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Titan Company Ltd. PR
Titan Company Ltd. PR
EMAIL: aadishjain59@gmail.com
On those days Mr. Mahadevan was studying Indus script during his leave and wanted to print &
publish his findings. This is how he got in touch with Tata press (or Xerxes Desai). He was the one
who suggested them a business of manufacturing premium watches.
But the application of Mr. Desai to manufacture watches was rejected by Ministry of Commerce and
Industry. As on that time only government owned companies and small scale companies were
allowed to operate in this industry. This is where Mr. Mahadevan comes back into picture. In 1979
he was appointed as Chairman & MD of TIDCO (Tamil Nadu Industry Development Corporation). In
1983-84 a fresh application was given by a joint venture between TIDCO & a little private company
namely, Questar investment whose promoter was Mr. Desai.
As a result, this venture had successfully started manufacturing watches. Later Questar investment
was taken over by Tata group and named it TITAN, where TI stands for Tata Industries and TAN
stands for Tamil Nadu.
The company has chosen to work in sectors that are largely unorganised or characterized by poor
business practices and ethics. Be it in watches, jewellery or eyewear or even the saree business, it
strives to work in these sectors to create a business model that transforms the existing business
practices into a more organised one that is characterized by value-based.
As of now Titan is the fifth largest integrated own brand watch manufacturer in the world. Over the
last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands
across different product categories. Titan is widely known for transforming the watch and jewellery
industry in India and for shaping India's retail market by pioneering experiential retail.
In the jewellery segment their brand Tanishq has a wide range of diamond, gold and
platinum jewellery. Under Tanishq are collections like Zoya, Caratlane, and many more.
Titan has also ventured in the eyewear segment through their Fastrack brand. They have
also introduced brands Titan eye+ that has wide range of contact lenses, prescription
eyewear & sun glasses.
Under traditional clothing segment, Taneira Sarees is the youngest brand of Titan.
Fragrance business includes Skinn.
Other accessories include belt, wallet, and bags.
Titan Engineering & Automation Limited (a wholly owned subsidiary of Titan Company)
specializes in manufacturing aerospace components and providing assembly & testing
automation solutions.
Watch and other accessories: achieved 2nd position in the wearables market in India with about
8% market share in 2019.
Taneira: Addressable market of special occasion wear expected to grow from ~₹35-40k cr to ~70k
cr by 2023. As of 31st march’20 Taneira has 12 stores in India.
Eyewear: Expecting Value growth 20% - 1,000 Cr (UCP turnover) in 2019-20. This segment has
shown a significant customer growth from 2.4 million in FY2018 to 3.5 million in FY2019 and
occupied more than 13% market share and expecting to achieve 30-35% market share by 2024.
SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITY
THREAT
PESTLE ANALYSIS
POLITICAL
This increase in duty has been served across various products that are imported, further
enhancing the company's opportunity to capture the market.
ECONOMICAL
The growth of GDP over the next few years will determine how the company expands. The
interest rates and loan repayment capacity of the consumer will determine the purchasing
power of the consumer.
fragile consumer sentiments and demand (economic slowdown) since the beginning of
FY19 coupled with lockdown & future uncertainties due to coronavirus pandemic has put a
dent on consumption of non-essentials (discretionary) items.
SOCIAL
The company has evolved with the changing trends. To accommodate the youth, new
brands were launched, which to date have very little competition eg. Fasttrack. To
accommodate the premium customers, titan raga was introduced. To satisfy the needs of the
tech-savvy and health-conscious-conscious, smart bands have been launched. The new
segment of perfumes has already created its fan base. Though relatively new, the Skinn
TECHNOLOGICAL
The company has recently launched the implementation of Schneider electrics IoT platform
across its Tanishq retail stores to manage their data efficiently in energy and cost-saving
manner. Titan also uses various social media platforms to promote its various campaigns, to
attract the maximum audience. It also has an online presence through its websites like
Caratlane. Online presence helps the company expand its audience, beyond conventional
stores.
Other factors mentioned in technology and innovation part of report.
LEGAL
Titan is also subject to various labor laws and minimum wage laws. It also must consider the
various discrimination laws that protect its employees against any sort of discrimination.
There are various health and safety laws that the company needs to follow. The company’s
policy of ethical conduct encompasses all these laws that need to be followed.
ENVIRONAMENTAL
The company has introduced various clean and green technology in its operations and
promotes ‘reduce, reuse, recycle’. Titan has assigned a character to their sustainability
activities.
In efforts towards the conservation of water, the company has undertaken a 100% recycle of
trade effluence. The treated water is used in various processes like gardening and no water
is released outside of the premises.
SHAREHOLDING PATTERN
The Division stays on course in executing the strategy that it charted for itself couple of years
back. It will continue to consolidate its leadership position in the segments that it operates in.
Efforts and investments will continue to enhance capability in the wearables space, to create
a winning portfolio of smart products. It will also continue to invest to further strengthen the
portfolio of powerful in-house brands and at the same time look for opportunities to
strengthen the Licensed Brands portfolio through relevant additions. An aggressive push for
volume growth will remain at the core of its strategy.
For Titan, high-contributing Middle East markets continued to decline while younger markets
like the Philippines, Thailand and the US stayed on the plan to deliver impressive retail
growths on the back of several sales & marketing initiatives. Future plans will continue the
journey of reducing dependence on Middle East markets and continue with investments in
newer consumer bases (locals, across Middle East), markets (US, EU) and channels (e-
commerce).
During the year, the Company had opted for lower tax rate of 25.17% by foregoing the tax benefits
mainly in the tax free zones. With the declaration of the COVID-19 as a pandemic in mid-March
2020, the performance of various Divisions were affected due to store closures consequent upon
declaration of national lockdown by the Government. Jewellery and Eyewear revenue declined
whereas Watches & Wearables Division grew marginally by 2%. Lower sales and mark to market
deposit pertaining to gold hedging transactions with Multi Commodity Exchange of India Limited
resulted in substantial gross short term borrowing as at the end of the year. The year witnessed
aggressive expansion of the Company’s retail network. As on 31st March 2020, the Company had
1,739 stores, with over 2.27 million square feet of retail space delivering a retail turnover of over `
20,000 crore
KEY RATIOS:
TECHNICALS
Stock has broken out from the range of 1027-945 along with good volume.
One should look for buying opportunity (swing trading) with SL near 1027 and target near
1100.
HIRING MANAGER