Plans of Timex Watches BV of the Netherlands to make the Indian unit a wholly-owned subsidiary shows the confidence they have on the Indian market, says Salil Sadanandan, VP, Marketing, Timex India Ltd. The parent, which increased its stake to 83.5 per cent in the Indian arm two years ago by investing Rs 20 crore, is planning to make it a 100 per cent subsidiary.
“From a marketing perspective, it really wouldn’t make much of a difference. But it is a further reflection of their interest in the Indian market,” he said. “This is a decision that will be taken by the global board and I am sure they are looking at the pros and cons. For us it a manifestation of the confidence they have on our sales and the kind of interest they have in our country.”
Incidentally, Timex has entered its 150th year, and has lined up a host of marketing initiatives for the coming year. Elaborating, Sadanandan said, “We have three to four product launches lined up for the first quarter next year. We plan to introduce new features such as heart rate monitor, speed and distance collection, water resistant models, etc. The new launches would be in the high-end segment.”
The present market share of Timex India is 22 per cent and in next two years “we are looking at 33 per cent”, he remarked. The company posted a cash profit of Rs 74 lakh during the second quarter this year, signalling a turnaround. Net revenue grew by 26 per cent to Rs 18.9 crore during July to September 2004 over Rs 15.05 crore during the same period in the previous year.
The company cut its net loss substantially to Rs 10 lakh during Q2 of 2004-05 from a net loss of Rs 4.4 crore in July-September 2003.