INTRODUCTION

Anna University has incorporated institutional training as a component of

Master of Business Administration (M.B.A) course. This training program is designed
with a view to enable the student to have an exposure and work experience in the
field.

As a student of M.B.A., I underwent training at TANISHQ JEWELLERY,

Hosur for a period of 1 Week.
Here, I am submitting the report of the institutional training. A detailed
working experience that I have gained during the training in various departments of
Tanishq, Hosur is presented. I have also given a brief profile of the organization to
which I have been deputed as a trainee.
A study on functional areas in the Tanishq jewellery ltd., deals with all the
functional departments of the company. All the departments play a vital role in the
company, each department performs separate task but they are inter related with each
other.
In order to make the work efficient the individual should be trained well.
Training is used as a tool for that and training differs based on curriculum and job
profile of each individual. The employees are given training in the organization to do
their work very easily.

OBJECTIVES OF THE STUDY

To study the functional areas.

To get an industrial exposure.

To learn the organizational activities.

To gain knowledge about the company.

To have an interaction with the industry people.

INDUSTRY PROFILE
2

Tanishq was coined from a combination of Tata/Tamil Nadu and Nishq (meaning
a necklace of gold coins) and, again, from Tan, meaning body and Ishq, meaning
love.
It was launched in 1994 as a range of jewellery and jewellery watches meant for the
European & American markets. But things began to change globally around this time,
and the West entered a protracted period of slow economic growth followed by
recession. Supplying jewellery to the Americans & Europeans suddenly no longer
seemed an attractive proposition.
Initially, the criticism for Titans foray into jewellery was loud and often bitter.
Eventually, however, the critics were silenced. Tanishq, today, is perhaps the only
major Tata brand with a strong appeal for women. Very importantly, Tanishq has
brought to the market a whole new standard of business ethics and product reliability,
in the process bringing about a transformation in the manner in which jewellery is
bought and sold in India.
It has created a revolution in the Indian jewellery trade and in jewellery buying
behavior, and continues to set new parameters of excellence for others to follow.
The Indian market, on the other hand, opened its doors to the world, and was now
flooded with foreign currency. By the time Tanishq established its manufacturing
facility and entered the market, the premises on which the project was based had
altered substantially.
Foreign currency was no longer an issue, import licenses were easy to obtain and the
global demand-supply equation for jewellery had shifted in favors of buyers. Tanishq,
therefore, switched tracks and shifted its focus to the Indian market and develop a
somewhat grandiose vision of the brand as a composite avatar of Cartier, Tiffany,
Esprit, and Ernest Jones all rolled in one.

COMPANY PROFILE
3

Tanishq is India's largest, most desirable and fastest growing jewelry brand in India.
Started in 1995, Tanishq is the jewelry business group of Titan Industries Ltd promoted by the TATA group, India's most respected and widely diversified business
conglomerate. It is located in Hosur (spicot).
This year marks a decade of successful innings for Tanishq. With retail sales of 1200
crore last years and gunning for 2000 crores this year, Tanishq has arrived in the
Indian jewelry market. It is a story of a successful Indian enterprise, which has
delivered value to its customers and shareholders in a complex category, marked by
its completely localized front end as well as back end.
Tanishq has set up production and sourcing bases with through research of the jewelry
crafts of India. Jewellry at Tanishq is crafted in one of the world's most modern
factories. The factory complies with all labour and environmental standards. Located
at Hosur, Tamil Nadu, the 1, 35,000 sq. ft. factory is equipped with the latest and most
modern machinery and equipment. Every product at Tanishq is painstakingly crafted
to perfection. Diligent care and quality processes ensure that the Tanishq finish is
unmatched by any other jeweller in the country.
Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. It
exploded the market with facts about rampant impurity across India. It introduced
technology-backed challenge in a category completely governed by individual trust.
Tanishq introduced innovations like Karatmeter, the only non destructive means to
check the purity of gold.
Tanishq also introduced professional retailing in the dis-organised Indian jewelry
bazaar, where women can shop with comfort and peace, without worrying about the

purity of the jewelry they are buying, as well as, select from the best jewelry
collections available in the Indian market.
Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64
cities, with an exquisite range of gold jewelry studded with diamonds or coloured
gems and a wide range of equally spectacular jewelry in 22Kt pure gold. Exquisite
platinum jewelry is also part of the product range.

Jewellery is one of the last great commodity frontiers in India; it has remained so
because this market is very fragmented, very unorganized. Tanishq has successfully
taken on the challenges of transforming this frontier into a reliable consumer space
by bringing to it all the virtues and benefits that branding offers".
- Harish Baht, CEO, Tanishq.

Swot analysis
Strength
Purity.
Distribution network and retailing
stores.
Award winning deposit.
Diversity in jewellery / gold /
diamond / platinum.
Competitive price.
Opportunities
Global market.
Low cost jewellery.
Customized jewellery design.
Concentrate on gen-x by having
trendy jewellery.
Expand retail store.

Weakness
Capture Rs 70,000 crore.
Escalated gold cost lower margin.

Threats
Competition.
Lack of skilled workers.
Gold are not seen as a source of
investment.

Vision Statement:
Vision:
To be innovative world class, contemporary and build Indias most desirable
brands.

Customer focus:
Titan passionate about understanding customer needs and expectation
delighting a customer is therefore a nature outcome.

Creativity and innovation:

They were ideas company creativity and innovations are lifeblood.

Performance culture and team work:

They dare to dream big and work together to realize it. High performance is a
way of life with them.

Quality:
They will attain and maintain excellence in all that they do.

Wealth creation:
They ensure creation of value in all that they do for stake holders.

Respect and care for the individual:

They value every Titanium and strive to fulfill his/her needs and aspiration.

Corporate citizenship:
They care about the environment and the community; they live in and will
invest a part of their resources in improving them.

Mission Statement:
Titan seeks to achieve these value goals through a focused pursuit of
outstanding quality in both the ends that we target and the means that we adopt. Titan
encourages and enables individuals and groups to realize their fullest potential
through rationality and creativity, cerebration and passion, transparency and
informality, pride in the past and excitement about the future.

FUNCTIONAL AREAS OF TANISHQ JEWELLERS

Production.
Human resource.
Marketing.
Finance.
Systems.
Research and development.

PRODUCTION DEPARTMENT
PRODUCT LINE AND COLLECTION
Tanishq Diamonds
The sparkle of diamonds has always attracted the human eye.
Finding your perfect piece of diamond jewelry is an exhilarating and unique
experience. As with any significant purchase, it is important that you make an
educated decision.
Cut and crafted with utmost care, Tanishq diamonds come with a certificate of
authenticity, stating the caratage, colour and clarity of the stone, to enable you to
know exactly what you are paying for.
No gemstone expresses human emotions more powerfully than a diamond and
Tanishq transforms these precious stones into breathtaking masterpieces, each unique
and splendid in design. When it comes to diamonds at Tanishq you will be spoilt for
choice from many collections we have to offer.

Tanishq Gold
From the traditional harams, mangalsutras and thalis to the more fashionable earrings,
chains, bracelets and rings, there is a lot to choose from at Tanishq.
In India Gold has always been associated with security and is the most valuable form
of investment. However, it has been observed that consumer is an easy target to
several malpractices like under karatage, under valuation of the gold sold and unfair
buy back policies due to the lack of awareness about these issues.
Tanishq propagates ethical practices not only by assuring the customer purity and
selling policies, but also fair policies to the karigars who craft the jewelry

Tanishq's designs in Pure 22k gold are not only unique, expressing the wearer's
individuality but each piece is subject to the intricate process of design, crafting and
stone setting with stringent quality standards at every point. At Tanishq, we cater to
every occasion. Our collections in gold abound from the grandiose wedding collection
to exotic kundan and polki, from the stunning Aarka collections to the exclusive
Nakashi work. We ensure that we have something for everyone with our baby range,
9 to 5 for the working woman and high fashion, men's wear, teen's collection and
regional specific designs.

Tanishq Platinum
Metal at its best.

Pure
Platinum's purity endows it with a brilliant white luster. This helps to reflect the true
radiance of diamonds. Because it is generally 95% pure (18 karat gold is 75% pure),
platinum jewelry does not fade or tarnish and keeps its looks for a lifetime.

Rare
Platinum is rare, the coveted treasure of discerning individuals. There is very little
platinum on this earth and it is found in very few places around the world. This
exquisite metal is 30 times rarer than gold. Platinum's rarity makes it exclusive and
distinctive - a celebration of your individuality.

Eternal
Platinum jewelry is the perfect choice for a lifetime of everyday wear. Platinum does
not wear away and holds precious stones firmly and securely. All precious metals can
scratch, and platinum is no exception. However, the scratch on a platinum piece is
merely a displacement of the metal and none of its volume is lost.
Some of the world's most famous gems are set in platinum, such as the Kohinoor
diamond, part of the British crown jewels.

Platinum and White Gold are distinctly different materials and must not be confused.
Platinum is a metallic element while White Gold is a Gold alloy, which gets its white
colour due to palladium or nickel.
Tanishq's Platinum represents excellent value for money. The price may be higher
than a similar item in gold but platinum is pure, rare, enduring, beautiful, luxurious,
classic, and the perfect host for diamonds; precious qualities that make it worth
paying that little bit extra for.

THE COLLECTIONS
The Diamond Collection:
No gemstone expresses human emotions more powerfully than a diamond After all, a
diamond is timeless and finding your perfect piece of diamond jewelry is an
exhilarating and unique experience. Cut and crafted with utmost care the diamond
collection renders each piece eternal.

10

The Wedding Collection:

The bride blushes; everyone around smiles; the shenai announces festivity; the priests
chant auspicious promises; She walks demurely; A vision of beauty; her jewels are
exquisite; Crafted by the best in the land; as pure as the blessings bestowed on here.

The Zoya Collection:

Intricacy coupled with the simplicity; The magnificence of history interwoven with
linear contemporary; Secrets of the pharaohs masked with the mystery of the cosmos;
oriental art embellished with occidental architecture; nature's bounty matched with
man's ingenuity.

The Fashion Earring Collection:

The Fashion earring collection', has a range of over 300 exclusive designs. Keeping in
tune with the raging popularity that earrings currently enjoy, the Tanishq design team
has created the Fashion earring collection, inspired by the evergreen Jhumkas or
Karnaphools and the trendy Chandelier and delicate Stiletto designs.

11

The Kundan and Polki Collection:

Influenced by the mughal era Kundan work requires special craftsmanship and a
myriad of stages, each crafted by a different set of highly skilled karigars.
Tanishq as a revitalize of tradition brings to life techniques and motifs of the period
through our exquisite collections of Kundan and Polki (uncut diamonds).
It is difficult for jewelers to ensure the purity and correct grammage of the product
since it involves so many stages. However, Tanishq ensures the karatage and net wt of
the product.

12

The Colors of Royalty Collection:

Colors of Royalty a range of exquisite studded jewelry, reminiscent of the magical
Victorian era. The collection is inspired by the classic design essence and sensibilities
found in the architecture, fashion, design, drapes and patterns of the Victorian period.
Tanishq has incorporated the timelessness of these styles into exquisite jewelry
designs to present a collection where fashion and tradition converge.
This line of precious stones and diamond jewelry in 18k from Tanishq comprises
more than 200 pieces and is by far the largest studded collection launched by us.
This exclusive collection was launched at the Ponds Femina Miss India 2006, where
the 25 finalists wore it. The Colors of Royalty is a line of exclusive gems and stone
studded jewelry that reflects the grandeur of India's rich past represented through the
varied meanings associated with colors in our lives.

The Moham Collection:

The collection comprises designs, motifs inspired by nature that have been beautifully
crafted to make them the most desirable possession this season.
Moham is a range of exclusive ruby studded jewelry that embodies the auspiciousness
the color red has in our lives. Rubies have been associated with prosperity, passion
and have been the most coveted gemstone for many years. It is a must have for a
Indian women. This range attempts to strike a balance between convention and
fashion by creating designs suitable for the progressive Indian woman, rooted in her
tradition.
This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k.
This launch reiterates Tanishq's focus on catering to region specific tastes and
preferences. India offers great potential for the Moham collection where Ruby
studded jewelry enjoys great popularity and acceptance. Consumer survey indicates
that women attach great inspirational value to rubies, second only to diamonds.
13

The Aria Collection:

Aria is a collection of variety of everyday jewellery which depicts
various moods and feelings.

HUMAN RESOURCE DEPARTMENT

14

The company has a total of 3134 permanent employees as on 2006, working

in various departments including corporate office, company owned show rooms,
factories and other units, they also have various trainees, contract workers and
apprentices who are hired on a job work or on a temporary contract.
Employees are classified into different levels, namely:
1. E Level: It constitutes the workmen at the factories.
2. L Level: It constitutes junior to middle management.
R are those employees who work in both watch and jewellery division.
3. Senior Management level.
Qualification
Undergraduates
Diploma and ITI
Graduates
Post Graduates
MBAs
Professionals
Total

Number of Employees
900
568
915
383
172
196
3,134

Percentage
29
18
29
12
5
6
100

Recruitment:
In case of recruitment for the vacancies approved by the Management, the
recruitment will be done automatically except if the indenting section wants to
postpone or advance it, in which case they have to send a separate note for it.
As far as possible internal mobilization of people would be looked into and in
case of non availability of the right manpower within the company, we may either
refer to the application bank or advertise.
Recruitment will be carried out according to the standards specified in the
recruitment Standards Annexure.

15

As far as possible, the vacancies will be filled with trainees and wherever
previous experience is a must we will resort to experienced people. For each category
the selection process will be as follows.
Process of Selection:
Category
Operator Trainee (OPT)

Selection Process
Psycho Diagnostic Test (PDT)
Written Test, (WT), Practical Test (PT),
Interview, Medical & Security
Verification (SC)

Craftsperson Trainee (CPT)

Graduate trainee

PDT, WT, PT, Interview, Medical & SV

PDT, WT, Intelligence Quantitative Test
(IQT), Interview, Medical, SV &
Personality Test

Technician Trainee / Supervisor Trainee

(TT/ ST)

PDT, WT, IQT, Interview, Medical, SV

& Personality Test

Programmer Trainee / Engineer Trainee /

Personnel Officer Trainee (PT /E T /
POT)
Officer Trainee (OT)

PDT, WT, Interview, Medical &

Personality test.

Management Trainee (MT)

GD, Interview & Medical

Others Up to L3

PDT, WT if needed, Interview, Medical

& SV

L4 to L5

GD if needed, Interview by Panel, f

needed to be seen by VP concerned
Medical & Business Head

L6 and above

Candidate Panel Interview / Concerned

VP should be seen by Business Head or
approval on Bio Data to be obtained
before recruiting the candidate.

Group Discussion (GD), Interview &

Medical

Interview candidates will be reimbursed their traveling expenses depending

upon the category, if they travel beyond 40 kms radius from place of interview.
For L1, L2, L3, L4, L5 category actual to and bus fare will be paid.
16

For a Managerial position either first class train fare or air fare will be
reimbursed as being mentioned in the call letter. The decision will be made by the
respective VP and Head of Human Resources.
Performance Appraisal:
Performance Appraisal is an objective assessment of an individuals
performance against well defined bench marks. The performance appraisal method
followed is based on the subordinate relationship, whereby the superiors rate their
subordinates.
Training:
Training is an ongoing processes aimed at capability building of the employees at all
levels. Training programs are classified into the following categories:

Skills

Knowledge

Behavioral

Workmen capability building:

Training and development for unionized employees at the manufacturing units is
focused on skills programs like personal touch to address interpersonal are related
issues were conducted.
Employee retention/ Incentive plans:
Company has an annual appraisal system in place and pursuant to this
system, performance linked pay, annual variable pay and/or commission is paid to the
employees.
The performance of the employees is classified into namely:
A. Extremely High performer
17

B. High performer
C. Good performer and
D. Performer
Trade union:
The company has one registered union being the Titan employee union (union),
which is registered or affiliated with any political party or other organization.
Tata code of conduct:
All the employees are bound by the Tata code of conduct under which they are
required to deal on behalf of the company with professionalism, honesty, integrity, as
well as high moral and ethical standards. Such conduct is to be fair and transparent
and be perceived.
Manpower and Business Plan:
o Manpower Planning and the requisite budget will be prepared at the end of the
financial year.
o General Manager HR will prepare manpower budget and get the approval for
any new recruitment from concerned.

MARKETING DEPARTMENT
Marketing Equals the Four Ps
Part of marketing is identifying the mix of "Ps" that makes your service unique. This
is also called your marketing mix. The next step is to shape your marketing mix and
position its components to create a unique identity for your business that attracts and
18

retains customers. Your market position is one or more selected benefits or features
that make your operation unique and different.
Product
Price
Place
promotion
The following steps will help you define your marketing mix:

Identify your target market.

Determine what the target consumer desires.

Assess

whether

you

have

any

advantages

over

your

competition in delivering the desired service.

Choose the position that is more valued by the customer.

TANISHQ MARKETING STRATEGY

When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs
40,000 crore was mostly unorganized, with around 3.5 lakhs players. India was the
second largest consumer of gold in the world after USA. Before 1992, only the Metal
and Mineral Trading Corporation and the State Bank of India were allowed to import
gold. In 1992, as part of economic liberalization, the government abolished the Gold
Control Act of 1962, allowing free import of gold. In 1993, private companies were
allowed to enter the hitherto restricted gold and diamond mining industry. Foreign
investors were allowed to hold up to 50% equity in mining ventures.
In the 1990s, a number of brands entered the Indian jewellery market. In 1995,
Mumbai based jewellery exporter, Gitanjali Jewels, started selling 18-carat gold
jewellery under the brand name of Gili. Su-Raj (India) Ltd. launched its 22-carat gold
and diamond jewellery in 1997. Other well known domestic players included
Tribhovandas Bhimji Zaveri, Mehrason's and P. C. Chandra. Among the foreign
players who entered the market were Cartiers, Tiffany, De Beers and Ashton Mining.

19

Titan realized that there was a huge untapped market for branded jewellery in India.
The critical success factors in the business were quality, fashionable design, and good
after-sales service. Titan also observed that the changing lifestyles demanded lighter
and trendier jewellery.
After its launch, Tanishq faced several problems. With its original focus on exports,
Tanishq's designs had been conceptualized for the Western markets and were
introduced in India without any alterations. Formal consumer surveys showed that
though brand awareness was quite high, it suffered from several negative perceptions.
Many potential customers thought the products were over priced and associated the
brand only with the rich.
Hence, Titan decided to change its strategy on two fronts:
Value proposition
Retailing.
The Tanishq strategy for the coming couple of years relies on two things increasing
penetration in the domestic markets and going abroad in order to diversify its revenue
portfolio.
Gold Jewelers Market in India
Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were
allowed to import gold.
The abolition of the Gold Control Act in 1992, allowed large export houses to import
gold freely. Exporters in export processing zones were allowed to sell 10 percent of
their produce in the domestic market.
In 1993, gold and diamond mining were opened up for private investors and foreign
investors were allowed to own half the equity in mining ventures.
In 1997, overseas banks and bullion suppliers were also allowed to import gold into

20

India. These measures led to the entry of foreign players like DeBeers, Tiffany and
Cartiers into the Indian market.
In the 1990s, the number of retail jewellery outlets in India increased greatly due to
the

abolition

of

the

Gold

Control

Act.'

This led to a highly fragmented and unorganized jewellery market with an estimated
100,000 workshops supplying over 350,000 retailers, mostly family-owned, single
shop operations.
In 2001, India had the highest demand for gold in the world; 855 tons were consumed
a year, 95% of which was used for jewellery.
The bulk of the jewellery purchased in India was designed in the traditional Indian
style. Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking
was not very common in India, under-cartage was prevalent.
According to a survey done by the Bureau of Indian Standards (BIS), most gold
jewellery advertised in India as 22-carat was of a lesser quality.
Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as
22-carat gold jewellery. The late 1990s saw a number of branded jewellery players
entering

the

Indian

market.

Titan sold gold jewellery under the brand name Tanishq, while Gitanjali Jewels, a
Mumbai-based jewellery exporter, sold 18-carat gold jewellery under the brand name
Gili.

Tanishq - Strategies for Wooing Customers

In the late 1990s, players in the branded gold jewellery market formulated strategies
for wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer
of Tanishq, the challenges were many.
21

As the jewellery market was highly fragmented, lacked branding, and allowed many
unethical practices to flourish, Tanishq worked hard on a two-pronged brand-building
strategy: cultivate trust by educating customers about the unethical practices in the
business and change the perception of jewellery as a high-priced purchase.

TANISHQ FOR YOU

At Tanishq its not just the products, its the experience that matters. We make sure
that we give you the premium quality of not only product but service as well. Tanishq
not only has an exquisite range of designs to meet all your requirements we also offer
the benefit of any modification or customization on products.
There are host of value added services that you can avail of at Tanishq like the Golden
Harvest Savings Scheme, Gift Voucher purchase, Exchange of gold and diamonds etc.

Golden Harvest Saving Scheme

Tanishqs Golden harvest Savings Scheme is one of the most lucrative savings
schemes that enable to save each month with Tanishq and plan for wedding jewelry
purchases. Your monthly installments are safe with us, whereas savings at home could
easily get spent. This scheme provides you with much better returns than other saving
options like bank deposits or post office savings schemes. In addition, Tanishqs
special bonus at the end of the scheme period helps you stretch your jewelry budget.

How much money must one invest to enroll in the Savings

Scheme?
You need to invest only Rs.500/- per month to enroll. You could also deposit a
larger sum, as long as they are in multiples of Rs.500/- You can choose from two
convenient savings scheme options- an Annual Plan (12 month installments) and an
Extended Plan (18 month installments).
BONUS:

60% of monthly installment in Annual Plan

22

130% of monthly installment in Extended Plan

At the end of the scheme period, pick up Tanishq jewelry of your choice worth the
amount deposited plus the BONUS
Installment Amount Bonus for 12 months Bonus for 18 months
(Rs)
scheme
scheme
500
300
650
1000
600
1300
1500
900
1950
2000
1200
2600
2500
1500
3250
3000
1800
3900
4000
2400
5200
5000
3000
6500

Exchange Policy in Tanishq

Exchange your old jewelry for new with Tanishq
Most retailers have a differential buy back or different rates for selling and buying
gold jewelry. At Tanishq, a single gold rate is maintained for buying or selling gold
jewelry. 8% of the value is deducted for costs involved with testing, refining and taxes
for the jewelry given by the customer.
When you exchange any Tanishq gold coin with jewelry, you get the benefit of the
current gold rate and full value exchange without deduction. When you exchange any
other banks gold coin with jewelry there is a 4% deduction on value. This deduction
is made for handling and transportation costs and for refining the metal received on
exchange.
Purity Checks
Purity checks allow lovers of the yellow metal to test the purity of the gold they
already own. Playing a significant role in this is the Karat meter, which is the most
scientific measure of purity in the world. It uses X-rays to give an exact reading of the
purity of gold in just three minutes, giving the consumer an unmatched benefit when
buying or selling gold. It is in fact the most scientifically proven, non-destructive
means of testing the purity of gold. Due to its excellent precision, X-ray analysis has
been adopted by international agencies as well as by BIS in India as part of the
certification process used to Hallmark Gold.
Anuttara
23

You can also become the member of Tanishqs loyalty programme

Anuttara and avail of various discounts and priveleges.

SOME OF TANISHQS COMPETITORS

Asmi
Asmi, one of the leading diamond brands of the country, was launched, in 2002 by
The

Diamond

Trading

Company

Ltd,

(DTC).

The brand has been endorsed by various celebrities such as Kajol, Mandira Bedi &
Perizad.
All these women epitomize the different strengths. An Asmi woman is closely
identifies with free-spirited, goal-oriented & with an inner fire.

Nakshatra Diamonds
The world renowned Nakshatra diamonds were launched in 2000, with an equally
dazzling Aishwarya Rai as its brand ambassador. In the present scenario Nakshatra
diamonds occupy a leading position in the fashion diamond jewelry segment. The
traditional diamond is the most wanted design among Nakshatra diamonds.
Gili
Gili was launched in 1994, targeting mainly the youth who wanted to celebrate
Valentine's Day. Since then, the brand has clocked a turnover of Rs. 90 crores.
Nirvana Diamonds
Nirvana Diamonds from Fine Jewellery (I) Ltd. was launched in 1987 in India.
24

Nirvana diamonds are targeting at fashion conscious, modern and independent

thinking women. Internationally acclaimed Nirvana diamonds are manufactured by
using state-of-the-art technology. As a proof of their quality Nirvana was among one
of the brands to offer lifetime warranty to its consumers.
D'damas Diamonds
D'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond
houses established in India in 1966. On the present day D'damas Diamonds offer
highly modernized diamond cutting and polishing facilities at five locations in India.
D'damas Diamonds claim to promote a range of emotions through their collection.
TANISHQ MARKET RESEARCH
MARKET research On TANISHQ
Tanishq emerges as the best known brand with the highest awareness and recall. The
difference between the leaders and the followers is always greater when the former
have a head start. And when the pace and efforts of the leaders intensify, the
possibility that they will continue to be at the top is a foregone conclusion. The
Solitaire - TNS Survey shows that Tanishq is the best known brand across the three
cities of Mumbai, New Delhi.

25

India's Top Ten Best Known Jewellery Brands

TANISHQ - THE TURN AROUND STORY

When we started out we didn't think that we could achieve this, but
now being jewellers to the nation doesn't seem so distant."
- Tanishq COO, Vasant Nangia.

The Unsuccessful Launch

In 1995, Titan Industries, India's leading manufacturer of watches, launched the
Tanishq range of gold watches and jewellery. Till then, the Indian jewellery market
was to a large extent unorganized, with a few recognized names such as Tribhovandas
Bhimji Jhaveri and Mehrason's.

26

An entirely new concept in the Indian market thus had to struggle hard to be accepted
by the customers. Industry watchers were extremely skeptical of Tanishq and doubts
were being cast over its prospects. Tanishq began by offering jewellery in the 18-carat
gold range, with designs borrowed heavily from contemporary European brands. The
company justified its decision saying that it wanted to be 'different' from the
traditional Indian offerings.
Tanishq performed very badly in the next three years, posting a huge loss in 1997-98,
proving its detractors right. Jacob Kurian, Tanishq's chief operating officer admitted,
"Tanishq, as a concept, was far too ahead of its times." Even if one agreed with
Kurian, it could not be denied that Tanishq did commit mistakes.

Future Prospects
The Indian branded jewellery market, though nascent, grew at the rate of 20-30%
during 1998-2000. Besides Tanishq, other major players included Intergold, Gili and
Carbon. However, in the Rs 400 billion Indian jewellery market, Tanishq's share was
not even 1%.
Not willing to accept this as a 'poor show,' Tanishq saw it as a vast opportunity
instead. The company planned to attain a 2% market share in the next few years.
Kurian said, "The jewellery market is one of the largest consumer segments in the
country. It has an estimated 2, 50, 000 retailers with no national or international brand
and no corporate player.
Titan believes that this market is right for consolidation. A consumer-oriented, highly
ethical corporate player will have great opportunity. Our growth rates in the past three
years have fully substantiated this hypothesis." Tanishq had ambitious plans to invest
in information technology and utilize Intranets and the Internet to link all of its
showrooms to one another. There were also plans to do online monitoring of sales and
design popularity as well as using the Internet to place orders. The Intranet was to
contain a photo collection of all the designs in all the stores so that even those not in
stocks in a particular store could be ordered by customers.

27

In May 2000, Tanishq unveiled plans to surpass its parent company's turnover by
2002. Jacob Kurian who had taken over as the CEO the same month, said, "We have
finally figured out the jewellery business and should be solidly profitable, shorn of
any caveat, this year.
PROMOTION, ADVERTISING & PUBLIC RELATION
Promotion
Tanishq launches Free gold coin offer campaign
Tanishq launched its "Get Gold free with Diamonds" promotional offer were
customer be entitled to win at least one 22-kt one-gram gold coin on every purchase
of diamond jewellery worth Rs 5,000 and above.
"Get Gold free with Diamonds' caters to the aspirations of Indian woman by
providing an opportunity to

own diamond jewellery and win gold, which is a huge

investment opportunity.
Akshaya Tritiya is one of the four most auspicious days of the Vedic calendar. The
Akshaya Tritiya pre-booking scheme along with the 10 per cent deduction on making
charge offer is available across all Tanishq boutiques

Advertising
Ms Karishma Kapoor the bollywood actress is the brand ambassador of the Product
Tanishq.

T V Advertisement
Tanishq focus on the emotional attachment in the advertisement like engagement,
marriage and such other occasions.

Print advertisement
In leading news paper and famine magazines are targeted to do the advertisement.
In short they know their target market and hence do advertising as required.

Bollywood tie-up

28

Has done tie up with Paheli where in the movie Ms Rani Mukherji Was seen wearing
Tanishq jewellery through out and in Jodha Akbar Movie were they launched a
product line named Jodha Akbar.

TANISHQ IN THE NEWS

Priya Ganapati in Bangalore | July 04, 2003
Jacob Kurian, chief operating officer (jewellery), Tanishq isn't tired of saying that the
story of his company mirrors a Bollywood movie. There's drama, celebration, then
betrayal in the family, followed by action and, of course, a happy ending. Tanishq, the
jewellery business group of Titan Industries, is the blockbuster action thriller from the
Tata group.
After five years of consistent losses, the company, on Thursday, announced the
completion of a dramatic three-year turnaround culminating in annual sales growth of
39 per cent and profit growth of 318 per cent. During 2002-03, Tanishq recorded a
sales turnover of Rs 389 crore (Rs 3.89 billion) -- at consumer prices. By 2007, it
hopes to take that to Rs 800 crore (Rs 8 billion).
Today, Tanishq has already become one of the top five retailers in the country. It
contributes 40 per cent to Titan's business and is expected to account for 55 per cent
by 2007. By then, Tanishq's profitability will also be good enough to offer 28 per cent
return on deployment of 25 per cent of the capital.
Sales
Year

Sales (Rs crore)

1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03

32
38
73
141
188
299
389
29

"Many people believe we should not be here today. They have kept telling us that the
business logic is against what we set out to do. But I am glad we have proved them
wrong," says Kurian proudly.
The estimated Rs 40,000 crore (Rs 400 billion) gold jewellery markets in India is a
rough one. There are over 300,000 jewelers, each powerful in his neighborhood.
One of the largest consumers of gold, the Indian household had a marked preference
for 22-karat gold, as opposed to the 18-karat designs that jewellery chains worldwide
chose to do their designs in. Not surprisingly, the skeptics were asking what Titan was
doing in the jewellery business.
In the late eighties, when India was facing a massive foreign exchange crisis, Titan,
the watches division, was told to look for a way to earn its own foreign exchange.
Jewellery seemed like a huge and interesting market to get into and Titan decided to
set up Tanishq as a jewellery division that would be focused largely on exports.
However, by the time it acquired the skills and set up the plant, the world had
changed. India no longer had a foreign currency problem, imports were easy to come
by, demand had come down in the global market, supply had grown in Asia and
margins had become very thin.
Tanishq then decided to focus on the Indian market. In August 1992 a pilot plant was
set up and production started in two years later. In 1996, Tanishq launched its first
store. It was a hitherto untried concept. The jewellery business in India was highly
fragmented and ruled over by local players. There was no national jeweler that people
could buy from, despite that India is the largest consumer of gold in the world.
Profits generated
Year

Profits generated (Rs crore)

1996-97
1997-98
1998-99
2000-01

- 10.60
- 21.96
- 10.40
2.07
30

2001-02
2002-03

1.87
7.82

Contribution to Titan's growth

Year

Tanishq contribution to Titan

(in percent)

1996-97

1997-98
1999-2000
2002-03

14
24
43

Today, Tanishq counts companies like Hindustan Lever Limited, Pfizer, National
Panasonic, UB Group, Tata Tea and Tata Chemicals among its clients. "We saw
corporate sales as a new route to customer acquisition. Institutional sales help us beat
targets," says Kurian.

The challenges remain. Profit figures have yet to rise significantly. In 2002-03, on
revenues of Rs 389 crore (Rs 3.89 billion), Tanishq made a profit of only Rs 7.82
crore (Rs 78.2 million).
A slew of national brands have sprung up. From Nakshatra to TBZ to Carbon,
Tanishq has to battle a lot more at the market place.
Yet, Kurian says now it's a great time to be in business. "We believe jewellery
business is one of the few 'China-proof, Wal Mart-proof' kind of businesses,"

31

FINANCE DEPARTMENT
The finance department is lifeblood of organization.

The main role of finance

department is supporting manufacturing is that they process the purchase orders,

release payment to the suppliers.
The main source of income is through sales collection; inter corporate deposits and
other short term loans. Besides these, disbursement of salaries to the employees,
reimbursement of travel expenses and other small time purchasing activities. They
also support manufacturing in arriving at Make or Buy decision.
Product costing is also done here. The product costing is done by calculation the
utilization of machines and other fixed costs. The costing method that is followed is
Standard costing method.

2006-2007 financial years:

Company income crossed RS 2000 crore mark.
PBT crossed RS 100 crore marks.
Share price crossed RS 1000 and market capitalization crossed a billion
dollars.

Market capitalization:
Year
2002-03
Mkt cap
218

2003-04
500

2004-05
1018

2005-06
3530

2006-07
4400

(crs)

32

5000
4000
3000
2000
1000
0
2002-03 2003-04 2004-05 2005-06 2006-07

Balance Sheet of Titan Industries

------------------- in Rs. Cr. -------------------

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Net worth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances

Mar '06

Mar '07

Mar '08

Mar '09

12 mths

12 mths

12 mths

12 mths

82.28
42.28
0.00
40.00
150.30
0.00
232.58
148.84
119.09
267.93
500.51
Mar '06

44.39
44.39
0.00
0.00
283.06
0.00
327.45
172.67
74.34
247.01
574.46
Mar '07

44.39
44.39
0.00
0.00
391.78
0.00
436.17
188.11
69.78
257.89
694.06
Mar '08

44.39
44.39
0.00
0.00
506.85
0.00
551.24
116.76
58.65
175.41
726.65
Mar '09

12 mths

12 mths

12 mths

12 mths

420.42
243.97
176.45
19.56
27.02
374.39
90.12
38.29
502.80
150.96

515.48
264.34
251.14
15.97
27.02
677.48
92.06
50.73
820.27
179.06

558.07
285.61
272.46
9.99
47.39
1,021.09
96.45
51.91
1,169.45
111.34

593.04
318.56
274.48
19.52
7.66
1,202.69
106.22
54.69
1,363.60
128.82

33

Fixed Deposits
Total CA, Loans & Advances
Deferred Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

0.00
653.76
0.00
363.89
26.72
390.61
263.15
14.31
500.49

0.00
999.33
0.00
571.26
151.96
723.22
276.11
4.21
574.45

0.00
1,280.79
0.00
842.68
73.90
916.58
364.21
0.00
694.05

0.00
1,492.42
0.00
974.00
93.44
1,067.44
424.98
0.00
726.64

64.22
45.55

76.01
73.77

58.41
98.26

65.46
124.18

Profit & Loss account of Titan

Industries

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalized
Total Expenses

Operating Profit
PBDIT
Interest
PBDT
Depreciation

------------------- in Rs. Cr. ------------------Mar '06

Mar '07

Mar '08

Mar '09

12 mths

12 mths

12 mths

12 mths

1,509.92
41.19
1,468.73
-9.74
72.58
1,531.57

2,181.69
46.22
2,135.47
4.71
246.22
2,386.40

3,098.20
47.35
3,050.85
-4.39
297.89
3,344.35

3,926.09
44.34
3,881.75
-5.91
178.67
4,054.51

981.62
10.02
109.41
3.46
248.68
41.01
-0.89
1,393.31
Mar '06

1,620.65
11.55
157.40
5.60
331.79
69.63
-0.52
2,196.10
Mar '07

2,431.79
13.90
189.66
5.96
358.05
84.12
-0.02
3,083.46
Mar '08

2,940.86
16.11
234.20
8.99
427.47
86.20
-0.09
3,713.74
Mar '09

12 mths

12 mths

12 mths

12 mths

148.00
138.26
31.71
106.55
19.66

185.59
190.30
33.07
157.23
25.59

265.28
260.89
39.44
221.45
29.73

346.68
340.77
68.46
272.31
41.76

34

Other Written Off

Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualized)
Shares in issue (lakhs)
Earnings Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

0.00
86.89
-0.93
85.96
12.34
73.62
411.69
2.72
13.32
2.25

0.00
131.64
-0.20
131.44
37.32
94.33
575.44
0.39
22.19
3.83

0.00
191.72
2.57
194.29
44.02
150.27
651.68
0.00
35.51
6.04

0.00
230.55
-10.92
219.63
60.68
158.96
772.88
0.00
44.39
7.54

422.76
16.77
30.00
45.55

443.89
21.16
50.00
73.77

443.89
33.85
80.00
98.26

443.89
35.81
100.00
124.18

35

SYSTEMS DEPARTMENT

The IT requirement of Titan is fulfilled by the systems department. The

system department is integrated in its set up and is located at Hosur plant. The
system department primarily caters the hardware as well as software needs of
Titan. It supports its manufacturing, sales, finance and all the functions. The
following chart shows the brief functions of the systems department.

Systems
Hardware

Software

Hardware

Software

Certification

Certification

Maintenance

Maintenance

Outsourcing

Outsourcing

Development

Development
Up gradation

36

The whole of Titans manufacturing activities, marketing, finance,

planning are integrated through one of the leading and quality enterprise
resource planning software called SAP R3. The main advance of this software
is that it can take care of the entire activities of the plant.

The advantages of SAP are

Inventory reduction
Product lead timer education
Better utilization of machines
Better planning
Seamless integration with marketing
Lean manufacturing
Better Management Information System
Integration of SBUs (Strategic Business Units)

37

RESEARCH AND DEVELOPMENT DEPARTMENT

Diamonds have always been the most desirable jewellery for every woman.
Understanding the growing inclination and fondness diamond jewellery, Tanishq,
Indias most preferred jewellery brand introduced over 200 new exquisitely crafted
designs in high value diamond jewellery segment amidst glitz & glamour in Mumbai.
Crafted elegantly for a distinctive appeal and style, each piece of jewellery has a story
to speak, making them unique and timeless. These beautiful and magnificently
designed

hi-valued

of

necklace,

earring

and

bangles.

The evening saw some prominent names from the entertainment & fashion industry
present at the wine and cheese party organized to launch the exquisite designs in hivalue diamond jewellery from Tanishq. Gorgeous and renowned super models Nethra
Raghuraman, Tapur & Tupur Chatterjee, Alecia Raut among others walked the ramp
at the fashion show showcasing the exclusive collection. It was an evening adorned
with

style

and

substance.

Speaking about the collection, Mr. Sandeep Kulhalli, Vice President, Tanishq said,
The demand for diamonds has been rising steadily and even the conventional gold
buyer is now opting for diamond jewellery. As a part of our strategy, we are focusing
on high-value jewellery which is targeted at the affluent buyer who is less focused on
the

investment

value

and

is

looking

more

at

the

ornamental

value.

Tanishq, from the Tata Group, has been synonymous with superior craftsmanship,
exclusive designs and guaranteed product quality. Designed to embody the modern
day Indian women, Tanishq hi-value diamond jewellery is an ode to her sensibilities.
Tanishq has been continuously evolving to suit her needs at various occasions in her
life. It has built itself the envious reputation of being the only jewellery brand in the
country that strives to understand the Indian woman and provide her with pure
jewellery that meets both her traditional and contemporary jewellery needs.
Tanishq, India's only national jeweler offers gold and gem-set jewellery (in 22 and 18
karat gold) in over 6000 traditional, western and fusion looks. The jewellery is
38

manufactured in a fully integrated manufacturing plant with state-of-the-art

equipment. The Tanishq retail chain currently includes 115 exclusive boutiques in 75
cities, making it India's first and largest jewellery retail store chain.

Learning from ipt

The Plant layout is well designed to facilitate the workers in

their work
The inter relationship between the departments are good.
Welfare facilities provided are very good.
They are maintaining the Relationship with employers and
employees.
They conducting the training programs very effectively for
employees.
They have very good canteen facilities.
The Infrastructure is very well for working condition.

39

CONCLUSION
Titan is facing very stiff competition, his competitive has forced. Titan to change its
business model to suit todays requirement. Titan has diversified itself from watch
manufacturing to create itself a name in fashion accessories. Titan has all its focus on
Customer orientation.
The company has adopted World class manufacturing practices like TQM,
TPM, JIT 5S etc., to have value addition for its products and customers. Titan has
now adopted a lean manufacturing style from the contemporary one. The products
that are customer driven and highly market sensitive. The manufacturing capabilities
have been made flexible to suit the market need.

40

41

42