The Hindu : Timex's growth plans

Online edition of India's National Newspaper
Tuesday, Dec 24, 2002

Business

Business

Timex's growth plans

By P. Vikram Reddy

HYDERABAD DEC. 23. Enthused by an18-20 per cent spurt in growth rate this year (against flat last year), Timex Watches (Timex) has chalked out aggressive plans to maintain its growth and also step up market share, according to Kapil Kapoor, Managing Director.

Sharing the company's plans with The Hindu, Mr. Kapoor said 100 `Club Timex' showrooms (franchisee basis) would be opened by March next in 10-12 major cities including all metros in addition to the 23 exclusive Timex showrooms.

By 2004, the company expects the `Century Club' as they are called to contribute up to 30 per cent of Timex business in India. There will be 12 each in Delhi and Mumbai, eight each in Bangalore and Chennai and five each in major cities.

In addition it plans to introduce five of its international premium brands, including one luxury, in the Indian market over the next 12-18 months. These are the `Guess' brand and its luxury sub-segment `Guess collection (GC)', French connection U.K., the Timberland, and Nortica. Besides, it is also in the process of licensing `Reebok'.

Timex Watches is the majority owned subsidiary of Timex Watches B.V., which is the biggest selling watchmaker in the U.S. with a 40 per cent market share and a dozen brand portfolio. The subsidiary has a manufacturing unit in Noida with a 2.5 million production capacity and is selling 1.2 million units.

The company, which came to India under a tie-up with Titan, broke it off, and in the process shifted identity from a lower-end brand to that of being a higher-end one.

The thrust will be on the Rs. 1,000-2,000 per watch market, and given its MNC characteristics and R&D backup, it can produce watches at comparatively cheaper prices, says Mr. Kapoor.

While the Rs. 1,000 crore Indian watch industry (organised) was flat last year, it is expected to grow at 4-5 per cent only this year, he says. Timex is expecting to close this year (December) with a revenue of Rs. 70-75 crores, he said.

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