CHAIRMAN SPEECH

PSG COLLEGE OF ARTS AND SCIENCE (AUTONOMOUS)

COIMBATORE – 641014

BUSINESS DATA PROCESSING

ASSIGNMENT: 1

CHAIRMAN’S SPEECH
(COMPANY)

SUBMITTED TO,
DR. P NITHYA PRIYA

NAME: KAVI SELVAN

CLASS: II B.com-A
REG NO: 19BCO521

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TITAN COMPANY
CHAIRMAN SPEECH

TITAN COMPANY LTD. (TITAN)

Company chairman speech

1994 TITAN INDUSTRIES LIMITED CHAIRMANS SPEECH TO THE

SHAREHOLDERS LADIES AND GENTLEMEN, IT GIVES ME GREAT PLEASURE TO
WELCOME YOU TO THE TENTH ANNUAL GENERAL MEETING OF TITAN
INDUSTRIES LIMITED. SHAREHOLDERS WILL HAVE READ THE ANNUAL
REPORT AND THE RECOMMENDATION OF A DIVIDEND OF 25% WITH SOME
SATISFACTION. IN A SITUATION WHERE ALL OTHER MAJOR PLAYERS POSTED
LOSSES, YOUR COMPANY HAS TURNED IN AN EXTREMELY SATISFACTORY
PERFORMANCE WITH PROFLTS RISING BY 75% TO RS 19 CRORES. THESE
RESULTS ARE EXPECTED TO BE IMPROVED UPON IN THE CURRENT YEAR
WITH RESPECT TO BOTH TUMOVER (WHICH IS EXPECTED TO BE OF THE
ORDER OF THE RS 350 CRORES) AND PROFITS. SINCE THE DIRECTORS' REPORT
DEALS WITH THE EVENTS OF THE PAST YEAR IN A FULL AND COMPLETE
MANNER, TRANSPARENCY BEING A KEY FEATURE OF OUR CORPORATE
MANAGEMENT STYLE, I WILL NOT COVER THIS GROUND ONCE AGAIN IN MY
SPEECH. RATHER, WHAT I PROPOSE TO DO TODAY, IS TO TALK TO YOU ABOUT
SOME OF THE CHALLENGES WHICH FACE YOUR COMPANY AND THE MANNER
IN WHICH IT IS PROPOSED TO RESPOND TO THEM. TO BEGIN WITH, HOWEVER,
A FEW COMMENTS ON THE SALIENT FEATURES OF THE CURRENT BUSINESS
ENVIRONMENT WILL NOT BE OUT OF PLACE. WITH THREE YEARS OF THE
STRUCTURAL ADJUSTMENT PROGRAMME BEHIND US NOW, THE INDIAN
ECONOMY SEEMS TO BE AT LAST GETTING POISED FOR RAPID GROWTH.
PRODUCTION VOLUMES ARE ON THE RISE, DEMAND IN GENERAL IS FIRMING
UP AND THE FOCUS ON PRODUCTIVITY IS GETTING SHARPER. IN THESE TIMES
OF TRANSITION, IT IS ESSENTIAL FOR COMPANIES TO NURTURE SPECIFIC
COMPETENCIES WITH CARE AND FORESIGHT. LET ME TRY AND RELATE
THESE GENERAL POINTS TO THE SPECIFLC SITUATION OF VOUR COMPANY.
THERE ARE THREE MAIN CHALLENGES WHICH I SHALL BE SPEAKING ABOUT:
THE CHALLENGES POSED BY THE COUNTRY'S ECONOMIC LIBERALIZATION

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TITAN COMPANY
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PROCESS: THE COMPANY'S SCHEDULED ENTRY INTO THE EUROPEAN AND

NORTH AMERICAN MARKETS; AND THE NEED FOR ALL THOSE ASSOCIATED
WITH THE COMPANY IN ONE WAY OR THE OTHER TO WORK AS A CLOSELY
KNIT AND DISCIPLINED FORCE AS IT COMMENCES A NEW PHASE OF
PHENOMENAL GROWTH. WE HAVE BEEN TOLD THAT, IN ANOTHER YEAR OR
TWO, THE PRESENT QUANTITATIVE RESTRICTIONS ON THE IMPORT OF
CONSUMER GOODS, INCLUDING WATCHES, WILL BE LIFTED. IMPORT DUTIES
HAVE ALREADY COME DOWN AND ARE EXPECTED TO COME DOWN FURTHER.
THESE DEVELOPMENTS WILL SIGNIFICANTLY ALTER THE COMPETITIVE
ENVIRONMENT IN WHICH YOUR COMPANY FUNCFFONS. THE INDIAN MARKET
WILL WITNESS A HOST OF NEW PRODUCTS AND NEW BRANDS. THE INDIAN
CONSUMER WILL HAVE NEW AND ATTRACTIVE CHOICES. HOWEVER, YOUR
COMPANY DOES NOT VIEW THIS SCENARIO WITH TREPIDATION. INSTEAD IT
LOOKS FORWARD TO NEW AND EXCITING TIMES AHEAD. WE BELIEVE THAT
THE ENTRY OF FOREIGN BRANDS WILL, IN FACT, HAVE THE EFFECT OF
EXPANDING THE MARKET FOR WATCHES. WATCH SALES IN INDIA ARE STILL
WELL BELOW SALES IN COMPARABLE COUNTRIES OF THE WORLD, WHEN
EXPRESSED IN TERMS OF NUMBER OF WATCHES SOLD PER THOUSAND OF THE
POPULATION. SO ALSO, WITH THE TOTAL POPULATION OF WATCHES AND THE
NUMBER OF PEOPLE IN INDIA WHO POSSESS WATCHES. THUS, WHILE WE WILL
PROBABLY SEE TITAN'S MARKET SHARE DECLINE, VOLUMES AND REVENUES
SHOULD CONTINUE TO RISE. IN ORDER TO MAKE SURE THAT THE COMPANY
FARES WELL IN THE NEW COMPETITIVE ENVIRONMENT, YOUR MANAGEMENT
IS TAKING A NUMBER OF STEPS INCLUDING CREATING NEW CAPACITIES OR
ESTABLISHING NEW CAPABILITIES WHERE WE ENJOY
 A COST ADVANTAGE,
 EXTENDING THE PRODUCT PORTFOLIO,
 INCREASING THE PRICE SPREAD OF OUR PRODUCT RANGE,
 FURTHER IMPROVING PRODUCT RELIABILITY,
 BRINGING DOWN PRODUCTION COSTS,
 CONSOLIDATING THE DISTRIBUTION SYSTEM,
 STRENGTHENING THE RETAIL CHAIN,
 UPGRADING CUSTOMER SERVICE,

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TITAN COMPANY
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 WIDENING AND DEEPENING THE BRAND'S EQUITY,

 STREAMLINING OPERATIONS GENERALLY,
 INCREASING INTEMATIONAL NETWORKING AND
 ENTERING A NUMBER OF HIGH SYNERGY PRODUCT CATEGORIES
INCLUDING:
 JEWELLERY,
 JEWELLERY WATCHES AND
 ORMAMENTAL TABLE CLOCKS.
THE COMPANY ALSO PROPOSES TO ENTER INTO A NUMBER OF STRATEGIC
ALLIANCES WITH CERTAIN LEADING INTEMATIONAL BRANDS, AND IS ALSO
LOOKING AT THE PROSPECTS OF A GLOBAL STRATEGIC ALLIANCE WITH ITS
ERSTWHILE TECHNICAL COLLABORATORS, FRANCE EBAUCHES. YOUR
COMPANY'S ENTRY INTO THE WORLD MARKET IS BOTH AN INTEGRAL PART
OF ITS DOMESTIC DEFENSIVE STRATEGY AND A PART OF A GLOBAL
OFFENSIVE STRATEGY. YOUR COMPANY'S PRODUCTS HAVE FARED VERY
SATISFACTORILY IN THE FOUR MIDDLE EASTERN MARKETS IN WHICH IT HAS
BEEN PRESENT FOR THE PAST SEVERAL YEARS: THE UAE, OMAN, BAHRAIN
AND QATAR. THIS YEAR, OPERATIONS WILL BE EXTENDED TO THE
IMPORTANT SAUDI ARABIAN MARKET, TO KUWAIT AND TO OTHER WEST
ASIAN MARKETS, AS ALSO A NUMBER OF AFRICAN COUNTRIES, INCLUDING,
MOST IMPORTANTLY, SOUTH AFRICA. AN OFFICE WILL SHORTLY BE OPENED
BY TITAN INTEMATIONAL MARKETING LTD (UK) IN DUBAI'S JEBEL ALI FREE
TRADE ZONE. HOWEVER, THE CRUCIALLY IMPORTANT MARKET
DEVELOPMENT ACTIVITY IS GOING TO BE THAT OF OPENING UP EUROPE AND
THE USA. WORK IS IN FULL SWING FOR THE EUROPEAN LAUNCH OF WATCHES
AND JEWELLERY- SCHEDULED FOR THE FIRST AUARTER OF 1995. TITAN
INTERNATIONAL MARKETING EXHIBITED YOUR COMPANY'S PRODUCTS AND
UNVEILED ITS FUTURE PLANS AT THE EUROPEAN WATCH, CLOCK AND
JEWELLERY FAIR IN BASLE, SWLTZERLAND, IN APRIL. THIS FAIR IS THE
MECCA OF THE WORLD'S WATCH, CLOCK AND EWELLERY INDUSTRY AND
TITAN INTERNATIONAL'S PLANS AND PRODUCTS EVOKED VERY KEEN
INTEREST. WE ARE ALSO FORTUNATE TO HAVE AS OUR PARTNER IN TLLE
EUROPEAN VENTURE, MR. JACQUES MEYERI ONE OF THE MOST EMINENT

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TITAN COMPANY
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PERSONALITIES ON THE EUROPEAN WATCH, CLOCK AND.JEWELLERY SCENE.

MR. MEYER IS NOW A SENIOR VICE PRESIDENT OF YOUR COMPANY AND A
DIRECTOR ON THE BOARD OF TITAN INTERNATIONAL. HE ALSO HEADS
TITAN'S PARIS OFFICE WHICH HAS A CRUCIAL ROLE TO PLAY IN PRODUCT
DESIGN AND DEVELOPMENT AND IN TAPPING THE PRIVATE LABEL MARKET,
ESPECIALLY FOR JEWELLERY. AN EXTREMELY ATTRACTIVE RANGE OF
JEWELLERY AND A NEW RANGE OF VERY HIGH-QUALITY WATCHES HAVE
BEEN PAINSTAKINGLY CREATED FOR THE EUROPEAN MARKET WHICH WLLL
MAKE THEIR DEBUT IN INDIA TOWARDS THE END OF 1994. ARRANGEMENTS
ARE CURRENTLY BEING MADE FOR DISTRIBUTION IN WESTERN EUROPE AND
A PAN-EUROPEAN ADVERTISING AGENCY HEADQUARTERED IN LONDON IS
BEING APPOINTED TO HANDLE TITAN'S MULTIMILLION DOLLAR
ADVERTISING CAMPAIGN. TITAN WLLL PROBABLY BE THE FLRST MAJOR
INDIAN BRAND TO BE LAUNCHED IN EUROPE. INITIAL PREDICTIONS POINT TO
EARLY SUCCESS. TO FLNANCE TITAN'S WORLD WIDE LAUNCH, YOUR
COMPANY HAS APPLIED TO THE GOVERNMENT OF INDIA FOR PERMISSION TO
REMIT UPTO US $ 5,000,000 TO ITS NETHERLANDS SUBSIDIARY, TITAN
INTERNATIONAL HOLDINGS BV. WE HOPE THAT THIS PERMISSION WILL BE
ACCORDED TO US VEN SHORTLY. WHILE YOUR COMPANY PLANS ITS
OVERSEAS EXPANSION, IT IS ALSU SEEKING TO ACT IN CONCERT WITH THE
GOVERNMENT OF INDIA TO ENSURE THAT ITS DOMESTIC BASE IS NOT
ERODED THROUGH THE MACHINATIONS OF SMUGGLERS,
BLACKMARKETEERS AND OTHER ANTI- NATIONAL AND ANTI-SOCIAL
ELEMENTS. WE BELIEVE THAT ANYWHERE BETWEEN TEN AND TWENTY
MILLION WATCHES OR WATCH MOVEMENTS ARE SMUGGLED INTO THE
COUNTRY EACH YEAR. A STUDY RECENTLY PREPARED FOR THE SWISS
EMBASSY IN NEW DELHI PUTS THE FLGURE AT TWENTY MILLION. THIS IS
TWICE THE AMOUNT THAT IS DOMESTICALLY AND LEGITIMATELY
PRODUCED. POOR CUSTOMS CONTROLS AND A FREQUENT LACK OF SENSE OF
PURPOSE IN THE VARIOUS REGULATORY AUTHORITIES CONTRIBUTE TO THE
VAST MAGNITUDE OF SMUGGLED WATCHES IN INDIA. SUCH SMUGGLING NOT
ONLY LEADS TO A HUGE LOSS OF GOVEMMENT REVENUE BUT ALSO HITS AT
THE ROOTS OF ECONOMIC EFFLCIENCY. YOUR COMPANY IS IN THE PROCESS
OF MAKING CERTAIN SUGGESTIONS TO THE GOVERNMENT OF INDIA FOR

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DEALING WITH THE MENACE OF SMUGGLING AND IT IS TO BE HOPED THAT

THESE SUGGESTIONS WILL BE SERIOUSLY RECEIVED AND FAITHFULLY
IMPLEMENTED. INDEED, IN OUR EXPERIENCE OF REGULATORY AGENCIES SO
FAR, WE FLND THAT AN ENORMOUS AMOUNT OF FFME AND ENERGY IS SPENT
IN STRAINING AT LAW- ABIDING GNATS WHILE'SWALLOWING HERDS OF
LAWLESS CAMELS. IT IS IMPERATIVE THAT THE CRACK-DOWN ON WATCH
SMUGGLING PRECEDES THE LIFTING OF IMPORT CONTROLS ON WATCHES
SINCE LEGITIMACY IS OFTEN USED AS A FRONT FOR A LARGE-SCALE ILLEGAL
OPERATION BACKING IT. COUNTERFEITING OF BRANDS AND "COUNTRY-OF-
ORIGIN" CLAIMS ARE ALSO AREAS OF CONCERN. IT IS IMPERATIVE THAT
THESE TWO EVLLS ARE DEALT WLTH ON A WAR FOOTLNG AND THAT THE
COUNTRY EFFECTIVELY ADMINISTERS A SET OF RULES GOVERNING
"COUNTRY-OF-ORIGIN" CLAIMS ON THE PRODUCT AND IN ADVERTISING. THE
WORLD IS WITNESSING AN INTERNATIONALIZATION OF THE
MANUFACTURING PROCESS SUCH THAT COUNTN, OF ORIGIN CLAIMS ARE
OFTEN MISLEADING AND USED MORE AS A LABEL THAN TO INFORM THE
CONSUMER. FOR INSTANCE, THERE ARE SWISS WATCH BRANDS WHERE THE
OWNERSHIP IS HONGKONG CHINESE, THE MOVEMENT IS JAPANESE, THE CASE
AND BRACELET IS CHINESE AND THE DIAL IS TAIWANESE. SIMILARLY, MANY
JAPANESE WATCHES ARE, IN FACT, ASSEMBLED OUTSIDE OF JAPAN, WITH
MANY OF THE PARTS MADE IN COUNTRIES OF EAST AND SOUTH-EAST ASIA.
IT IS ABSOLUTELY ESSENTIAL, THEREFORE, THAT FOR A WATCH TO BE
PERMITTED TO CARRY A COUNTRY-OF-ORIGIN LABEL, SOME CLEAR CRITERIA
SHOULD BE STRICTLY ENFORCED. FOR EXAMPLE, THE MOVEMENT AND THE
WATCH MUST BOTH BE ASSEMBLED IN THAT COUNTRY AND AT LEAST 50%
OF VALUE ADDITION SHOULD HAVE TAKEN PLACE IN THAT COUNTRY. IF
THESE CONDITIONS ARE NOT SATISFLED, THE BRAND IN QUESTION MUST BE
DEBARRED FROM CARRYING COUNTRY-OF-ORIGIN MARKINGS OR MAKING
COUNTRY CLAIMS IN ITS ADVERTISING IN THE INTERESTS OF A LEVEL
COMMERCIAL PLAYING FLELD. AS WE ORGANIZE OURSELVES TO COMBAT
EXTERNAL THREATS, WE NEED TO BE MORE VIGILANT THAN EVER BEFORE
TO THE THREATS FROM WITHIN. OF PARAMOUNT IMPORTANCE IS DISCIPLINE
AND COMMITMENT TO AGREED CORPORATE GOALS ON THE PART OF
INDIVIDUALS AND ORGANIZATIONS ASSOCIATED WITH US. WE SAW SOME

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LACK OF THAT IN THE MONTH OF JUNE WHEN, FOR THE FLRST TIME, WE
WLTNESSED INDUSTRIAL ACTION AT HOSUR. WE DEALT WITH IT FAIRLY AND
FIRMLY AND I BELIEVE THAT IT IS NOW WIDELY RECOGNISED AMONG THE
WORKFORCE THAT THE INDUSTRIAL ACTION TO WHICH THEY RESORTED
WAS UNWISE AND POTENTIALLY DAMAGING. WE HAVE AYOUNG, TALENTED
AND SPIRITED WORKFORCE AT HOSUR AND AT DEHRADUN AND, INDEED, ALL
OVER THE COUNTRY, WHOSE WELFARE AND WELL- BEING IS CLOSE TO OUR
HEARTS AS ALREADY DEMONSTRATED IN EVERYTHING THAT WE HAVE
DONE TO DATE - FROM RECRUITMENT, TO TRAINING, TO REMUNERATING
AND TO TAKING CARE OF THE MANY NEEDS OF EACH INDIVIDUAL AT THE
WORKPLACE OR OUTSIDE IT. WE EXPECT THIS WORKFORCE TO SHOW ITS
APPRECIATION OF OUR CONTINUING CONCERN FOR THEIR PERSONAL GOOD
BY DEDICATING AND COMMITTING THEMSELVES UNSTINTINGLY AND
SINGLE-MINDEDLY TO THE CORPORATE OBJECTIVE OF MAKING TITAN ONE
OF THE WORLD'S MOST OUTSTANDING PRODUCERS AND MARKETERS OF
WATCHES AND JEWELLERY, AND OF ENSURING THAT TITAN IS A WIDELY
KNOWN AND HIGHLY RESPECTED NAME NOT ONLY IN INDIA BUT
WORLDWIDE AS WELL. I TRUST THAT SUCH COOPERATION WILL ALWAYS BE
FORTHCOMING AND ENABLE US TO ACHIEVE THE SEEMINGLY IMPOSSIBLE,
AND THAT SUCH COOPERATION WILL BE FORTHCOMING NOT ONLY FROM
ALL THOSE WHO WORK IN THE COMPANY BUT ALSO FROM ALL THOSE WITH
WHOM THE COMPANY DEALS IN THE COURSE OF BUSINESS - THOSE FROM
WHOM WE BUY, THOSE TO WHOM WE SELL, THE FLNANCIAL COMMUNITY,
THE PRESS, GOVEMMENTAL AGENCIES - EACH AND EVERY PERSON AND
ORGANIZATION THAT HAS SOME STAKE IN THE COMPANY TODAY. I AM SURE
THAT ALL SHAREHOLDERS WILL JOIN ME AND THE OTHER DIRECTORS OF
YOUR COMPANY IN CONGRATULATING THE MANAGEMENT AND THE
EMPLOYEES FOR THE MAGNIFLCENT ACHIEVEMENTS OF THE YEAR AND
WISHING THEM WELL IN CHARTING NEW COURSES FOR THIS NOW FAMOUS
ORGANIZATION. I WOULD ALSO LIKE TO TAKE THIS OPPORTUNITY TO
RECORD THE EXCELLENT SUPPORT RECEIVED FROM THE GOVERNMENT OF
INDIA, THE GOVERNMENT OF TAMILNADU ANA ITS VARIOUS AGENCIES,
FLNANCIAL INSTITUTIONS, BANKS AND NUMEROUS BUSINESS ASSOCIATES IN
INDIA AND ABROAD, AND WE ARE INDEED GRATEFUL TO ALL OF THEM.

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BEFORE I CONCLUDE, I WOULD LIKE TO SAY A FEW WORDS ABOUT THAT

TRULY GREAT MAN MR JRD TATA. PERHAPS NOT ALL SHAREHOLDERS ARE
AWARE THAT MR TATA HAD TAKEN A VERY KEEN INTEREST IN THE
CREATION OF TITAN INDUSTRIES, THENTITANWATCHES, AND THAT, THOUGH
HE HAD HANDED OVER THE REINS OF POWER TO RATAN TATA FOR MOST OF
THE PERIOD THAT YOUR COMPANY HAS BEEN IN EXISTENCE, HE CONTINUED
TO TAKE KEEN INTEREST IN ITS ACTIVITIES, PROVIDING INSIGHT, GUIDANCE
AND VERY STRONG SUPPORT. HIS DEPARTURE FROM THE SCENE IS A LOSS TO
THE COUNTRY AND THE WORLD, AND IS A LOSS MOST KEENLY FELT BY
TITAN INDUSTRIES. THE MOST FLTTING TRIBUTE THAT WE AS A COMPANY
CAN PAY TO HIM IS TO DEDICATE OURSELVES TOTALLY TO THE VALUES AND
GOALS WHICH HE SO CHERISHED AND PRACTISED AND PROPOGATED IN HIS
LIFETIME. LET US SO DEDICATE OURSELVES NOW AND IN DOING SO
REMEMBER WHAT HE ONCE SAID OF TITAN: "TITAN WATCHES IS NOT ONLY IN
THE TATA TRADITION, IT IS IN THE FOREFRONT OF THAT TRADITION: IN THE
BEAUTY AND ELEGANCE OF ITS PLANTS, IN THE SPIRIT OF ITS PEOPLE, IN THE
PERFECTION AND QUALITY OF ITS PRODUCTS. I AM VERY PROUD OF IT AND
GRATEFUL FOR ITS CONTRIBUTION TO THE TATA STORY." LADIES AND
GENTLEMEN, IT IS FOR US TO MAKE SURE THAT THOSE WORDS OF MR JRD
TATA ARE FOREVER TRUE.
THANK YOU
A L MUDALIAR
CHAIRMAN HOSUR,
26 JULY 1994

Link Copy:
www.titanks.in

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