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
•
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
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 West entered entered a protra protracted cted period period of slow slow econom economic ic growth growth follow followed ed 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
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-b technology-backed acked challenge in a category category completely completely governed by individual 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
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
Weakness
Purity. Distribution network and retailing stores. Award winning deposit. Diversity in jewellery / gold / diamond / platinum. Competitive price.
Opportunities
Global market. Low cost jewellery. Customized jewellery design. Concentrate on gen-x by having trendy jewellery. Expand retail store.
Capture Rs 70,000 crore. Escalated gold cost lower margin.
Threats
Competition. Lack of skilled workers. Gold are not seen as a source of investment.
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.
FUNCTIONAL AREAS OF TANISHQ JEWELLERS
Production.
Human resource.
Marketing.
Finance.
Systems.
Research and development.
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.
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.
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.
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 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.
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 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.
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.
Qualification Undergraduates Diploma and ITI Graduates Post Graduates MBAs Professionals Total
Number of Employees 900 568 915 383 172 196 3,134
Percentage 29 18 29 12 5 6 100
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 Operator Trainee (OPT)
Selection Process Psycho Diagnostic Test (PDT) Written Test, (WT), Practical Test (PT), Interview, Medical & Security Verification (SC)
Craftsperson Trainee (CPT) Graduate trainee
PDT, WT, PT, Interview, Medical & SV 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) Officer Trainee (OT)
PDT, WT, Interview, Medical & Personality test.
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.
Group Discussion (GD), Interview & Medical
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:
‘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:
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
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 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 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 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 Bonus for 12 months Bonus for 18 months (Rs) scheme scheme 500 300 650 1000 600 1300 1500 900 1950 2000 1200 2600 2500 1500 3250 3000 1800 3900 4000 2400 5200 5000 3000 6500
Exchange Policy in Tanishq Exchange 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.
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.
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
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%.
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
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).
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 1999-2000
73 141
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 a sking 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.
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 2000-01
- 10.40 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 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.
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 Mkt cap 218 (cr’s)
2003-04 500
2004-05 1018
2005-06 3530
2006-07 4400
5000 4000 3000 2000 1000 0 2002-03 2003-04 2004-05 2005-06 2006-07
Balance Sheet of Titan Industries ------------------- in Rs. Cr. -------------------
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances
Mar '06
Mar '07
Mar '08
Mar '09
12 mths
12 mths
12 mths
12 mths
82.28 42.28 0.00 40.00 150.30 0.00 232.58 148.84 119.09 267.93 500.51 Mar '06
44.39 44.39 0.00 0.00 283.06 0.00 327.45 172.67 74.34 247.01 574.46 Mar '07
44.39 44.39 0.00 0.00 391.78 0.00 436.17 188.11 69.78 257.89 694.06 Mar '08
44.39 44.39 0.00 0.00 506.85 0.00 551.24 116.76 58.65 175.41 726.65 Mar '09
12 mths
12 mths
12 mths
12 mths
420.42 243.97 176.45 19.56 27.02 374.39 90.12 38.29 502.80 150.96
515.48 264.34 251.14 15.97 27.02 677.48 92.06 50.73 820.27 179.06
558.07 285.61 272.46 9.99 47.39 1,021.09 96.45 51.91 1,169.45 111.34
593.04 318.56 274.48 19.52 7.66 1,202.69 106.22 54.69 1,363.60 128.82
Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)
0.00 653.76 0.00 363.89 26.72 390.61 263.15 14.31 500.49
0.00 999.33 0.00 571.26 151.96 723.22 276.11 4.21 574.45
0.00 1,280.79 0.00 842.68 73.90 916.58 364.21 0.00 694.05
0.00 1,492.42 0.00 974.00 93.44 1,067.44 424.98 0.00 726.64
64.22 45.55
76.01 73.77
58.41 98.26
65.46 124.18
Profit & Loss account of Titan Industries
Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalized Total Expenses
Operating Profit PBDIT Interest PBDT Depreciation
------------------- in Rs. Cr. -------------------
Mar '06
Mar '07
Mar '08
Mar '09
12 mths
12 mths
12 mths
12 mths
1,509.92 41.19 1,468.73 -9.74 72.58 1,531.57
2,181.69 46.22 2,135.47 4.71 246.22 2,386.40
3,098.20 47.35 3,050.85 -4.39 297.89 3,344.35
3,926.09 44.34 3,881.75 -5.91 178.67 4,054.51
981.62 10.02 109.41 3.46 248.68 41.01 -0.89 1,393.31 Mar '06
1,620.65 11.55 157.40 5.60 331.79 69.63 -0.52 2,196.10 Mar '07
2,431.79 13.90 189.66 5.96 358.05 84.12 -0.02 3,083.46 Mar '08
2,940.86 16.11 234.20 8.99 427.47 86.20 -0.09 3,713.74 Mar '09
12 mths
12 mths
12 mths
12 mths
148.00 138.26 31.71 106.55 19 66
185.59 190.30 33.07 157.23 25 59
265.28 260.89 39.44 221.45 29 73
346.68 340.77 68.46 272.31 41 76
Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualized) Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs)
0.00 86.89 -0.93 85.96 12.34 73.62 411.69 2.72 13.32 2.25
0.00 131.64 -0.20 131.44 37.32 94.33 575.44 0.39 22.19 3.83
0.00 191.72 2.57 194.29 44.02 150.27 651.68 0.00 35.51 6.04
0.00 230.55 -10.92 219.63 60.68 158.96 772.88 0.00 44.39 7.54
422.76 16.77 30.00 45.55
443.89 21.16 50.00 73.77
443.89 33.85 80.00 98.26
443.89 35.81 100.00 124.18
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.
S stems
Hardware
Software
Hardware
Software
Certification
Certification
Maintenance
Maintenance
Outsourcin
Outsourcin
Develo ment
Develo ment U
radation
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)
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 hivalue 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 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 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.
