End Term Assignment

Question: a) In competitive market how Titan is creating and delivering Value for its Customers?

Titan Creates its value by carefully choosing its business segment which are unorganized by its poor practices and
ethics. Be it in watches, jewellery or eyewear or even the saree business, it tries to work in these sectors to create
a business model that transforms the existing business practices into a more organised one that is characterised
by value-based practices across the entire value chain, the manner in which our products are produced, procured
and sold. Also creating and delivering Value for its customer through, 1) Design & Development ,2) State of the
art Manufacturing units, 3) Brand Building & 4) Customer service.

The Company boosts investments in intellectual capital through technologies interventions and collaborative
approaches. This will play a key role in bringing in cutting-edge technology, design and innovation to drive growth
for the Company.

The Company’s human capital stock is positively impacted when it invests in skill development initiatives to
improve the technical know-how for R&D purposes. This also benefits the individuals for career enhancements,
and increasing growth prospects, thereby increasing social and relationship capital stock and intellectual capital
stock.

The Company boosts investments across value chain be it technologies, infrastructure, manufacturing set-ups,
marketing, working capital, induction, development and retention of talent. A combination of these would play a
key role in providing quality products and service to customers across markets.

The Company invests significantly on media campaigns, customer connect programmes, service enablers, business
associate / dealer development programmes etc. These play an important role in enhancing brand reputation,
customer relationship which collectively drive higher growth as well as brand loyalty.

The Company boosts investments in manufactured capital through technological upgradation and opening new
manufacturing setups and stores. This will play a key role in providing quality products to the customers with low
downtime thereby enhancing reputation that will drive growth for the Company

Design and development Brand Building

Exclusive Brand Outlets: 486 World of Titan in 223 towns
- 172 FastTrack Centers in 83 towns; Premium Multi-
Brand Outlets: 76 Helios in 37 towns; Other Multi-Brand
Outlets: 11,000+ dealers - Present in over 30 countries.
• Tanishq: India’s leading Jewellery brand
• Titan: Flagship watch brand
• Raga: Exclusive women’s watch brand

• Fastrack: India’s largest youth brand

• Sonata: India’s largest selling watch brand

• Caratlane: India’s largest online jewellery brand

• Titan EyePlus: India’s largest optical retail chain

 Manufacturing Retail and Customer Service

• State-of-the-art Karigar Centres for Jewellery • Exceptional Customer Experience

• Components exported to Swiss watch makers • Merchandising Effectiveness

• 3,600+ employees engaged in factories • Impactful Retail Identities

• Engagement of Store Staff

• Extensive After Sales Service Network

b)On the basis of the data provided how do you evaluate performance of Titan.

The company delivering a retail turnover of over RS. 19,000 crore as against RS. 15,742 crore in FY 2017-18.
This was primarily due to robust performance of Titan Jewellery segment (in 2017-18 it was contributing 67.7%
whereas in 2018-2019 it reached 83.3%)

Overall Turnover :

TURNOVER
1700000
1600000
1500000
1400000
1300000
1200000
1100000
1000000
Rs.in Lakh

900000 2019
800000
700000 2018
600000
500000 2017
400000
300000
200000
100000
0
Watches Jewelry Eyewear Others Corporate
Business Segment
From the above values, EPS calculated as below :

2014-15 2016-16 2016-17 2017-18 2018-19

Profit After Tax 82307 70585 76186 116287 137436
Share Capital 8878 8878 8878 8878 8878
EPS 9.27 7.95 8.58 13.10 15.48
It shows a EPS growth of 18% from 2017-18 to 2018-19 .

Over the last 5 years, Income has grown at a yearly rate of 13%, Vs Industry avg of 4.71%.

2014-15 2016-16 2016-17 2017-18 2018-19

Income 1197379 1132889 1306364 1574225 1924847

Watches:

The Watches division of the Company recorded revenue of RS. 2,441 crore, a growth of 14.8% which was achieved
through meticulous planning and execution of key initiatives.

300000
Watches Segment
250000
200000
Rs.in Lakh

150000 2019
100000 2018
50000
2017
0
Turnover Results(EBIT)

Jewellery:

The revenue from Jewellery division grew by 23% touching RS. 16,030 crore.

Jewellery
2000000
1500000
Rs.in Lakh

1000000
500000
0
Turnover Results(EBIT)

2019 2018 2017

Eyewear: The revenue from Eyewear division grew by 3.2 % to RS. 511 crores.

Eyewear
60000
40000
Rs.in Lakh

20000
0
Turnover Results(EBIT)
-20000

2019 2018 2017

Others: The revenue from other divisions recorded a sale of Rs. 133 crore, a growth of 40.4%.

Others
15000
10000
Rs.in Lakh

5000
0
-5000
-10000
Turnover Results(EBIT)
2019 13343 -5811
2018 9501 -4429
2017 6514 -2971

New Business:

New Businesses, viz Taneira and SKINN recorded revenue of RS. 80.59 crore, a growth of 40.5% over the previous
year. While Taneira grew by 51 %, SKINN recorded a growth of 40%.
Overall company performance :

OVERALL PERFORMANCE
2500000 CAGR
11.19%
2000000

1500000
RS.IN LAKH

1000000

500000
CAGR
12.13%
0
Income Profit
2014-15 1197379 82307
2016-16 1132889 70585
2016-17 1306364 76186
2017-18 1574225 116287
2018-19 1924847 137436

Company’s total revenue grew by 21.81% to Rs. 19,070 Crore compared with Rs. 15,656 crore in the previous year

Profit before tax grew by 22.7 % to Rs. 1,927 crore and the net profit increased by 18.2 % to Rs. 1,374 crore

New Businesses, viz Taneira and SKINN recorded revenue of RS. 80.59 crore, a growth of 40.5% over the previous
year. While Taneira grew by 51 %, SKINN recorded a growth of 40%.

EPS growth of 18% from 2017-18 to 2018-19 .