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Titan Industries Limited
CONTENTS
INTRODUCTION
SALES
MANUFACTURING
MATERIAL FLOW
TAKEAWAYS
CASE SUMMARY
INTRODUCTION
Titan Industries Ltd is a joint sector company promoted by Tata Industries Ltd and TIDCO to manufacture
quartz analog watches and jewellery.
It set up its manufacturing units in Hosur, Tamil Nadu, close to Bangalore and on the Bangalore-Madras
national highway.
Titan entered the Indian watch market during 1986-87 by just assembling watches and increased its
manufacturing content through a phased manufacturing programme.
Cont
As against the sale of 3 million watches in the previous year, it has the total sale of 3.40 million watches
in the domestic market and in addition, 430000 watches were exported.
At the end of March 1996, Titan had market share of close 50% of the quartz analog watches sold and
manufactured in India.
Retail showrooms increased from 80 to 86 and the number of titan shops was 90.
It was also in the process of setting up a joint venture with Hour Glass of Singapore, one of the worlds
largest wholesalers and retailers of luxury watches.
Cont
There were two plants, the eurowatch plant and the jewellery plant.
Eurowatch plant produces about 80000 watches and the jewellery plant produces almost 40000 jewellery
pieces and around 2000 watches.
Titan totally produced 3.77 million watches, 3.70 million movements and 1.98 million cases.
PQCD (Productivity, Quality, Cost Control and Delivery on time) had in fact become the new buzzword
throughout the company.
Cont
800 varieties of watches were made available to the retail outlets- 7 regular ranges and 4 special ranges.
Watches were sold through variety of channels- Redistribution Stockists, Institutional Sales, Franchisee
Operated Shops, Traditional Outlets And Titan Shops.
The watches were distributed to these outlets through CFAs who were spread regionally.
Watches moved to CFAs from three assembly plants located in Hosur, Dehradun and Ooty.
Cont
Transportation from CFAs to retail outlets was essentially through road or through representatives.
A watch assembly consisted of six components- 5 appearance part, 1 movement (not visible).
Titan manufactured and assembled the movement at Hosur and manufactured 50 % of the cases at Hosur.
For movement, three items were brought in from outside. The batteries and the quartz were imported
from Japan while the electronic circuit board was manufactured by Titan in Goa and sent to Hosur.
Cont
One of the important concern area was high levels of inventory, including obsolete inventory.
Reasons: repeat forecast modifications, long lead time, excess buffer planning and lack of coordinating.
Cutting back on in-house manufacture and focusing purely on design, sourcing, assembly, distribution,
retailing and marketing.
Production batch sizes were also a concern, this is because of the high rates of production which is
caused problems of large inventories and matching components.
TAKEAWAYS
Dependency on third party logistics, slow information flow and decision making increases
lead time.
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