Professional Documents
Culture Documents
INTRODUCTION
Back in the early eighties, TATA GROUPS had identified the watch category has a potential
in consumer market for the TATA’S to enter, XERXES DESAI, a Tata veteran and then MD of
TATA press, was chosen to lead watch venture. Titan is one of India's leading watch brands that
has brought a paradigm shift in the Indian watch market when it introduced its futuristic quarts
technology, complemented by international styling.
Titan industries has reached out to the youth segment with fastrack, its third brand, trendy
and chic. Titan industries launched Tanishq, India’s most trusted and fastest growing jewellery
brand. Titan Company has also made its foray into eyewear, launching fastrack eyewear and
sunglasses, as well as prescription eyewear.
The organization has leverage its manufacturing competencies and branched into precision
engineering and machine building.Titan has head quarters at hosur India and it has its presence in
4 continent and 32 countries.
The watch division boasts of over 300 exclusive showrooms christened ‘World of Titan',
placing the brand amongst the largest chains in its category backed by over 650 after-sales-
service centres.
Titan Industries is also the largest jewellery retailer in India with over 119 tanishq boutiques
and zoya stores, over 28 gold plus stores and over 120 Titan Eye+stores.
1
CHAPTER-2
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 is 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 designs &
models ,guaranteed after sales service &quality products from collaborative ventures with the
worlds renowned watch manufactures.
We ensure that a part of our resources is invested in environment and community
betterment. Titan has built on this principle over the last 15 years, almost year after year: In
1989, it was Aqura, the trendy range for the youth, colorful, smart and affordable plastic watches
for the youth: The other side of Titan for the other side of you.
2
In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India, for the
sophisticated India woman who appreciated such things.
In 1993, it was Insignia, very distinctive and international-looking top-end watches, for
those seeking exclusivity and status.
In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious sports
features (200-m mater resistance, high precision chronographs) for those with the
penchant for adventure.
In 1996, it was Dash, the cute and colourful range for kids.
In 1997, it was Sonata, the affordable, good quality range for the budget-conscious.
In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-at-heart.
In 1999, it was Nebula, the sold gold and diamond-studded range of luxury watches for
those affluent people to whom gold is a precious acquisition.
In 2001, it was Steel, the smart and contemporary collection for the young 21st century
executive.
2.1.3 Brands for Titan
The main brands that have reigned on the Indian market for Titan over the years are:
EDGE
Through cutting edge watch-making technology and four years of research and
development, Titan. has created sensation by coming up with the world's slimmest
wristwatch "Titan Edge" of just 3.5 mm in thickness and a wafer thin movement of 1.15
mm
NEBULA
The Trousseau Collection of expensive jewelry watches for women from Titan bear
intricately carved designs in paisley and floral patterns. Watches may also have pearl
dials, or studded with 16 diamonds, or deftly crafted in solid Gold of 10 carats.
FASTRACK
This range has become the obsessions of the Indian youth, for their digital technology,
trendy shapes, and casual and sporty designs.
3
RAGA
The watches in this collection are exclusively for women, whose gold, steel and bicolor
looks with leather bands or metallic bracelets signify feminine grace and substance.
REGALIA
The exclusive range of watches in gold and steel are meant for social occasions
BANDHAN
The collection in gold that is solely available in pairs, has been a 'must buy' for weddings
FLIP
The favorite among professionals, the watches enable their owners to switch from sporty
to corporate look or between professional and personal occasions with a "flip" of the dial.
SONATA
The wide collection that includes 400 models of watches is designed for customers, who
look for a mix between durability and affordability. These wrist-gears are water resistant
(for up to 30 meters) and come in metallic and a host of other cases with a guarantee of 1
year.
XYLYS
The collection added was another feather in Titan's cap that consisted of a premium
selection of watches that are the result of exquisite craftsmanship. The collection was
created by Titan's design advisor Michael Foley in collaboration with renowned Swiss
designer Laurent Rufenacht.
OCTANE
Launched in early 2008, this chronograph collection for men comes in steel-and-chrome
with a choice of eye-catching dials that complement a true metrosexual.
And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop - each of them
unique and fascinating.
The company brought about a paradigm shift in the Indian watch market, offering quartz
technology with international styling, manufactured in a state-of-the-art factory at Hosur, Tamil
Nadu. In 1995, the company diversified into jewellery under the brand Tanishq to capitalise on a
fragmented market operating with no brands in urban cities. In 2005, the company launched its
second jewellery brand, Gold Plus, to capitalise on opportunities in small towns and rural India.
4
The company has now entered into eye wear, launching Fastrack eye-gear sunglasses and
prescription eye wear.
a) Watches
b) Jewellery
c) Eye wear
d) Precision engineering
a) Watches: The four main watch brands include Titan for the mid-premium segment, Fastrack
focused on the youth and trendy fashion space, Sonata for the mass market and Xylys for the
premium market. The Titan brand architecture comprises several sub-brands: Titan Edge, Titan
Raga, Nebula and several other collections like Wall Street, Heritage, Regalia, and the Aviator
series.
The company manufactures over 12 million watches per annum and has a customer base of over
100 million. Today, the Titan portfolio has over 60 per cent of the domestic market share in the
organized watch market. Watches are sold through exclusive 'World of Titan' showrooms and at
12,000 outlets in more than 2,500 cities in India and internationally in over 30 countries,
primarily in the Middle-East and Asia Pacific. Its after-sales-service is itself a benchmarked
operation with service centers and amongst the world’s fastest turnaround times. The company
has a world-class design studio for designing watches and accessories.
b) Jewellery: Tanishq is India’s largest, fastest growing jewellery brand with a premium range
of gold jewellery studded with diamonds or colored gems, and a wide range in 22kt pure gold
and platinum jewellery. Gold Plus is the recent retail plain gold jewellery offering for the mass
market. The jewellery division has its own design studio.
5
c) Eye wear: Titan Eye+ retails sunglasses under the Fastrack brand and prescription eye wear
consisting of frames, lenses, sunglasses, accessories and contact lenses of its in-house brands and
other premium brands.
Location
Headquartered in Bangalore, India, the company has manufacturing and assembly
operations at Hosur, Dehradun, Roorkee, and Baddi in Himachal Pradesh, Banth nagar and an
ECB plant in Goa.
Titan Industries is the organization that brought about a paradigm shift in the Indian
watch market when it introduced its futuristic quartz technology, complemented by international
styling. With India's two most recognised and loved brands Titan and Tanishq to its credit, Titan
Industries is the fifth largest integrated watch manufacturer in the world.
The success story began in 1984 with a joint venture between the Tata Group and the
Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported
an international look, Titan Industries transformed the Indian watch market. After Sonata, a
value brand of functionally styled watches at affordable prices, Titan Industries reached out to
the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 100
million watches world over and manufactures 12 million watches every year.
With a license for premium fashion watches of global brands, Titan Industries repeated
its pioneering act and brought international brands into Indian market. Tommy Hilfiger and
Hugo Boss, as well as the Swiss made watch – Xylys owe their presence in Indian market to
Titan Industries.
6
Titan Industries has leveraged its manufacturing competencies and branched into
precision engineering components and subassemblies, machine building and automation
solutions, tooling solutions and electronic sub-assemblies in 2002. Titan Industries has also made
its foray into prescription eyewear, launching the Titan Eye+ chain of world class optical stores
in 2007.
With over 1,480 retail stores across a carpet area of 1.9 Million sq. ft, Titan Industries has
emerged as India’s largest retail network. The company has over 290 exclusive ‘World of Titan',
Helios and Fastrack showrooms and 745 after-sales-service centers. Titan Industries is also the
largest jewellery retailer in India with over 140 Tanishq boutiques, Zoya and Gold Plus stores
and over 75 Titan Eye+ stores.
Backed by over 4,300 employees, two exclusive design studios for watches and
jewellery, over five manufacturing units, and innumerable admirer’s world over, Titan Industries
continues to grow and sets new standards for innovation and quality. The organization is all
geared to repeat the Titan and Tanishq success story with each new offering.
In Titan Industries,
The employees are classified into two categories
7
2.2.1, INTRODUCTION
Titan is a joint venture between TATA and Tamil Nadu Industrial Development
Corporation (TIDCO). Titan is in the forefront of the TATA value system of creating wealth for
the nation and earning the respect of all the stakeholders and the community at large through
excellence in every aspect of the business and individual conducts. Set up in 1985 with an initial
planned annual capacity of two million watches, the company today produces over 6 million
watches annually and has successfully diversified into previous jewellery and premium clocks.
The company is acclaimed to be a visionary in the watch industry and is perhaps one of the few
profitable watch businesses in this part of the globe. The company has passionately pursued the
business excellence model based on the Malcolm Baldridge Criterion and is assessed to be the
second best in the group behind TISCO.
2.2.2, Tata:
The house of Tata’s is the largest private sector group in India. The people who have
made the most significant contribution to India’s industrialization and progress in the 20 th
century through their involvement in the diverse industry.
According to the marketing white book 2005, the size of retail is as high as 85%. Within
the organized retail sector, clothing and textile dominate with a 36% share followed by watches
and jewellery, which has a 17% market share.
I. Vision Statement:
a) Vision:
To be innovative world class, contemporary and build India’s most desirable brands.
b) Customer focus:
8
Titan passionate about understanding customer needs and expectation delighting a
customer is therefore a nature outcome.
c) Creativity and innovation:
They were ideas company creativity and innovations are lifeblood.
d) Performance culture and team work:
They dare to dream big and work together to realize it. High performance is a way of life
with them.
e) Quality:
They will attain and maintain excellence in all that they do.
f) Wealth creation:
They ensure creation of value in all that they do for stake holders.
g) Respect and care for the individual:
They value every Titanian and strive to fulfill his/her needs and aspiration.
h) Corporate citizenship:
They care about the environment and the community; they live in and will invest a part of
their resources in improving them.
Early 1980 TIDCO invites TATA to participate in a joint venture to manufacture wrist
watches.
9
Mar. 1982 Memorandum of understanding signed between TATAS and FRANCE
EBAUCHES to participate in a joint venture for the manufacture of watch
movements.
Aug. 1982 Government of India accords approval to TIDCO for the project.
Mar. 1983 TATA float a new investment company - Questar Investment Limited
specifically for this project.
Feb. 1984 Agreement signed between TIDCO & QUESTAR INVESTMENT LTD.,
to set up a joint sector wrist watch manufacturing company – TITAN
WATHCES LTD.,
Jul 1984 Titan Watches Ltd., was incorporated
Mar 1985 Approval received by Titan Watches Ltd., to implement the project
May 1985 Application to Government of India for phased manufacturing programme.
Oct. 1985 Mr. Robert Director of Overseas, Projects France Ebauche visits India for
finalization of product, product mix and technology.
Mar. 1986 Commencement of building construction
May 1986 Approval received for phased manufacturing of programme for a
production capacity of 2 Million Quartz Analog wrist watches.
Sep. 1994 The name “TITAN WATCHES LTD.,” changed as
“ TITAN INDUSTRIES LTD.,”
1996 Tanishq
1997 Sonata,Exist Timex Sv
2004 Fastrack & Precision Engineering
2005 Goldplus
2006 Xylys
2007 Eyewear
2009 Zaya
2010 Accessories Helios
2013 SKINN Perfumes fastrack,helmets,e-commerce
2014 Entry into Jewelley Dubai/Singapore Subsidiarization of presision
Engineering
2015 Launch of July Smart watch,Rollout of mount Blane stores
2016- Acquisition of “Carat Lane” pilot launch of “Taniera” saree with rollout of
2017 2 stores.
10
A Titan industry has three major manufacturing divisions namely:
Watch division
Quartz analog wrist watches
Jewellery division
Precision jewellery watches
Bracelet and new business division.
Metallic bracelet and pieces.
11
The manufacturing units of watch and jewellery division at Hosur are certified under ISO
9001:2002 quality management system standards as well as ISO 14001 environment system
standards.
Customer Focus:
We are passionate about understanding customer needs and expectations.
Delighting our customer is therefore a natural outcome.
12
We are an ideas company.
Creativity and innovation are our lifeblood.
Wealth creation:
We ensure creation of value in all that we do for our stakeholders.
Titan bagged the “Award for brand leadership” in the consumer durables category
conducted by brand summit it also won the “retailer of the year award “for retail
excellence in the lifestyle category at the India retail summit.
Business world “Best lifestyle product design award” was bagged by titan “Edge”
slimmest watch in the universe.
Titan world watch campaign won the “silver medal “in the year 2004.
13
2.2.11, Titan Franchise
Titan is the market leader, having a variety of ranges The trainees learnt to become
more approachable by observing the personnel department.
14
2.2.15, Watch Industry:
Started as a watch company, Titan Industries' main focus has been to increase the breadth
and depth of its portfolio of product offerings. International labels such as Tommy Hilfiger and
Hugo Boss are now a part of its basket, along with Fast track — a brand targeting youth — and
the mid-range brand Sonata. The company manufactures more than nine million watches every
year, has a customer base of over 80 million, and accounts for 60 per cent of India's organized
watch market.
15
Titan currently has four main watch brands. The premium brands are Titan and Xylys —
a Swiss made watch designed to attract the highend market segment. The company has launched
two sub-brands under the Titan umbrella; Titan Edge incorporates the world's slimmest watch
movement and Titan Raga is a brand aimed at women. Apart from these, the other offerings are
Heritage, Wall Street, Regalia, Aviator and the premium brand Nebula, which is crafted with
gold and precious stones. Sonata is India's largest selling watch brand. Fastrack focuses on youth
and trendy fashions. The company also markets Tommy Hilfiger and Hugo Boss under licensing
arrangements.
The company has more than 200 exclusive showrooms, christened 'World of Titan',
across 112 cities, making it one of the largest chains in its category. Its watches are sold through
over 12,000 outlets in over 2,500 cities and are available in over 30 countries, primarily in the
Middle East and the Asia Pacific regions. Titan's after sales service is a benchmarked operation,
with a network of 750 service centres and amongst the world's fastest turnaround times. The
company has a world-class design studio for watches and accessories.
B) Jewellery:
Tanishq is India's largest jewellery brand, offering a range of gold and platinum jewellery,
embellished with precious stones. It is available in more than a hundred specialty boutiques in 71
cities across the country. The new brand `Gold Plus' is a retail offering for the mass market,
selling plain gold jewellery in more than 20 cities. The jewellery division has an exclusive design
studio.
C) Eyewear:
Eye+ is Titan's new division, selling Fastrack sunglasses and a range of prescription eyewear
— frames, lenses, sunglasses, accessories and contact lenses.
D) Precision Engineering Division:
This unit supplies precision components to the avionics and the automotive industry. It
also manufactures dashboard clocks as original equipment manufacturer (OEM) to car
16
manufacturers in Europe and America. The division also provides fully integrated automation
solutions.
2.2.18,Location:
Headquartered in Bangalore, the company has manufacturing and assembly operations at
Hosur, Dehradun, Roorkee and Baddi (Himachal Pradesh) and an ECB plant in Goa.
17
Srinivasan S
Asssembly & Projects
CHAPTER-3
18
3.1 PRODUCTION DEPARTMENT
3.1.1, INTRODUCTION
Titan’s state-of-the-art which and jewellery manufacturing plants are located at Hosur in
the southern state of Tamilnadu spread over 55000 square meters of build-up space’ Titan
employs about 3000 highly skilled personnel.
Titan’s 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 watch – manufacturing units in the world.
Manufacturing
Module Case
Assembly
19
a) Auto-Turning:
The manufacture of all cylindrical watch components.
b) Assembly:
Planning and supervising process of assembly watch case parts.
c) Case polishing:
Buffing and polishing watch cases to improve surface finish.
d) Case plating:
Providing a various surface coating to case parts and straps.
e) Costing:
Comparing actual and standard value and so find out the variance in order to reduce the
cost.
f) Designs:
Design innovation and the preparation of standards technical design incorporating
manufacturing details of finished products.
g) Excise:
Full of documentation for both excise duty and service tax of finished goods and
manufacturing.
h) Gears and assembly:
The production of all gears required for watch manufacturing.
i) Inspection and quality control:
Complete quality control through all stages of manufacturing and assembly.
j) Press shop:
The production of steel metal components required for the manufacture of watch
module.
20
Titan has one of the largest and most integrated manufacturing facilities in the word
for watches. The capabilities in each area are given below.
Watch
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
21
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.
22
3.1.7, 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.
3.1.10, Moulding:
35T and 75T Aurburg and 25T Batten field closed loop CNC. The products are
precision watch movement parts, dashboard pointer parts, speedometer parts.
23
3.1.13,Automation / Machine building:
Integrated facility for design, fabrication and commissioning of Assembly automation
and special purpose machines.
3.1.14,Heat Treatment:
Comprehensive facility including vacuum hardening.
3.1.15,Electronics:
A state of the art facility for manufacture of stepper motors, and high quality electronic
circuit blocks (ECBs)
3.1.16,Assembly:
Assembly facility suitable for any type of assembly operation.
3.1.17,Quality management:
Titan have an in-house standards room, a well equipped reliability test lab, metallurgical
test lab apart from the measuring and test equipment required at each production shop
The manufacturing facilities are certified for ISO 9000 quality systems.
Titan is also certified for ISO 14000 Environmental Management Systems.
3.2.1, INTRODUCTION
24
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
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
Upgradation
Inventory reduction
25
Product lead timer education
Better utilization of machines
Better planning
Seamless integration with marketing
Lean manufacturing
Better Management Information System
Integration of SBU’s (Strategic Business Units)
3.3.1, INTRODUCTION
26
Today, Titan has over 60 per cent of the domestic market share in the organized watch market.
Its exclusive retail showroom chain – World of Titan – is amongst the largest in its category.
For the year 2017-18, Sales income grew to Rs.15,656 crores increasing from
Rs.12,999 crores.
Profit before taxes grew to Rs. 2,126 crores from Rs. 2,053 crores during the previous
year.
Net profit for the year stood at Rs. 1,163 crores as compared to Rs. 762 crores in the
previous year.
b)Finance
During the year under review, the Company raised a total of Rs. 249.20 crores from
borrowings, of which Rs. 239.82 crores were from Commercial banks the balance of Rs.
9.38 crores from other sources. Borrowings of Rs. 287.55 crores were repaid during the
year.
c)Depreciation
During the year 2008-09, the Company revised the estimated useful life of
Furniture & Fixtures from 15 years to 5 years which has resulted in an additional
depreciation charge of Rs. 7.90 crores.
27
STANDALONE CONSOLIDATED
2017-2018 2016-2017 2017-2018 2016-2017
Finance Costs 48 37 53 37
Depriciation/Amortisation 110 93 131 111
Profit before share of profit/(loss) of an
associate and joint venture and
exceptional items and taxes 1,662 1,130 1,550 1,078
Share of profit/(loss) of a associate and
jointly controlled entity - - (3) (2)
Profit before exceptional items and 1,662 1,130 1,547 1,076
taxes 91 97 17 103
Exceptional items 1,571 1,033 1,530 973
Profit before taxes
Income taxes
-Current 446 300 450 302
-Deferred (38) (29) (22) (26)
Profit for the year 1,163 762 1,102 697
Attributable to
-Shareholders of the Company 1,163 762 1,130 711
-Non-controlling interests - - (28) (14)
Profit brought forward 1,268 1,012 1,190 984
Appropriations
Dividend on Equity Shares (excluding
tax) (231) - (231) -
Tax on dividends (47) - (47) -
Transfer to general reserve (250) (506) (250) (505)
Closing Balance in Retained Earnings 1.903 1,268 1,792 1,190
28
3.3.5,Profit before tax (PBT) (Rs. In crores)
29
3.3.7 INVENTORY MANAGEMENT AND CONTROL
30
Inventory is maintained basically to ensure operational smoothness. It is the materials
department’s responsibility to ensure that this operational smoothness is carried out at the
minimum cost commensurate with efficiency. This is done through inventory control. Inventory
control may be defined as a set of policies and procedures by which an organization determines
what materials it should hold in stock and the quantities of each that it should carry.Inventory
consist of:
Large inventories tie up large amounts of money. On the other, too little inventory might
end up in work stoppages, extra machine set ups, lost sales and loss of customer goodwill
because of inability to deliver the product. It is of prime importance that a business organization
determines and maintains an adequate inventory for a given of business.Inventory is created for
two general purposes- protection and economy. Protection refers to the provision of the
necessary raw material with minimum delay. Whereas economy refers to effect lower product
cost by realizing the economies resulting from longer quantities per order. There are two
fundamental questions which normally arise in inventory control:
STORES RECORDS:
31
Various records are used in the stores.
Bin cards: These cards are very simple, giving the description of the item including the
code no., the unit of issues, the quantity of the item, etc.
Stock cards: These are kept in the stores office. There are various kinds of stock cards-
Showing the quantity only, Showing the quantities and unit price, Showing the quantities,
unit price, value of stock, value of the balance in stock.
Stores Transfer Note
Material return note
Goods inward note / goods receipt no.
Materials reject no.
Scrap note
Gate pass
Inventory for Temporary loan
Annual stocktaking
Perpetual inventory method
Daily stocktaking
Checking by stores- in-charge
Periodic checking
32
Weighted average
Standard average
Replacement price
From all the above mentioned concepts and advantages, it is clear that stores and
inventory management plays a major role in successful completion of any infrastructure project
and also accounts a major chunk of profitability of the contractor.
33
3.4.1, INTRODUCTION
The company has a total of 7420 permanent employees as on 2018, 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.
Total 17,006
3.4.2, Recruitment:
34
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
bank or advertise.
Recruitment will be carried out according to the standards specified in the recruitment
Standards Annexure.
As far as possible, the vacancies will be filled with trainees and wherever previous
experience is a must we will resort to experienced people. For each category the selection
process will be as follows.
3.4.3, Process of Selection:
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) test.
Officer Trainee (OT) Group Discussion (GD), Interview & Medical
35
Others Upto L3 PDT, WT if needed, Interview, Medical & SV
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.
All appointment Letters will be issued in duplicate and one copy of the letter will be duly
signed by the candidate to be retained in the personal file of the employees.
3.4.5, HR initiatives:
There is a HR initiative called ‘IDEA+’. In these, employees are welcomed to provide
suggestions to improve quality, performance, cost reduction, etc., If their suggestions are
36
feasible, they are accepted and the others are rejected. A cash award of Rs.50 is given to them as
a token of appreciation. After implementing the suggestions, if they yield a good profit. 10% of
the profit amount is shared with the concerned employee.
3.4.7, Training:
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
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:
A. Extremely High performer
B. High performer
C. Good performer and
D. Performer
37
3.4.9, Trade union:
The company has one registered union being the Titan employee union (“union”), which
is registered or affiliated with any political party or other organization.
38
3.4.14, Creating a positive work culture:
o Non- hierarchical, non-burr a wretch transparent style.
o Consensus based decision making process.
o Performance and merits orientation.
39
3.4.17, Safety Committee:
Safety Committee takes care of the employee’s safety in their work place. It also ensure
the fulfillment of various requirements under factories act.
A. General Provision:
i. It is the company’s 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.
ii. All training educational programs will be coordinated through the Human Resource
Department.
40
B. Development Planning:
i. 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
E-Level Employees:
The training needs for the E level employees are arrived at keeping in mind the
Individual, Departmental and organizational needs.
Since the current focus of the entire organization is on World Class Manufacturing
(WCM) the individual needs are also aligned to the organizational goal and both Technical and
Behavioural inputs are provided in the key areas.
L-Level Employees:
The Individual training and developmental needs of the employees, spread over the
various locations, are identified based on the developmental plan drawn by the employees/
superiors in the performance appraisal forms. The departmental needs are identified through the
department head. The organizational needs are identified form the Business Plan.
41
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.
Induction Program:
All new entrants to the company will be required to go through an Induction program to
acquaint him / her with TITAN. This would vary from one week to three weeks at TRAINING
CENTRE, depending on the position for which the new employee is recruited.
42
3.5, MARKETING MANAGEMENT
3.5.1, INTRODUCTION
Titan’s watch segment is the India’s chief producer of watches and ranks fifth in the
world in production of watches.
Company really understands the psyche of consumer and they offered quality products in
classical design with superior technology.
Today the company has model for every prices segment and every market. Basically it
deals with three target market
High income group
Middle income group, and
Lower income group
Titan alone holds 60% market share in domestic level whereas 60% in organized market.
As our Marketing Objectives is to increases Market Share of the company by 5% in the
coming year as well as to increase the profitability of the company by 10%.
The competitor are also playing an important role to grab the market share .We as the
Marketer try to increase the market share by grabbing the opportunity from other company. To
achieve this company have to follow the marketing strategies, which basically include the
marketing mix.
The marketing strategies basically include the 4 ps .
There the marketer have to focus at first on PRICE ,which basically for The titan is not
affordable in the Mid –Segment.
We also have to implement this type of innovation to bring the flexibleness in our
product.
As it is also important to do some creativity in advertisement by showing the importance of
Time to the mass. The company brand promoter is Amir Khan but the company can make it
attractive by endorsing Katrina Kiaf .
The place can be taken into consideration ,as it is need foe the company to open some
show rooms in the rural area and as the company don/t have so much market share in the
43
foreign market ,so to expand the business company should launch its showroom all over the
globe in the more number.
Market share of the competitor in domestic market
HMT 17%
Maxima 13%
Rado 7%
Casio 3%
The strongest selling point of Titan is that it is available and affordable. Titan provides
watches for all segments, like from low-cost Sonata for first time user, Fast-track for the trendy
young, Dash for the kids, and the higher priced Regalia and Nebula to the premium segment
customer.
The Indian watch market is estimated at 25 million watches a year, where the domestic
sales is 6 million watches per annum. The rural segment is the diverse market in the present
scenario. The key success story of Titan is capturing the rural market on a large scale. The range
costs is between Rs. 495 to Rs. 1200. And the model is available exclusively in all showrooms
and is sold mainly in small-town in India.
Though the company faced enormous challenges from its big list of competitor, the
company still in the number one position in domestic market because of the weakness of the
competitor.
The company becomes more reliable and more acceptances to the consumer because of
its marketing mix. The company has adopted the new marketing innovation to improve the
feature of the product by time to time.
Though the current financial environment is not in favor, but the company performing
well and saw an increasing trend in the profit chart.
The company trying hard to convert its weakness into strengths and threats into strengths
and threats into opportunities by bring revolution in the product style, model, features, pricing
policy, product quality, etc.
44
Companies certain initiatives and policy such as new innovative design, guarantee, the
research and development, wide dealer network, committed service team, discount and offers
make the company.
When we talk about the “wristwatch brand”, remember the only Indian wristwatch
market were so shabby, one more ordinary than other and when the craze for “imported watch”
was not implemented. That was before the time of titan, a name which brought the revolution in
the Indian wristwatch market.
Titan wristwatch brand is the part of titan industry, which was launched in 1987 by
TATA group. TATA group had indentified the watch category as a potential consumer market
for the TATA’s to enter.
Xerxes Desai, a TATA veteran and the MD of TATA Press was elected to that business.
By offering quality products and classic design with advanced technology to the
consumers, Titan made a success story. Outstanding services, wide variety of models and
effective marketing helped Titan to capture the market in its born stage.
The reason behind the success of Titan watches was their research on the Indian
consumer psychological mind. The company today has a model for every price segment and
every market, urban and rural, regional and international.
Titan brought quartz technology first in the Indian market and acquired first place by
displacing HMT into second place, who offers mechanically driven wristwatch.
It also brought a sense of style and design, which is only available in the West or in Japan at that
point of time.
45
3.5.2, ENVIRONMENTAL ANALYSIS
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
Rado
Casio
International level:
Espirt
Swatch
Citizen
Tag heuer
Seiko
Cartier
Giordano
Fashion Houses:
Dkny
Gucci
Adidas
Nike
Bvlgar
46
3.5.3, Purchasing power of consumers
BRAND CATEGORY
BUSINESS CLASS
EDGE
The company’s watch sales grew by 18.8 per cent and its income increasing from
Rs255.34 crore during the second quarter of last year to Rs303.45 crore 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.
47
Titan Fastrack Men Titan Fastrack Women
48
Titan Xylys Women Titan Nebula
49
3.5.5, Marketing Mix:
PRODUCT
PRICE
PLACE
PROMOTION
1.Product: 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 difference in the prices of the watches are justified by
the features.
B. Product pyramid: Portfolio of Titan’s 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 focused on specific segments.
D. Product Quality: Quality and leadership are synonymous to Titan. It seek to achieve both
through their value for products compared to their prices.
2.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:
50
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.
Titan prices its world watches which compared equal to an international players like Calvin
Klien 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.
3.Place: Keeping in mind about the young trendy and fashionable consumers, Titan distribute 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 country’s leading watch brands under one
roof, providing the customer with variety in brands, looks and price ranges and also efficient
after-sales 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 is 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.
51
Marketing Implementations:
Marketing plan basically implemented on the basis of market segmentation .
We have gone through the target market segment which basically include
High income class
Middle income class
Lower income class
The marketing mix is the part of marketing strategies ,which help to the company to match the
needs of the consumer as well as the need of company, because we know that “MARKETING
IS THE SOCITAL PROCESS WHICH HELP IN FULLFILLMENT OF THE NEED
,DEMAND OF THE CONSUMER AT A PROFIT”.
Implementation is an integral part of strategy. It make sense when it is implemented into Indian
jewellery market it saw an opportunity for an organized sector. The customer was moving
towards branded goods in other segments. Titan did the process of creating brands in the minds
of customer.
4. Promotion:
Promotional pricing:
A. Marketing 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.
Promotion:
Marketing pricing:
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.
52
Price discount and allowances: Every year Titan comes with a price discount sale on the MRP
of the watches. The allowances varies from one segment to another.
Creative advertising: Titan introduces a contest on cartoon network in india.com which invites
children to use creativity and design watch.
The prize winning design was launched as a new watch in summer 2002 collection .
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 actress in Bollywood.
A. Promotion on occasion: Titan is one of the company which formally believes in the
policy of promotion the product based on the occasions.
Quality Assurance:
The time products division received ISO14001-1996 accreditation in March 2002.
Titan derives is main strength from its Sales and Marketing team. The detailed list of the sales
and other distribution network is given below.
Titan has categorized the demand of watches to attract various sections of the society.
Their marketing teams were able to break the myth of the society that Watch is just a piece of
valuable to a fashion accessory. Watch for an occasion was their motto. Initially the presence
53
was felt only the urban society. Later they penetrated the rural section by introducing a range for
the likes of the rural section. Currently Titan has watches for every occasion and for a variety of
price range starting from Rs. 250 to Rs. 1,80,000/-.
CHAPTER-4
The Plant layout is well designed to facilitate the workers in their work.
The inter relationship between the departments are good.
Welfare facilities provided are very good.
They are maintaining the Relationship with employers and employees.
They conducting the training programs very effectively for employees.
They have very good canteen facilities.
The Infrastructure is very well for working condition.
CSR activities well done by Titan Company.
They are maintaining good customer relationship.
A. Strength:
1. Style: Titan first introduced the ‘style’ concept in India and projected the watch as a
fashion accessory. Now a day’s style is a very much evident factor among the youth. And
there is a craze for stylish wristwatch. So, Titan makes the peoples life more glorious by
making stylish wristwatch.
2. Models: As Titan offers the best and the biggest range to customer to choose the watch
of their choice with an affordable price.
It offers about 14 different names with about 1000plus different varieties with a watch for
literally everyone.
54
3. Exclusive products: Today Titan holds the pride for say that its products both within the
country and internationally running in battle position. Its EDGE the slimmest watch in
the world position.
Other than these there have few more strength like-
4. Contribution of owned brands and retail. The profit is accounted by being in the retail
space which is booming.
5. Watches are available with popular functions like dates, multifunction and
chronographic.
6. Guarantee/warranty
B.Weaknesses
1. Pricing: the average price of Titan in mid-price segment is very high than the other
competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In the
mid-price 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 in mid-segment.
Titan market share is between 18-20% which is far lower than HMT and Maxima.
3. Globalized: As the company is Indian based which leads it to the strength, where as it is
the weakness also because the company not sufficiently globalized.
C.Opportunities
1. Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan
because there is demand for the products.
- Gold watches and pairs are the like as a wedding occasion.
-The fast track brand is promoted in month of June-August when schools and
colleges re-open.
55
2. Gifting concept: Titan started as a brand which was associated with gifting and relation.
The fight concept sells well for people have come to associate Titan with lovecare and
makes emotion run high.
3. Exchanging offer: The Titan stores offer exchange offer of any old watch, of any make, in
any condition functional or otherwise and receive a flat discount of 25% on their
purchase of a brand new, stylish and technologically advanced watch from Titan.
D. Threats
1. Competator: As we know that lots of Foreign brands are entering in our country with
their branded watches. As the removal of quantitative restrictions on import watches leads to
threat to titan.
2. Premium segment: As in premium segment Titan is getting threats from reputed
international brand such as Espirit, Swatch and Citizen.
3. Mobile: Now a days people can get the time and the other feature in mobile phone. So,
the need of wristwatch is in decreasing trend. People can talk and see the time in a cell phone and
some people think that there is no need of wristwatch.
Political – Understanding the political environment. For example, politicians can create
new issues for a company, such as new reporting requirements for publicly traded
companies per passage of the Sarbanes-Oxley Act.
Economic – Changes in the economy will impact a company, such as lower investment
rates, higher interest rates, slower economic growth, and changes in consumer
spending.
56
Social – Trends in demographics, population shifts, lifestyles, and other changes in
society can influence an organization.
Technology – Sudden changes can occur with new technologies, especially for those
companies that depend upon technology for producing and distributing products and services.
4.3, FINDINGS
SUGGESTIONS
The company should earmark more money for the advertisement and sales promotion of
its products. It helps to increase the brand awareness and image.
The company should concentrate on markets in the international arena where its
competitors are less powerful.
Complaints should be rectified in the shortest possible time. For this a customer
satisfaction cell should be organized.
57
CHAPTER-5
5.1, CONCLUSION
Titan is world’s Fifth largest manufacturer plant for watches. It has achieved this position
by its wonderful marketing strategies.
From time to time, it has been involved in STP analysis to sustain its brand image and
growth rate and also to become the leader in the Indian watch market.
The product range varies from Rs.275 to Rs. 1,75,000 covering all the economy and super
premium segments.
In addition to giving a tough competition to various Local brands in India, it is also a
strong competitor of various leading International watch makers.
Titan has over 60 per cent of the domestic market share in the organized watch market.
Its exclusive retail showroom chain – World of Titan – is amongst the largest in its
category.
Titan watches are sold through over 9,000 outlets in over 2,300 cities and internationally
in over 30 countries including the Middle East and Asia Pacific.
It’s after sales service is itself a benchmarked operation with a network of over 616 service
centers and has one of the world’s fastest turnaround times.
58
Bibliography
http://www.titanworld.com/titan_stories
http://www.tata.com/
http:// en.wikipedia.org/wiki/Titan_Industries
http://www.moneycontrol.com/stocks/company_info/company_hist
ory.php?sc_did=TI01
59
60