A PROJECT REPORT

Submitted by

Rakshit Sapra (M22BBAU0007)

under the supervision of

Faculty Mentor: Dr. Gaurav Arora

School Of Management
Bennett University
Greater Noida, Uttar Pradesh, India
April 2023
 Acknowledgment
We take this opportunity to convey our sincere gratitude to all those who have directly and
indirectly helped and contributed to this report's completion.

We would like to express our deepest gratitude to our EXIM Procedures and Documentation
Teacher Dr. Gaurav Arora for contributing his valuable time and efforts and helping us
throughout the project. His suggestions and feedback have helped us significantly improve this
report's quality.

We would also like to thank our librarian for his support in allowing us access to a wide range of
research materials and resources that are essential for the report.

We would also like to thank our colleagues for their support and encouragement throughout the
process. Your constructive criticism and feedback helped improve the quality of the report.

Finally, I would like to thank our mentors for their support and guidance. Our mentor's advice
and expertise have been invaluable in shaping my understanding of economic
factors and practices.
Introduction
Clocks and Watches and Parts Thereof

Defining Clocks and Watches

Clocks and watches are timekeeping instruments that measure and display the passage

of time. They differ in their size, portability, and complexity.

 Clocks: These are stationary timepieces designed to be displayed in a fixed

location. They typically have a larger face and hands to indicate the time visually.

 Watches: These are portable timepieces worn on the body, usually on the wrist.

They are smaller than clocks and may have additional features like calendars,

alarms, or chronographs.

Parts thereof refer to individual components used in the manufacturing of clocks and

watches. These can include:

 Movements: The core mechanism that powers the timekeeping function.

 Dials: The face of the clock or watch that displays the time through markings and

hands.

 Hands: Pointers that rotate around the dial to indicate the time.

 Cases: The housing that protects the movement and dial.

 Straps or bands: Used to secure wristwatches to the wearer's wrist.

 Crystals: Covers the dial to protect it from scratches and dust.

 Springs: Used to power the movement in mechanical clocks and watches.

 Gears: A system of interlocking wheels that transmit power within the movement.
Types of Clocks and Watches
1. Wristwatches: The most common type of watch, worn on the wrist and typically

displaying the time, date, and sometimes additional features.

2. Pocket Watches: Smaller than wristwatches, traditionally carried in a pocket of

clothing. They are less common today but still valued by collectors.

3. Wall Clocks: Large clocks mounted on a wall, displaying the time and often

decorative in nature.

4. Grandfather Clocks: Tall, standing clocks with a pendulum mechanism, often

considered a symbol of luxury and sophistication.

5. Alarm Clocks: Clocks that sound an alarm at a specific time, used to wake people

up or remind them of an event.

6. Other Types: There are various other types of clocks and watches, including:

 Digital clocks: Display the time electronically using digits.

 Analog clocks: Display the time using hands on a circular dial.

 Sun dials: Use the sun's position to tell the time.

 Atomic clocks: Highly accurate clocks based on the vibrations of atoms.

 Smartwatches: Multifunctional electronic devices worn on the wrist, offering

various features beyond timekeeping.

Materials Used in Clocks and Watches
The materials used in clocks and watches vary depending on the type, price range, and

desired functionality. Here are some common materials:

 Metals: Stainless steel, brass, titanium, gold, platinum, and other metals are

used for cases, hands, and movements, offering strength, durability, and

aesthetic appeal.

 Plastics: Used for cases, dials, and straps in lower-priced options, offering

affordability and lightweight construction.

 Glass: Used for crystals to protect the dial, offering clarity and scratch

resistance.

 Leather: Used for straps and bands, providing a luxurious feel and comfortable

wear.

 Rubber: Used for straps and bands, offering water resistance and durability.

 Wood: Used for cases and frames, especially in decorative clocks, offering a

classic and elegant look.

 Gemstones: Used for decorative elements in high-end watches, adding luxury

and value.
Production and Exports in India
Clock and Watch Industry
Overview:

The Indian clock and watch industry is a well-established sector with a long history and

significant contributions to the national economy. Here's a detailed look at its current

state:

 Size: As of 2023, the Indian clock and watch industry is estimated to be valued at

around INR 7,000 crore (USD 8.75 billion).

 Growth Rate: The industry has experienced steady growth in recent years, with

an average annual growth rate of 5-7%.

 Major Production Centers: The major production centers for clocks and

watches in India are in:

o Tamil Nadu: Home to major players like Titan and HMT Watches, known

for its strong ecosystem of suppliers and skilled workforce.

o Karnataka: Houses prominent manufacturers like Titan and Fastrack,

contributing significantly to the industry's growth.

o Maharashtra: Mumbai is a hub for watch component manufacturing and

assembly units.

o Delhi: NCR region holds a growing market for watch retailers and

distributors.
Federation of Indian Horological Industries (FIHI):

The FIHI plays a crucial role in promoting exports and supporting the growth of the

Indian clock and watch industry. Here's how:

 Export Promotion: FIHI works with the government to develop export-oriented

policies, participate in international trade fairs and exhibitions, and organize

buyer-seller meets to connect Indian manufacturers with global buyers.

 Skill Development & Training: FIHI offers training programs and workshops to

enhance the skills of workers in the industry, ensuring they are well-equipped to

meet the demands of the global market.

 Industry Representation: FIHI acts as a voice for the industry, representing its

interests to the government and policymakers. They advocate for policies that

promote fair competition, attract investments, and facilitate smooth export

operations.

Major Indian Exporters:

Several Indian companies have established themselves as major exporters of clocks

and watches:

 Titan: A leading Indian watch manufacturer and retailer, known for its innovative

designs and diverse product portfolio across various segments.

 HMT Watches: A public sector undertaking with a rich heritage, recognized for

its classic and affordable watches.

  Fastrack: A sub-brand of Titan, known for its trendy and youth-oriented watches

at competitive prices.

 Other notable players: Several other companies contribute to India's watch

exports, including Maxima, Sonata, and United Swiss.

Challenges and Opportunities:

While the Indian clock and watch industry has made significant progress, it faces

challenges like:

 Competition from established players: Swiss, Japanese, and Chinese brands

dominate the global market, posing stiff competition for Indian exports.

 Rising import of finished products: Increased imports of affordable watches

from countries like China can impact domestic demand for Indian-made products.

Despite these challenges, the industry also holds promising opportunities:

 Growing domestic demand: With rising disposable income and increasing

urbanization, the domestic market for clocks and watches in India is expected to

grow steadily.

 Emerging markets: Expanding to emerging markets in Southeast Asia and

Africa offers potential for export growth.

 Smartwatch market: The growing popularity of smartwatches presents an

opportunity for Indian manufacturers to innovate and expand their product

offerings.
By leveraging the support of FIHI, focusing on innovation and quality, and exploring new

markets, the Indian clock and watch industry can continue to grow and strengthen its

presence in the global market.

Major Import Markets for Clocks and Watches

The global market for clocks and watches is vast and diverse, with several key regions

acting as major import hubs:

1. United States:

 The largest import market globally, accounting for a significant share of

worldwide clock and watch imports.

 Key factors driving demand:

o Strong consumer spending power and a large population interested in

luxury and fashion brands.

o Growing popularity of smartwatches and fitness trackers, particularly

among younger demographics.

o High demand for premium and designer watches as status symbols.

2. Europe:

 A mature and established market with a long history of watchmaking tradition and

appreciation for craftsmanship.

 Key factors driving demand:

o Strong demand for luxury watches from renowned Swiss and European

brands, especially among older generations.

 o Increasing interest in smartwatches and fitness trackers, particularly for

their technological advancements.

o Growing presence of fashion brands offering affordable and trendy

watches.

3. Japan:

 A technologically advanced market known for its appreciation for precision and

innovation.

 Key factors driving demand:

o Strong preference for high-quality watches, with a focus on functionality

and advanced technology.

o Growing adoption of smartwatches and fitness trackers integrated with

health and wellness apps.

o Rising disposable income leading to increased spending on luxury items,

including high-end watches.

Additional Import Markets:

While the US, Europe, and Japan are the leading import hubs, other regions are also

witnessing growth in the clock and watch import market, including:

 China: Rising disposable income and increasing demand for luxury goods are

driving imports, especially for smartwatches.

 Southeast Asia: A rapidly growing market with increasing disposable income

and a growing middle class.

  Middle East: High disposable income and a preference for luxury brands are

driving demand for high-end watches.

These factors highlight the diverse nature of the global import market for clocks and

watches, driven by a combination of cultural preferences, technological advancements,

and consumer spending power.

Major Trading Partners in the Clock and Watch Industry

The global clock and watch industry is characterized by a complex network of trading
relationships between exporting and importing countries. Here's a breakdown of some
key players:

Major Exporters:
 Switzerland: Renowned for its long history of watchmaking, exquisite
craftsmanship, and iconic luxury brands like Rolex, Patek Philippe, and Omega.
They primarily export high-end mechanical watches.
 China: The world's largest exporter of clocks and watches by volume, known
for its mass production of affordable watches and smartwatches. They export to
a wide range of countries, including the US, Europe, and Southeast Asia.
 Japan: A leading exporter of high-quality watches and technologically advanced
timepieces, known for brands like Seiko, Citizen, and Casio. They cater to both
the luxury and functional segments of the market.
 Hong Kong: A major trading hub for clocks and watches, serving as a re-export
center for other Asian countries and acting as a gateway to the Chinese market.

Major Importers:
 United States: The largest importer of clocks and watches globally, with a
diverse demand for luxury, fashion, and smartwatches. They import from various
countries, including Switzerland, China, and Japan.
  Europe: A significant importer of luxury watches from Switzerland and other
European countries, also showing growing demand for smartwatches and fitness
trackers.
 Japan: While a major exporter, Japan also imports high-end watches from
Switzerland and other countries to cater to their domestic market's demand for
luxury timepieces.
 Other notable importers: Other significant import markets include the United
Kingdom, Germany, France, and China, each with their specific preferences and
contributing to the global trade network.

Trading Patterns:
 Switzerland primarily exports high-end mechanical watches to countries like
the US, Europe, and Japan, where consumers value their prestige and
craftsmanship.
 China primarily exports mass-produced watches and smartwatches to a wider
range of countries, including developed and developing economies, due to their
affordability and growing popularity.
 Japan exports both high-quality watches and technologically advanced
timepieces, catering to various segments in different markets.
 The US imports from various sources based on demand for luxury, fashion, and
smartwatches, with China and Switzerland being major suppliers.
 European countries primarily import luxury watches from Switzerland and other
European nations, but also show increasing interest in smartwatches and fitness
trackers.

Emerging Trends:
 Rising trade with emerging markets like Southeast Asia and the Middle East due
to their growing middle class and increasing disposable income.
 Increased intra-regional trade within Asia, particularly between China and other
Asian countries.
  Growing importance of e-commerce platforms as a channel for international trade
in clocks and watches.

This information provides an overview of the major trading partners in the clock and
watch industry. It's important to note that the trade landscape is constantly evolving, and
specific trade patterns can vary depending on various economic and technological
factors.

Future Prospects for Exports of Clocks and Watches from India

The Future prospects for exports of clocks and watches from India appear cautiously
optimistic, with several promising factors to consider:

Positive Factors:
 Growing demand for luxury watches: While India faces stiff competition in this
segment, there's potential for growth as the domestic luxury market expands and
Indian brands like Titan establish themselves globally.
 Increasing popularity of smartwatches: This segment presents a significant
opportunity for Indian manufacturers to leverage their technological expertise and
competitive pricing to capture market share, especially in emerging economies.
 Rising disposable income in developing countries: As disposable income
increases in regions like Southeast Asia and Africa, demand for affordable and
mid-range watches, where India holds an advantage, is likely to grow.
 Government initiatives: The Indian government's focus on promoting exports
and "Make in India" initiatives could provide support and incentives to Indian
manufacturers, boosting their competitiveness.
  Skilled workforce: India has a large pool of skilled workers in the watchmaking
industry, which can be a valuable asset for future growth.
Challenges to Consider:

 Competition: Established players like Switzerland, China, and Japan pose

significant competition, especially in the luxury and high-end segments.
 Brand recognition: Indian brands need to build stronger brand recognition and
establish a distinct identity in the global market.
 Technological advancements: Keeping pace with rapid technological
advancements in smartwatches and other innovative timepieces is crucial to
remain competitive.
 Quality and innovation: Continuously improving product quality and focusing on
design innovation are essential to attract international customers.
Overall, the future prospects for Indian clock and watch exports hinge on the
ability to:
 Leverage the growing demand for smartwatches and cater to this segment
effectively.
 Tap into the potential of emerging markets with their growing middle class.
 Enhance brand recognition and establish a distinct value proposition in the global
market.
 Invest in research and development to stay at the forefront of technological
advancements.
 Maintain high-quality standards and continuously innovate in design and
functionality.

By addressing these challenges and capitalizing on the opportunities, Indian clock and
watch manufacturers can carve a niche in the global market and achieve sustainable
export growth.
Documentation Required for Exporting Clocks and Watches from India

The specific documents required for exporting clocks and watches from India can vary
depending on the destination country. However, some general documents are typically
required by most countries:

Essential Documents:
 Commercial Invoice: This document details the transaction between the
exporter and importer, including information like product description, quantity,
unit price, total value, and payment terms.
 Packing List: This document provides a detailed list of the items being shipped,
including their quantity, weight, and dimensions. It helps ensure all goods
declared on the invoice are physically present in the shipment.
 Bill of Lading (for Sea Freight) or Air Waybill (for Air Freight): This document
acts as a receipt for the goods issued by the carrier (shipping line or airline) and
serves as a contract of carriage. It details the shipment information, including
origin, destination, consignee (receiver), and freight charges.
 Certificate of Origin: This document certifies that the goods being exported
originate from India. It is often required for preferential duty treatment under trade
agreements between India and the importing country. You can obtain this
certificate from authorized agencies like Chambers of Commerce or Export
Inspection Councils.

Additional Documents (may be required depending on the product or destination

country):
 Inspection Certificate: Certain countries may require an inspection certificate
issued by a government-approved agency to verify the product meets specific
quality or safety standards.
 Free Sale Certificate: This document certifies that the product is freely tradable
in India and is not subject to any export restrictions.
  Other Permits or Licenses: Depending on the specific product or destination
country, additional permits or licenses might be required.
 Export Import Policy (EXIM Policy) of India: https://www.dgft.gov.in/
 Federation of Indian Export Organizations (FIEO): https://fieo.org/
 Customs Department, Government of India: https://www.cbic.gov.in/

HS Code 91: Clocks and Watches and Parts Thereof

HS code 91 covers a wide range of products related to clocks and watches.

Detailed breakdown of the products included under this code:

Chapter 91: Clocks and watches and parts thereof

 Heading 91.01: Wrist-watches, pocket-watches and other watches, including stop

watches, with case of precious metal or of metal clad with precious metal.

 Heading 91.02: Wrist-watches, pocket-watches and other watches, including stop

watches, other than those of heading 91.01.

 Heading 91.03: Clocks with watch movements, excluding clocks of heading

91.04.

 Heading 91.04: Instrument panel clocks and clocks of a similar type for vehicles,

aircraft, spacecraft or vessels.

 Heading 91.05: Other clocks.

 Heading 91.06: Time of day recording apparatus (including clocks and watches

with digital display).

 Heading 91.07: Clock movements, complete and assembled.

  Heading 91.08: Watch movements, complete and assembled.

 Heading 91.09: Clock movements, incomplete or unfinished.

 Heading 91.10: Watch movements, incomplete or unfinished.

 Heading 91.11: Watch cases and parts thereof.

 Heading 91.12: Clock cases and cases of a similar type for other goods of this

Chapter, and parts thereof.

 Heading 91.13: Watch straps, watch bands and watch bracelets, and parts

thereof.

 Heading 91.14: Other clock or watch parts.

 The specific HS code for your product within Chapter 91 will depend on its

specific characteristics (e.g., type, material, function).

 It's important to consult the official HS code tariff book or a customs broker to

determine the exact HS code for your specific clocks or watches and parts

thereof.

 Using the correct HS code is crucial for ensuring proper customs clearance, duty

calculations, and trade statistics.

Source:-

https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-
nomenclature-older-edition/2007/hs-2007/1891_2007e.pdf?la=en
Conclusion
The Indian Clock and Watch Industry - Potential and Challenges

The Indian clock and watch industry boasts a rich heritage, skilled workforce, and

established players like Titan and HMT Watches. It has witnessed steady growth,

primarily driven by the domestic market and holds promising export prospects.

However, the industry faces challenges from established global players and needs to

focus on:

 Leveraging the growing demand for smartwatches.

 Tapping into emerging markets with rising disposable income.

 Enhancing brand recognition and establishing a distinct value proposition.

 Investing in research and development to stay at the forefront of technology.

 Maintaining high-quality standards and continuously innovating in design and

functionality.

By addressing these challenges and capitalizing on existing strengths, the Indian clock

and watch industry has the potential to carve out a significant space in the global market

and achieve sustainable export growth.

Additionally:

 The HS code for clocks and watches and parts thereof is 91. This code covers a
vast range of products within the industry.
  Exporting requires specific documentation, which can vary depending on the
destination country. Consulting customs authorities or a freight forwarder ensures
you have the most up-to-date information.

This report provides a starting point for understanding the Indian clock and watch
industry.