INTRODUCTION

Anna University has incorporated institutional training as a component of Master

of Business Administration (M.B.A) course. This training program is designed with a

view to enable the student to have an exposure and work experience in the field.

As a student of M.B.A., I underwent training at TANISHQ JEWELLERY,

Hosur for a period of 1 Week.

Here, I am submitting the report of the institutional training. A detailed

working experience that I have gained during the training in various departments of

Tanishq, Hosur is presented. I have also given a brief profile of the organization to

which I have been deputed as a trainee.

A study on functional areas in the Tanishq jewellery ltd., deals with all the

functional departments of the company. All the departments play a vital role in the

company, each department performs separate task but they are inter related with each

other.

In order to make the work efficient the individual should be trained well.

Training is used as a tool for that and training differs based on curriculum and job

profile of each individual. The employees are given training in the organization to do

their work very easily.

OBJECTIVES OF THE STUDY

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To study the functional areas.

To get an industrial exposure.

To learn the organizational activities.

To gain knowledge about the company.

To have an interaction with the industry people.

INDUSTRY PROFILE

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Tanishq was coined from a combination of Tata/Tamil Nadu and Nishq (meaning

a necklace of gold coins) and, again, from Tan, meaning body and Ishq, meaning

love.

It was launched in 1994 as a range of jewellery and jewellery watches meant for the

European & American markets. But things began to change globally around this time,

and the West entered a protracted period of slow economic growth followed by

recession. Supplying jewellery to the Americans & Europeans suddenly no longer

seemed an attractive proposition.

Initially, the criticism for Titan’s foray into jewellery was loud and often bitter.

Eventually, however, the critics were silenced. Tanishq, today, is perhaps the only

major Tata brand with a strong appeal for women. Very importantly, Tanishq has

brought to the market a whole new standard of business ethics and product reliability,

in the process bringing about a transformation in the manner in which jewellery is

bought and sold in India.

It has created a revolution in the Indian jewellery trade and in jewellery buying

behavior, and continues to set new parameters of excellence for others to follow.

The Indian market, on the other hand, opened its doors to the world, and was now

flooded with foreign currency. By the time Tanishq established its manufacturing

facility and entered the market, the premises on which the project was based had

altered substantially.

Foreign currency was no longer an issue, import licenses were easy to obtain and the

global demand-supply equation for jewellery had shifted in favors of buyers. Tanishq,

therefore, switched tracks and shifted its focus to the Indian market and develop a

somewhat grandiose vision of the brand as a composite avatar of Cartier, Tiffany,

Esprit, and Ernest Jones all rolled in one.

COMPANY PROFILE

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Tanishq is India's largest, most desirable and fastest growing jewelry brand in India.

Started in 1995, Tanishq is the jewelry business group of Titan Industries Ltd -

promoted by the TATA group, India's most respected and widely diversified business

conglomerate. It is located in Hosur (spicot).

This year marks a decade of successful innings for Tanishq. With retail sales of 1200

crore last years and gunning for 2000 crores this year, Tanishq has arrived in the

Indian jewelry market. It is a story of a successful Indian enterprise, which has

delivered value to its customers and shareholders in a complex category, marked by

its completely localized front end as well as back end.

Tanishq has set up production and sourcing bases with through research of the jewelry

crafts of India. Jewellry at Tanishq is crafted in one of the world's most modern

factories. The factory complies with all labour and environmental standards. Located

at Hosur, Tamil Nadu, the 1, 35,000 sq. ft. factory is equipped with the latest and most

modern machinery and equipment. Every product at Tanishq is painstakingly crafted

to perfection. Diligent care and quality processes ensure that the Tanishq finish is

unmatched by any other jeweller in the country.

Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. It

exploded the market with facts about rampant impurity across India. It introduced

technology-backed challenge in a category completely governed by individual trust.

Tanishq introduced innovations like Karatmeter, the only non destructive means to

check the purity of gold.

Tanishq also introduced professional retailing in the dis-organised Indian jewelry

bazaar, where women can shop with comfort and peace, without worrying about the

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purity of the jewelry they are buying, as well as, select from the best jewelry

collections available in the Indian market.

Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64

cities, with an exquisite range of gold jewelry studded with diamonds or coloured

gems and a wide range of equally spectacular jewelry in 22Kt pure gold. Exquisite

platinum jewelry is also part of the product range.

Jewellery is one of the last great commodity frontiers in India; it has remained so

because this market is very fragmented, very unorganized. Tanishq has successfully

taken on the challenges of transforming this frontier into a reliable consumer space

by bringing to it all the virtues and benefits that branding offers".

- Harish Baht, CEO, Tanishq.

Swot analysis

Strength

Purity. Distribution network and retailing

stores. Award winning deposit. Diversity in jewellery / gold /

diamond / platinum. Competitive price.

Weakness

Capture Rs 70,000 crore. Escalated gold cost lower margin.

Opportunities

Global market. Low cost jewellery. Customized jewellery design. Concentrate on gen-x by having

trendy jewellery. Expand retail store.

Threats

Competition. Lack of skilled workers. Gold are not seen as a source of

investment.

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Vision Statement:

Vision:

To be innovative world class, contemporary and build India’s most desirable

brands.

Customer focus:

Titan passionate about understanding customer needs and expectation

delighting a customer is therefore a nature outcome.

Creativity and innovation:

They were ideas company creativity and innovations are lifeblood.

Performance culture and team work:

They dare to dream big and work together to realize it. High performance is a

way of life with them.

Quality:

They will attain and maintain excellence in all that they do.

Wealth creation:

They ensure creation of value in all that they do for stake holders.

Respect and care for the individual:

They value every Titanium and strive to fulfill his/her needs and aspiration.

Corporate citizenship:

They care about the environment and the community; they live in and will

invest a part of their resources in improving them.

Mission Statement:

Titan seeks to achieve these value goals through a focused pursuit of

outstanding quality in both the ends that we target and the means that we adopt. Titan

encourages and enables individuals and groups to realize their fullest potential

through rationality and creativity, cerebration and passion, transparency and

informality, pride in the past and excitement about the future.

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FUNCTIONAL AREAS OF TANISHQ JEWELLERS

Production.

Human resource.

Marketing.

Finance.

Systems.

Research and development.

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PRODUCTION DEPARTMENT

PRODUCT LINE AND COLLECTION

Tanishq Diamonds

The sparkle of diamonds has always attracted the human eye.

Finding your perfect piece of diamond jewelry is an exhilarating and unique

experience. As with any significant purchase, it is important that you make an

educated decision.

Cut and crafted with utmost care, Tanishq diamonds come with a certificate of

authenticity, stating the caratage, colour and clarity of the stone, to enable you to

know exactly what you are paying for.

No gemstone expresses human emotions more powerfully than a diamond and

Tanishq transforms these precious stones into breathtaking masterpieces, each unique

and splendid in design. When it comes to diamonds at Tanishq you will be spoilt for

choice from many collections we have to offer.

Tanishq Gold

From the traditional harams, mangalsutras and thalis to the more fashionable earrings,

chains, bracelets and rings, there is a lot to choose from at Tanishq.

In India Gold has always been associated with security and is the most valuable form

of investment. However, it has been observed that consumer is an easy target to

several malpractices like under karatage, under valuation of the gold sold and unfair

buy back policies due to the lack of awareness about these issues.

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Tanishq propagates ethical practices not only by assuring the customer purity and

selling policies, but also fair policies to the karigars who craft the jewelry

Tanishq's designs in Pure 22k gold are not only unique, expressing the wearer's

individuality but each piece is subject to the intricate process of design, crafting and

stone setting with stringent quality standards at every point. At Tanishq, we cater to

every occasion. Our collections in gold abound from the grandiose wedding collection

to exotic kundan and polki, from the stunning Aarka collections to the exclusive

Nakashi work. We ensure that we have something for everyone with our baby range,

9 to 5 for the working woman and high fashion, men's wear, teen's collection and

regional specific designs.

Tanishq Platinum

Metal at its best.

Pure

Platinum's purity endows it with a brilliant white luster. This helps to reflect the true

radiance of diamonds. Because it is generally 95% pure (18 karat gold is 75% pure),

platinum jewelry does not fade or tarnish and keeps its looks for a lifetime.

Rare

Platinum is rare, the coveted treasure of discerning individuals. There is very little

platinum on this earth and it is found in very few places around the world. This

exquisite metal is 30 times rarer than gold. Platinum's rarity makes it exclusive and

distinctive - a celebration of your individuality.

Eternal

Platinum jewelry is the perfect choice for a lifetime of everyday wear. Platinum does

not wear away and holds precious stones firmly and securely. All precious metals can

scratch, and platinum is no exception. However, the scratch on a platinum piece is

merely a displacement of the metal and none of its volume is lost.

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Some of the world's most famous gems are set in platinum, such as the Kohinoor

diamond, part of the British crown jewels.

Platinum and White Gold are distinctly different materials and must not be confused.

Platinum is a metallic element while White Gold is a Gold alloy, which gets its white

colour due to palladium or nickel.

Tanishq's Platinum represents excellent value for money. The price may be higher

than a similar item in gold but platinum is pure, rare, enduring, beautiful, luxurious,

classic, and the perfect host for diamonds; precious qualities that make it worth

paying that little bit extra for.

THE COLLECTIONS

The Diamond Collection:

No gemstone expresses human emotions more powerfully than a diamond After all, a

diamond is timeless and finding your perfect piece of diamond jewelry is an

exhilarating and unique experience. Cut and crafted with utmost care the diamond

collection renders each piece eternal.

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The Wedding Collection:

The bride blushes; everyone around smiles; the shenai announces festivity; the priests

chant auspicious promises; She walks demurely; A vision of beauty; her jewels are

exquisite; Crafted by the best in the land; as pure as the blessings bestowed on here.

The Zoya Collection:

Intricacy coupled with the simplicity; The magnificence of history interwoven with

linear contemporary; Secrets of the pharaohs masked with the mystery of the cosmos;

oriental art embellished with occidental architecture; nature's bounty matched with

man's ingenuity.

The Fashion Earring Collection:

The Fashion earring collection', has a range of over 300 exclusive designs. Keeping in

tune with the raging popularity that earrings currently enjoy, the Tanishq design team

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has created the Fashion earring collection, inspired by the evergreen Jhumkas or

Karnaphools and the trendy Chandelier and delicate Stiletto designs.

The Kundan and Polki Collection:

Influenced by the mughal era Kundan work requires special craftsmanship and a

myriad of stages, each crafted by a different set of highly skilled karigars.

Tanishq as a revitalize of tradition brings to life techniques and motifs of the period

through our exquisite collections of Kundan and Polki (uncut diamonds).

It is difficult for jewelers to ensure the purity and correct grammage of the product

since it involves so many stages. However, Tanishq ensures the karatage and net wt of

the product.

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The Colors of Royalty Collection:

Colors of Royalty a range of exquisite studded jewelry, reminiscent of the magical

Victorian era. The collection is inspired by the classic design essence and sensibilities

found in the architecture, fashion, design, drapes and patterns of the Victorian period.

Tanishq has incorporated the timelessness of these styles into exquisite jewelry

designs to present a collection where fashion and tradition converge.

This line of precious stones and diamond jewelry in 18k from Tanishq comprises

more than 200 pieces and is by far the largest studded collection launched by us.

This exclusive collection was launched at the Ponds Femina Miss India 2006, where

the 25 finalists wore it. The Colors of Royalty is a line of exclusive gems and stone

studded jewelry that reflects the grandeur of India's rich past represented through the

varied meanings associated with colors in our lives.

The Moham Collection:

The collection comprises designs, motifs inspired by nature that have been beautifully

crafted to make them the most desirable possession this season.

Moham is a range of exclusive ruby studded jewelry that embodies the auspiciousness

the color red has in our lives. Rubies have been associated with prosperity, passion

and have been the most coveted gemstone for many years. It is a must have for a

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Indian women. This range attempts to strike a balance between convention and

fashion by creating designs suitable for the progressive Indian woman, rooted in her

tradition.

This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k. This

launch reiterates Tanishq's focus on catering to region specific tastes and preferences.

India offers great potential for the Moham collection where Ruby studded jewelry

enjoys great popularity and acceptance. Consumer survey indicates that women attach

great inspirational value to rubies, second only to diamonds.

The Aria Collection:

Aria is a collection of variety of everyday jewellery which depicts various moods and feelings.

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HUMAN RESOURCE DEPARTMENT

The company has a total of 3134 permanent employees as on 2006, working

in various departments including corporate office, company owned show rooms,

factories and other units, they also have various trainees, contract workers and

apprentices who are hired on a job work or on a temporary contract.

Employees are classified into different levels, namely:

1. ‘E’ Level: It constitutes the workmen at the factories.

2. ‘L’ Level: It constitutes junior to middle management.

‘R’ are those employees who work in both watch and jewellery division.

3. Senior Management level.

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Qualification Number of Employees Percentage

Undergraduates 900 29

Diploma and ITI 568 18

Graduates 915 29

Post Graduates 383 12

MBAs 172 5

Professionals 196 6

Total 3,134 100

Recruitment:

In case of recruitment for the vacancies approved by the Management, the

recruitment will be done automatically except if the indenting section wants to

postpone or advance it, in which case they have to send a separate note for it.

As far as possible internal mobilization of people would be looked into and in

case of non availability of the right manpower within the company, we may either

refer to the application bank or advertise.

Recruitment will be carried out according to the standards specified in the

recruitment Standards Annexure.

As far as possible, the vacancies will be filled with trainees and wherever

previous experience is a must we will resort to experienced people. For each category

the selection process will be as follows.

Process of Selection:

Category Selection Process

Operator Trainee (OPT) Psycho Diagnostic Test (PDT) Written Test, (WT), Practical Test (PT), Interview, Medical & Security

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Verification (SC)

Craftsperson Trainee (CPT) PDT, WT, PT, Interview, Medical & SV

Graduate trainee PDT, WT, Intelligence Quantitative Test (IQT), Interview, Medical, SV & Personality Test

Technician Trainee / Supervisor Trainee (TT/ ST)

PDT, WT, IQT, Interview, Medical, SV & Personality Test

Programmer Trainee / Engineer Trainee / Personnel Officer Trainee (PT /E T / POT)

PDT, WT, Interview, Medical & Personality test.

Officer Trainee (OT) Group Discussion (GD), Interview & Medical

Management Trainee (MT) GD, Interview & Medical

Others Up to L3 PDT, WT if needed, Interview, Medical & SV

L4 to L5 GD – if needed, Interview by Panel, f needed to be seen by VP concerned Medical & Business Head

L6 and above Candidate Panel Interview / Concerned VP should be seen by Business Head or approval on Bio – Data to be obtained before recruiting the candidate.

Interview candidates will be reimbursed their traveling expenses depending

upon the category, if they travel beyond 40 kms radius from place of interview.

For L1, L2, L3, L4, L5 category actual to and bus fare will be paid.

For a Managerial position either first class train fare or air fare will be

reimbursed as being mentioned in the call letter. The decision will be made by the

respective VP and Head of Human Resources.

Performance Appraisal:

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‘Performance Appraisal is an objective assessment of an individual’s

performance against well defined bench marks’. The performance appraisal method

followed is based on the subordinate relationship, whereby the superiors rate their

subordinates.

Training:

Training is an ongoing processes aimed at capability building of the employees at all

levels. Training programs are classified into the following categories:

Skills

Knowledge

Behavioral

Workmen capability building:

Training and development for unionized employees at the manufacturing units is

focused on skills programs like ‘personal touch’ to address interpersonal are related

issues were conducted.

Employee retention/ Incentive plans:

Company has an annual appraisal system in place and pursuant to this

system, performance linked pay, annual variable pay and/or commission is paid to the

employees.

The performance of the employees is classified into namely:

A. Extremely High performer

B. High performer

C. Good performer and

D. Performer

Trade union:

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The company has one registered union being the Titan employee union (“union”),

which is registered or affiliated with any political party or other organization.

Tata code of conduct:

All the employees are bound by the Tata code of conduct under which they are

required to deal on behalf of the company with professionalism, honesty, integrity, as

well as high moral and ethical standards. Such conduct is to be fair and transparent

and be perceived.

Manpower and Business Plan:

o Manpower Planning and the requisite budget will be prepared at the end of the

financial year.

o General Manager HR will prepare manpower budget and get the approval for

any new recruitment from concerned.

MARKETING DEPARTMENT

Marketing Equals the Four Ps

Part of marketing is identifying the mix of "Ps" that makes your service unique. This

is also called your marketing mix. The next step is to shape your marketing mix and

position its components to create a unique identity for your business that attracts and

retains customers. Your market position is one or more selected benefits or features

that make your operation unique and different.

Product

Price

Place

promotion

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The following steps will help you define your marketing mix:

Identify your target market.

Determine what the target consumer desires.

Assess whether you have any advantages over your

competition in delivering the desired service.

Choose the position that is more valued by the customer.

TANISHQ MARKETING STRATEGY

When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs

40,000 crore was mostly unorganized, with around 3.5 lakhs players. India was the

second largest consumer of gold in the world after USA. 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.

In the 1990s, a number of brands entered the Indian jewellery market. In 1995,

Mumbai based jewellery exporter, Gitanjali Jewels, started selling 18-carat gold

jewellery under the brand name of Gili. Su-Raj (India) Ltd. launched its 22-carat gold

and diamond jewellery in 1997. Other well known domestic players included

Tribhovandas Bhimji Zaveri, Mehrason's and P. C. Chandra. Among the foreign

players who entered the market were Cartiers, Tiffany, De Beers and Ashton Mining.

Titan realized that there was a huge untapped market for branded jewellery in India.

The critical success factors in the business were quality, fashionable design, and good

after-sales service. Titan also observed that the changing lifestyles demanded lighter

and trendier jewellery.

After its launch, Tanishq faced several problems. With its original focus on exports,

Tanishq's designs had been conceptualized for the Western markets and were

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introduced in India without any alterations. Formal consumer surveys showed that

though brand awareness was quite high, it suffered from several negative perceptions.

Many potential customers thought the products were over priced and associated the

brand only with the rich.

Hence, Titan decided to change its strategy on two fronts:

Value proposition

Retailing.

The Tanishq strategy for the coming couple of years relies on two things increasing

penetration in the domestic markets and going abroad in order to diversify its revenue

portfolio.

Gold Jewelers Market in India

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals

Trading Corporation of India (MMTC) and the State Bank of India (SBI) were

allowed to import gold.

The abolition of the Gold Control Act in 1992, allowed large export houses to import

gold freely. Exporters in export processing zones were allowed to sell 10 percent of

their produce in the domestic market.

In 1993, gold and diamond mining were opened up for private investors and foreign

investors were allowed to own half the equity in mining ventures.

In 1997, overseas banks and bullion suppliers were also allowed to import gold into

India. These measures led to the entry of foreign players like DeBeers, Tiffany and

Cartiers into the Indian market.

In the 1990s, the number of retail jewellery outlets in India increased greatly due to

the abolition of the Gold Control Act.'

This led to a highly fragmented and unorganized jewellery market with an estimated

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100,000 workshops supplying over 350,000 retailers, mostly family-owned, single

shop operations.

In 2001, India had the highest demand for gold in the world; 855 tons were consumed

a year, 95% of which was used for jewellery.

The bulk of the jewellery purchased in India was designed in the traditional Indian

style. Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking

was not very common in India, under-cartage was prevalent.

According to a survey done by the Bureau of Indian Standards (BIS), most gold

jewellery advertised in India as 22-carat was of a lesser quality.

Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as

22-carat gold jewellery. The late 1990s saw a number of branded jewellery players

entering the Indian market.

Titan sold gold jewellery under the brand name Tanishq, while Gitanjali Jewels, a

Mumbai-based jewellery exporter, sold 18-carat gold jewellery under the brand name

Gili.

Tanishq - Strategies for Wooing Customers

In the late 1990s, players in the branded gold jewellery market formulated strategies

for wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer

of Tanishq, the challenges were many.

As the jewellery market was highly fragmented, lacked branding, and allowed many

unethical practices to flourish, Tanishq worked hard on a two-pronged brand-building

strategy: cultivate trust by educating customers about the unethical practices in the

business and change the perception of jewellery as a high-priced purchase.

TANISHQ FOR YOU

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At Tanishq it’s not just the products, it’s the experience that matters. We make sure

that we give you the premium quality of not only product but service as well. Tanishq

not only has an exquisite range of designs to meet all your requirements we also offer

the benefit of any modification or customization on products.

There are host of value added services that you can avail of at Tanishq like the Golden

Harvest Savings Scheme, Gift Voucher purchase, Exchange of gold and diamonds etc.

Golden Harvest Saving Scheme

Tanishq’s “Golden harvest Savings Scheme” is one of the most lucrative savings

schemes that enable to save each month with Tanishq and plan for wedding jewelry

purchases. Your monthly installments are safe with us, whereas savings at home could

easily get spent. This scheme provides you with much better returns than other saving

options like bank deposits or post office savings schemes. In addition, Tanishq’s

special bonus at the end of the scheme period helps you stretch your jewelry budget.

How much money must one invest to enroll in the Savings Scheme?

You need to invest only Rs.500/- per month to enroll. You could also deposit a

larger sum, as long as they are in multiples of Rs.500/- You can choose from two

convenient savings scheme options- an Annual Plan (12 month installments) and an

Extended Plan (18 month installments).

BONUS:

60% of monthly installment in Annual Plan

130% of monthly installment in “Extended Plan”

At the end of the scheme period, pick up Tanishq jewelry of your choice worth the

amount deposited plus the BONUS

Installment Amount (Rs)

Bonus for 12 months scheme

Bonus for 18 months scheme

500 300 6501000 600 1300

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1500 900 19502000 1200 26002500 1500 32503000 1800 39004000 2400 52005000 3000 6500

Exchange Policy in TanishqExchange your old jewelry for new with Tanishq Most retailers have a differential buy back or different rates for selling and buying

gold jewelry. At Tanishq, a single gold rate is maintained for buying or selling gold

jewelry. 8% of the value is deducted for costs involved with testing, refining and taxes

for the jewelry given by the customer.

When you exchange any Tanishq gold coin with jewelry, you get the benefit of the

current gold rate and full value exchange without deduction. When you exchange any

other bank’s gold coin with jewelry there is a 4% deduction on value. This deduction

is made for handling and transportation costs and for refining the metal received on

exchange.

Purity Checks

Purity checks allow lovers of the yellow metal to test the purity of the gold they

already own. Playing a significant role in this is the Karat meter, which is the most

scientific measure of purity in the world. It uses X-rays to give an exact reading of the

purity of gold in just three minutes, giving the consumer an unmatched benefit when

buying or selling gold. It is in fact the most scientifically proven, non-destructive

means of testing the purity of gold. Due to its excellent precision, X-ray analysis has

been adopted by international agencies as well as by BIS in India as part of the

certification process used to Hallmark Gold.

Anuttara

You can also become the member of Tanishqs loyalty programme Anuttara and avail of various discounts and priveleges.

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SOME OF TANISHQS COMPETITORS

Asmi

Asmi, one of the leading diamond brands of the country, was launched, in 2002 by

The Diamond Trading Company Ltd, (DTC).

The brand has been endorsed by various celebrities such as Kajol, Mandira Bedi &

Perizad.

All these women epitomize the different strengths. An Asmi woman is closely

identifies with free-spirited, goal-oriented & with an inner fire.

Nakshatra Diamonds

The world renowned Nakshatra diamonds were launched in 2000, with an equally

dazzling Aishwarya Rai as its brand ambassador. In the present scenario Nakshatra

diamonds occupy a leading position in the fashion diamond jewelry segment. The

traditional diamond is the most wanted design among Nakshatra diamonds.

Gili

Gili was launched in 1994, targeting mainly the youth who wanted to celebrate

Valentine's Day. Since then, the brand has clocked a turnover of Rs. 90 crores.

Nirvana Diamonds

Nirvana Diamonds from Fine Jewellery (I) Ltd. was launched in 1987 in India.

Nirvana diamonds are targeting at fashion conscious, modern and independent

thinking women. Internationally acclaimed Nirvana diamonds are manufactured by

using state-of-the-art technology. As a proof of their quality Nirvana was among one

of the brands to offer lifetime warranty to its consumers.

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D'damas Diamonds

D'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond

houses established in India in 1966. On the present day D'damas Diamonds offer

highly modernized diamond cutting and polishing facilities at five locations in India.

D'damas Diamonds claim to promote a range of emotions through their collection.

TANISHQ – MARKET RESEARCH

MARKET research On TANISHQ

Tanishq emerges as the best known brand with the highest awareness and recall. The

difference between the leaders and the followers is always greater when the former

have a head start. And when the pace and efforts of the leaders intensify, the

possibility that they will continue to be at the top is a foregone conclusion. The

Solitaire - TNS Survey shows that Tanishq is the best known brand across the three

cities of Mumbai, New Delhi.

  

India's Top Ten Best Known Jewellery Brands

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TANISHQ - THE TURN AROUND STORY

When we started out we didn't think that we could achieve this, but

now being jewellers to the nation doesn't seem so distant."

- Tanishq COO, Vasant Nangia.

The Unsuccessful Launch

In 1995, Titan Industries, India's leading manufacturer of watches, launched the

Tanishq range of gold watches and jewellery. Till then, the Indian jewellery market

was to a large extent unorganized, with a few recognized names such as Tribhovandas

Bhimji Jhaveri and Mehrason's.

An entirely new concept in the Indian market thus had to struggle hard to be accepted

by the customers. Industry watchers were extremely skeptical of Tanishq and doubts

were being cast over its prospects. Tanishq began by offering jewellery in the 18-carat

gold range, with designs borrowed heavily from contemporary European brands. The

company justified its decision saying that it wanted to be 'different' from the

traditional Indian offerings.

Tanishq performed very badly in the next three years, posting a huge loss in 1997-98,

proving its detractors right. Jacob Kurian, Tanishq's chief operating officer admitted,

"Tanishq, as a concept, was far too ahead of its times." Even if one agreed with

Kurian, it could not be denied that Tanishq did commit mistakes.

Future Prospects

The Indian branded jewellery market, though nascent, grew at the rate of 20-30%

during 1998-2000. Besides Tanishq, other major players included Intergold, Gili and

Carbon. However, in the Rs 400 billion Indian jewellery market, Tanishq's share was

not even 1%.

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Not willing to accept this as a 'poor show,' Tanishq saw it as a vast opportunity

instead. The company planned to attain a 2% market share in the next few years.

Kurian said, "The jewellery market is one of the largest consumer segments in the

country. It has an estimated 2, 50, 000 retailers with no national or international brand

and no corporate player.

Titan believes that this market is right for consolidation. A consumer-oriented, highly

ethical corporate player will have great opportunity. Our growth rates in the past three

years have fully substantiated this hypothesis." Tanishq had ambitious plans to invest

in information technology and utilize Intranets and the Internet to link all of its

showrooms to one another. There were also plans to do online monitoring of sales and

design popularity as well as using the Internet to place orders. The Intranet was to

contain a photo collection of all the designs in all the stores so that even those not in

stocks in a particular store could be ordered by customers.

In May 2000, Tanishq unveiled plans to surpass its parent company's turnover by

2002. Jacob Kurian who had taken over as the CEO the same month, said, "We have

finally figured out the jewellery business and should be solidly profitable, shorn of

any caveat, this year.

PROMOTION, ADVERTISING & PUBLIC RELATION

Promotion

Tanishq launches ‘Free gold coin offer’ campaign

Tanishq launched its "Get Gold free with Diamonds" promotional offer were

customer be entitled to win at least one 22-kt one-gram gold coin on every purchase

of diamond jewellery worth Rs 5,000 and above.

"Get Gold free with Diamonds' caters to the aspirations of Indian woman by providing

an opportunity to own diamond jewellery and win gold, which is a huge

investment opportunity.

Akshaya Tritiya is one of the four most auspicious days of the Vedic calendar. The

Akshaya Tritiya pre-booking scheme along with the 10 per cent deduction on making

charge offer is available across all Tanishq boutiques

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Advertising

Ms Karishma Kapoor the bollywood actress is the brand ambassador of the Product

Tanishq.

T V Advertisement

Tanishq focus on the emotional attachment in the advertisement like engagement,

marriage and such other occasions.

Print advertisement

In leading news paper and famine magazines are targeted to do the advertisement.

In short they know their target market and hence do advertising as required.

Bollywood tie-up

Has done tie up with Paheli where in the movie Ms Rani Mukherji Was seen wearing

Tanishq jewellery through out and in Jodha Akbar Movie were they launched a

product line named Jodha Akbar.

TANISHQ IN THE NEWS

Priya Ganapati in Bangalore | July 04, 2003

Jacob Kurian, chief operating officer (jewellery), Tanishq isn't tired of saying that the

story of his company mirrors a Bollywood movie. There's drama, celebration, then

betrayal in the family, followed by action and, of course, a happy ending. Tanishq, the

jewellery business group of Titan Industries, is the blockbuster action thriller from the

Tata group.

After five years of consistent losses, the company, on Thursday, announced the

completion of a dramatic three-year turnaround culminating in annual sales growth of

39 per cent and profit growth of 318 per cent. During 2002-03, Tanishq recorded a

sales turnover of Rs 389 crore (Rs 3.89 billion) -- at consumer prices. By 2007, it

hopes to take that to Rs 800 crore (Rs 8 billion).

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Today, Tanishq has already become one of the top five retailers in the country. It

contributes 40 per cent to Titan's business and is expected to account for 55 per cent

by 2007. By then, Tanishq's profitability will also be good enough to offer 28 per cent

return on deployment of 25 per cent of the capital.

Sales

Year Sales (Rs crore)

1996-97 32

1997-98 38

1998-99 73

1999-2000 141

2000-01 188

2001-02 299

2002-03 389

"Many people believe we should not be here today. They have kept telling us that the

business logic is against what we set out to do. But I am glad we have proved them

wrong," says Kurian proudly.

The estimated Rs 40,000 crore (Rs 400 billion) gold jewellery markets in India is a

rough one. There are over 300,000 jewelers, each powerful in his neighborhood.

One of the largest consumers of gold, the Indian household had a marked preference

for 22-karat gold, as opposed to the 18-karat designs that jewellery chains worldwide

chose to do their designs in. Not surprisingly, the skeptics were asking what Titan was

doing in the jewellery business.

In the late eighties, when India was facing a massive foreign exchange crisis, Titan,

the watches division, was told to look for a way to earn its own foreign exchange.

Jewellery seemed like a huge and interesting market to get into and Titan decided to

set up Tanishq as a jewellery division that would be focused largely on exports.

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However, by the time it acquired the skills and set up the plant, the world had

changed. India no longer had a foreign currency problem, imports were easy to come

by, demand had come down in the global market, supply had grown in Asia and

margins had become very thin.

Tanishq then decided to focus on the Indian market. In August 1992 a pilot plant was

set up and production started in two years later. In 1996, Tanishq launched its first

store. It was a hitherto untried concept. The jewellery business in India was highly

fragmented and ruled over by local players. There was no national jeweler that people

could buy from, despite that India is the largest consumer of gold in the world.

Profits generated

Year Profits generated (Rs crore)

1996-97 - 10.60

1997-98 - 21.96

1998-99 - 10.40

2000-01    2.07

2001-02    1.87

2002-03    7.82

Contribution to Titan's growth

Year Tanishq contribution to Titan 

(in percent)

1996-97 8

1997-98 14

1999-2000 24

2002-03 43

Today, Tanishq counts companies like Hindustan Lever Limited, Pfizer, National

Panasonic, UB Group, Tata Tea and Tata Chemicals among its clients. "We saw

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corporate sales as a new route to customer acquisition. Institutional sales help us beat

targets," says Kurian.

The challenges remain. Profit figures have yet to rise significantly. In 2002-03, on

revenues of Rs 389 crore (Rs 3.89 billion), Tanishq made a profit of only Rs 7.82

crore (Rs 78.2 million).

A slew of national brands have sprung up. From Nakshatra to TBZ to Carbon,

Tanishq has to battle a lot more at the market place.

Yet, Kurian says now it's a great time to be in business. "We believe jewellery

business is one of the few 'China-proof, Wal Mart-proof' kind of businesses,"

FINANCE DEPARTMENT

The finance department is lifeblood of organization. The main role of finance

department is supporting manufacturing is that they process the purchase orders,

release payment to the suppliers.

The main source of income is through sales collection; inter corporate deposits and

other short – term loans. Besides these, disbursement of salaries to the employees,

reimbursement of travel expenses and other small time purchasing activities. They

also support manufacturing in arriving at “Make or Buy” decision.

Product costing is also done here. The product costing is done by calculation the

utilization of machines and other fixed costs. The costing method that is followed is

Standard costing method.

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2006-2007 financial years:

Company income crossed RS 2000 crore mark.

PBT crossed RS 100 crore marks.

Share price crossed RS 1000 and market capitalization crossed a billion

dollars.

Market capitalization:

Year 2002-03 2003-04 2004-05 2005-06 2006-07

Mkt cap

(cr’s)

218 500 1018 3530 4400

Balance Sheet of Titan Industries

------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths

Sources Of Funds

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Total Share Capital 82.28 44.39 44.39 44.39Equity Share Capital 42.28 44.39 44.39 44.39Share Application Money 0.00 0.00 0.00 0.00Preference Share Capital 40.00 0.00 0.00 0.00Reserves 150.30 283.06 391.78 506.85Revaluation Reserves 0.00 0.00 0.00 0.00Net worth 232.58 327.45 436.17 551.24Secured Loans 148.84 172.67 188.11 116.76Unsecured Loans 119.09 74.34 69.78 58.65Total Debt 267.93 247.01 257.89 175.41Total Liabilities 500.51 574.46 694.06 726.65

Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths

Application Of FundsGross Block 420.42 515.48 558.07 593.04Less: Accum. Depreciation 243.97 264.34 285.61 318.56Net Block 176.45 251.14 272.46 274.48Capital Work in Progress 19.56 15.97 9.99 19.52Investments 27.02 27.02 47.39 7.66Inventories 374.39 677.48 1,021.09 1,202.69Sundry Debtors 90.12 92.06 96.45 106.22Cash and Bank Balance 38.29 50.73 51.91 54.69Total Current Assets 502.80 820.27 1,169.45 1,363.60Loans and Advances 150.96 179.06 111.34 128.82Fixed Deposits 0.00 0.00 0.00 0.00Total CA, Loans & Advances 653.76 999.33 1,280.79 1,492.42Deferred Credit 0.00 0.00 0.00 0.00Current Liabilities 363.89 571.26 842.68 974.00Provisions 26.72 151.96 73.90 93.44Total CL & Provisions 390.61 723.22 916.58 1,067.44Net Current Assets 263.15 276.11 364.21 424.98Miscellaneous Expenses 14.31 4.21 0.00 0.00Total Assets 500.49 574.45 694.05 726.64

Contingent Liabilities 64.22 76.01 58.41 65.46Book Value (Rs) 45.55 73.77 98.26 124.18

Profit & Loss account of Titan Industries

------------------- in Rs. Cr. -------------------

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Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths

IncomeSales Turnover 1,509.92 2,181.69 3,098.20 3,926.09Excise Duty 41.19 46.22 47.35 44.34Net Sales 1,468.73 2,135.47 3,050.85 3,881.75Other Income -9.74 4.71 -4.39 -5.91Stock Adjustments 72.58 246.22 297.89 178.67Total Income 1,531.57 2,386.40 3,344.35 4,054.51ExpenditureRaw Materials 981.62 1,620.65 2,431.79 2,940.86Power & Fuel Cost 10.02 11.55 13.90 16.11Employee Cost 109.41 157.40 189.66 234.20Other Manufacturing Expenses 3.46 5.60 5.96 8.99Selling and Admin Expenses 248.68 331.79 358.05 427.47Miscellaneous Expenses 41.01 69.63 84.12 86.20Preoperative Exp Capitalized -0.89 -0.52 -0.02 -0.09Total Expenses 1,393.31 2,196.10 3,083.46 3,713.74

Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths

Operating Profit 148.00 185.59 265.28 346.68PBDIT 138.26 190.30 260.89 340.77Interest 31.71 33.07 39.44 68.46PBDT 106.55 157.23 221.45 272.31Depreciation 19.66 25.59 29.73 41.76Other Written Off 0.00 0.00 0.00 0.00Profit Before Tax 86.89 131.64 191.72 230.55Extra-ordinary items -0.93 -0.20 2.57 -10.92PBT (Post Extra-ord Items) 85.96 131.44 194.29 219.63Tax 12.34 37.32 44.02 60.68Reported Net Profit 73.62 94.33 150.27 158.96Total Value Addition 411.69 575.44 651.68 772.88Preference Dividend 2.72 0.39 0.00 0.00Equity Dividend 13.32 22.19 35.51 44.39Corporate Dividend Tax 2.25 3.83 6.04 7.54Per share data (annualized)Shares in issue (lakhs) 422.76 443.89 443.89 443.89Earnings Per Share (Rs) 16.77 21.16 33.85 35.81Equity Dividend (%) 30.00 50.00 80.00 100.00Book Value (Rs) 45.55 73.77 98.26 124.18

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SYSTEMS DEPARTMENT

The IT requirement of Titan is fulfilled by the systems department. The

system department is integrated in its set up and is located at Hosur plant. The

system department primarily caters the hardware as well as software needs of

Titan. It supports its manufacturing, sales, finance and all the functions. The

following chart shows the brief functions of the systems department.

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Systems

Hardware Software

Hardware Software

Certification Certification

Maintenance Maintenance Outsourcing Outsourcing Development Development Up gradation

The whole of Titan’s manufacturing activities, marketing, finance,

planning are integrated through one of the leading and quality enterprise

resource planning software called SAP R3. The main advance of this software

is that it can take care of the entire activities of the plant.

The advantages of SAP are

Inventory reduction

Product lead timer education

Better utilization of machines

Better planning

Seamless integration with marketing

Lean manufacturing

Better Management Information System

Integration of SBU’s (Strategic Business Units)

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RESEARCH AND DEVELOPMENT DEPARTMENT

Diamonds have always been the most desirable jewellery for every woman.

Understanding the growing inclination and fondness diamond jewellery, Tanishq,

India’s most preferred jewellery brand introduced over 200 new exquisitely crafted

designs in high value diamond jewellery segment amidst glitz & glamour in Mumbai.

Crafted elegantly for a distinctive appeal and style, each piece of jewellery has a story

to speak, making them unique and timeless. These beautiful and magnificently

designed hi-valued of necklace, earring and bangles.

The evening saw some prominent names from the entertainment & fashion industry

present at the wine and cheese party organized to launch the exquisite designs in hi-

value diamond jewellery from Tanishq. Gorgeous and renowned super models Nethra

Raghuraman, Tapur & Tupur Chatterjee, Alecia Raut among others walked the ramp

at the fashion show showcasing the exclusive collection. It was an evening adorned

with style and substance.

Speaking about the collection, Mr. Sandeep Kulhalli, Vice President, Tanishq said,

“The demand for diamonds has been rising steadily and even the conventional gold

buyer is now opting for diamond jewellery. As a part of our strategy, we are focusing

on high-value jewellery which is targeted at the affluent buyer who is less focused on

the investment value and is looking more at the ornamental value.”

Tanishq, from the Tata Group, has been synonymous with superior craftsmanship,

exclusive designs and guaranteed product quality. Designed to embody the modern

day Indian women, Tanishq hi-value diamond jewellery is an ode to her sensibilities.

Tanishq has been continuously evolving to suit her needs at various occasions in her

life. It has built itself the envious reputation of being the only jewellery brand in the

country that strives to understand the Indian woman and provide her with pure

jewellery that meets both her traditional and contemporary jewellery needs.

Tanishq, India's only national jeweler offers gold and gem-set jewellery (in 22 and 18

karat gold) in over 6000 traditional, western and fusion looks. The jewellery is

manufactured in a fully integrated manufacturing plant with state-of-the-art

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equipment. The Tanishq retail chain currently includes 115 exclusive boutiques in 75

cities, making it India's first and largest jewellery retail store chain.

Learning from ipt

The Plant layout is well designed to facilitate the workers in

their work

The inter relationship between the departments are good.

Welfare facilities provided are very good.

They are maintaining the Relationship with employers and

employees.

They conducting the training programs very effectively for

employees.

They have very good canteen facilities.

The Infrastructure is very well for working condition.

CONCLUSION

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Titan is facing very stiff competition, his competitive has forced. Titan to change its

business model to suit today’s requirement. Titan has diversified itself from watch

manufacturing to create itself a name in fashion accessories. Titan has all its focus on

Customer orientation.

The company has adopted World class manufacturing practices like TQM,

TPM, JIT 5S etc., to have value addition for its products and customers. Titan has

now adopted a lean manufacturing style from the contemporary one. The products

that are customer driven and highly market sensitive. The manufacturing capabilities

have been made flexible to suit the market need.

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