New Delhi, June 7: SMH Group of Switzerland, makers of Omega, Rado and Longines watches, is planning to set up a wholly-owned subsidiary in India.SMH is also negotiating a joint venture with local companies to assemble a new range of its non-prestige watches in India. The new range - Lonco - was unveiled recently by SMH.

India is one of the territories identified for its assembly. Lonco would be positioned as an alternative to some of the Indian brands. The pricing of the watch is yet to be finalised. Longines president Walter Von Kasel told newspersons here on Saturday that negotiations with RPG group for a joint venture were at an advanced stage. The assembling facility is expected to be established in Bangalore.

SMH would also export a part of the production of the Lonco watches to other parts of the world.

Kasel clarified that it was not necessary that SMH would form a joint venture company with RPG to assemble watches. SMH is negotiating with other companies including some watch manufacturing companies for a joint venture, he added. It is also learnt that SMH would initiate talks with the ailing state-controlled watch maker HMT for a possible joint venture.

SMH meanwhile has chalked up plans to retail 20 references of Omega and Rado watches in India through 70 premium watch dealers and jewellers. The watches are expected to be launched in India around September. In the first phase of the launch, the watches would be retailed in top 20-30 outlets in six metro cities. The watches would be priced between Rs 75,000 and Rs 2 lakh and would be close to the Singapore prices of the same model.

Company executives said they have not set any targets for sales in India as yet. "A strategy for the Indian market would be decided after we meet with the trade partners on Sunday," Kasel said.

SMH had received the nod from Foreign Investment Promotion Board (FIPB) for entering into a joint venture to assemble watches in India a year ago. As per the approved proposal, SMH will hold 51 per cent stake in the project while RPG will hold the rest 49 per cent. The company has been going slow on the project as it was not very sure of the Indian market. The approval for the wholly owned subsidiary has not been granted as yet though the application was filed quite some time back.

Company executives said that there was a possibility that SMH may decide that the manufacturing would be taken up by the wholly owned subsidiary.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.