TITAN INDUSTRIES LTD.

Titan Industries
Watches

Jewellery

Prescription Eyewear

Currently Marketing our Products in 26 countries with a larger footprint in the Middle East and Asia-Pacific regions

Precision Engineering

Contribution to Total Income

Other Products 4%

Watches 18%

Jewellery 78%

Watch Division

Watch Division
Underpenetrated Indian Market-Only 27 % Indians own a watch.

Valued at approximately Rs. 4,500 cr which grew by 14% in 2011.

Highly unorganized sector selling 30 million watches each year. Organized market-Titan is the market leader with 65 % market share Market has been split into: Low end, Mass market, Premium & Luxury.

Watch Division
To capture important market segments, Titan Industries has brought forth 4 core watch brands: - Titan :mid-premium segment, consists of 12 collections like zoop, nebula, raga, utomatic, octane, orion, tycoon, purple, HTSE, bandhan obaku, edge - Fastrack : focus on the youth; includes bags, watches, sunglasses, belts, wallets

- Sonata : mass market and has emerged as Indias largest selling watch
brand - Xylys : The premium market, For the high-end connoisseur and newage achiever, offers a range of 3 collections-Contemporary, classic and sport.

Watch Market Map

Formal / Classic
Raymond Weil Tissot Sonata, HMT, Maxima TITAN Citizen

Omega, Rado, Longines

Nebula

XYLYS
Price
5000

Rs 500

1000

2000

4000

10000

Zoop

Timex

30,000 +

Fastrack

Espirit, Swatch Fossil Giordano, DKNY, Carrera Tommy Hilfiger

Fashion/Sporty

Tag Heuer Hugo Boss C Dior

Watch Division-Distribution Network

9000 Multi Brand Dealers

ALL INDIA

2500 Towns

334 Showrooms

World Of Titan

132 Towns

106 Multi-brand-stores

Fastrack retail

49 Towns

730 Centers

Service Centers

270 Towns

Titan-Today
Year Income PBT ROCE

2009-10

102678

14473

63.73%

2010-11

127195

18623

49.25%

2011-12

152976

21676

43.01%

Jewellery Division

Jewellery Market & Industry highlights

Market
Size of market: GJ market is currently is at Rs 1.22 lakh cr Growth Rate - 15 % the domestic ( Source :Assocham's Press Release of 21st July 2011 ) The GJ industry in India is may to reach Rs 2.13 lakh cr by 2015 Branded jewellery is less than 5% of the overall market Product mix: largely plain gold 22kt, with gem set jewellery constituting less than 10% of the market

Players
Key players: Fragmented market, mainly retailer driven.

Most retailers are unorganised and stand alone

Absence of hallmarking Tanishq - the first branded jewellery player (1995)

Tanishq Today A Brief Overview

Most prominent jewellery brand in India, also pioneered the concept of branded ornaments. Enjoys a market share of over 40% in branded jewellery

Brand

Network

Indias only national jewellery retailer 129 Tanishq boutiques 2 Zoya stores 32 Gold Plus stores in India. Over 1.5 million customers shopped at Tanishq last year

Customer Base

Innovation

Karatmeter - The only non destructive means to check the purity of gold Machine made jewellery - Offers superior finish and value to the customer Handcrafted jewellery - influenced by various jewellery traditions of India

Tanishq
GoldPlus
The recent retail plain gold jewellery offering, is specifically created for semi urban and rural Indian market. The brand offers gold jewellery, as well as unique designs crafted with diamonds, American diamonds and other precious stones. Estimated Market size over Rs 30,000 Cr.

Launched New Jewellery collections

Mia (jewellery for working women), Taj (inspired by the Taj Mahal), fq (jewellery for teenagers) Glam Gold (fashionable traditional jewellery) collections.

Tanishq-Retail Network
Tanishq
129

Goldplus

32

Zoya

Tanishq Today
Year Income PBT ROCE

2009-10

350419

25468

68.50%

2010-11

505480

42910

85.02%

2011-12

706416

69755

109.23%

Other Divisions

Precision Engineering Business

Rationale Leveraging Engineering capabilities

B2B business balances risk of B2C businesses

The Opportunity India growing as a manufacturing base for precision products across industries Cost pressures and offset requirements guarantee a long term opportunity High cost of switching for customers

Large & growing market: The global market for precision engineering products addressable by Titan is Rs.135,000 cr. As on 2008-09
The division became profitable for the first time in 2011-2012.

Current position: 3 segments 3 streams

Market Size Rs 135,000 Cr.

Automotive

Market Size Rs 575 Cr.

Precision components
Dash board instruments Sub systems

Aerospace

Automation Solutions

Domestic & International Market.

Medical
TSMG Study

Domestic Market Only

Precision Engineering Business

The Customers Eaton, US Hamilton Sunstrand, US Microtechnica, Italy Pratt & Witney, US Schlumberger, US Ford, UK Bosch, India Timken, India Lucas, India Visteon, US / India Tyco Electronics, India Stanadyne, India Tata Motors, India Turbo Energy, India

Titan Eye+
Started in 2004-05 by marketing Sunglasses under the Fastrack brand Targeted the youth segment Achieved a sales turnover of over Rs 25 crores in 2006-07 and Rs 40 crores in 2007-08 Pilot project for Prescription Eyewear started in Q4 2006-07 PEW business is Titan's latest retailing venture entered into the eyewear segment in March 2007 Objective was to re-define the industry and straddle the marketplace with exacting quality standards, unparalleled in Indias eyewear industry.

Offers wide range of stylish and contemporary eyewear through 206 optical stores across the country

The Eyewear Market An Untapped Opportunity

Incidence:
30% of population typically needs correction in vision ~ 300 mn Consumers change their glasses / frames once in 3 to 4 years on an average

Market size:
25-35 million units per annum Rs 1500-1800 crs per annum Repeat purchase is a regular feature from adolescence to old age. Customer lifetime value is very high Almost everyone over 40 yrs needs correction.

Growth
Market has been growing in double digits ~ 15-20% per annum and likely to sustain

Margins
Overall mark ups of up to 300% exist between landed cost & retail price!

Titan Eye+
Gained a reputation in providing quality eye testing through highly trained professional staff.
The Companys retail outlets are seen as destination stores for stylish and contemporary products. launch of three new collections - (Rio, Neo and Menz), which accounted for 19% of revenues from frames. Also launched new brand of Sunglasses Cabana. Other offerings at Titan Eye+ comprise frames, lenses, sunglasses,contact lenses and accessories. Innovated products like hydrophobic lenses that repel water

Other divisions*
Year Income PBT ROCE

2009-10

15176

-3889

(49.85%)

2010-11

243856

-1806

(15.09%)

2011-12

32881

-448

(2.62%)

*includes Titan Eye wear and Precisions engineering

In which division to invest 1000 Cr ??

Investment-Rs 1000 cr
1st option Jewellery
ROCE is the Highest Current strategy of Expansion of retail space & catering to mid segment seems to be working

2nd

option

Watches

Strategy- Retail network expansion, acquisition of premium Luxury watch brands Launching new brands for new segments

3rd option

NPD

Presented by :

Sonam Chandni Shumaila Husain Gunjan Shah Aditya Deole Namita Patkar