Why is it Important to

GROWTH Have a Proper Growth

PLANNING Plan

Prepared by
BIG Strategic Management Consultants

Dubai – India – Spain – Ghana – Singapore

 The Story of HMT Watches

Established in 1962 Market Leader for two decades

Market Share of 90 % in the Indian Watch industry from 1960 to 1980

1981
HMT introduced Quartz
Product was expensive, Lack
of readiness of customers
The Quartz Upgrade Failed
for HMT
Early 1980s
Mid 1980s
HMT switched to
mechanical watches HMT and Allwyn Invested
heavily in Mechanical
Import Restriction on
Watches
Quartz components
were implied too. Ban on Import Restrictions
was lifted. Quartz watches
became cheaper and new
competitors came in the later. However, the market
market. Titan adopted
Quartz only Technologies.
1991
Set up the first Watch
Design Centre
Re-entered the Quartz
watches market
approximately 6 years
was dominated by
several other
competitors by this time.

In 1994, HMT suffered a loss of Rs. 60 Crore. Since then it has been suffering from losses. In
2009-10 HMT had a debt of Rs.1,300 Crores

2 Growth Planning
 Why Did HMT Fail?

Wrong Timing of Product Diversification

Diversification happened
• Decision to introduce Quartz technology was premature
either too early or too late
• Re-entering Quartz segment happened 6 years later than peers

Improper Market Assessment

Market’s response was

• The Swiss market was changing rapidly but importing the Quartz misjudged / not judged.

components was expensive Pricing implications could

• Also, the domestic market was not ready for expensive Quartz have been analysed more

technology carefully

Incorrect Anticipation of The Product Life

Long term assessment was

• Did not anticipate that Mechanical Watches would be phasing out faulty

3 Growth Planning
 How a Proper Growth Plan Would Have Helped HMT

Anticipating
the phase out
for
Timing the Mechanical
Quartz watches
Technology
Launch

Domestic
Market
Forecast for
Quartz
Technology

4 Growth Planning
 Growth Planning – The SME Approach

Successful SMEs face the issue of handling Business

Expansion or Growth

Business expansion is a stage of a company's life that

is fraught with both opportunities and perils

Growth of a business causes a variety of changes, all

of which present different managerial, legal, and
financial challenges

Growth Planning means expansion of Market Share,

calling for New Strategies to deal with larger
competitors.

It also means that requirement of Additional Capital,

Creating New Responsibilities to Shareholders,
Investors and Institutional Lenders

5 Growth Planning
 Growth Planning – How It Matters
To The Owner
• Expansion of Business
• Brand Exposure
• More profits to the company
due to expansion, hence to the
owner
To The Employees
• Instills a sense of confidence
• Growing company nurtures a
security and also growth of a
company means growth of an
employee
6 Growth Planning
To The Investors
• Planned Expansion would mean
higher returns to the
investor
• In terms of currency, more
ownership
To The Customers
• Cost of manufacturing/services
could go down due to
economies of scale
• Ease in availability of the
product or services
 How BIG Can Help

Financial
Structuring

Market
Feasibility
Studies

Organization Mergers And

Structure Acquisitions

7 Growth Planning
 How BIG Can Help

Long Term
Strategies
Implementation Preparation of
Strategies
the long term
Growth Planning
Selection and growth plan.
Status Strategies
implementation
Review Identifying The
of the best
Assessment of Appropriate
GROWTH

strategy to suit
current financial, growth Planning
the business style
Understanding
legal, human Strategy to suit
The Business
resources and the business style
Thorough Review
technical status
of the business
of the company
and industry it
belongs to.

8 Growth Planning
 About BIG Strategic Management Consultants

• BIG Strategic Management Consultants, established in 2008, is a fusion of the vast experience of
industry veterans and the vitality of the young blood, which blends to give superior consulting services
to both domestic and international clients in fields as diverse as strategic consulting, technology
consulting, financial consulting, market research and analysis, feasibility studies and manpower
planning.

• We are a Management Consulting firm based in Dubai and having our offices in India, Spain, Ghana
and Singapore.

• We are specialized in developing Strategies for Corporates for Growth and Turnaround, Preparation of
Detailed Financial Viability Studies, Preparation of Detailed Business Plans, Developing
Cost Optimisation Modules, Conducting Business Process Re-Engineering, Conducting Market
Opportunity Assessment for New Entrants and New Geographies, Conduct Risk
Assessments, Performing Financial Structuring and Re-Structuring for clients, Assist Clients raise funds
from Financial Institutions and Private Equity Funds Conducting Consumer Surveys, Employee
Satisfaction Surveys, Valuation Studies, Offer Project Management Services and Identify and Conduct
Joint Venture / M&A Deals.

9 Growth Planning
 Thank You

UAE (Head Office)

Big Strategic management
Consultants FZC
# 806, Rose 6, TECOM,
Dubai, UAE
Tel: 00971 4 4325975

Ghana
BIG Strategic Management
Consultants - West Africa
World Trade Center, 4th floor,
P O Box CT 8267 –
BIG Strategic Management Consultants Cantonments, Accra, Ghana
Mob: 00233 506425900

Spain
Big Strategic Management

4, Hindustan Kohinoor Complex, LBS Road, Vikhroli (W), Mumbai – 400083 Consultants
Mazustegui 21- 3a entreplanta
Tel: 91-22-25790058 / 59/ 61
izquierda 47806 Bilbao
E-mail id: consulting@big-consultants.com
Vizcaya, Spain
Website: www.big-consultants.com Tel: 0034 674155370