Annexure

Homework Title / No: _ _ TERM PAPER_ 1_Course Code: _ _ _ _MGT-208_ _ _ _ _ _

Course Instructor: _Miss. Harjeet Kaur_ _Course Tutor (if applicable): _ _ _ _ _ _ _

Date of Allotment: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Date of Submission: _ _ _10 – 05 - 2010_ _ _ _

Student’s Roll No: _ _ _RS 1804 B 40_ _ _ _ _ _Section No: _ _ _ _S 1804 _ _ _ _

Registration No: _ _ 10807190 _ _

Declaration:

I declare that this assignment is my individual work. I have not copied from any other student’s work or
from any other source except where due acknowledgement is made explicitly in the text, nor has any part
been written for me by another person.

Student’s Signature: _ _ Himanshu _ _

Evaluator’s comments:

_______________________________________________________

Marks obtained: _ _ _ _ _ _ _ _ _Out of: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

 TERM PAPER

OF

QUANTITATIVE TECHNIQUES- II

TOPIC: Compare the performance of Titan (Nebula) Watch

with another brand.

Submitted To: Submitted By:

MISS: HARJEET KAUR Himanshu
RS1804B40
Company History - Titan Industries
1984

- The Company was Incorporated on 26th July, at Chennai. The Manufacture analog electronic watches with a
choice of over 150 designs. The company was promoted jointly by Questar Investments, Ltd., a Tata Company
with its associates Tata Sons, Ltd., and Tata Press, Ltd., and Tamil Nadu Industrial Development Corporation, Ltd.
(TIDCO). The main objective of the company is to manufacture analog electronic watches with a choice of over
150 designs.
- The Company undertook to set up a plant for the manufacture of quartz analog electronic watches in the State
Industries Promotion Corporation of Tamil Nadu, Ltd. Industrial area at Hosur.

- The Company entered into a collaboration agreement with France Ebauches (FE) of France, manufacturers of
watch movements and components, for technical documentation, assistance in procurement of manufacturing
equipments, raw materials, etc.

- The Company proposed to manufacture 2 million digital and ana-digi watches in collaboration with Casio
Computer Company of Japan. A MOU was signed between the Company and Casio in November, 1986.

Nebula
 Nebula launched in 2000, was a premium range of light-weight gold
watches, costing anywhere between Rs.8000 and Rs.70000 (2005 prices). Most watches in the
Nebula collection came with an 18 carat gold dial and a leather strap.
In August 2004, TIL launched four new 'bridal collections' of Nebula designer jewellery
watches. The watches in the collection were embellished with precious stones and crowned with
sapphire crystal glass and priced between Rs.35,000 and Rs.40,000.

The collection targeted the luxury segment. "Nebula is an asset, which has lifetime warranty and
can be passed on from generation to generation...

Strategies

 Innovation

 Quality

 Creative Advertising

 Aamir Effect

 ‘Catalogue’ Advertising

 Retail Stores

 Cutting Edge Technology

profit Bottom of Form

 TI01 200503

200903 200903

Titan
Industries

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income
1,150.8
Sales Turnover 1,509.92 2,181.69 3,098.20 3,926.09
9
Excise Duty 54.71 41.19 46.22 47.35 44.34
1,096.1
Net Sales 1,468.73 2,135.47 3,050.85 3,881.75
8
Other Income -7.70 -9.74 4.71 -4.39 -5.91
Stock Adjustments 87.91 72.58 246.22 297.89 178.67
1,176.3
Total Income 1,531.57 2,386.40 3,344.35 4,054.51
9
Expenditure
Raw Materials 750.30 981.62 1,620.65 2,431.79 2,940.86
Power & Fuel Cost 9.97 10.02 11.55 13.90 16.11
Employee Cost 95.73 109.41 157.40 189.66 234.20
Other Manufacturing
3.51 3.46 5.60 5.96 8.99
Expenses
Selling and Admin Expenses 193.39 248.68 331.79 358.05 427.47
Miscellaneous Expenses 31.27 41.01 69.63 84.12 86.20
Preoperative Exp Capitalised -0.49 -0.89 -0.52 -0.02 -0.09
1,083.6
Total Expenses 1,393.31 2,196.10 3,083.46 3,713.74
8
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 100.41 148.00 185.59 265.28 346.68

PBDIT 92.71 138.26 190.30 260.89 340.77
Interest 37.86 31.71 33.07 39.44 68.46
PBDT 54.85 106.55 157.23 221.45 272.31
Depreciation 19.61 19.66 25.59 29.73 41.76
Other Written Off 2.89 0.00 0.00 0.00 0.00
Profit Before Tax 32.35 86.89 131.64 191.72 230.55
Extra-ordinary items -2.41 -0.93 -0.20 2.57 -10.92
PBT (Post Extra-ord Items) 29.94 85.96 131.44 194.29 219.63
Tax 5.01 12.34 37.32 44.02 60.68
Reported Net Profit 24.95 73.62 94.33 150.27 158.96
Total Value Addition 333.38 411.69 575.44 651.68 772.88
Preference Dividend 2.81 2.72 0.39 0.00 0.00
Equity Dividend 8.46 13.32 22.19 35.51 44.39
Corporate Dividend Tax 1.56 2.25 3.83 6.04 7.54
Per share data (annualised)
Shares in issue (lakhs) 422.76 422.76 443.89 443.89 443.89
Earning Per Share (Rs) 5.24 16.77 21.16 33.85 35.81
Equity Dividend (%) 20.00 30.00 50.00 80.00 100.00
Book Value (Rs) 32.46 45.55 73.77 98.26 124.18
Company History - Timex Group India

YEAR EVENTS
1988 - The Company was incorporated on 4th October, and received the Certificate of Commencement of
Business on 5th January

1989.
The company was originally established as a joint venture between Timex Group Limited, Bermuda and
Jayna Times Industries Limited, an Indian company. The Timex Jayna Ltd., was set up with the intention to
manufacture of components and to assemble, 2 million quartz analog watcher per annum.

- The company was promoted by Timex Watches BV & Titan Watches Ltd. The main objective of the
company is to manufacture and sales Of quartz based wrist watches.

1990 - During the course of implementation of the project, Jayna Times Industries Limited withdrew from the
project, and was replaced By Titan Watches Limited. A joint venture agreement was signed On 30th June.
Profit & Loss account of Timex ------------------- in Rs. Cr. -------------------
Group India
 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 89.67 99.64 115.22 133.29 132.19
Excise Duty 4.63 2.30 1.98 1.49 2.95
Net Sales 85.04 97.34 113.24 131.80 129.24
Other Income 0.52 -1.64 1.80 1.31 2.40
Stock Adjustments 0.70 -1.60 1.10 -0.75 4.42
Total Income 86.26 94.10 116.14 132.36 136.06
Expenditure
Raw Materials 45.10 47.82 62.09 65.84 65.00
Power & Fuel Cost 1.18 1.23 1.22 1.51 1.21
Employee Cost 10.38 12.20 13.26 15.33 15.05
Other Manufacturing Expenses 0.36 0.52 0.30 0.44 0.38
Selling and Admin Expenses 20.39 22.64 28.96 34.21 37.93
Miscellaneous Expenses 2.84 3.31 3.75 4.48 5.33
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 80.25 87.72 109.58 121.81 124.90
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 5.49 8.02 4.76 9.24 8.76

PBDIT 6.01 6.38 6.56 10.55 11.16
Interest 2.18 2.00 1.23 0.88 0.87
PBDT 3.83 4.38 5.33 9.67 10.29
Depreciation 3.40 3.26 2.31 2.59 2.34
Company History HMT

The dream became a reality in 1961, when the government owned Hindustan
Machine Tools Ltd. (HMT), entered into a tie up with Citizen of Japan, to set up
the first watch factory. Citizen also trained select Indian people from HMT at its
watch manufacturing facility in Japan.
The first watch model manufactured by HMT- the Janata model- was gifted to the
senior most employee of the company by Nehru. In the next ten years, HMT's
production increased to 15,000 - 20,000 mechanical watches every month. The
early 1980s saw a technological revolution, with the invention of the integrated
chip in the US. Digitals were in demand and LED (Light Emitting Diode)2 watches
gained in popularity. Japanese companies took over the manufacture of LCD
(Liquid Crystal Display)3 for digital watches. There was a discernible shift in focus
from mechanical to quartz watches in the international market. The Swiss watch
industry declined because of its attachment to the mechanical watches. HMT made
the same mistake in India.
Profit & Loss account of HMT ------------------- in Rs. Cr. -------------------
 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 209.69 253.06 233.11 174.14 164.44
Excise Duty 5.17 0.58 2.76 2.95 1.92
Net Sales 204.52 252.48 230.35 171.19 162.52
Other Income 103.17 118.48 163.15 69.18 54.56
Stock Adjustments -1.00 -0.19 -6.45 20.42 -11.90
Total Income 306.69 370.77 387.05 260.79 205.18
Expenditure
Raw Materials 147.10 174.61 151.25 140.65 105.96
Power & Fuel Cost 7.32 7.87 5.14 5.05 4.31
Employee Cost 59.30 58.12 61.06 64.72 63.67
Other Manufacturing Expenses 0.03 0.04 0.06 0.08 0.06
Selling and Admin Expenses 19.30 26.51 30.20 22.36 34.40
Miscellaneous Expenses 15.82 3.97 6.54 10.11 5.73
Preoperative Exp Capitalised -7.46 -3.93 -3.86 -4.34 -4.67
Total Expenses 241.41 267.19 250.39 238.63 209.46
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit -37.89 -14.90 -26.49 -47.02 -58.84

PBDIT 65.28 103.58 136.66 22.16 -4.28
Interest 97.68 97.85 96.06 65.83 63.68
PBDT -32.40 5.73 40.60 -43.67 -67.96
Depreciation 4.16 3.93 3.21 2.99 3.40
Company History – KDDL

2004

-Delists equity shares from Ludhiana Stock Exchange

-Ddelisted from Delhi Stock Exchange

-Kamla Dials unveils high-end watch brands

2005

-Kamla Dials in joint venture with Pascal Vincent Vaucher SA of

Switzerland to set up Satva Jewellery and Design Ltd

2007

- Company name has been changed from Kamla Dials & Devices Ltd to
KDDL Ltd.
Profit & Loss account of KDDL ------------------- in Rs. Cr. -------------------
 Mar'05 Mar '06 Mar '07 Mar '08 Mar '09

12mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 55.19 61.03 90.17 109.28 72.41
Excise Duty 4.42 4.20 4.83 5.14 4.01
Net Sales 50.77 56.83 85.34 104.14 68.40
Other Income 0.30 -0.18 1.12 1.07 -0.73
Stock Adjustments 3.34 3.22 5.86 17.62 1.63
Total Income 54.41 59.87 92.32 122.83 69.30
Expenditure
Raw Materials 22.32 25.89 43.92 68.18 25.84
Power & Fuel Cost 1.35 1.59 2.08 2.29 2.06
Employee Cost 11.10 12.83 17.40 21.00 21.27
Other Manufacturing Expenses 1.60 1.98 2.14 2.76 2.59
Selling and Admin Expenses 7.64 7.82 9.89 11.74 7.03
Miscellaneous Expenses 1.37 0.62 3.27 5.50 1.96
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 45.38 50.73 78.70 111.47 60.75
Ma'05 Mar '06 Mar '07 Mar '08 Mar '09

12
12 mths 12 mths 12 mths 12 mths
mths

Operating Profit 8.73 9.32 12.50 10.29 9.28

PBDIT 9.03 9.14 13.62 11.36 8.55
Interest 2.15 2.99 3.58 4.65 3.72
PBDT 6.88 6.15 10.04 6.71 4.83
Comparative Analysis of Performance of All Companies

In Rs .Cr. NET SALES .

T TIM KD
year ITAN EX HMT DL
Mar'05 54.71 85.04 204.52 50.77
Mar'06 41.29 97.34 252.48 56.82
Mar'07 46.22 113.24 230.52 85.34
Mar'08 47.35 131.8 171.19 104.14
Mar'09 46.35 129.24 162.52 68.4

T
otal Cost In Rs .Cr.
 TITA TIM KD
year N EX HMT DL
Mar'0 1,083.6
5 8 80.25 241.41 45.38
Mar'0 1,393.3
6 1 87.72 267.19 50.73
Mar'0 2,196.1
7 0 109.58 250.39 78.7
Mar'0 3,083.4
8 6 121.81 238.63 111.47
Mar'0 3,713.7
9 4 124.9 209.46 60.75

PBT In Rs .Cr
year TITAN TIMEX HMT KDDL
Mar'05 32.35 0.43 -37.76 3.68
Mar'06 86.89 1.12 0.8 2.45
Mar'07 131.64 3.02 36.29 5.81
Mar'08 191.72 7.08 -47.93 2.11
Mar'09 230.55 7.95 -72.74 0.63
. NET PROFIT In Rs .Cr

TIME
year TITAN X HMT KDDL
Mar'05 24.95 0.73 5.98 2.63
Mar'06 73.62 1.15 13.27 1.62
Mar'07 94.33 2.52 54.3 4.07
Mar'08 150.27 5.45 -44.67 1.47
Mar'09 158.96 7.45 -70.79 0.24

CONCLUSION
In conclusion if we talk about sale HMT’s sale turnover is more than other
companies like Timex, KDDL, and Titan. Titan has lower sale turnover than other
companies.
But the cost of Timex Company is greater than other companies.
And if we talk about PBT (Profit before Tax) Is Negative of HMT In Mar’05, 08,
09.Titan has highest PBT during the years of Mar’05-09.
NET PROFIT of the Titan is greater than his competitors. HMT suffered losses
during the last 2 financial years.
Titan’s has good profit because of their strategies.

Bibliography:
http://moneycontrol.com