The Netherlands-based Timex Watches BV is planning to increase its stake in its Indian subsidiary, Timex Watches Ltd (TWL), by 4.11 per cent to 83.58 per cent by infusing an additional Rs 20 crore.
The TWL board has already given a go-ahead for the equity infusion, subject to necessary approvals.
The company has submitted an application to the Foreign Investment Promotion Board (FIPB) and the matter is expected to come up for consideration tomorrow.
The additional investment would be used for both brand building and product development, TWL managing director Kapil Kapoor said. He said the money would be used for the company's current expansion plans and also to fund its marketing initiatives to secure a leadership position in the domestic market.
The paid-up capital of the company is about Rs 85 crore. Speaking on the company's future plans, Kapoor said that it will bring in new higher technology products from both the European and the American markets. "We would be expanding our Cognoscenti range besides bringing in specialised watches Internet messenger and heart rate monitor," Kapoor added.
The company is also developing India-specific goods and these products would add to the golden Glitterati collection, which is priced between Rs 1,000 and Rs 5,000.
"This new investment in the form of additional equity reiterates Timex's commitment and confidence in its Indian operations," he said.
TWL has increased its sales by 15 per cent over the last nine months thereby moving its market share up by 4 per cent to 22 per cent, Kapoor said.
The company has also tied up with Ebony, Pantaloon, Lifespring and Shoppers Stop for establishing shop-in-shops so as to promote the brand.
