was Rs.2898.28 crore, as compared to last
years income of Rs.2650.46 crore during the same period. The income for
April to December 2014, the nine-month period, stands at Rs.9316.61 crore,
registering a growth of 16% over last year.
The profit before tax for the nine-month period ending December 2014
showed a growth of 9%, at Rs.803.63 crore. Profit before tax for Q3, October
to December 2014, was Rs.243.05 crore. The net profit for the same period
was Rs.190.73 crore and Rs.607.98 crore for the nine-months ended
December 2014. Net profit for the third quarter grew by 15.2%.

Net Profit In crores





200 230.56





Suggestions And Conclusion

The survey of consumers has revealed the like and dislikes and taste
regarding wrist watches and satisfaction level in relation to Titan
industries Ltd. The consumers have forwarded the following suggestions
for the consideration of the company and dealers.

The respondents feel that the price of Titan watches is too high.


anticipate a reduction in the price, which can be affordable to all common

class of people.

The service for the new watches should be improved.

Some respondents feel that the price of spares of Titan watches is high
and suggest for a reduction in prices.

Some more attractive festival offers and gifts should be given on


All varieties of watches should be made available in show room, which

cater to the taste of different income group customers.

Quality of the leather straps (belt) of watches should be improved.

Advertisements in local media should be increased. This may cover rural

areas also.

Guarantees should be given for costly interior parts of watch.









manufacture separate kids and sports watches.

The dealer has to improve after sales service to satisfy the customers.

The Titan brand of watches coming from the Titan industries is known for
quality and performance in the domestic and international markets. The
consumer of Titan brand watches are highly satisfied customers having
pride in owning and wearing the most sophisticated, highly reliable and
superior performance watch. Titan brand watches are in great demand not
only in India but also abroad. It is owing to a fact that they come from a
Tata group company.
The turnover of titan brand of watches has shown uptrend from year to
year. Titan watches enjoy a lions share in the domestic watch market.
Though, there, is increasing demand for all varieties of Titan a watch, a
few suggestions given by the respondents is to be considered by Titan
industries. The company has to put its efforts in improving quality of its
watches, introduce new varieties with changing out look to appeal and
attract potential customers for its products. Again the company can also
consider for a reduction in the prices which may make it market leader in
the years to come.
Finally it can be said that the performance of Titan watches is not only
amazing but also highly satisfactory. The company can achieve further
success by improvement the suggestions of the consumers.