TITAN INDUSTRIES LIMITED

Titan Industries is the organization that brought about a paradigm shift in the Indian watch market when it introduced its futuristic quartz technology, complemented by international styling. With India's two most recognized and loved brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated watch manufacturer in the world. The success story began in 1984 with a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an international look, Titan Industries transformed the Indian watch market. After Sonata, a value brand of functionally styled watches at affordable prices, Titan Industries reached out to the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 100 million watches world over and manufactures 12 million watches every year. With a license for premium fashion watches of global brands, Titan Industries repeated its pioneering act and brought international brands into Indian market. Tommy Hilfiger, Hugo Boss and f c u k as well as the Swiss made watch Xylys owe their presence in Indian market to Titan Industries. Entering the largely fragmented Indian jewellery market with no known brands in 1995, Titan Industries launched Tanishq, Indias most trusted and fastest growing jewellery brand. Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India. Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment. Titan Industries has also made its foray into eyewear, launching Fastrack eyewear and sunglasses, as well as prescription eyewear. The organization has leveraged its

manufacturing competencies and branched into precision engineering products and machine building. With over 665 retail stores across a carpet area of over 810,072 sq. ft., Titan Industries has Indias largest retail network. The company has over 311 exclusive World of Titan' showrooms and over 650 after-sales-service centers. Titan Industries is also the largest jewellery retailer in India with over 127 Tanishq boutiques and Zoya stores, over 29 Gold Plus stores and over 150 Titan Eye+ stores. The company has two exclusive design studios for watches and jewellery Backed by 4,934 employees, two exclusive design studios for watches and jewellery, 11 manufacturing units, and innumerable admirers world over, Titan Industries continues to grow and sets new standards for innovation and quality. The organization is all geared to repeat the Titan and Tanishq success story with each new offering.

J.R.D.TATA - FOUNDER

JehangirRatanjiDadabhoy Tata was a pioneer aviator and a businessman of India. He received Indias highest civilian award, the Bharat Ratna in 1992 and the French Legion of Honour in 1954. He was the first Indian to obtain the pilot license issued in India in 1929 and later came to be known as the father of Indian aviation. He founded Indias first commercial airline, Tata Airlines, in 1932 which later was nationalized in 1946 to become Indias official airline, the Indian Airlines. In 1938, at the age of 34, became the head of the largest industrial group, Tata & sons. He directed the company for decades with major interests in Steel, Engineering, Power, Chemicals and Hospitality. Under his chairmanship, the company grew from $100 million to $5 billion and when he left the organization in 1988, the company had

developed into a conglomerate of 95 enterprises which either the company had started or had a majority stake. Titan Industries was started by J.R.D. Tata in 1984 few years before his exit from the company in 1988.

PRODUCTS

Titan Industries, best known as India's pioneering manufacturer of quartz watches, has also etched a niche for itself in some of the most competitive spaces in the fashion industry such as jewellery and eyewear. Precision engineering is another area of specialization that Titan Industries is proud of.  Watches: Being the world's fifth largest integrated watch manufacturer, Titan Industries has created and sold more than a 110 million pieces the world over. With a production rate of over 12 million watches per annum and a customer base of over 100 million, Titan Industries owns manufacturing and assembly operation centers in Hosur in Karnataka, Dehradun, Roorkee and Pant Nagar in Uttaranchal, Baddi in Himachal Pradesh, and an Electronic Circuit Boards (ECB) plant in Goa. Capturing the important market segments and the changing fashion trends, Titan Industries has brought forth four core watch brands: y y y Titan is designed for the mid-premium segment. Fastrack is crafted to fit the trendy fashion space with a focus on the youth. Sonata is created for the mass market and has emerged as Indias largest selling watch brand. y Xylys is fashioned for the premium market, aiming at the high-end connoisseur and new-age achiever.

The Titan brand architecture comprises several sub-brands, each of which is a market leader in own space. Notable among them are: Titan Edge, Titan Raga, Nebula, Heritage and several other collections like WWF, Zoop, Orion, Purple, Obaku and the Automatic series. The Titan portfolio owns over 60% of the domestic market share in the organized watch market. Titan Industries pride possession, a world-class design studio for watches and accessories, is the place where some of the most coveted creations have been conceptualized. Exclusive World of Titan and Fastrack showrooms and over 12,000 outlets in more than 2,554 cities in India make these much-sought-after watches available to the buyers. The watches are also offered internationally in 30 countries, with a special focus on the Middle East and Asia Pacific regions. The after-sales service, a benchmarked operation with a large network of exclusive service centers spread across the country, is one of the operation units with the fastest turnaround time in the world.  Jewellery: Following the suit of time products, Titan Industries Tanishq has been Indias largest, fastest growing and most popular jewellery brand. Tanishq offers a premium range of innovatively created gold jewellery with an aesthetic use of diamonds and precious, semi-precious stones in various hues. Arresting designs in 22kt pure gold as well as platinum are among the most admired products on the companys list. Gold Plus the recent retail plain gold jewellery offering is specifically created for semi urban and rural Indian market. The brand offers gold jewellery, as well as unique designs crafted with diamonds, American diamonds and other precious stones. Titan Industries boasts of 127 Tanishq boutiques, 2 Zoya stores and 29 Gold Plus stores in India. The enchanting jewellery patterns that are part of these brands originate in the well-equipped exclusive jewellery design studio of Titan Industries.  Eye wear: Titan Eye+ of Titan Industries offers sunglasses under its Fastrack brand. Prescription eyewear such as lenses and contact lenses is also part of the

range. Titan Eye+ offers frames, sunglasses, and accessories of Titan Industries in-house brands as well as other premium brands.  Precision Engineering: The Precision Engineering division of Titan Industries supplies precision components to the aviation and the automotive industry. As an Original Equipment Manufacturer (OEM), the company makes dashboard clocks for car manufacturers in Europe and America. Equipped with best certifications such as AS 9100B for the aerospace segment, TS 16949 for the automotive segment and the coveted Ford Q1 status - the highest supplier recognition from Ford Titan Industries also offers fully integrated automation solutions.

VISION & MISSION

Our Vision: To be a world-class, innovative, progressive organization and to build Indias most desirable brands. Our Mission: To create wealth for all our stakeholders by building highly successful businesses based on a customer-centric approach, and to contribute to the community.

Our Values and Standards: Total customer orientation - Customers take precedence over all else, always. Employee appreciation - We value and respect Titanians and endeavor to fulfill their needs and aspirations. Performance culture and teamwork - At Titan Industries, high performance is but a way of life and is nurtured by teamwork. Creativity and Innovation - Driven by innovation and creativity, we focus on smarter approaches and newer technologies. Passion for excellence - In all our pursuits, we ceaselessly strive for excellence. Corporate Citizenship - We ensure that a part of our resources is invested in environment and community betterment.

MANAGEMENT OF TITAN INDUSTRIES

BhaskarBhat Harish Bhat C K Venkataraman S Ravi Kant

- Managing Director - COO - Time Products Division - COO - Jewellery Division - COO - Eyewear Business & Executive Vice President-Corporate Communications.

Kailasanathan N H G Raghunath S Ramadoss SubbuSubramaniam C Srinivasan

- COO Precision Engineering Division - Chief Manufacturing Officer, Watches - Chief Human Resources Officer - Chief Financial Officer - Vice President - Sonata, Institutional Sales & Customer Service

Ronnie Talati

- Vice President and Business Head - Fastrack & New Brands

L R Natarajan V Govindraj SandeepKulhalli

- Chief Manufacturing Officer, Jewellery - Vice President - Integrated Retail Services - Vice President - Retail & Marketing, Tanishq

AjoyChawla

- Vice President and Global Business Head - Titan & Retail

Ramesh C S A R.Rajaram

- Vice President - IT & KM - Head Legal & Company Secretary

TANISHQ

Tanishq, Titans flagship line of jewellery is today a resounding success with discerning customers. Tanishq has performed exceedingly well and has set standards, in what could best be described as a largely unorganized and unscrupulous jewellery market. The growth of the brand has once again been a testament to the customer focus. Tanishq is today a hallmark of trust, an island of purity. It is a certified division under the ISO 9001:2000 Quality Management System Standards. Established to addresses the urban market, its growth has transformed Titan into the largest integrated jewellery manufacturer and outsourcing company of India. 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. Tanishq is India's fastest growing jewellery brand with a premium range of jewellery, studded with diamonds or colored gems in 18-karat gold, 22-karat pure gold and platinum jewellery. It is now one of India's largest specialist retailer and is transforming Indias jewellery market with a pan - India presence. Titan felt a need and created a means to offer elegant gold jewellery to smaller towns and rural markets. The recent launch of a retail initiative - Gold plus caters to the need. Both brands contributed to over Rs.450 million USD, and are still flourishing. Truly a phenomenon in itself, Tanishq is Titans pioneering Indian brand storming a market of over 300,000 independent jewelers. The brand is evolving faster than the market and is either leading or closing gaps between competitors in urban markets where Titan has a presence. Tanishq is a trustworthy, popular jewellery brand from Indias largest integrated jewellery manufacturer.Zoya, by Tanishq is a chain of luxury jewellery boutiques which targets elite, discerning ladies seeking designer wear of international standards. Zoya is a best-in-class shopping experience. Stores offer exquisite, artistically styled masterpieces,

studded in diamonds, apart from traditional, fusion polki and kundan jewelry. There are magnificent designs to choose from, all in ultra-premium luxury, these outlets showcase luxury unsurpassed.Zoya creations are world-class in terms of quality and have been crafted in India and abroad. It boasts the finest quality in India and is on par with the best in the world. Tanishq, India's largest, most trusted and fastest growing jewellery brand, offers traditional as well as trendy designs in gold, diamond and platinum. With retail sales of over Rs. 3000 crores last financial year, Tanishq has delivered value to its customers and shareholders. Backed by in-depth research in the jewellery space, the production and sourcing units of Tanishq create exquisite designs with faultless finish. Located at Hosur (Tamil Nadu) and Dehradun (Uttarakhand)) the 135,000 sq. ft. manufacturing unit is equipped with the latest and most up-to-date technology and tools. The unit also complies with the labour and environmental standards. Stringent quality standards ensure that every product at Tanishq is crafted to perfection with unmatched finish. With innovations like the karat meter - the only nondestructive means to check the purity of gold - Tanishq introduced technology-backed challenge in the category completely governed by individual trust. The brand propagates ethical practices and provides the customer a certification of purity of material and reselling policies. Following the line of ethical practice further, adequate policies are in place for the artisans who create the jewelry. Tanishq has a Golden Harvest savings scheme which is a unique Jewellery purchase scheme, leading to an easy purchase of Tanishq jewellery of your choice. With this scheme you can buy for more than what you save because Tanishq will add a special bonus at the end of the scheme. Tanishq introduced specialized retailing in the fragmented jewellery market of India. Today, with over 127 opulent stores in 76 Indian cities, Tanishq continues to rule the jewellery space.

Collections by Tanishq

The well known collections offered by Tanishq over time are:

 ARIA A line of diamond jewelry inspired by the traditional seven stone floral motifs.

 HOOPLA Ranges of diamond hoops that are a fashion craze worldwide.

 DIVA An exquisite range of jewelry that blends the softness of pearls with the brilliance of diamonds.

 COLLECTION G 9 to 5 working woman jewelry.

 LIGHTWEIGHTS A modern collection of pure 22K jewelry that looks heavy but feels light.

 SOLO A stunning range of affordable diamonds.

 COLOURS A range of 22K jewelry in different hues to make life more colorful.

Colours are the latest addition to the companys growing list of products offered by the company. Tanishq even custom makes Jewelry to suit specific and individual needs and has readymade prototypes at all stores to assist the customers in placing their orders.

State-of-the-Art Manufacturing Facility: Tanishq has set up its 135,000 sq.ft. production factory at Hosur, Tamil Nadu. Well equipped with modern machinery, this factory functions as the production and sourcing base for the research of the jewelry crafts in India. Every product here is painstakingly crafted to perfection to keep in line with Tanishqs repute. Presently, this factory employs more than three hundred and eighty highly skilled workforces, among who are award winning designers, who along with the rest of the team support the back end processes. The capability of Tanishq is supported by a number of tools such as the energetic Integrated Supply Chain Management system and the Vacuum Melting Unit (which ascertains the purity of the jewellery) among others. To maintain its status, Tanishq continuously incorporates different strategies from time to time to keep the fire of innovation burning, something that is most critical to todays organizations. Tanishq Gold Tanishq offers you a wide range of gold jewelry in pure 22k. It has been designed to suit all occasions from wedding to everyday wear; from the traditional haarams, mangalsutras and thaalis 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 caratage, 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. 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. Gold Coins Every Tanishq gold coin is precisely engineered with care using the latest stateof-the-art facility and modern technologies to turn the solid gold into master crafted coins.Coins, available in 24K (9999 purity standard used by Swiss banks) and 22K Gold. Gold coins an excellent form of investment and are available in various denominations ranging from half a gram, one, two, four, five, eight, ten and 50 gm. Gold Bricks of 1 kg and Biscuits or Bars in denominations of 100 and 500 gm. are also available. These coins are also available with images of Ganesha, Laxmi, Balaji, Saibaba, Allah, Om, Ayyappa, Cross and any other motifs. We also undertake institutional orders. When you exchange any Tanishq gold coin with jewelry, you get the benefit of the appreciated current gold rate and there is no deduction, a full value exchange is done on the same. Karat Meter Karat meter is technically called X-Ray Fluorescence (XRF) Spectrometer. Tanishq named it as karat meter for easy understanding to customers. The analysis of gold in gold jewelry alloys has been performed during the last thirty centuries by the cupellation or fire assay method. Although it is the most accurate

technique it is also destructive. The touch stone method has been there for centuries but is not an accurate method of testing gold. Its accuracy is dependent on composition and color of alloy, quality of touch stone and strength of touch acid, lighting conditions and operator skill. The test is not suitable for very high karat gold or hard white gold. What then are the benefits of using a Tanishq Karat meter?
y

It offers non-contact and non-destructive testing. Sample material is not consumed.

It is extremely fast. Measurement takes only minutes, and results are obtained immediately.

It can identify all elements in the sample and their respective weight percentages (composition)

The results are operator independent, so different people using the system will get the same results.

X-ray assay is NIST (National Institute of Standards Technology) traceable and confirms with ASTM B568 and ISO 3497.

Integrated Supply Chain Management Titan Industries set up its jewellery manufacturing unit in 1994 with advanced technical know-how from the UK, Germany and Switzerland. Over the years, the jewellery division has transformed the unit into a highly integrated jewellery manufacturing and outsourcing facility. Today, Tanishq and Gold plus have grown to be the most reliable jewellery manufacturing brands in India. The manufacturing at the Integrated Supply Chain Management (ISCM) unit at Hosur, Tamil Nadu follows Lost Wax Casting process. Some of the key facilities for the process include the refining plant with Swiss technology, the alloying equipment, accurate assay testing facilities and Yasui waxing and casting machines from Japan. Led by the most up-to-date Swiss and Japanese technologies, Titan Industries is a pioneer in establishing standards for consistent delivery of jewellery products, necessary for caratage. The product development cycle is based on state-of-the-art CAD/CAM

technology that enables seamless integration of various stages: styling, three-dimensional solid modeling, engineering design, tool design, tool making and prototype making. ISCM is backed by high-end machinery such as Vacuum Melting unit, Rapid Proto Typing machine and fully automated precious stone sorting machine, 99.99 % fine gold refining system and computerizedcolor matching machines that make the division most advanced in the industry. To maintain the quality standards, ISCM has implemented the ISO 9001:2000 standards and put various initiatives in place: ambitious targets, customer initiatives, and employee initiatives. With ISO 14001:2000 ISCM implemented, ISCM provides better work environment and upgrades the environment outside the manufacturing unit. A dedicated Technology Cell has also been established to ensure that cutting-edge technology is constantly tracked and infused into the business. The division's technology efforts have been widely recognized by the industry: the Karat meters pioneered by Titan Industries jewellery division has gained widespread acceptance, and the Goldmine system is considered one of the first successful .net initiatives in retail in India. Outstanding functional as well as technical expertise coupled with design and world-class quality transform sketches on paper into astonishing masterpieces and ISCM continues to reach greater heights. Karigar Parks A typical jewellery industry usually consists of an owner, middlemen and a karigar (workman with jewellery experience).In order to eliminate middlemen and provide direct employment to karigars, karigar parks were set up at Hosur in 2001.The karigar parks have also helped reduce the cost of manufacturing. As they are akin to ancillary units, gold is under oursurveillance and control. We train the owner and workforce of such karigar parks to follow the systems and procedureslaid down by us to ensure quality products to customers. We also provide the raw materials and designs to the karigars.As the Karigar Park is located at Hosur we benefit from quick delivery,

reduced inventory holding, quicker communication,flexibility to respond during exigency, elimination of logistics cost and quicker lead time.

Raw Materials The main raw material that we use for our jewellery business is gold which comprises 80-85% of our procurement turnoverand is sourced from overseas suppliers through nominated agencies and from Indian banks. Diamonds are sourced fromappointed sight holders of the Diamond Trading Company (DTC). A small portion of our diamond requirement is alsosourced from the open market.

Design team We have a full-fledged design studio with a team including international award winning Indian designers. Tanishq isconstantly innovating and introducing new collections based on various looks and themes - both contemporary andtraditional, to fit every occasion and mood.

Inventory Management and Billing Inventory management at Tanishq is carried out by setting predetermined inventory levels for all our stores. These aremonitored on a daily basis with the help of IT related software. The supply chain department also monitors the inventorylevels at factory and with various suppliers through the ERP system and through implementation of lean productionsystem.The billing at Tanishq stores is done through a customized point of sale software, which is linked to our corporate office through a .net framework, which updates all previous day transactions in the enterprise point of sale software. Thesedetails are uploaded into the factory system wherein the supply chain department monitors the inventory level, rate of saleand thereby controls the inventory level by dispatching products to the stores accordingly. The limits set by supply chainensure that stores cannot exceed inventory limits as the difference of limits and inventory level decides the ordering limits.

Role of International Bodies There are certain industry bodies such as the World Gold Council (WGC), Diamond Trading Company (DTC) and thePlatinum Guild International (PGI) that play a significant role in promoting the sale of jewellery and we work closely withthem. These organizations provide financial and marketing support to the industry.

Marketing, Sales and Distribution Tanishq jewellery is sold exclusively through three types of stores namely (a) Company operated stores (b) Management Agent stores and (c) Franchised stores

We have Company operated stores in Bangalore, Hosur, Chennai, Calcutta, Mumbai and New Delhi. Tanishq has notonly developed a national retail chain with uniform and transparent practices and policies but also maintained consistencyof retailing standards across all these stores on an ongoing basis.

Tanishq has undertaken certain marketing initiatives, including launching a heritage special collection and conductingsales promotion schemes to activate the market and attract customers. These marketing activities are usually on thebasis of collections, seasons and certain customer schemes.

Wedding/Heritage Jewellery A wedding is usually the biggest occasion for jewellery purchase in India. Tanishq has a wide collection of jewelleryincluding bangles, earrings, necklaces, sets specific to culture and ethnic requirements for wedding and wedding

relatedoccasions.Tanishq has launched certain jewellery collections which take

inspiration from Indian culture and is designed keeping inmind the modern Indian woman.

Festivals We celebrate important festivals like Dhanteras, AkshayaTritiya, Rakhi and Durgapooja by offering special advertising,store decoration, promotions/schemes, and sometimes new collections too.

Customer Schemes

We institute certain schemes on a regular basis to build our existing customer base and to attract new customers. Inaddition there are certain other initiatives that we have done in our stores like (i) Category melas, where various productslike neckwear, bangles, and others in various designs are put together in a store for a limited period and promoted throughadvertising, store facades and local activities; and (ii) Karat meter

testing/jewellery servicing camps/jewellery makeoverweek.

Gold Plus

With a view to capture the semi urban and rural market, which caters to the informed, educated and middle class andupper middle class across the towns in India, we have recently launched Gold Plus, our brand name for pure goldjewellery products. Gold Plus was launched in September 2005, through a new retail format and business model.We are still in the pilot stage and have opened two Gold plus stores at Erode, Tamil Nadu and Ratlam, MadhyaPradesh.

Quality Assurance

We guarantee the purity of our gold jewellery and certify the quality of our diamonds and colored gems. We haveestablished ourselves as a highly ethical player in a market that was rated as having the highest incidence ofunder-caratage.

Competition and Marketing strategy When Titan launched Tanishq in 1995, the jewellery industryin India valued at Rs 40,000 crores was mostly unorganized, with around 3.5 lakh 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.

The market for diamond jewellery has recently witnessed the entry of several players who were engaged in thecutting and polishing of diamonds for supply to jewellery manufacturers. The shrinking margins in the cutting andpolishing business has forced them towards forward integration and they have launched various brands of diamondjewellery such as Kiah, Orra, Nakshatra, Asmi, Arisia and Collection g which are available through a national network of other jewelers. Industry bodies like the World Gold Council (WGC), Diamond Trading Company (DTC) and PlatinumGuild International (PGI) are also investing substantial monies in marketing gold, diamonds and platinum respectivelyand are actively promoting their site holders through various advertising campaigns both in the press and television. Over 300,000 independent jewelers in the unorganized sector service the large jewellery market, most of thesebeing singlestore and city specific retailers though some also have a regional presence.

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 TribhovandasBhimjiZaveri, Mehrason'sand P. C. Chandra. Among the foreign players who entered the market were Cartiers, Tiffany, De Beers and Ashton Mining.

Tanishqs primary competitorsare the top three to five jewelers at the premium end of the jewellery market, in each city where we are present andwho attract our target customers. Most of these jewelers have usually been in existence for several decades, arefamily run, benefit from having local knowledge and a loyal base of customers. Some of the regional players includeMehrasonsJewellers (Delhi), TribhuvandasBhimjiZaveri (Mumbai), B.C.Sen and P.C.Chandra (Kolkata), G.R.ThangaMaligai (Chennai) and C. KrishnaiahChetty (Bangalore).

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 aftersales 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 overpriced and associated the brand only with the rich.

Hence, Titan decided to change its strategy on two fronts: y y Value proposition Retailing.

Since the European designs in 18-carat gold did not find any takers in 1997, Tanishq introduced 22-carat ornaments.Customer surveys revealed that gold jewellery was not bought so much for design as for value. Titan also decided to do away with the

shop-in-shop formats and started retailing its jewellery through exclusive Tanishq outlets from 1998. Titan realized that, given the diverse nature of Indian ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titan also decided to transpose designs by stocking Bengali designs in Delhi, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. The same year, Tanishq entered the studded jewellery segment, which it had ignored for long. Titan also tapped institutional customers also. In 1998, it launched the corporate gold gift scheme - 'When you want to say thank you, say it in gold'. In 1999, Tanishq delivered gold coins worth Rs. 20 crores toMarutiUdyog Ltd., to be given away as gifts to Maruti car owners. In early 2000, it made miniature gold cars for Hyundai Motors to be given to select dealers.

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.

SALES OF VARIOUS BRANDS IN 2010 IN THE JEWELERY SEGMENT

Fig

Strategic Approach: Tanishq uses mainly two strategic approaches:

Positioning: The strategy is purely about positioning in the minds of consumer by PROMISE OF PURITY AND A UNIQUE EXPERIENCE Design and retail innovation have been the hallmark of Tanishq all these years. First and only jeweler who guarantees the purity of its gold jewellery and certifies the quality of its diamonds and colored gems in writing.

Trust It has established itself as a highly ethical player in a market that was rated as having the highest incidence of under caratage (Bureau of Indian Standards). They even have gold meters where one can check the purity of gold

Luxury Tanishq also has been positioned as a branded jewellery of luxury rather than commodity. It moves jewellery beyond investment to the fashion and adornment sector. Superior Product In order to compete with the regional players, Tanishq introduced the concept of consistency in delivering promise . Tanishq is known for its ability to develop specialized design collections. It is the only jeweler that houses a full-fledged design studio with a team of several international award winning Indian designers. Offer a totally new perspective to Jewellery buying especially when it comes to exquisite oriental jewellery.

USP (unique selling proposition): Tanishq has a true and distinctive competitive advantage in its tagline

PROMISE OF PURITY

SWOT ANALYSIS

STRENGTHS y y y y y Capital Flexibility Innovative Modern Style Excellent & outstanding advertisement strategy OPPORTUNITIES TATA Support The Wedding Market Globalization

WEAKNESS Not for me Gold Purchase Rituals Gold Perceptive

THREATS Gold Plus Local Jewelers Gold Significance Government Regulations

Table

Awards and Certifications

We have been awarded numerous awards and certifications for our brands and corporate practices. A few of the awardsreceived by us are given below:

Year Award Presented by 2005 - Tanishq and Titan awarded the most 5th Lycra Images Fashion Awardsadmired brands of the year. Titan Industries Limited was awarded the retailer Images Retail Forum, Awardsof the Year (Fashion Category). Titan won the Brand Leadership award in the India Brand Summitconsumer products categoryAwaaz Consumer Awards ICICI and CNBC.

Year Award Presented by Outstanding Employer for providing employment Social Welfare Department,to the handicapped Dehradun 2004 - Retailer of year Award for both Titan and Tanishq Images Fashion Titan Design Team has received the following 7 accreditations Business World, 2004 _ Titan Design Studio Runner up in the Designer Category _ Titan Edge - for the best accessory design in the lifestyle category _ Titan Flip - runner up in the lifestyle product design category _ Tanishq Paisley best jewellery design _ Mr. Mike Foley- Designer of the year _ Mr. Neil Foley Best Design in the lighting category _ Mr. AbhijitBansod - Best Product in the draft design Titan and Tanishq awarded the Superbrands award Superbrands 2003 - The PHDCII Award for Good Corporate Citizen PHD Chamber of Commerceand Industry, New Delhi 2002 - National Energy Management Award CII 1998 - Rated as one of Asias top 200 companies Far Eastern Economic Review

Share Holding Pattern of Titan Industries Ltd.

Share Holding Pattern as on : Face Value Indian Promoters Sub Total Mutual Funds and UTI Banks Fin. Inst. and Insurance FII's Sub Total Private Corporate Bodies NRI's/OCB's/Foreign Others Others Sub Total General Public GRAND TOTAL 23,743,403 23,743,403 3,674,765 484,553 4,319,076 8,478,394 1,292,059 450 17,097 1,309,606 10,857,905 44,389,308 31/03/2011 10.00 53.49% 53.49% 8.28% 1.09% 9.73% 19.10% 2.91% 0.00% 0.04% 2.95% 24.46% 100.00

Table

BALANCE SHEET OF TITAN INDUSTRIES LTD. - 2011

SOURCES OF FUNDS Owner's Fund Equity Share Capital Share Application Money Preference Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Total USES OF FUNDS Fixed Assets Gross Block Less : Revaluation Reserve Less : Accumulated Depreciation Net Block Capital Work-in-progress Investments Net Current Assets Current Assets, Loans & Advances Less : Current Liabilities & Provisions Total Net Current Assets Miscellaneous expenses not written Total Note : Book Value of Unquoted Investments Market Value of Quoted Investments Contingent liabilities Number of Equity shares outstanding (in Lacs) Table

In Rs. Crores

44.39 0.00 0.00 679.99 72.79 0.00 797.17

624.33 0.00 361.70 262.63 12.29 7.63

1,821.65 1,307.02 514.63 0.00 797.18

7.53 0.25 72.19 443.89

Historical share prices of Titan Industries Ltd on BSE for last 5 years.

Fig Historical prices for Titan Industries Ltd on NSE for last 5 years.

Fig

Capital structure of Titan Industries Ltd as on 31st March, 20011

Instrument/Source of finance Authorized Capital Issued Capital Paid-up Capital No.of shares Face Value of each share

Equity Shares Rs. 80,00,00,000 Rs.44,40,00,000 Rs.44,38,93,080 44389308 Rs. 10 Table

The company forms a part of following indices BSE 200 Index (200 Cos) BSE 500 Index (500 Cos) BSE Consumer Durables Sector Index BSE Dollex Index (200 Cos) BSE National Index (100 Cos) BSE TASISShariah 50 Index CNX Midcap 200 Index (200 Cos) CNX Midcap Index CNX Nifty Junior Index (50 Cos) Nifty Midcap 50 Index NSE CNX 100 S&P CNX 500 Equity Index (500 Cos)

Listed On Bangalore Stock Exchange Ltd. Calcutta Stock Exchange Association Ltd. Cochin Stock Exchange Ltd. Delhi Stock Exchange Assoc. Ltd. Hyderabad Stock Exchange Ltd Inter-connected Stock Exchange of India Ludhiana Stock Exchange Assoc. Ltd. Madras Stock Exchange Ltd., National Stock Exchange of India Ltd. Over The Counter Exchange of India Ltd. The Stock Exchange, Mumbai Uttar Pradesh Exchange Assoc Ltd.

Incorporation date: 26-07-1984 Auditor: Delloite Haskins and Sons BSE Code: 500114

Credit Rating The Company has been rated by the agencies as follows:

Instrument

ICRA

CRISIL

6.75% Non-Convertible Debentures Stable

LAA

AA

Non Fund Based Limits

A1+

P1+

Fund Based Limits

LAA

AA Stable

Long Term Debt

LAA

Commercial paper

A1+

Table Registered office: 3, SIPCOT Industrial Complex, Hosur, Tamil Nadu - 635126. Tel: 04344-274256 Fax: 04344-276037 Email :investor@titan.co.in Website : www.titan.co.in