BMS COLLEGE OF COMMERCE AND MANAGEMENT

Affiliated to Bangalore City University

V.V. Puram, Bengaluru – 560 004.

Bachelor of Business Administration

Batch of 2020-2023

FINAL YEAR

Under the Guidance of: Submitted by:

Ms. Yashaswini S Shreyas T A

Assistant Professor, BBA 6TH Semester

BMSCCM, BCU Reg. No: B2010885

Table of Contents
Sl no. Contents Pg no.

1. Introduction – Purpose of the report 03

2. Industry profile 04

3. Company Profile 05-

4. Job Description 13

5. Experience & Takeaways 15

6. Acknowledgement and Monetary Gain 20

2
INTRODUCTION

Bengaluru city university has incorporated institutional training as a component of

Bachelor of Business Administration (B.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 BBA 1 underwent training at TANISHQ JEWELLERY, Bannerghatta
Road for a period of 1 Month.

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,
Bengaluru 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 interrelated 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.

3
INDUSTRY PROFILE

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 Titan's 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 way jewellery is bought and sold in India.

It has created a revolution in the Indian jewellery trade and in jewellery buying behaviour,
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 favours 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.

4
COMPANY PROFILE
Tanishq is India's largest, most desirable and fastest growing jewellery brand in
India. Started in 1995, Tanishq is the jewellery 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 jewellery
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 jewellery
crafts of India. Jewellery 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 135,000 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 Karat meter, the only non-destructive means to check the purity of gold.

Tanishq also introduced professional retailing in the dis-organised Indian jewellery bazaar,
where women can shop with comfort and peace, without worrying about the purity of the
jewellery they are buying, as well as select from the best jewellery collections available in the
Indian market.

Tanishq today is India's most aspirational fine jewellery brand with 91 stores in 64 cities,
with an exquisite range of gold jewellery studded with diamonds or coloured gems and a
wide range of equally spectacular jewellery in 22Kt pure gold. Exquisite platinum jewellery
is also part of the product range.

5
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 Weakness

 Capture Rs
 Purity.
70,000 crore.
 Distribution
 Escalated gold
network and
cost lower
retailing stores.
margin.
 Award winning
deposit.
 Diversity in
jewellery / gold /
diamond/platinum
 Competitive
price.
Opportunities Threats

 Global market.  Competition.

 Low cost  Lack of skilled
jewellery. workers.
 Customized  Gold are not
jewellery design. seen as a source
 Concentrate on of investment.
gen-x by having
trendy jewellery.
 Expand retail
store.

6
Vision Statement:

 Vision:

To be innovative world class, contemporary and build India's most desirable brand.
 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.

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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 jewellery 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 cartage, 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 breath-taking 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

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Tanishq Gold

From the traditional harams, Mangal sutras 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 karat age, 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 kajiggers who craft the jewellery

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
jewellery 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

9
your individuality.

Eternal
Platinum jewellery 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 jewel. 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

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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 jewellery is an exhilarating
and unique experience. Cut and crafted with utmost care the diamond collection renders each
piece eternal.

 The Wedding Collection:

The bride blushes; everyone around smiles; the shinai 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.

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  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.

 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 jewellers 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.

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  The Colours of Royalty Collection:

Colours of Royalty a range of exquisite studded jewellery, 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 jewellery designs to present a
collection where fashion and tradition converge.
This line of precious stones and diamond jewellery 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 Colours of Royalty is a line of exclusive gems and stone studded jewellery that reflects
the grandeur of India's rich past represented through the varied meanings associated with
colours 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 jewellery that embodies the auspiciousness the
colour 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 jewellery 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 jewellery enjoys great
popularity and acceptance. Consumer survey indicates that women attach great inspirational
value to rubies, second only to diamonds.

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  The Aria Collection:

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

HUMAN RESOURCE DEPARTMENT

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

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 qualification Number of 10 Percentage
Employee
Under 900 29
graduates
Diploma and 568 18
ITI
Graduates 915 29

Post Graduates 383 12

MBAs 172 5

Professionals 196 6

Total 3,134 100

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.

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.

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Performance Appraisal:

'Performance Appraisal is an objective assessment of an individual's 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
Behavioural

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

B. High performer

C. Good performer
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:

Manpower Planning and the requisite budget will be prepared at the end of the
financial year.
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 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 desire 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 ts
and P.C. Chandra. Among the foreign players who entered the market were Cartiers, Tiffany,
De Beers and Ashton Mining.
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 Jewellers 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 India.
These measures led to the entry of foreign players like DeBeers, Tiffany and

Cartier’s 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 jewellers 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.

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 it's not just the products, it's 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

21
Harvest Savings Scheme, Gift Voucher purchase, Exchange of gold and
diamonds etc.
Golden Harvest Saving Scheme

Tanishq's "Golden harvest Savings Scheme" is one of the most lucrative savings schemes
that enable to save each month with Tanishq and plan for wedding jewellery 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, Tanishq's special bonus at the
end of the scheme period helps you stretch your jewellery budget.

How much money must one invest to enroll in the Savings Scheme?

You need to invest only Rs.500/- per month to enrol. 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 instalments) and an Extended Plan (18 month
instalments)
BONUS

60% of monthly installment in Annual Plan

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 scheme:

Installment Bonus for 12 months Bonus for 18 months
Amount (Rs.) Scheme Scheme
500 300 650
1000 600 1300
1500 900 1950
2000 1200 2600
2500 1500 3250
3000 1800 3900
4000 2400 5200
Exchange Policy in Tanishq
Exchange your old jewelry for new with Tanishq

PAGE 28
Most retailers have a differential buy back or different rates for selling and
buying gold jewellery. At Tanishq, a single gold rate is maintained for
buying or selling gold jewellery. 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 bank's
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

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.

PAGE 28
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 Aishwaya 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.

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.

PAGE 28
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. n
- 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.

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

PAGE 28
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.

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

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In leading newspaper 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

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 I 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 percent. 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 ales (Rs crore)

1996-97 2

1997-98 8

1998-99 3

1999-2000 141

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2000-01 188

2001-02 99

2002-03 89

"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 jewellers, each powerful in his neighbourhood.

One of the largest consumers of gold, the Indian household had a marked preference for 22-
karat gold, as opposed to the 1 8-karat designs that jewellery chains worldwide chose to do
their designs in. Not surprisingly, the sceptics 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 jeweller that people could buy from, despite that
India is the largest consumer of gold in the world.

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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- 2003-04 2004-05 2005-06 2006-07

03

Mar cap 218 500 1018 3530 4400

(crore)

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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.

The whole of Titan's 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 SBU's (Strategic Business Units)

RESEARCH AND DEVELOPMENT DEPARTMENT

Diamonds have always been the most desirable jewellery for every woman.

Understanding the growing inclination and fondness diamond jewellery, Tanishq, India's
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 high value 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 jeweller offers gold and gem-set jewellery (in 22 and 18 karat
gold) in over 6000 traditional, western, and fusion looks. The jewellery is manufactured in a
fully integrated manufacturing plant with state-of-the-art equipment. The Tanishq retail chain
currently includes 1 15 exclusive boutiques in 75 cities, making it India's first and largest
jewellery retail store chain.
Learning from internship

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.

CONCLUSION

Titan is facing very stiff competition, his competitive has forced. Titan to change its business
model to suit today's 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.