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V. Rishi Kumar

Hyderabad , Dec. 27

AFTER two years of stagnation and dip in some segments, the country's watch industry is set to grow at about 9 per cent-11 per cent in 2004, according to Mr Kapil Kapoor, Regional Director, Timex, South Pacific and India.

Mr Kapoor, who was here to launch a theme store at Prasad Imax Mall, told Business Line that the overall watch industry in the country was looking up. This is clear from the positive signals from the Indian economy. When the economy grows, there is positive traction towards investments where lifestyle products and retail are major gainers.

Within the watch industry, certain sectors are growing driven by the luxury-end models and sports patterns. However, one segment that has historically grown - gold jewellery — has shown declining trend. The country's watch market is estimated at about Rs 1,000 crore in the organised sector and another Rs 500 crore comes from the unorganised market.

"A conservative estimate is that we could grow the watch market by at least 6 per cent to 7 per cent. But with acceleration in the retail segment, we could possibly witness growth rate of about 9 per cent to 11 per cent," Mr Kapoor said.

There is a large parallel market that is thriving in the country. "We are trying to lobby as part of the organised sector against this market. We have got together as association of watch manufacturers and we are seeking a minimum levy on the value ascribed and have requested the Government to bring in a directive to regulate the market," he said.

"The landed duty for watches works out to about 70 per cent — covering basic duty, and ad valorum — and we expect this to gradually come down further," he said.

The overall duty used to be about 81 per cent some time ago. With the Government being a signatory to trade and tariffs, some more changes, which will make it more competitive, are expected in the next two to three years, he said.

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