Business Report

Titan Company Limited

Name: Abdull Alim Shaikh Sub: Valuation of Business & Intangible Assets
Enrollment No: A70058920035 Semester 4
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TABLE OF CONTENTS
company Overview ______________________________________________ 3
About __________________________________________________________________ 3
Company Timeline ________________________________________________________ 3
Company Mission_________________________________________________________ 3
Company Vision __________________________________________________________ 3

Market Overview ________________________________________________ 4

Products Categories_______________________________________________________ 4
Competitors _____________________________________________________________ 5
Difference from other brands ________________________________________________ 6
Market Strategy __________________________________________________________ 6
Business Strategy ________________________________________________________ 7
Market Capture Strategy ___________________________________________________ 8
Service Excellence ________________________________________________________ 8
Swot Analysis ____________________________________________________________ 9

Financial Overview _____________________________________________ 10

Capital Structure ________________________________________________________ 10
Stock Performance_______________________________________________________ 11
Shareholding Pattern _____________________________________________________ 11
Historic Revenues _______________________________________________________ 12
Revenue Share _________________________________________________________ 12
Valuation Ratios _________________________________________________________ 12
Financial Highlights 2021 __________________________________________________ 13
5 Years Historical Performance _____________________________________________ 13

References ___________________________________________________ 14
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COMPANY OVERVIEW
About
Titan Company Limited is an Indian luxury products company based in Bangalore, India. It
primarily produces fashion accessories such as jewelry, watches, and eyewear. The company,
which is part of the Tata Group now, It began as a joint venture with TIDCO, has its corporate
headquarters in Electronic City, Bangalore and its registered office in Hosur, Tamil Nadu
(Titan, 2022).

Company Timeline
Titan began operations in 1984 as Titan Watches Limited. Titan expanded into jewelry with
Tanishq and then into eyewear with Titan Eyeplus in 1994. In 2005 it launched Fastrack, its
youth fashion accessories brand was launched. Titan got listed on National Stock Exchange
(NSE) in the year 2005. The company is India's largest branded jewelry manufacturer, with the
jewelry segment accounting for more than 80% of total revenue. It is also the world's fifth-
largest watch manufacturer as of 2019. (Titan, 2022)

Source: (Slideshare, 2022)

Figure 1 Timeline of Titan

Company Mission
Company Vision

Source: (Titan, Annual Report, 2021)

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MARKET OVERVIEW
Current Market Price: 2574.95 Rs (15th March 2021)

Titan today been a global and luxury brand have 60% market share in Indian watches
segments.

Products Categories

Source: (Titan, Annual Report, 2021)

Figure 2 Product Catergories
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Competitors
Listed

Unlisted

Lenskart.com
All Watch Brands
PC Jewelers

Source: (Moneycontrol, 2022)

Figure 3 Listed Competitors

Figure 4 Market Outlook

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Difference from other brands

Market Strategy

Source: (Slideshare, 2022)

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Business Strategy
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Market Capture Strategy

Service Excellence

Source: (Slideshare, 2022)

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Swot Analysis
Strength
• Distribution: Very Good Distribution Network. Titan is giving Attractive margin to distributors and
dealers.
• Customer Satisfaction: Customers are satisfied with their build quality, performance, and brand image
• Good Design: Titan is known for its good designs and good quality.
• Positioning: Titan has positioned itself in the Watch Market.
• Quality: Quality of Titan Watches are as good as international watches
• Retailing and Collabs: Titan has a good retail chain “World of Titan”. tie-ups with international brands

Weakness
• Titan Watches is not fully waterproof.
• Rural India is not targeted by Titan.
• Less preference to watch as customers are shifting towards mobile phones.
• Titan is less in Smart Watches which is the demand for the future.

Opportunities
• Huge exchange-rate market.
• Build waterproof watches.
• The market in rural areas may be tapped.
• Enter into digital watched market

Threats
• Titan is facing tough competition from Citizen, Swiss-Omega, Rolex, Tag Heuer, Tissot, Rado, etc.
• Titan is also facing threats from Chinese watch companies that are selling their products at a much
cheaper price.
• Titan watches are simple in design that means imitation is possible.
• Unorganized/grey market sector.
• Mobiles are replacing watches.

Source: Primary Source

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FINANCIAL OVERVIEW
Capital Structure
Table 1 Capital Structure

31st March 2021 31st March 2020

(Values In Crores)

Equity

(a) Equity Share Capital 89

7408 6580
(b) Other Equity
(c) Non-Controlling 5 4
Interest
Total Equity (A) 7502 6673

Non-Current Liabilities
9 17
(a) Borrowings
(b) Other Financial 3 4
Liabilities
1059 1056
(c) Lease Liabilities
Deferred Tax Liabilities 6
8
Other Non-Current
0
Liabilities 1

Provisions 166
156

1236 1249
Total Debt (B)
8738 7922
Total Capital (A)+(B)
Source: (Titan, Annual Report, 2021)

Source: (Yahoofinanace, 2022)

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Stock Performance

Figure 5 Stock Performance Source: (Tickertape, 2022)

Shareholding Pattern

Figure 6 Shareholding Source: (Tickertape, 2022)

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Historic Revenues

Figure 7 Historic Revenue

Revenue Share as per Segment

Valuation Ratios

Source: (Tickertape, 2022)

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Financial Highlights 2021

Years Historical Performance

Source: (Titan, Annual Report, 2021)

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REFERENCES
Moneycontrol. (2022, 03 15). Moneycontrol . Retrieved from Moneycontrol :
https://www.moneycontrol.com/india/stockpricequote/miscellaneous/titancompany/TI0
1
Slideshare. (2022, 03 15). Slideshare . Retrieved from Slideshare :
https://www.slideshare.net/samriti_PC/titan-watches-case-study-of-the-brand-
innovation
Tickertape. (2022, 03 15). Tickertape. Retrieved from Tickertape:
https://www.tickertape.in/stocks/titan-company-TITN?checklist=basic
Titan. (2021). Annual Report. Titan.
Titan. (2022, 03 15). titancompany.in. Retrieved from titancompany.in:
https://www.projects4mba.com/swot-analysis-of-titan/2273/
Yahoofinanace. (2022, 03 15). Yahoofinanace. Retrieved from Yahoofinanace:
yahoofinanace.com/Titan