'Indian firms can acquire lesser-known Swiss watch makers'

Indian companies,especially gem and jewellery houses from Gujarat who want to diversify into diamond and gem studded watch business, have an excellent opportunity to initiate talks with lesser known but competitive watch makers of Switzerland in a bid to enter the European market, said Francis Sermet, chief executive officer, Development Economic Western Switzerland.

Sermet was in the city to invite industries from India to set up bases in Switzerland. Sermet said that there were several companies who were not as well known as the Swiss watch majors, but have a niche market and are very competitive.

"The second and third generation entrepreneurs no longer are interested in carrying on with the watch making business and are looking to sell off these companies. With Gujarat already having a strong gems and jewellery base and being the hub of diamond polishing in world, industrialists must look to acquire such Swiss companies," Sermet said.

In Switzerland alone, there are over 500 watch brands although only four major Swiss companies are known the world over.

Swatch, Rolex, Cartier and LVMH (Moet Hennessy Louis Vuitton) are the four biggest Swiss watch companies, having around 80 per cent of the entire Swiss watch industry turnover. The Swiss watch industry is worth around $8 billion annually.

Development Economic Western Switzerland has identified the gems and jewellery sector and the holding companies segments as two major segments where industrialists can invest in Switzerland, and gain entry into the Europe market.

"More than half of all companies entering Europe, set up base in Switzerland and then expand activities in Europe. Indian jewellery and gems businessmen, who are looking at diversifying their businesses into studded watches, can use Switzerland as the ideal base for such plans," he said.

Surat, in South Gujarat, alone accounts for about 90 per cent of the world's diamond cutting and polishing business, but India has been lagging behind as far as value addition is concerned.