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Introduction

The electronic watch industry in India is dominated by HMT, Allwyn, and Titan, which command about 80% of the organized sector market share. The installed industry capacity is 10.8 million pieces per year, but current production is around 6 million watches. While HMT and Titan operate at 70-80% capacity, other companies work at very low capacities. The major problems facing the industry are the non-availability of raw materials domestically, spurious watches, restrictions on strap manufacturing, and high duties and taxes.

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37 views4 pages

Introduction

The electronic watch industry in India is dominated by HMT, Allwyn, and Titan, which command about 80% of the organized sector market share. The installed industry capacity is 10.8 million pieces per year, but current production is around 6 million watches. While HMT and Titan operate at 70-80% capacity, other companies work at very low capacities. The major problems facing the industry are the non-availability of raw materials domestically, spurious watches, restrictions on strap manufacturing, and high duties and taxes.

Uploaded by

AtulSrivastava
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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ELECTRONIC WATCHES

GENERAL Electronic Watches were introduced in the world market in the early seventies. They came to India in 1979 but had to be withdrawn due to problems with the product. HMT Ltd (HMT) introduced its electronic watches in 1981 and was followed by Hyderabad Allwyn Limited (Allwyn). INDUSTRY STRUCTURE The electronic watch industry is dominated by HMT, Allwyn and Titan. They command about 80% share of the organized sector. Therefore, the study concentrates on these manufacturers, though issues pertaining to smaller companies are addressed. The installed capacity of the industry is 10.8 million pieces. A large unit, Indo French Times, with a capacity of nearly 2.0 million pieces is lying idle due to some internal problems among the promoters. The production at present from the industry is around 6 million watches. While HMT and Titan operate at 70% - 80% capacity, others work at very low capacity. In the case of Allwyn, the company is facing various problems. Titan - Timex has just completed one year and is still in its gestation phase. The other small companies work at low capacities as their market reach is limited and are not able to compete with the big companies. In terms of importance in the market, Titan has a share of about 58%, HMT 29%, Allwyn 5.5% and 7.5% with others. However, including mechanical watches the market shares are: HMT 63%, Titan 18%, Allwyn 8% and others 11%.

Industry Performance As mentioned earlier, while HMT and Titan work at high capacity utilization, other companies utilize their capacity poorly. Consequently, except for these companies, the smaller ones are not healthy financially. They are however propped by their mechanical watch or clock business. The industry is growing at a rate of about 10%. The growths of individual product types are discussed later in this report.

Major Problems Faced by the Industry The major problems facing the Industry are the following: * Non availability of raw material from domestic source. * Spurious watches * Restriction on manufacture of straps. * High duties and taxes.

INTERNATIONAL SCENARIO The total world production of watches (in 1991-92) is 828 million pieces. Switzerland, Japan and Hong Kong are the important watch manufacturing countries. While Japan leads the world in terms of volumes, Switzerland has the largest share in value terms. The important markets for watches are Hong Kong, Western Europe, USA and Middle East countries.

Salient Features of Contemporary Technology The salient features of contemporary technology are the following:
Analogue watches * Superior appearance parts. * Thin cases. * Multi-dial, skeleton watches. * Jewellery watches. Digital * Multi function watches. Others * High level of process automation. * Increased use of plastics. * Development of different caliber of ECBs. * Development of long life battery cells.

Product Development The following would be the advancement in the product features : * Multi function watches including message receivers. * High accuracy watches. * Contour watches. * Long life captive power source for watches.

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