The company is hoping to achieve this by moving up the price ladder by introducing new models and revamping its sales channels to cut costs and inventories.

The company will be introducing 300 new watch models in the domestic market by the end of the current calendar year. According to RJ Masilamani, managing director, Timex Watches Ltd, the new range to be called `Dress' range will also include a `designer' range designed specifically for the Indian market and priced at Rs 3,000 onwards.

Timex, which has a strong youth orientation in the country, is henceforth positioning itself globally on the fashion platform. This follows the emergence of the brand as the number one fashion brand in the US this year according to the definitive Fairchild Consumer Brand Awareness Survey. In line with its new positioning, the company launched its range of `i-control' fashion watches.

According to Masilamani, Timex has also initiated steps to spread its sales and marketing network - Timex has about 4,500 outlets in the country apart from 31 showrooms in the metros and large cities - in the country. It is currently revamping its sales channels to cut costs and inventory. ``We've to do certain corrections in the market,'' Masilamani said. The company will be spending about 10 to 12 per cent of its revenues on advertising. The company, which posted a turnover of Rs 91 crore in the fiscal ended March, 2000 has targeted a turnover of Rs 100 crore for the current financial year.

Parent co hikes stake to 71 pc
Timex Watches BV, the promoter company for the Timex's India operations has increased its stake in its Indian subsidiary, Timex Watches Ltd, to 71 per cent from 63 per cent through a preferential allotment of shares.

Though the parent company has no immediate plans to further hike their stake in the Indian venture, Amir Rosenthal, chairman, Timex Watches Ltd, did not rule out the possibility either. Said he, ``though there are no current plans to increase the stake, we won't rule out the possibility in the future.''

However, RJ Masilamani, managing director of Timex Watches said "there are no such plans in the near future." According to him, 24 per cent equity is with the public while the rest is in the hands of financial institutions and non-resident Indians.

The parent company has so far invested over $7.5 million in the Indian operations which is still not profitable. "The target is to restore the profitability of the company as soon as possible,'' Rosenthal said. Asked whether the parent company will make any further investments in the loss making company, Rosenthal said: ``We admit we've not invested enough in the past but we'll be making efforts in a number of ways to increase the brand building in India.''

Timex watches was set up in India as a joint venture between the Tatas and the Timex of the US in 1992. The Tatas have since exited from the joint venture after selling its stake to the US partner.