Watch hands and dial maker to set up unit in Shenzhen
MUMBAI: KDDL Ltd —- formerly called Kamla Dials and Devices Ltd —- is planning to enter China by setting up a prototyping centre for producing watch dials in Shenzhen.
The unit is expected to commence operations anytime between June and September.
According to KDDL chief executive officer Yashovardhan Saboo, this would be the company’s first foray into the Chinese market.
“China is the largest consumer market in the world for fashion watches, growing at over 25% annually in value terms. Hence it is imperative for us to venture into that country,” Saboo said.
China currently consumes about 120 million watches annually, with brands like Dolce & Gabbana, Fossil, IWC, and FCUK dominating.
In India, about 30-35 million watches are annually sold, Saboo said. The Chandigarh-based watch hands and dial maker will invest Rs 1-2 crore in the centre to set up the unit on a 5,000 sq ft plot.
Saboo said the Shenzhen unit would manufacture different varieties such as multiplate dials, dials with applied figures, dials with stamping, etc. “Initially, all these varieties will be produced in small quantities. This is so because new consumers first check out several varieties before finalising one particular type. And as this is our first foray, we will produce dials in small quantities.”
KDDL will source its dials to brands such as IWC, Fossil and Diesel, etc in China. He further adds that by early 2009, the company would start producing another 3 million dials on a yearly basis.
KDDL, which also produces a variety of watch hands like jewel mounted hands, luminous hands, formed hands, super polished formed hands, etc. will however not venture into the production of hands at Shenzhen.
“There are already players such as Citizen and Biuchun dominating the watch hands space and hence we would restrict ourselves just to dials,” Saboo said.
Other than the one to be established in China, the company currently has three manufacturing units in and around Chandigarh, and one each in Bangalore and Switzerland.
KDDL currently produces 12 million dials and 30 million watch hands annually at these facilities.
Apart from manufacturing watch dials and hands, the company also retails Swiss watches like Breguet, Rado, Longines, Movado, Omega, TAG Heuer, etc from its 14 Ethos retails outlets in the country.
The company is also planning to invest Rs 100 crore for another 46 outlets in the next two years.
g_priyanka@dnaindia.net
