Timex India Ltd has decided to shift its focus to the mid-premium segment of watches. It plans to phase out the low-end models -- priced up to Rs 500 -- because they are making losses.
In order to strengthen its presence in the mid-premium segment, the company plans to introduce about 80 new models under the 'Matrix collection' which will be priced between Rs 1000-3000.
"We see a huge potential in the mid-premium segment as, at present, there are only international brands in that more-profitable segment. The segment would now constitute about 50 per cent of our total product portfolio," Timex Watches managing director Kapil Kapoor said. He said Timex would be able to make its mark in the segment because it has the required competency in both technology and product experience.
The move is a part of the company's effort to cut its Rs 45-crore losses last fiscal by at least half this year. Timex proposes to manufacture watch components within India and save on import duties. Kapoor said these would be manufactured at the existing facilities and no additional investment would be incurred.
Timex is cutting infrastructure and the internalisation costs. In an effort to re-engineer infrastructure costs, the company has shut down its three regional offices and work has been transferred to the clearing and forwarding offices (CFA). "The CFA offices have lower operational costs and, since they are closer to the action place, the company has a better control on the market demand," Kapoor said.
Kapoor, however, added that the company would not cut on any expenditure on managing customer relations. He said Timex witnessed about 40 per cent growth during the first five months of the year.
In a board meeting held today, Frank Sherer, a nominee on the board of directors from the parent company, Timex BV of Netherlands, was appointed chairman of the local company. The development took place in the wake of the recent resignation of Amir Rosenthal.
The parent company has been increasing its stake in the Indian subsidiary since the last year. At present, the parent company holds about 80 per cent stake in Timex. Kapoor ruled out any further increase in stake by the parent in the near future. He said it would depend upon our requirements of additional funds.
