TITAN INDUSTRIES LIMITED

Company Products Established Founder Distribution Production plant.

Titan Industries is the organisation 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.

VISION AND MISSION

VISION-To be a world class, innovative & progressive organization & to build INDIA’s most
desirable brand.
MISSION- To create wealth for all our stakeholders by building highly successful business
based on a customer centric approach & to contribute to the community.
Background

Titan Industries was established in 1984 as a joint venture between the Tata Group and
Tamil Nadu Industrial Development Corporation (TIDCO). The company set up its corporate
office in Bangalore (Karnataka) and its watch manufacturing facility in Hosur (Tamil Nadu). In
two decades the company has built an impressive watch business to become India’s largest
manufacturer and the world's sixth largest manufacturer of watches. This has mainly been
achieved by developing a formidable distribution network. The company has amongst the
world's largest retail chain of exclusive retail showrooms for watches called ‘The World of
Titan’ spread over 100 towns.

It also has multi-brand outlets named ‘Time Zone’, service centers and dealer outlets.
Globally Titan has a presence in over thirty countries through its marketing subsidiaries.

Titan has also entered the jewellery business in 1995. Jewellery is sold in India through
an exclusive company controlled retail chain, comprising of owned and franchised outlets. It is
also exported to Singapore and the Middle East.

The company has watch assembly plants at Dehradun (Uttar Pradesh) and Baddi
(Himachal Pradesh) and a plant manufacturing electronic circuit boards in Goa.
 The majority stake in the company is held by the promoters, with TIDCO having 28 per
cent of the shares and Tata Group companies owning 25 percent of the shares. Public holding in
the company is around 28 per cent. The rest of the stake is held by foreign institutions, non-
resident Indians, mutual funds and other institutions.

ORGANISATION STRUCTURE:

 Corporate structure is as under:

 Segment Division:
The company manufactures over 8 million watches per annum and has a customer base of
over 80 million. It has manufacturing and assembly operations at Hosur, Dehradun,
Roorkee and Baddi in Himachal Pradesh and an ECB plant in Goa. Its main products are:
 Watches : Currently manufactures four main watch brands viz. Titan for the 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, each of which is a leader in its segment. Notable among them are:
Titan Edge – The world's slimmest watch which stands for the philosophy of "less is
more"; Titan Raga – the feminine and sensuous accessory for today's woman, Nebula -
crafted in solid gold and precious stones and several other collections like Wall Street,
Heritage, Regalia, Octane, Orion, Diva, Zoop, WWF and the Aviator series, all of
which form a part of the Titan wardrobe. Sonata is today India's largest watch selling
brand and is priced between Rs 295/- and Rs 1200/-. The company's first Swiss Made
watch – Xylys is for the hi-end connoisseur and new age achiever. It also markets
Tommy Hilfiger watches under a licensing arrangement and is introducing Hugo Boss.
Today, the Titan portfolio has about 65% of the domestic market share in the organized
watchmarket. 
The company has 255 exclusive showrooms christened 'World of Titan', making it
amongst the largest chains in its category. Titan watches are sold through over 12,000
outlets in over 2,500 cities and internationally in over 30 countries, primarily in the
Middle-East and Asia Pacific. Its after-sales-service is itself 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.

 Jewellery : Tanishq is India's largest and fastest growing jewellery brand with a premium
range of gold jewellery studded with diamonds or coloured gems and a wide range in
22kt pure gold. Platinum jewellery is also a part of the product range Tanishq is one of
India's largest speciality retailers and is transforming the jewellery market in
India 102 boutiques in 72 cities across the country. ‘Gold Plus' is the recent retail offering
for the mass market with plain gold jewellery selling through 19 stores in 19 towns. The
jewellery division has its own design studio.

 Eye wear : Titan Eye+ is currently on a pilot mode with 5 stores in 2 cities and has
sunglasses under Fastrack brand and prescription eyewear consisting of Frames, Lenses,
 Sunglasses, Accessories and Contact Lenses of in-house brands and other premium
brands.

 Precision Engineerin:The company's Precision Engineering Division supplies precision

components to the avionics and the automotive industry. It also manufactures dashboard
clocks as OEM to car manufacturers in Europe and America. The division also provides
fully integrated Automation solutions.

 Human Resources

Departments include our corporate office, regional offices, Company owned showrooms,
factories and other units. In addition, we also have various trainees, contract workers and
apprentices who are hired on a job work basis or on a temporary contract.Our employees are
classified into different levels, namely (i) ‘E’ level, which constitutes the workmen at the
factories (ii) ‘L’Level, are the junior to middle management employees who are classified from
L1 to L9, based on their role. ‘R’ are those employees who work in Company managed retail
outlets of both the watch and jewellery division and are classified from R1 to R3 and (iii) Senior
Management Level. In addition, the watch and jewellery designers are classified in the ‘D’
category within which, there are levels from D1-D5 comparable to ‘L’ Level.

1. Training

Training is an ongoing process aimed at capability building of the employees at all levels.
Training programs are classified into the following categories:

_ Skills
_ Knowledge
_ Behavioral

2. Workmen Capability Building:

Training and development for our unionized employees at the manufacturing units is focused on
skill development. In addition to some programs like engineering drawing, and waste elimination
are also conducted. Soft skills programs like‘Personal Touch’ to address interpersonal and
related issues were conducted, in which over 1,300 unionized employees
were covered.

3. Training for Middle/Senior Management:

Training for this category is focused on knowledge and behavioral skills in the areas of
management, marketing, retailing,
branding, creativity and innovation, team-building, etc. All training and developmental programs
are aligned to the business
needs/demands.
Training programs are conducted in two ways:
_ In-house using internal faculty
_ Customized programs using external faculty
In addition employees are sent for seminars, conferences and summits, which are specific to their
areas of business.

4. Employee Retent Employee Retention/ Incentive Plans

Our 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 the following categories; namely (i) Extremely High Performer;
(ii) High Performer; (iii) Good Performer and (iv) Performer. As regards employees in the ‘R’
and L1-L5 and D1-D2 level, their performance linked pay is based on performance and
Company policies. For employees in the L6-L9 and D3-D5 levels, their annual variable
pay/commission is disbursed in the ratio of 20% for Company performance and 20% for
division/functional performance. The remaining 60% is paid based on their
individual performance.For employees who form part of the senior management team,
performance bonus is paid based on the individual,departmental and Company performance.The
same is decided by our Managing Director.

5. Trade Union

We have one registered trade union being the Titan Employees Union (“Union”), which is
registered at Hosur, where our watch, precision engineering and jewellery factories are situated.
This Union is not registered or affiliated with any political
party or other organisation. Our Company has entered into a settlement dated April 18, 2003
with the Union, which was valid till January 31, 2006. We are currently in the process of
initiating negotiations with the trade union for renewal of the agreement and until a new
settlement agreement is entered into we shall continue to abide by the earlier agreement. As
per the terms of the agreement, the management of our Company has agreed to pay two modes of
payment, Fixed Increase and Plant Performance Payment to each workman covered under this
settlement. Further, pursuant to a settlement dated on October 14, 2005 the Company has agreed
to pay a bonus at the rate of 8.33% under the Payment of Bonus Act,
1965 and an amount equivalent to 13.67% of total basic wages, fixed dearness allowance,
variable dearness allowance, service weightage and personal pay earned by them.

6. Tata Code of Conduct

All our employees are bound by the Tata Code of Conduct under which they are required to deal
on behalf of the Company with professionalism, honesty, integrity as well as high moral and
ethical standards. Such conduct is to be fair and transparent and be perceived to be as such by
third parties.
 MANAGEMENT STYLE
 Innovation:Titan Industries began its operations with an innovative offering - quartz watches
- that changed the face of the Indian watch industry. Innovative ideas at Titan Industries have led
to significant achievements such as Single Point Solutions to every Original Equipment
Manufacturer customer. Titan Edge, world's slimmest watch, is probably the best example of the
spirit of innovation in the organization – a feat achieved in less than five years of our existence.
To facilitate innovation, we opt for external expertise from leading consultants like McKinsey,
Quadra and Interbrand. We use cutting-edge business excellence tools such as Tata Business
Excellence model based on the Malcolm Baldrige Criteria for Excellence, total quality
management, 360-degree feedback process and benchmarking.
Our contemporary store designs are a great example of innovation. They have redefined the
retailing standards in India since the time when the concept of modern retailing had not evolved.
Jewellery Division changed the dynamics of gold market by introducing the Karameter, an
industry first in checking the purity of gold through a non-destructive test.

 Strategies:

Various products for specific price points and target audience

 BRAND POSITIONING STATEGIES

Since its introduction, Titan has been positioned as a premium brand, providing high
quality products. With its numerous sub-brands catering to different segments, the challenge that
Titan faces is to create a strong brand image. It follows different positioning strategies, these
strategies can also be analyzed as given below:
 Attribute Positioning:
  When the company launched its products, it was the first to bring quartz watches to the
Indian market. The company successfully leveraged this to penetrate the market and gain a
market share.Raga has been differentiated and positioned as exclusive watches for women. The
Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly
unique.
 User Positioning:
   Titan caters to several user groups like, sportspersons, adventurers etc. The Fastrack
range is seen as being contemporary, sturdy and reliable. The advertising, packaging and
 merchandising of this range is young, vibrant and ‘cool’ (the ad line says “Cool watches by
Titan”)
 Competitor Positioning:
   With the entry of several foreign watchmakers into the market, Titan had to counter the
threat. Most of the entrants are catering to the upper end of the market- Omega, Tissot, Cartier
etc. Titan already had the Tanishq brand in this segment. However, it has tried to reposition this
brand by increasing the price range to encourage more customers.
 Quality or Price Positioning:
In the overseas market, especially in Europe where it is competing with Swiss and
Japanese watches, it is positioning itself as ‘value- for- money’: reasonably priced (less than
Swiss watches and higher than Japanese), attractively styled and of good quality. In Indian
market, Sonata is a perfect example of Price positioning, titan came up with this segment when it
was facing heavy competition from lower end segment

 Strategy for the Time Products Division:

To promote ownership of multiple watches and frequent replacement of watches amongst

existing owners with our ‘Titan’ brand of watches. Our internal research shows that 95% of the
watch owners own a single watch. We aim at creating demand for multiple ownership of
watches. We focus on innovation to consistently come up with new styles and technology
introductions to create demand for multiple watch ownership. . We also propose to expand our
reach across the country by developing retail outlets. The watch market is currently under
penetrated by organized players and faces severe competition from the unorganized sector.
Increased penetration for the mid market segment will be achieved by expanding our presence in
several upcoming malls and department stores.

 Strategy for Precision Engineering SBU:

We entered the precision engineering business in order to utilise our manufacturing facilities.
Our expansion plans include upgradation of the precision engineering division through
technology improvements to enable us to move up the value chain from component
manufacturing to sub-assemblies.We believe that improving our manufacturing facilities and
capability building would enable us to serve sectors like automobile, aerospace, and defence.

 Strategy for the International Business Division:

Previously, we used our Associate Companies located overseas to promote our businesses in the
international markets.However, in 2004, given the opportunities that we anticipate in the global
market for both watches and jewellery,were organised our international operations under the
International Business Division. The strategy of this division is to systematically and
continuously explore and analyze opportunities in international markets. New markets and
countries will be identified based on predetermined tested criteria. We hope to leverage our
capabilities and brand image to enter these new markets and also expand within our existing
markets with both new and existing product ranges.

Organizational Culture

Political Non-alignment
A Tata company shall be committed to and support the constitution and governance systems of
the country in which it operates. A Tata company shall not support any specific political party or
candidate for political office. The company’s conduct shall preclude any activity that could be
interpreted as mutual dependence / favour with any political body or person, and shall not offer
or give any company funds or property as donations to any political party, candidate or
campaign.

Health, safety and environment

A Tata company shall strive to provide a safe, healthy, clean and ergonomic working
environment for its people. It shall comply with all health, safety and environmental regulations
in the jurisdiction in which it operates. A Tata company shall be committed to best practices in
the health and safety of employees. It shall prevent the wasteful use of natural resources 8 Tata
Code of Conduct 2008 and be committed to improving the environment, particularly with regard
to the emission of greenhouse gases, and shall endeavour to offset the effect of climate change in
all spheres of its activities. A Tata company, in the process of production and sale of its products
and services, shall strive for economic, social and environmental sustainability.

Ethical Conduct
Every employee of a Tata company, including full-time directors and the chief executive, shall
exhibit culturally appropriate deportment in the countries they operate in, and deal on behalf
of the company with professionalism, honesty and integrity, while conforming to high moral and
ethical standards. Such conduct shall be fair and transparent and be perceived to be so
by third parties. Every employee of a Tata company shall preserve the human
rights of every individual and the community, and shall strive to honour commitments. Every
employee shall be responsible for the implementation of and compliance with the Code in his /
her environment. Team members shall also be encouraged by the employee to comply. Failure to
adhere to the Code could attract severe consequences, including termination of employment.

Equal-opportunities Employer
A Tata company shall provide equal opportunities to all its employees and all qualified
applicants for employment without regard to their race, caste, religion, colour, ancestry, marital
6 Tata Code of Conduct 2008 status, gender, sexual orientation, age, nationality, ethnic origin
or disability. Human resource policies shall promote diversity and equality in the workplace, as
well as compliance with all local labour laws, while encouraging the adoption of international
best practices. Employees of a Tata company shall be treated with dignity and in accordance with
the Tata policy of maintaining a work environment free of all forms of harassment, whether
physical, verbal or psychological. Employee policies and practices shall be administered in a
manner consistent with applicable laws and other provisions of this Code, respect for the right to
privacy and the right to be heard, and that in all matters equal opportunity is provided to those
eligible and decisions are based on merit.

Financial Analysis

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. Titan watches are sold through over 9,000 outlets in over 2,300 cities and
internationally in over 30 countries including the UK, Spain, Greece and countries in 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. The company has a
world-class design centre both for watches and jewellery.

The return on capital employed has seen a significant increase driven mainly by the
enhancement in operational efficiency, including a reduction in capital employed in the jewellery
division, despite the rapid top line growth. Reducing funds were employed in working capital of
the domestic business through new initiatives like supply chain management to bring down
inventories and costs. The company’s continued efforts have resulted in a significant reduction in
the capital employed, despite a considerable growth in the turnover. The savings from these
initiatives are beginning to kick in and it is expected that operating margins will continue to
show a healthy growth.

BUSINESS OPPORTUNITIES WITH TITAN

At Titan they constantly provide opportunities for enterprising business people to collaborate
with us. If you one is interested in being a franchisee of the World of Titan, Tanishq, Gold plus,
Fastrack and Titan Eye+ stores, you're in the right place. Or if we want to be a local or
international distributor for our world class products, or a vendor for raw materials, do get in
touch right away. We're in the licensing business too! Come, share in our success!

DISTRIBUTION

Distribution in India
A key business partner of Titan in the marketplace, is the redistribution stockist. The distribution
channel handles well over 50% of the watch business of the company. The main focus of this
channel is market penetration and coverage. Currently we have 65 distributors handling well
over 6000 dealers across the country. Titan's growth rate in the marketplace requires us to
appoint new distributors every year. The combined stockholding and credit to the market is
controlled to stay within stipulated limits. The distributor channel operates independent of all
other channels and reaches out to its own set of distinct dealers.
We distribute through an exclusive distributor in each country, who is responsible for indenting,
distributing, servicing, assisting and providing marketing support for the brand.

VENDOR DEVELOPMENT

Titan Industries is fully committed to develop a sustained long lasting and fulfilling relationship
with all its vendors, who, on a consistent basis adhere to the business principles and dynamic
demand of the customer requirements. Titan industries achieves this through up gradation of
vendors capability and driving cost efficiencies resulting in mutual benefit

Our vendors are spread over 30 countries, mainly in Asia and Europe.
We endeavor to continuously improve our vendor management systems and seek to build
stronger relationships in which we share our plans and goals with key vendors and work together
on new developments in products, materials and processes. Performing vendors have seen their
businesses with us grow substantially over the years.

WORKING WITH TITAN LTD

Tata careerscape
The staffing requirements of the Tata group span an extraordinary range of disciplines, from the
pure sciences to applied engineering and the entire spectrum of business management skills.
Individual Tata companies prepare and implement their recruitment strategies in alignment with
their business goals and within the overall vision and practices of the group as a whole

Titan Industries offers critical and challenging roles in a wide range of areas and responsibilities.
The talent management at Titan Industries aims at creating a large pool of potential leaders.
Robust leadership-development systems that accelerate the growth of current and future leaders,
the performance culture that is calibrated through rigorous processes, and the innovative reward
mechanisms at Titan Industries are some of the best customs in the corporate universe.
Managers with a high potential often feel the need to move to new areas of work – this recharges
their faculties, strengthens their own abilities and realizes their aspirations. Inter-company
mobility is an integral aspect of leadership development in the Tata group. Through cross-
company movements, managers are exposed to different industries and functions, enabling them
to become knowledgeable about various business scenarios (start up, consolidation, acquisition,
etc). Inter-company mobility helps the Tata group develop and nurture industry and sector
experts, while also creating functional experts (by rotating them through different companies in
the same function). The company encourages internal mobility as a means of building expertise,
generating synergy, and promoting self-improvement. Internal mobility reinforces the
professionalism, diversity, and competitive spirit at the company, in addition to providing
satisfaction and choice to every individual.

With a strong philosophy of ‘people first’, Titan Industries recognizes the strength and
contribution of people in the company’s success and growth. The work-culture at Titan
Industries encourages the employees to learn, innovate, experiment and grow.
Titan Industries has been rated highly by the Gallup engagement survey - with scores for
satisfaction, loyalty and advocacy far higher than the average scores of Gallup India . The
Company has also been rated No.1 in Retail category and 24th overall by Great Places to Work
(2009), an institutional study, in the Economic Times.

Leadership and learning

Tata's leadership development programmes and training processes aim at grooming the managers
of today into the leaders of tomorrow
TAS: This managerial development programme was conceived by JRD Tata, the late chairman
of the Tata group, in the 1950s. The idea was to select and groom young managers, provide
them opportunities for professional growth, and make them part of a talent pool that could be
tapped by companies across the Tata organisation.

TMTC: The Tata Management Training Centre, set in a lush campus in Pune in western India,
helps group professionals add to their knowledge bank. Primarily an in-house learning centre
for the group, its goal is to provide training to high performers, act as a cradle of change and
develop leadership qualities.
 Tata Business Leadership Award: Initiated in 2004, this an annual business school event
organised by the Tata group. It offers students from select management institutions a unique
opportunity to compete with the brightest and display their business acumen.

Titan provides careers in the fields of:

 Sales
 Marketing
 Accounting & Finance
 IT
 Customer Support
 Human Resource

Benefits
Titan employees receive equal opportunities for career growth and advancement. The company
also provides various benefits to its employees that help them achieve their individual goals as
well as the organizational goals. These benefits include:

 1. 401K Savings Plan

 2. Equity Distribution
 3. Training
 4. Employee Referral Bonus
 5. Company-Supplied Laptop Computer
 6. Business Travel Reimbursement
 7. Insurance Coverage
o Medical Care Coverage
o Dental Care Coverage
o Long Term Disability Insurance
o Short Term Disability Insurance
o Group/Term Life Insurance
 o Accidental Death and Dismemberment Insurance
 8. Other Benefits
o Vacation
o Holiday Pay
o Personal Days
o Sick Days

Vision: