Financial Daily from THE HINDU group of publications
Friday, Mar 10, 2006
Financial Daily from THE HINDU group of publications Friday, Mar 10, 2006 |
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Marketing
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Strategy Corporate - New Projects Timex plans another facility in Himachal K. Giriprakash
Big plans Eyes 35 per cent of the 14-million-unit market in three years. Targets Rs 150-crore turnover. Cricketer Brett Lee's contract as brand ambassador has been renewed for another year. Hunt is on for a female brand ambassador to promote its retail stores. To open 30 high-end stores across six major cities. No more low-end watches to manufactured.
Bangalore , March 9 Timex Watches is trying to make a strong comeback into the Indian market as it readies itself to set up another factory in India next year and double its sales to over Rs 150 crore in three years.
1.5 million unit facility
The Timex Watches Vice-President for Marketing, Mr Salil Sadanandan, told Business Line that Timex will set up a 1.5 million unit per year factory in Himachal Pradesh, which should be operational early next year. Timex has another factory in the same State with a similar capacity. He said Timex is the only foreign brand, which has its own manufacturing base in India. "We want to consolidate our operations now that we have turned around," he said.
Market share
Mr Sadanandan said that the company aims to increase its share by over 10 per cent in the Indian market to around 33 per cent - 35 per cent in three years in the mid-range segment of watches.
No more low-end watches
He said the company had vacated the lower price point segment of the market because its products catered primarily to the middle and upper segments. He said that the total market size of the market was around 40 million units per year. Out of that, the organised sector accounts for only 14 million units. "Most of the unorganised sector caters to the lower segment. Hence we saw no reason in being in that market," he said.
To double sales
Last year, Timex sold around 1.4 million watches. He said the company expects to double its sales in the next three years. It turned profitable in 2004-05 posting a net profit of 0.72 crore on net sales of around Rs 78 crore. Mr Sadanandan said Brett Lee's contract has been renewed for another year while the hunt is on for a female brand ambassador to promote its retail stores.
High-end stores planned
Timex will open 30 high-end stores called Time Factory in six major cities over a period of two years and around 100 more stores called Timex Stores, the mid-range stores, which will be opened in Class I cities. All the stores will be operated through franchisees.
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