Titan Company Limited, a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), began operations in 1984 as Titan Watches Limited. Titan ranks as the world’s fifth-largest integrated own-brand watch manufacturer. Titan has developed lifestyle brands across numerous product categories over the past three decades and has entered underpenetrated markets. Titan is widely recognised for revolutionising the Indian watch and jewellery industry and pioneering experiential retail in India’s retail market.
The 1970s – History
Going back in time to before 1980, when Titan Watches were just an idea at the Tata Press. Titan Watches was founded in June of 1984 as a result of a joint venture between Tata Industries and the Tamilnadu Industrial Development Corporation (TIDCO) to realise the idea of entering the watch industry.
The 1980s – First Milestone
1986 marked the beginning of production, and 1987 marked the launch of the Titan brand. The Indian watch market experienced a paradigm shift with the introduction of analogue electronic quartz watches. This allowed for the expansion of the technology to bracelets, cases, electronic circuitry, and step motors.
The 1990s – The Journey
Over the course of more than 25 years, the Titan Watch Project evolved into Titan Watches, Titan Industries, and what is now known as Titan Company Limited. With annual production exceeding 15 million, each year sees the introduction of new technologies and innovations. Titan watches entered the European market in 1993, followed by the Middle East and Asia-Pacific, and have since sold over 150 million units in 32 countries. In India, the main manufacturing unit is located in Hosur, Tamil Nadu, in addition to assembly units in Dehradun, Pantnagar, and Roorkee, and an electronic sub-assembly plant in Goa.
Timex was the result of a brief joint venture between 1992 and 1998, claiming second place in popularity behind Titan. Titan, following the dissolution of this partnership,Titan reclaimed the lost market share with the introduction of the Sonata. This was followed by an astute selection of wristwear – Titan, Fastrack, and Xylys brands; luxury watches, and designer timescapes – a range of outdoor clocks that defined spectacular landmarks in a number of cities.
The Swiss and Japanese manufacturers were astounded by the state-of-the-art manufacturing facility, strong and consistent market share, and highly trained and devoted labour force. The township, designed by the world-renowned architect Charles Correa, contributed to the Tata spirit. In Mathigiri, Tamil Nadu, an excellent school that also serves as a learning facility for neighbouring district schools was constructed to house over 2,000 Titanians.
The 2000s – The Expansion
In addition to dominating the watch industry, Titan entered the glittering sector. After expanding into jewellery in 1993, the brand Tanishq was introduced in 1996, followed a decade later by Goldplus, the standardisation of mass marketing for jewellery. This diversification was followed by additional business ventures. Fastrack – the fun and youthful watch and accessory brand, and accessories line in 2003; Precision Engineering in 2005; and the Titan Eyewear Division in 2007 – a project of prescription eyewear, complete with specialised outlets catering to customers’ every need.
With their traditional and designer jewellery, Tanishq and Goldplus Titan Company struck the right chord with the domestic market, which views gold as a prime investment. Tanishq offers a breathtaking array of exquisite, priceless designer wares in over 160 stores in 89 cities nationwide. Goldplus holds a respectable 40% market share in semi-urban and rural areas.
The 2010s – The New Editions
In 2011, Titan introduced Mia, an exquisite collection of affordable, urban-chic, fine jewellery designed for working women. Titan entered the perfume market in 2013 with the introduction of SKINN, which redefined the Indian fragrance industry by ensuring the highest quality and bearing the Titan brand.
Tanishq acquired Carat Lane in 2016 in order to provide beautiful jewellery and a shopping experience that reflects contemporary values and lifestyles. Titan relaunched the iconic watch brand Favre-Leuba in 2016, exactly five years after acquiring the Swiss watch brand in 2011.
Quarterly Update: QI FY23
After a two-year gap, the first quarter of fiscal year Q1 of FY 23 was nearly normal. Sales in QI FY23 increased 205% year on year on a low base, resulting in a 3-year CAGR of 20.5% over Q1 FY20, the only non-disrupted first quarter in the last three years. Throughout the quarter, the network expansion and campaigns continued to progress well.
- Jewellery
After two years of Covid-induced lockdowns in this period, the division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya (AT) in the month of May. On a low base year-over-year, revenues nearly tripled, increasing by 207%. When comparing Q1FY22 to Q1FY21, both walk-ins and buyers grew proportionally to revenues, while ticket size increased marginally.
Compared to sales of studded gold jewellery, growth in plain gold jewellery was nearly threefold. This quarter’s studded mix was better compared to last year’s and comparable to pre-Covid levels. Regional campaigns continued to produce favourable outcomes. Compared to revenue growth, the increase in weddings was marginally lower year-over-year, but the share of the overall pie remained unchanged.
Net store growth continued with the opening of six new domestic stores in Tanishq and thirteen in Mia. A new Tanishq store opened in Karama (Dubai) on April 22 with a positive initial response. In all international stores, retail metrics such as sales growth, walk-ins, conversions, and jewellery mix, including stud ratios, remained healthy.
Tanishq’s pan-India campaigns for its new collections ‘Live a Dream’ and ‘Rhythms of Rain’ were well received, as were its regional campaigns ‘Uttama’ for Poila Baisakh in West Bengal (WB) and ‘Rajadhiraj’ for Lord Jagannath Yatra in Odisha and WB. Mia’s notable campaigns for the quarter included “Wavemakers,” “Mia for Kids,’ and “Gift Smart Gift Mia.’
- Watches & Wearables
In Q1 of FY23, the division recorded its highest quarterly revenue ever, increasing 158% year-over-year with healthy growth across all brands and products. Multi-Brand Retail (MBR), Titan World, and Large Format Stores (LFS) maintained their growth trajectory beginning in FY22. April and May were particularly successful for all brands and channels during the wedding season. On a low YoY base and while maintaining the momentum seen in the second half of FY22, wearables growth nearly quadrupled.
Store expansions (net) continued with 26 new Titan World stores and 15 new Helios stores. The transformation of Titan World, Helios, and Fastrack stores to newer formats offering an expanded selection of premium brands continued during the quarter, with 28 stores undergoing renovations. This quarter, Titan introduced several new products, including Raga Ceramics and a new line of Titan Mechanicals. Titan Solar was introduced to commemorate World Environment Day; it was fashioned from recycled brass, vegan leather, and an in-house solar movement. Stunners 3, Tick Tock 1.0, Uptown Retreat 2.0, and Topicals 1.0 were among the new collections proudly displayed by Fastrack. Sonata introduced “Utsav,” an affordable wedding collection.
Titan and Fastrack launched a number of products in the Wearables market. Titan’s ‘Smart 2’ with a superior AMOLED display and Fastrack’s ‘Fastrack Reflex Curve’ and ‘Fastrack Reflex Watch’ smartwatches, in addition to the existing collection, cover a variety of price points with aesthetically pleasing and feature-packed smartwatches.
- Eye Care
Titan Eye Plus (TEP) and Trade & Distribution channels drove the division’s year-over-year growth of 176%. The journey to reach 1,000 TEP outlets across India by the end of FY23 accelerated with 56 new stores opening in Bengaluru, Kolkata, and Chennai during the quarter. On April 21, 2022, the division set a Guinness World Record by administering 0.13mn eye exams in a single day. The production capacity for ‘Make in India’ Rx lenses and frames is expanding rapidly.
- Other Businesses
The growth of Fragrances & Fashion Accessories, Indian Dress Wear in Trade, LFS, and E-commerce channels contributed to the division’s 271% annual growth. Comparatively, fragrances increased by 262% YoY while fashion accessories increased by 293% YoY. Brand SKINN entered the premium market with “SKINN Nox”—Own the Night in both Homme and Femme variants.
Fastrack introduced the “Wear it your way” collection, which included new sub-categories of commuter bags and small totes worn in amusing ways to allow young people to express their genuine selves. Indian Dress Wear sales increased by 608% year-over-year during the quarter. Brand Taneira expanded its national presence during the quarter by opening six new stores. With the opening of two new stores in Kolkata, the brand made a significant entry into the eastern market and simultaneously strengthened its position in Hyderabad and Bengaluru with the opening of one additional store in each city.
The stores are now located in ten cities across India (Bengaluru being the largest with 7 stores). Taneira is quickly becoming one of the leading players in the saree market, thanks to its enviable ethnic range that caters to major regional diasporas. “Summer Sorbet” is an exclusive collection of handcrafted sarees and ready-to-wear kurta sets in light weaves and exquisite craftsmanship that celebrates the season’s joys. The ‘Wedding Weaves’ campaign, consisting of six short films and visuals celebrating the various relationships of a bride, received over 2.1 million YouTube views. At the core of Taneira’s offerings is the transformation of the Weaver ecosystem through the provision of technical support and the enhancement of working conditions. The ‘Weavershala’ initiative will enable the next generation of weavers to continue working in a clean, dignified environment and earn respectably. In the first quarter, two “Weavershalas” were opened near Varanasi, and work is underway to open more in the coming quarters.
- Key Subsidiaries:
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- Titan Engineering & Automation Limited (TEAL) (Wholly-owned)
The business grew by 35% year-over-year, with both Automation Solutions (AS) and Aerospace and Defence (AD) contributing to the growth. Compared to the same period last year, the AS business experienced a double-digit decline in order volume. However, the AD business’s order intake has more than doubled compared to the same quarter last year, indicating a sector recovery. The overall growth of TEAL’s order inflow was in the mid-teens.
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- CaratLane (owned 72.3%)
CaratLane’s Q1 strategy was centred on attracting and engaging AT customers. With the markets reopening after a two-year absence, very optimistic consumer sentiment helped CaratLane achieve its highest-ever sales on the day of AT (20% higher than Dhanteras in 2020).
- Revenue Growth
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- Titan records revenue growth of 199% in Ql FY 2022-23
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- Titan Company recorded its second-best quarterly revenue in Q1FY23, boosted by robust holiday demand in a nearly normal Q1, which followed two Covid-disrupted Qls in Q1 FY21 and Q1 FY22. Quarterly revenue was 8,649 crores, an increase of 190% compared to Ql FY22 revenue of 2,890 crores (excluding bullion sales). The company also posted one of the highest quarterly profits, with 1,066 crores (before taxes) compared to 82 crores in Ql FY22.
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- In Q1 FY23, the jewellery industry earned 7,600 crores compared to 2,467 crores in Q1 FY22 (excluding bullion sales), a 208% increase, driven by strong Akshaya Tritiya sales and a better-studded mix than in the same quarter the previous year. In Q1 FY23, the Watches & Wearables business reported its highest quarterly revenue of 785 crores, up 169% from 292 crores in Ql FY22. Similarly, the EyeCare business reported its highest quarterly revenue of 183 crores, a 173% increase from 67 crores in Q1 FY22. Other businesses, including Indian dress wear and fragrances and fashion accessories, reported a 300% increase in revenue, from 14 crores in Ql FY22 to 56 crores in Ql FY23.
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- In Ql FY23, the jewellery industry reported an EBIT of 1,027 crores, compared to 207 crores in the same quarter of the previous financial year. In Q1 FY23, the watches & wearables business posted an EBIT of 103 crores, compared to a loss of 56 crores in the same quarter of the prior fiscal year. In comparison to a loss of, 13 crores in the same quarter of the previous year, EyeCare reported an EBIT of, 36 crores during the quarter. Other businesses reported a loss of 10 crores as opposed to 16 crores in the same quarter of the prior year. Throughout the year, the company has added (net) 125 stores. As of June 2022, the company’s retail chain (including Caratlane) consists of 2,303 stores located in 366 cities and covering more than 2,900,000 square feet.
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- Key subsidiaries of the company:
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- Caratlane Trading Private Limited reported revenue of 482 crores and a profit of 27 crores (before taxes) for the quarter, compared to revenue of 157 crores and a loss of 9 crores for the same period last year.
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- Titan Engineering & Automation Limited (TEAL) reported revenue of, 88 crores and a loss of, 6 crores (before taxes), compared to, 65 crores and a loss of, 1 crore in the same quarter last year.
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Frequently Asked Questions (FAQs) on Titan Company Ltd.’s.
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What is Titan Company Ltd.’s share price?
Titan Company Ltd.’s share price is 2,703.15 INR as of September 23rd, 2022.
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What are the 52-week highs and lows of Titan Company Ltd.?
As on September 23rd, 2022:
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- 52-wk high Rs 2,768.00
- 52-wk low Rs 1,825.05
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What are the key metrics to analyze Titan Company Ltd.’s share price?
Key metrics to analyze any share price are a 52-week high, a 52-week low, a 1-year return, a 5-year return, etc.
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What is the market cap of Titan Company Ltd.?
The market cap of Coal India Ltd is INR 2.41LCr as of September 23rd, 2022.
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