TANISHQ PROFILE

Evolution of Tanishq
Titan came into existence in July 1984, when the Tata Group joined hands with the Tamil Nadu Industrial Development Corporation (TIDCO) to make a foray into the watch industry. Titan started manufacturing jewellery watches and jewellery in 1994. It set up its fully integrated Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to manufacture four tonnes of gold in a year. Titan launched these products under the brand name of Tanishq, in 1995. The name Tanishq, a blend of two words, 'tan' (body) and 'ishq' (love), was coined by Xerxes Desai, the Vice-Chairman and Managing Director of Titan. To change its image from a watch manufacturer to a fashion accessories manufacturer, Titan was renamed Titan Industries Ltd. in 1995. Titan scaled the capacity of its Hosur plant to 4.18 million units in 1996 to meet the domestic and international demand. From the late 1990s, Titan's commitment to the jewellery business increased. When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs 40,000 crore was mostly unorganized, with around 3.5 lakh players. Before 1992, only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. In 1992, as part of economic liberalization, the government abolished the Gold Control Act of 1962, allowing free import of gold. In 1993, private companies were allowed to enter the hitherto restricted gold and diamond mining industry. Foreign investors were allowed to hold up to 50% equity in mining ventures.

Growth of Tanishq

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Revenue in million Rupees

SWOT ANALYSIS STRENGTH Purity (karat meter) Distribution retailing store Award winning designs Diversity in jewellery gold/diamond/platinum Competitive prices WEAKNESS Capture Rs 70,000-crore Escalated gold costs lower margins network and OPPORTUNITIES Global markets Low cost jewellery Customized designs Concentrate on Gen-X by having trendy jewellery Expand retail stores THREATS Competition Lack of Skilled workers Gold not seen as s source of investment. (Luxury is needed). jewellery

Purity of jwellrey through karat meter is still the sign of total purity. Distribution network and retailing store are in place for the company with 130 stores countrywide. Mind boggling/award winning designs have come for the company. Diversity in jewellery gold/diamond/platinum enhances the product range of the company. We also have competitive prices for the entire product ranges as compared to the competitors. Weaknesses Capture Rs comprises a 70,000-crore Indian jewellery market. Tanishq

small share of the overall Rs 70,000-crore Indian jewellery market and hence it needs to increase its market share in this huge industry. Escalated gold costs has caused lower margins is to push sales as much as possible. Opportunities Global markets like USA needs to be looked at. Low cost and easy to wear jewellery should be further promoted. Customized jewellery designs should provided to the customers. Concentrate on Gen-X by having

trendy jewellery. Expand retail stores in India to further increase reach. Threats Competition from local jewellers all over India. Lack of Skilled workers in jewellery industry. Gold is no longer seen as source of investment. People are more concerned about design and luxury.

Three Major Products Of Tanishq In GOLD

Zoya
Secrets of the Egyptian pharaohs masked with the mystery of the comos; Oriental art embellished with occidental architecture

Fashion Earrings

The Fashion earring collection; has a ranged of over 300 exclusive designs

Wedding Collection
The bride blushes

TANISHQ

Tanishq, India's largest, most trusted and fastest growing jewellery brand, offers traditional as well as trendy designs in gold, diamond and platinum. With retail sales of over Rs. 4800 crores last financial year, Tanishq has delivered value to its customers and shareholders. Backed by in-depth research in the jewellery space, the production and sourcing units of Tanishq create exquisite designs with faultless finish. Located at Hosur (Tamil

Nadu) and Dehradun (Uttarakhand)) the 1,35,000 sq. ft. manufacturing unit is equipped with the latest and most up-to-date technology and tools. The unit also complies with the labour and environmental standards. Stringent quality standards ensure that every product at Tanishq is crafted to perfection with unmatched finish. With innovations like the karatmeter - the only nondestructive means to check the purity of gold - Tanishq introduced technology-backed challenge in the category completely governed by individual trust. The brand propagates ethical practices and provides the customer a certification of purity of material and reselling policies. Following the line of ethical practice further, adequate policies are in place for the artisans who create the jewelry. Tanishq has a Golden Harvest savings scheme which is a unique Jewellery purchase scheme, leading to an easy purchase of Tanishq jewellery of your choice. With this scheme you can buy for more than what you save because Tanishq will add a special bonus at the end of the scheme. Tanishq introduced specialized retailing in the fragmented jewellery market of India. Today, with over 130 opulent stores in 79 Indian cities, Tanishq continues to rule the jewellery space.
COMPANY PROFILE

Titan Industries is the organization that brought about a paradigm shift in the Indian watch market when it introduced its futuristic quartz technology,

complemented by international styling. With India's two most recognized and loved brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated watch manufacturer in the world. The success story began in 1984 with a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an international look, Titan Industries transformed the Indian watch market. After Sonata, a value brand of functionally styled watches at affordable prices, Titan Industries
reached out to the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 135million watches world over and manufactures 13 million watches every year. With a license for premium fashion watches of global brands, Titan Industries repeated its pioneering act and brought international brands into Indian market. Tommy Hilfiger and FCUK as well as the Swiss made watch Xylys owe their presence in Indian market to Titan Industries. Entering the largely fragmented Indian jewellery market with no known brands in 1995, Titan Industries launched Tanishq, Indias most trusted and fastest growing jewellery brand. Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India. Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment. Titan Industries has also made its foray into eyewear, launching Fastrack eyewear and sunglasses, as well as prescription eyewear. The organization has leveraged its manufacturing competencies and branched into precision engineering products and machine building.

With over 826 retail stores across a carpet area of over 10,08,083 sq. ft. Titan Industries has Indias largest retail network. The company has over 331exclusive World of Titan' showrooms and over 83 Fastrack stores. It also has a large network of over 700 after-sales-service centers. Titan Industries is also the largest jewellery retailer in India with over 130 Tanishq boutiques and Zoya stores, over 31 Gold Plus stores. It also sports over 204 Titan Eye+ stores. The company has two exclusive design studios for watches and jewellery Backed by over 6,000 employees, two exclusive design studios for watches and jewellery, 9 manufacturing units, and innumerable admirers world over, Titan Industries continues to grow and sets new standards for innovation and quality. The organization is all geared to repeat the Titan and Tanishq success story with each new offering. carress WORKING WITH US Titan Industries offers critical and challenging roles in a wide range of areas and responsibilities. The talent management at Titan Industries aims at creating a large pool of potential leaders. Robust leadership-development systems that accelerate the growth of current and future leaders, the performance culture that is calibrated through rigorous processes, and the innovative reward mechanisms at Titan Industries are some of the best customs in the corporate universe. Managers with a high potential often feel the need to move to new areas of work this recharges their faculties, strengthens their own abilities and realizes their aspirations. The company encourages internal mobility as a means of building expertise, generating synergy, and promoting self-improvement. Internal mobility reinforces the professionalism, diversity, and competitive

spirit at the company, in addition to providing satisfaction and choice to every individual. With a strong philosophy of people first, Titan Industries recognizes the strength and contribution of people in the companys success and growth. The work-culture at Titan Industries encourages the employees to learn, innovate, experiment and grow. Titan Industries has been rated highly by the Gallup engagement survey - with scores for satisfaction, loyalty and advocacy far higher than the average scores of Gallup India . The Company has also been rated No.1 in Retail category and 24th overall by Great Places to Work (2009), an institutional study, in the Economic Times. To be part of the Tata group can lead to a voyage of discovery for professionals discovery of industries, business cultures, people and places. SUBSIDIARIES Titan Time Products Limited

Titan Time Products (a 100% subsidiary of Titan Industries) specialises in manufacture of electronic-board assemblies for industries such as automotive, industrial electronics, telecommunication, consumer goods, medical, and defense. The state-of-art manufacturing facility, located at Verna, Goa, supports 150 people and boasts of a clean-room facility matching a class 10000. Titan Time Products capabilities include Surface Mount Technology for fine-pitch assemblies, Ball Grid Array placements, Chip-on-board Assemblies/ Wire bonding, and Through-hole Assemblies. The testing facilities we offer include In-circuit testers, Automatic Online Inspection equipment (AOI), Solder-

thickness measuring systems, and various other functional test set-ups. Titan Time Products quality systems are accredited to ISO 9000 and TS 16949 standards and all processes are Restriction on Hazardous Substances compliant. This centre is seamlessly aligned with our group facilities in Bangalore and Hosur, providing customers box-build capabilities with plastics and sheet-metal integration. We enjoy an elaborate network of component suppliers and manufacturers in India and abroad, and have sourcing set-up in Hong Kong and the UK. Titan Time Products value chain processes run on SAP, and the manufacturing systems are calibrated to process multiple products simultaneously, with batches varying from Proto lots to larger volumes. The impressive array of awards bestowed on the company, such as the Award for Excellence in Total Productive Maintenance, the IMEA Frost & Sullivan Award, the CII Excellence Award and the ELCINA Dun & Bradstreet Award are confidently illustrative of Titan Time products strong and world-class manufacturing practices. BUSINESS OPPORTUNITIES At Titan we constantly provide opportunities for enterprising business people to collaborate with us. If you're interested in being a franchisee of the World of Titan, Tanishq, Goldplus, Fastrack and Titan Eye+ stores, you're in the right place. Or if you want to be a local or international distributor for our world class products, or a vendor for raw materials, do get in touch right

away. We're in the licensing business too! Come, share in our success!

INVESTORS Performance Presentations Corporate Governance Investor Grievance Investor Information FAQ Contact Board of Directors COMMUNITY INITIATIVES Community Development and CSR Policy Titan Industries has a clearly defined policy for Corporate Social Responsibility (CSR). As part of the companys CSR initiative, the manufacturing units of Watch and Jewellery Divisions at Hosur have acquired the certifications ISO 9001: 2000 Quality Management System Standards and ISO 14001:2000 Environment System Standard emphasising the efforts to be an ecologically responsible organisation. The companys diverse CSR initiatives include: Childrens education Enabling the disabled Artisan parks Womens empowerment Environment management programmes Miscellaneous community initiatives Titan Industries community initiatives are committed to build partnership for social development, focus on sustainable

initiatives and improve the quality of life of the communities where the initiatives operate. With a dedicated force of 250 enthusiastic employee volunteers, the company has formed a Community Development Forum. This forum works towards mobilising society and volunteers to make the community initiatives a success. The companys miscellaneous community development activities include orphanage support, HIV/Aids awareness, village adoption, vision improvement program, a program to provide work to rural unemployed women, community rehabilitation, tsunami relief work, eradication of child labour and environment protection, to name a few. The company has made a positive change in the lives of over 2000 people. Corporate responsibility begins at home Titan Industries believes that corporate responsibility begins with the employees. The company ensures that the harmony, peace and inclusive approach at work place are maintained. Efforts are made to engage the employees in programs designed to fulfil our ecological and social responsibility. Various work-place initiatives are conducted to achieve this: War on Waste - an initiative that reduced the impact of manufacturing operations on the environment. At Titan Industries, Corporate Social Responsibility is more than philanthropy - it is an internal process that reflects the soul of the company. Successful CSR programmes: Titan Industries has embarked on and completed several community development programmes as part of its CSR initiative. A few among these successful projects are: Titan Scholarship - for students in Dharmapuri and Krishnagiri districts (Tamil Nadu), based on academic performance and socio-economic background for over 550 students form the economically backward section

Titan Township a sustainable community in Hosur (Tamilnadu), that provides housing to 1300 residents collaborating with NGOs MCA and Ashraya Employment - to over 120 physically challenged people Karigar Park a social entrepreneurship project with six parks, benefiting over 400 artisans Titan School and Titan Foundation for Education - a primary school with over 550 students, expanding to classes IX and X with a provision to accommodate 160 more students Meadow Project (Myrada) a collaborated effort with self-help groups of rural women to provide gainful employment to more than 400 rural women in and around Hosur (Tamil Nadu) Recognition of CSR: As an appreciation of its significant contribution to the community welfare, Titan Industries has received the President of Indias Award' for employing the disabled. Titan Industries, a signatory to the Global Compact, is a recipient of the prestigious Helen Keller Award and the Mother Teresa Award. The company has also been ranked as one of the top four, top ten and Top eleven companies in the Karmayog CSR Rating of Indias Top 500 Companies in December 2007, 2008 and 2009 respectively. Other noteworthy awards for CSR include: FICCI-SEDF Award for Social Responsibility The Rotary Club of Bangalore Award for Corporate Citizenship The PHDCII Award for Good Corporate Citizenship Ranked among the nation's best corporate citizens, Titan Industries is committed to take on the social responsibility and fulfil it with dedication.

ADDRESS Corporate Office

Titan Industries Tower A, Golden Enclave, Airport Bangalore - 560017 Telephone : +91-80-6660 +91-80-6660 +91-80-6660 Fax : +91-80-2526 9923, +91-80-2526 Email : corpcomm@titan.co.in Our Vision

Limited, Road, 9000 9027 9028 3001

To be a long term preferred source of EMS for Global companies through continuous improvements and keeping current with customer needs.

our Beliefs Total customer orientation Respecting and valuing employees Creating positive work culture Balancing the needs and expectations of stakeholders Our Vision: To be a world-class, innovative, progressive organisation and to build Indias most desirable brands. OurMission: To create wealth for all our stakeholders by building highly successful businesses based on a customer-centric approach, and to contribute to the community. Our Values and Standards: Totalcustomerorientation - Customers take precedence over all else, always. Employee appreciation - We value and respect Titanians and endeavour to fulfill their

needs and aspirations. Performance culture and teamwork - At Titan Industries, high performance is but a way of life and is nurtured by teamwork. Creativity and Innovation - Driven by innovation and creativity, we focus on smarter approaches and newer technologies. Passion for excellence - In all our pursuits, we ceaselessly strive for excellence. Corporate Citizenship - We ensure that a part of our resources is invested in environment and community bette

FINDING

On the basis of chi-square test the relation between the variables are significant & few are not significant. Variables which were significant in the research & which affects the buying behavior of gold are a) Because of price people are not visiting Tanishq. b) People are happy with the quality of Tanishq & they go to Tanishq only because the purity & quality of gold. c) The people also visit Tanishq because they provide better services then the other retailers. d) The pattern are also major factor because of which people does not prefer Tanishq. e) The people says that the location of store is not affecting them to visit Tanishq. f) People are not affected by the ambiance of store

From these we can conclude that people are more sencisitve towards price , Quality & availability of pattern. If they find these 3 things ok & they fill that this is what they wanted they will buy from there only. For people of vapi ambiance , proximity to market & service are less important.

Recommendation

& Conclusion

Conclusion
People are more price conscious & they feel that the price in Tanishq are more than what the normal retailers have. They also feel that the quality they get is much higher than the quality what the normal retailers give. They also found that the patterns available are lesser than what they get in the normal retail store. They also are service oriented so they are more attracted because of service they get. People are not affected with the ambiance of the shop.

Recommendation We would recommend Tanishq following things a) The making charge is affecting their sales so they should cut down their prices. b) The patterns are comparative less so they should provide more number of patterns & also should increase their market share by bringing more innovative scheme & loyalty programs. c) People are more service conscious so they can target young business man & young professional as they are now more in investing money in gold. d) Gold price are increasing day by day so they should increase their sales by selling biscuits of gold rather than selling more of ornaments.