ABOUT TITAN

Over the course of more than 25 years, the Titan Watch Project evolved into Titan Watches, Titan
Industries, and the current Titan Company Limited. Every year saw new technology and advances as
output surpassed the 15 million level. After entering the European market in 1993, Titan watches
went on to sell more than 150 million units in 32 nations in the Middle East, Asia, and the Pacific.
Taking the lead in the organised watch market share with a 50% share claim and audaciously
competing against the Swiss Titan, the company became the biggest integrated own brand watch
producer in the world.

Timex, which claimed second place in popularity behind Titan during the years 1992 and 1998, was
the outcome of a short joint partnership. With the release of Sonata, Titan reclaimed the share after
the termination of this cooperation. Then came a shrewd selection of wrist jewellery, including
watches from the Titan, Fastrack, and Xylys brands, as well as designer timescapes and a variety of
outdoor clocks that marked stunning locations in various cities.

Along with dominating the watch industry, Titan also entered the sparkling world. After extending to
jewellery in 1993, the brand Tanishq was introduced in 1996, and a decade later Goldplus—the
uniform mass marketing of jewellery—was introduced. More ventures then followed this
diversification. Fastrack, a stylish and trendy line of watches and accessories, debuted in 2003.
Precision Engineering followed in 2005, and in 2007, the Titan Eyewear Division launched, a project
that produces prescription eyewear with specialised stores to meet every requirement of the public.

Tanishq and Goldplus from Titan Company, which focuses solely on the domestic market and sees
gold as a top investment, struck the correct note with their presentation of traditional and designer
jewellery. Through more than 160 boutiques in 89 towns around the country, Tanishq offers a
magnificent universe of fine, priceless designer goods. With a market share of almost 40% in semi-
urban and rural areas, Goldplus may be pleased of its performance. These two businesses keep
value-conscious clients satisfied and are a source of pride for Titan Company and India.

Titan introduced Mia in 2011, an exquisite collection of elegant, stylish, and reasonably priced
jewellery made for working women. Over 500 designs are featured in Mia, which is made entirely of
14K gold.

Titan entered the perfume business in 2013 with the release of SKINN, which redefined the Indian
fragrance market by ensuring the finest quality and carrying the Titan trademark.

In order to provide lovely jewellery and a unique shopping experience that meets today's ideals and
lifestyles, Tanishq acquired Carat Lane in 2016.

A household name in India in the 1960s and 1970s, Swiss watchmaker Favre-Leuba was acquired by
Titan in 2011 and relaunched in 2016—exactly five years after the acquisition.

Source-https://www.titancompany.in/about-us/heritage

Market Share
Watches: -65%(Year-2021)

Jewellery: ~5%(Year-2021)

Eyewear: ~5%(Year-2022)
Source-https://finshiksha.com/titan-company-analysis/

Eyewear Source-https://www.google.com/search?
q=titan+eye+plus+market+share&rlz=1C1FHFK_enIN999IN999&oq=titan+eyewear+market+&aqs=ch
rome.1.69i57j0i22i30l2j0i390l4.8759j0j7&sourceid=chrome&ie=UTF-8

Industry Projected Growth:-

Jewellery: - 8.34% over the forecast period, 2022-2027

Source: - https://www.techsciresearch.com/report/india-gems-and-jewelry-market/4057.html

Watches: - 20.32% over the forecast period, 2022-2027

Source: - https://www.researchandmarkets.com/reports/5008266/india-watch-market-growth-
trends-covid-19#:~:text=The%20Indian%20watch%20market%20is,forecast%20period%2C
%202022%2D2027.

Eyewear: - 8.92% over the forecast period, 2022-2027

Source: - https://www.statista.com/outlook/cmo/eyewear/india#:~:text=Revenue%20in%20the
%20Eyewear%20market,(CAGR%202022%2D2027).

Revenue:-
Historically, the selling of watches was where Titan made about 70% of its money. But as of this
now, only 13% of the company's revenue comes from the watch section. Approximately 82% of
Titan's sales comes from the jewellery industry, which is a substantial revenue generator. Less than
5% of the company's revenue comes from the eyewear and other ancillary areas.

Watches: ~ 23.09 billion Indian rupees in fiscal year 2022,13% of total revenue

Jewellery: ~ $3.04 Billion ,82% of total revenue

Eyewear: ~2%

Others (Fragrance, wallets, handbags etc.): ~3%

Source - https://finshiksha.com/titan-company-analysis/

Source Watches revenue:- https://www.statista.com/statistics/1010357/india-titan-company-

income-from-watches/

Source Jewellery :- https://gjepc.org/news_detail.php?news=titan-fy22-jewellery-sales-36-to-3-04-

billion-1

Cost:-
Cost Of Materials Consumed: - 20,939.00 in Rs. Cr.
Purchase Of Stock-In Trade: - 4,187.00 in Rs. Cr.

Employee Benefit Expenses: - 1,143.00 in Rs. Cr.

Finance Costs: - 195.00 in Rs. Cr.

Other Expenses :- 2,130.00 in Rs. Cr.

Source : - https://www.moneycontrol.com/financials/titancompany/profit-lossVI/TI01

Risk: -
Lockdown and a sluggish economy will be detrimental.

A Covid-19-led lockdown in India has had a negative effect on economic activity. The company's
sales have dropped significantly as a result of the closure of retail stores and its dealer network. The
management anticipates a rebound in wedding-related sales in H2FY21 and intends a recovery (run-
rate-wise) by the end of Q4FY21. 23% of jewellery sales in FY20 were related to weddings (wedding
jewellery has lower profits). Many couples have decided to move their marriages to the beginning of
2021 or the winter season of 2020 as a result of the Covid-19 epidemic.

The jewellery sector missed Akshaya Tritiya, one of the biggest days for selling gold. Due to their lack
of money, people may now sell their gold savings to jewellers. Scrap gold entered the market in the
past as well, but this time they will sell gold without necessarily replacing it with new jewellery. Gold
price volatility can also be detrimental to consumer sentiment.

As competitors try to get rid of their stock pile, there may be some excessive discounting in some
regions. This could put pressure on gross margin together with increased reliance on Gold Exchange
Scheme, wedding sales, lower studded ratio, and more one-time gold resale.

Industry competition puts pressure on growth and margin.

A price war to offload more inventories could be sparked by the lockdown, which would have a
negative effect on the profitability margin. In the long run, Titan may face competition in the
jewellery market from other organised jewellery merchants that are growing their geographic reach.
Despite holding a leadership position in the eyeglasses market, the company's margins have been
low because of fierce competition from both local and online shops.

Observes a bit about structural decay

The need for new watches has drastically decreased as a result of the introduction of smartphones,
smartwatches, and other personal items. Even before Covid, the increase of watch volume began to
decline: -1% in Q2FY20, -10% in Q3, -5% in Q4, and -93% in Q1FY21.

Non-discretionary jewellery expenditure could be negatively impacted because saving money would
reduce spending on luxury goods.

In order to assist its franchisee partners in maintaining their businesses, Titan may need to support
them through greater margin/schemes and extended credit periods.

Regulation-related risk in the jewellery sector

The domestic gold jewellery business has previously been impacted by some unfavourable
regulatory developments. Some of the unfavourable regulatory changes over the past four years
include restrictions on the importation of bullion and the funding of metal loans, the requirement
for PAN disclosure on transactions, the implementation of excise charge, and an increase in customs
duty. Any upcoming regulatory actions that affect Titan's business profile will continue to expose it
to these and other risks.
The company's additional issues include decreased foot traffic, an uncertain future for discretionary
spending, and a smaller proportion of the market. Additionally, since Q2FY20, the quantities of both
jewellery and timepieces have been declining YoY. Product mix and cost management have led to
profit growth. However, this might not endure for very long.

Source: - https://www.hdfcsec.com/hsl.research.pdf/Titan%20-Initiating%20Coverage%20-
%20140920.pdf

Promoters:

Last 5 Years News:

 Titan Company incorporates step down subsidiary in Qatar.

Source:- https://www.business-standard.com/article/news-cm/titan-company-incorporates-
step-down-subsidiary-in-qatar-122120300427_1.html
 Tanishq opens first retail showroom in the US
Source:- https://www.businesstoday.in/lifestyle/top-story/story/tanishq-opens-first-retail-
showroom-in-the-us-check-pictures-here-355764-2022-12-09#:~:text=Titan%20Company's
%20jewelry%20brand%20Tanishq,%2D%20North%20America%2C%20Titan%20Company.

 Tanishq adopts two-pronged strategy to double large format stores

Source: - https://www.thehindu.com/business/tanishq-adopts-two-pronged-strategy-to-
double-large-format-stores/article66297723.ece#:~:text=Jewellery%20retailer%20Tanishq
%20is%20planning,soon%2C%20said%20a%20senior%20official.

 Titan Company ventures into a new lifestyle category with the launch of IRTH Bags
 Source : - https://www.aninews.in/news/business/business/titan-company-ventures-into-a-
new-lifestyle-category-with-the-launch-of-irth-bags20221021161227/

 How Titan Company's expansion plans may impact its margins.

Source:- https://economictimes.indiatimes.com/markets/stocks/news/how-titan-companys-
expansion-plans-may-impact-its-margins/articleshow/93472972.cms

Ownership: -

Titan is a part of TATA GROUP with majority shares

Management Discussion and Analysis :-

Despite the pandemic-related disruptions that occurred during some of the year, the
Company produced a strong overall performance in the Financial Year 2021–22. Despite
having fewer than eleven months of regular operations throughout the year, the Company's
numerous capabilities secured an astounding financial performance. Several important
elements that contributed to the year's remarkable sales and financial performance include:

• The ability to push many levers for growth in the Jewellery segment and the continued
formalisation of the jewellery industry
• The journey of premiumisation in the Watches & Wearables segment saw
disproportionately good performance by premium brands like Titan
• Rapid store expansion in the EyeCare segment coupled with launch of innovative products
and correct selling
• A slew of digital initiatives that helped the Company leapfrog in overall digital influence
with online selling of the Company’s products picking up in foreign countries
• The continued deep commitment of all Titanians and all retail, distribution and vendor
partners and their employees
As a result of all these, all the businesses exceeded their targets and also laid the
foundations for a very good Financial Year 2022-23