A Project On

Diversification: Titan’s Scope of Business

Submitted
To
Dr. Neeraj Singhal
Faculty of Strategic Management

By: - Group A2
Adesh Panda – 21PGDM003
Saurav Gupta – 21PGDM040
Swarnendu Dey – 21PGDM049
Meet Katara – 21PGDM152

Section A
PGDM (2021-23)

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 Diversification: Titan’s Scope of Business
A company in India by the name of Titan Company Limited specialises in
creating fashionable goods including jewellery, timepieces, and eyewear. The
business, which is a member ofitheiTataiGroupiandiwas initially a jointiventurei
with the Tamil Nadu IndustrialiDevelopmentiCorporation (TIDCO), has its
registered office in the city of Tamil Nadu, Hosur and its corporate headquarters
in Electronic City, Bangalore.
Titan Watches Limited was the name under which the company's activities
began in 1984. In 1994, Titan expanded into the jewellery industry with
Tanishq, and then into the eyewear industry with Titan Eyeplus. Fastrack, a line
of youth accessories, was introduced in 2005. The contribution of the jewellery
business accounts for over 80% of the contribution in revenue, the firm is the
largest manufacturer of branded jewellery in India. Titan's market share in
India's jewellery market as of 2022 is six per cent. It ranks as the world's 5th
largest watch producer as of 2019. It is the most dependableiIndianibrand.
The Indian luxury goods firm Titan Company Limited, formerly known as Titan
Industries Limited, specialises in producing eyeglasses, watches, and other
fashion accessories. The business, which is a division of the Tata Group and
was once a joint venture with TIDCO, has its headquarters in Bangalore's
Electronic City. As one of the most integrated watch manufacturers in the world
with a prestigious distribution network, Titan has evolved into a top lifestyle
company with a presence in the jewellery, watches, perfumes, eyewear, and
Indian dress wear areas.
Titan Watches Limited was the name under which it first did business in 1984.
In 1994, Titan expanded into the jewellery industry with Tanishq, and then into
the eyewear industry with Titan Eye plus. Fastrack, a line of youth accessories,
was introduced in 2005. As of 2019, Titan is the fifth-largest watch
manufacturer in the world. The contribution of the jewellery business accounts
for over 80% of the contribution in revenue., it is the biggest manufacturer of
branded jewellery in India. Titan, a big cap firm with a $19 billion market
valuation as of FY 2021, has 7235 workers, 1909 stores, 11 production sites,
and just a 5% attrition rate.
Tata Group:
The Tata Group is a privately held conglomerate made from round a
hundred businesses that paintings in some of essential areas, inclusive
of chemicals, client products, energy, engineering, facts systems, minerals, and

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services. Mumbai is the nation's capital. The Tata Group started as a non-
public trade agency in 1868, based via way of means of businessman and
philanthropist Jamsetji Nusserwanji Tata. The Taj Mahal Palace & Tower,
India's first five-famous person hotel, opened its doorways in 1903 way to the
company's established order of the Indian Hotels Company.
After purchasing multiple multinational corporations, the organisation attained
notoriety on a global scale. Under the direction and control of its own board of
directors and shareholders, each Tata firm runs on its own. Tata Sons, the
holding company for the Tata family, is controlled by philanthropic trusts to the
tune of 66%, with the Tata family having a very modest stake.
The company generated a projected $128 billion in sales annually as of 2022. It
contributed 4% to the GDP of the nation in 2018 and paid 2.24% of all taxes
collected in India, the highest percentage of any business group. As of
December 31, 2021, there were 29 publicly traded companies in the Tata Group
with a combined market value of $311 billion (INR 23.4 trillion).
Company Background:
1984–1990:
TitaniCompanyiLimited,iformerlyiknowniasiTitaniWatchesiLimited,iwasiestabl
ishediiniChennaiioniJulyi26,i1984.iInitheiStateiIndustriesiPromotioniCorporati
oniofiTamiliNadu,iLtd.iIndustrialiareaineariHosur,iaifactoryiforitheiproductioni
ofiquartzianalogueielectroniciwatchesiwasiestablished.iAimemorandumiofiunde
rstandingi(MoU)ibetweeniTitaniCompanyiandiCasioitoiproducei2imillionidigit
aliandianalogdigitaliwatchesiwasisignediiniNovemberi1986.
Aisatelliteicaseifacilityiwithiaicurrentiproductionicapacityiofi500,000iwatchicas
esiperiyeariwasiestablishediini1989iiniDehradun,iUttarakhand.
1991–2000:
The business, which had previously only produced timepieces, changed its
name toiTitaniIndustriesiLtd. in September 1993 as it expanded its product line.
Titan introduced their jewellery line Tanishq in 1994. In an effort to compete
with Timex, the business introduced its watch and accessory brand, Fastrack, in
1998.
2001–2010:
Titan introduced the Dash line of children's timepieces in 2001. Poor sales led to
the brand's discontinuation in 2003. The firm and theiMoetiHennessyiLouis
VuittoniGroup came into an arrangement in 2004 to serve theilatter's line of

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timepieces iniIndia through its customer service centres. Fastrack was
established in 2005 as a stand-alone accessories company aimed at urban
adolescents. Fastrack introduced sunglasses in the same year and purses, belts,
and wallets in 2009 with the aim of becoming a fashion brand.
2011–present:
IniorderitoireachitheiEuropeanimarket,iTitanipurchaseditheiSwissiwatchmakeri
FavreiLeubaiini2011.WithiitsibrandiSkinn,Titanientereditheiperfumesimarketiin
2013,andilaterithatiyear,itientereditheihelmetsimarketiwithiitsibrandiFastrack.Iti
changediitsinameitoiTitaniCompanyiLtd.initheisameiyear.Iniorderitoiopeniitsire
tailistoresiiniIndia,itiformediaijointiventureiwithiMontblanciini2014.
To speed up order processing, Titan developed manufacturing facilities for
prescription lenses in Noida, Kolkata, and Mumbai in 2016. In order to establish
the brand's presence in the South, Titan combined Tanishq with its jewellery
brand, Gold Plus, which is marketed to consumers in South India.
Taneiraiis a Titaniethnic apparel line that sells hand-woven sarees from several
weaving regions in India. The company introduced the line in 2016. In 2017,
Bengaluru saw the opening of the first retail location; New Delhi and
Hyderabad soon followed. Additionally, Titan recently (around the last quarter
of 2016) stated that a line of reasonably priced smartwatches under its labels
Sonata and Fastrack will shortly be released.
Titan joined the wearable technology industry in 2016 when it unveiled Juxt, a
smartwatch developed in partnership with Hewlett Packard. The business
introduced the Gesture Band fitness tracker in 2017 under its Fastrack youth
accessories brand. The same year, it funded $3 million in CoveIoT, a wearable
technology firm located in Singapore. The business introduced new fitness
tracker bands in 2018. As of 2018, theibusinessihasia 7.4% marketishareiinithe
market for wearableitechnology. IniNovemberi2020, Titan established itsifirsti
Tanishqistoreioutside of India iniDubaii. The company also created a special
website just for Dubai to display its offerings. Titan'simarketishareiin India's
jewelleryImarketias of 2022 is 6%.
Titan Product Categories:
Watches:
The market for watches in India is anticipated to expand at a CAGR of 20.32%
from 2020 to 2025. The Fastrack, Sonata, Raga, Octane, and Xylys brands are
part of the watches sector. Hugo Boss and Tommy Hilfiger timepieces were
licenced for marketing and distribution by the firm in 2011. 2012 saw the

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incorporation of Favre Leuba. The division's revenue in 2018 was $2,126 crore,
or 10% of the company's overall sales.
The quartz industry has the most stake. Smart watches, however, had the
quickest market growth and were also quite popular with customers who were
interested in fitness and wellbeing. Due to a rise in the desire among women for
high-quality watches and accessories, lower- and mid-priced watches are
gaining market momentum. The offline retail channel is the dominant
distribution route, and within the offline retail channel, specialty retailers held a
significant share and were also the largest sector. Mono-brand speciality shops
are becoming more and more popular nationwide; for example, a sizable portion
of Titan's chain stores are run by 'World of Titan' outlet franchisees.
Reimagining the World of Titan channel, revamping the multi-brand watch
outlet, investing in marketing communications, and stepping up the omni-
channel play are all now receiving a lot of attention.
Jewellery:
Regardless of the locale, jewellery is almost a need in Indian culture. In 2016,
this market had a value of almost three trillion rupees, and by 2021, it is
anticipated to increase by quadruple. In terms of the worldwide market, it was
predicted that Indian fine jewellery will reach 63 billion dollars by 2018,
coming in second to China but surpassing US retail expenditure the same year.
Different forms of jewellery are produced all across the country using materials
like gold, silver, and stones like diamonds. In addition to being seen as lucky, a
woman's jewellery typically indicates the socioeconomic standing of her family
during social events, particularly weddings. Tanishq, Kalyan Jewellers, and
TBZ were a few of the successful jewellery retailers. These businesses all
specialise in the production and marketing of bridal jewellery. Each of these top
players has expanded its portfolios to include more contemporary brands that
suit with shifting consumer tastes and increased disposable budgets. Tanishq
was founded by Xerxes Desai in 1995. In the luxury market, Zoya was
introduced, while Mia, a sub-brand of Tanishq, was used for jewellery for work
attire. Titan's overall income increased 20.44% to 15,656 crores in 2017–18, of
which jewellery sales brought in 13,036 crores. Titan made a 2016 investment
in CaratLane, which had a 290 crores revenue in the fiscal year 2017–18.
Eyewear:
With the introduction of sunglasses in 2007, Titan Industries entered the market
for fashion accessories. It launched Titan Eye Plus, a company that creates
sunglasses, frames, contact lenses, and prescription eyewear. The division

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maintained a steady rise of 8% and accounted for 415 crores in the fiscal year
2016–17.
With items that reflect the finest in modern design and style and optical
knowledge ensured owing to the technical partnership with Sankara Nethralaya,
India's foremost eye care facility, Titan EyePlus gives Indian customers a top-
notch optical retail experience.
Indian Dress Wear Division:
Sarees have a very big market. Although lifestyle modifications are having an
impact on how frequently sarees are worn, the market for special occasion
sarees—where the Company has decided to play—is considerable and
expanding. The Division has been successful in creating a distinctive and
extraordinary retail experience, a veryistrong customer valueiproposition, a
systematic method for creatingiproduct andistore assortments, aihealthy gross
contributioniprofile, and all of these things. The Division will step up its efforts
in network growth and franchising during the next years.
Titan Co Ltd, a member of the Tata group, said today that it has entered the
market for high-end ethnic apparel for women under the name "Taneira." The
business has built the first Taneira store in this location, which has a selection of
handwoven sarees and ethnic clothing from all across the nation with prices
starting at Rs 2.5 lakh.
Fragrance Division:
The Division has been successful in developing a wide variety of "Exceptional
Quality, Affordable Price" Eau de Parfum variants, ranging from "Tales" at
1595 to "Amalfi Bleu" at 2495 and many others in between. As a result, a wide
aspirational category has been created for millions of aspirational Indians who
find that international options are out of their price range. As India's per capita
GDP increases dramatically over the next several years, this platform will be
incredibly useful as this company begins to meaningfully contribute to the
Company's sales and earnings. Under the brand name "Skinn," Titan introduced
six different fragrances in the Indian perfume industry in 2013. They worked
with eminent perfumers like Olivier Pescheux and Alberto Morillas.
Subsidiaries and Affiliate Companies:
An entirely owned subsidiary of Titan is Titan Engineering & Automation
Limited. Previously, it went under the name Titan-Precision Engineering
Division. The business currently specialises on component manufacture,
automation, and machine building.

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FavreiLeuba, a Swissiwatchmaker, was bought in 2011 andiestablished as a
Titan subsidiary in 2012. The purchase price of the firm was €2,000,000.
Switzerland's Solothurn is home to its headquarters. The Swiss company Favre
Leuba AG currently has TitaniWatchiCompanyiLimitediin Hong Kong as a
100% subsidiary. In order to market and sell Montblanc goods through its retail
locations, Titan and a joint venture were established in 2015.iMontblanc India
RetailiPrivate Limited is 49% owned by Titan, whileiMontblanc Services B.V.
owns 51%.
Strategic Position of Company:
With a long history, Titan has been linked to watches for nearly 30 years now.
Titan is the fifth-biggest watchmaker in the world and the largest integrated
watch producer in India.
However, the firm has expanded into jewellery, eyeglasses, and other ancillary
markets throughout time, such as perfumes, wallets, purses, and clothes. They
have concentrated on areas that have previously lacked organisation and are
working to establish themselves as a major presence there. Thus, this has been
their primary tactic.
Titan's product range includes around 20 brands. Additionally, it is authorised to
distribute a number of foreign labels in India, such as Tommy Hilfiger, Kenneth
Cole, and Anne Klein. With more than 1,700 retail locations and exports to 32
nations, Titan has a significant market share. Titan watches are sold in more
than 11,000 multi-brand retailers worldwide. Previously, Titan received 70% of
its income from the selling of watches. But as of this now, only 13% of the
company's income comes from the watch section. Titan's jewellery division
accounts for 82% of its total revenue, making it a considerable source of
income. Less than 5% of the company's revenue comes from the eyewear and
other ancillary areas.
Watchesi: 13%i
Jewelleryi: 82%i
Eyeweari: 2%i
Others (Fragrance, wallets, handbags etc.): 3%
Titan's peripheral business area (fragrance, wallets, purses, and clothes) has
shown extremely rapid growth over the previous five years, with a CAGR of
21%. However, given this section only makes up 3% of the business's sales, its
expansion will have little financial impact. Titan's jewellery business is likewise
expanding quickly, with a CAGR of 15%. And given that it accounts for an
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astounding 82% of Titan's overall income, this will have a substantial effect on
the business's financial situation. The watch and eyeglasses markets are
expanding equally. Titan retains over 65% of the market share in the watch
sector, despite the watch segment's constant expansion. And it is adding
smartwatches to the watch segment's product line.
Titan's main market, which accounts for 98% of its overall sales, is India. The
company's revenue from international markets makes up barely 2% of its
overall sales. Outside of India, UAE is Titan's biggest market. And Middle
Eastern markets account for 50% of Titan's global watch sales. In an effort to
broaden its reach internationally, Titan has also opened the first international
jewellery store, Tanishq, in Dubai.
Core Competencies and Competitive Advantages:
The crucial question is whether a business should diversify in order to keep up
with and outperform its competitors or stick to its strengths and competitive
advantages.
It is one of the harder issues to answer, according to experts. However, the
solution lies in the benefits that diversity brings a business. Corporate strategies
broaden the operations by diversifying into new industries. By extending the
company's areas of activity, diversification into new markets helps lessen
fluctuations in corporate earnings. One type of growth strategy is
diversification. Growth plans entail a considerable rise in performance goals
(often revenue or market share) relative to prior performance levels.
Numerous businesses employ one or more different development methods.
Financial performance is enhanced through diversification. Cash generated by
large businesses can be used to fund other projects. That is, the primary firm
relies on its profitable initiatives to maintain itself, and it leverages the cash
flow from these operations to fund the development of new ones that bring in
more money. One of the main causes is the widespread belief among executives
and investors that "larger is better." Sales growth is frequently used as a
performance indicator. A rise in sales is welcomed by many even if earnings are
constant or declining. It is frequently believed that if sales rise, profitability
would inevitably follow. The big watch and jewellery manufacturer Titan
Industries is also altering how it manages its portfolio.
Jamsetji Nusserwanji Tata created the basis for the Tata Group in 1868. While
working for his father's banking company, he gained commercial experience
before starting a trade company in Bombay. Tata paved the way for India's
industrialisation by funding innovative companies in industries including steel,

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electricity,itextiles, andihospitality. The Tata Group constantlyiexpanded into
new industries. The more notable of these businesses were Titan Industries
(1968), Voltas (1954), Tata Chemicals (1939), Tata Motors and Tata Industries
(both in 1945), Tata Tea (1962), and Voltas (1954). (1984). In 1984, Titan, a
partnership between the famed Indian corporate conglomerate Tatas and the
Tamil NaduiIndustrialiDevelopment Corporation (TIDCO), joined the watch
industry. Titan altered the timepiece.
The Indian watch industry's undisputed leader is Titan Company. With
extremely high ratings for brand recognition, brand image, and brand
preference, Titan is one of the most strong brands on the Indian market. The
Indian watch market saw a volume transaction of almost 23 million pieces
(1998-99). It is expanding at 9% annually. Half of the industry's volume
turnover is contributed by the organised sector, with the remaining third coming
from the unorganised sector. In the organised sector, Titan holds a 60% stake.
Titan made the decision early on that it would influence the watch business
rather than just acclimate to it. The Tatas made two choices that transformed the
Indian watch market and paid off handsomely for them as well. They opted to
just produce analogue quartz products. Titan was the first company to
popularise the idea of "Gifting watches." Together with the hip music, the
advertisements successfully captured the essence of gift-giving and attracted the
market's attention. Customers who were sick ofiugly timeimachines embraced
the brand, and Titan had a long period of success. As a high-end watch, Titan
joined the market. However, Titan faced significant competition from the
unorganised market and inexpensive HMT choices. Many small-time players
emerged as a result of the reduction of the import tariff from 50% to 25% and
the ease of obtaining an import licence for watch movements. These little-
known companies provided Titan with pricing competition. Titan erred
significantly. It wished to engage in the game of loudness. Titan created the
Sonata brand as a result. Although Sonata (then known as "Sonata from Titan")
was supported by Titan, the premium perception of Titan's parent brand was
damaged. It was a very expensive error. Another issue withiTitan has beenithat
it mostly competes in theimid-priced market, where rivals claim that because of
Titan's overwhelming dominance, the segment has remained undeveloped. Titan
meticulously split the market and created unique sub brands for each group after
discovering that the consumer desired a reason to be enthusiastic about watches.
Edge, Steel,iDash,iNebula,iClassique, Royale, Fast Track, Raga, and the
recently introduced Wall Street are examples of subbrands. Titan was able to
infuse newness into the brand by having a variety of goods, models, and
subbrands. Tanishq, the largest, most coveted, and rapidly expanding jewellery

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brand in India, was introduced by Titan in 1995. Any other jeweller in the
nation cannot equal the Tanishq finish thanks to meticulous handling and high-
quality proceduresigovernedibyiindividualitrust. Tanishqiintroduced
iinnovationsilikeiKaratimeter,theionlyinon-destructiveimeansitoicheck the
purityiofigold. Titaninowiisitryingitoibeimoreicontemporaryiandimoreirelevant
to the consumers by moreifirmly established in customers' thoughts. With its
new marketing strategy, "Be more," Titan hopes to establish a deeper
connection with its customers. By reorienting its attention from product
qualities to desires, feelings, experiences, and goals, Titan is transforming its
product offering. The WWF collection is inspired by endangered species, the
Titan Raga Diva by beauty and sensuality, the Titan Octave by the cockpit of a
Formula One vehicle, and the Titan Aviator by a World War II fighter jet. This
type of collection paints an image of a company that is preparing to take use of
its capabilities in production, design, and retailing to capture a greater piece of
the lifestyle market. With Titan's success in the watch and jewellery industries
and its recent foray into the eyewear market, they are more at ease creating
lifestyle brands. Titan is now considering the potential of include accessories
like purses and belts under the Fastrack brand, which already includes watches
and sunglasses. Titan intends to launch special Fastrack outlets to increase the
appeal of this market. Titan is concentrating on design and merchandising as
eyewear quickly develops into a fashion statement. Titan has launched 30
outlets in 12 cities and has also entered the prescription eyeglasses market. Each
of them is positioned as a full-service optical shop where customers can choose
from a large selection of frames and lenses, including some extremely well-
known international brands, all under one roof. Tanshiq's transformation
throughout the course of the year also shows Titan's change in lifestyle. Tanishq
has expanded its product lineifromibeing a trendyibrand foriyoung customer
with its lightweightijewellery. The brand has also become more familiar to
consumers because to its relationship withiBollywoodithrough films likeiAmol
Palekar'siPaheli and the moreirecentiJodhaiAkbar. Tanishq has benefited greatly
from the fact thatijewellery is becoming more of ailifestyle item foriurban
customers. No longer is it purchased as an investment. The organised industry
barely accounts for 4,000 crore of the projected 70,000–80,000 crore Indian
jewellery market, which is dominated by tiny local firms. The opportunity is
therefore enormous for a player like Tanshiq who has a highibrandiequity and
firstimoveriadvantage.iTanshiq just went worldwide as part of theiriexpansion
plan. It just built aishowroom iniChicago, USA, with the commoniAmerican in
mind. The United States has theilargestijewelleryimarket in theiworld, and
Tanishq has the chance to fill the gap left by Wal-price Mart's cuts and Tiffiny's
high price point. Titan is succeeding on many fronts, but it is also cognizant of
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its rivals and the shifting market dynamics. Titan keeps a tight eye on Reliance,
its main rival. After Titan, Reliance is the only corporate entity to join both the
jewellery and eyeglasses businesses.
Conclusion:
Future growth strategies for Titan include boosting market shares through
regional diversity as well as boosting sales through modifications to the
company's product line. The business's future plans call for five new worldwide
markets to be entered each year. Tanishq is now exclusively sold to a small
number of nations, mostly Singapore and the Middle East. The company is
evaluating the market in the US for its jewellery business since it intends to
attract both NRIs and American customers. Future growth strategies for Titan
include boosting market shares through regional diversity as well as boosting
sales through modifications to the company's product line. The business's future
plans call for five new worldwide markets to be entered each year. Tanishq is
now exclusively sold to a small number of nations, mostly Singapore and the
Middle East. The company is evaluating the market in the US for its jewellery
business since it intends to attract both NRIs and American customers.

Exhibit 1: Organization Structure

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Exhibit 2: Brands Under Titan

Exhibit 3: Sales in Last Five Years

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