Titan Industries, the leading watch manufacturer in India,
is planning to trim its product portfolio by about 30
per cent in the present year. Senior company officials
say it is difficult to manage such a huge range and the
company has decided to cut down the product range mainly
to improve manageability.
This will include
certain designs in the Titan and Sonata range that will
be phased out. The company has also decided to phase out
plastic table clocks as their sales were dipping because
of the increasing competition from the grey market. Sales
of table clocks fell nearly 70 per cent to Rs 51 lakh
during 2001-02, as compared with the same period the previous
The officials also
say Titan will soon introduce a low-priced metal watch
in the Sonata range. At present the lowest-priced watch
with metal casing in the Sonata range costs Rs 495. The
officials add that the company is doing this in order
to increase its penetration in the rural markets where
Titan feels there is enormous potential.
watches in the Sonata range will not only ensure better
penetration in the rural areas, but also lure customers
into buying a metal case watch instead of a plastic case
The size of the
domestic watch market is about 25 million units. Seventy
per cent of this comprises the under Rs 1,000 category,
and the Sonata brand of watches caters to this segment.
Sonata was launched
in 2000. In 2001, Titan Industries decided to market the
Sonata range of watches under the Tata brand name, instead
of Titan. Sonata sells around 3 million pieces annually,
while Titan sells around 2.7 million pieces.
Sonata now has
a market share of over 16 per cent in the less than Rs
1,000 price category, while Titan has a 40-per cent market
share in the Rs 1,000-Rs 10,000 price category.
registered an increase of 4 per cent in the total
turnover at Rs 727.03 crore, while its net profit declined
44 per cent to Rs 13.09 crore during 2001-02.