Company Overview

Worlds 5thlargest Watch Manufacturer 65% market share in organized watch market Sonata: Indias largest selling watch brand Tanishq: Indias leading Jewellery Player and a game changer Titan Eye+: Indias largest retail chain in eyewear Strength in Retail: Close to 700 stores Distribution: More than 11,000 Multi-brand outlets Multi-brand outlets named Time Zone Exclusive retail showrooms for watches called The World of Titan spread over 100 towns Titan has also entered the jewellery business in 1995 Watch assembly plants at Dehradun (Uttar Pradesh) & Baddi (Himachal Pradesh) Plant manufacturing electronic circuit boards in Goa

Vision:

Vision/Mission/Values/Business Principles

To be a world-class, innovative, progressive organisation and to build Indias most desirable brands

Mission:
To create wealth for all our stakeholders by building highly successful businesses based on a customer-centric approach, and to contribute to the community.

Values and Standards:

Total customer orientation Employee appreciation Performance culture and teamwork Creativity and Innovation Passion for excellence Corporate Citizenship

http://titan.co.in/ http://www.titanworld.com/ http://www.titanhtse.com/

Management Team

Business Overview
Products:
Clocks Contact lenses Frames Gold jewellery Lenses Platinum jewellery Precision components Sunglasses Watches Watch accessories

Brands:
Edge Fast Track Gold Plus Nebula Octane Raga Aqua Regalia Sonata Steel Tanishq Titan Eye+

Services:
Customer care services Repairing of watches

Business Overview
Two flagship brands Sonata and Titan.
Sonata is positioned in the low end segment in the market with a price band of Rs 250 to Rs 1250, affordability positioning The brand Titan is positioned in the middle and upper segment and has a range of sub-brands like Edge, Fastrack, Nebula, Raga, Steel, Regalia, Bandhan and Flip. Tanishq has a share of slightly over 50 per cent in the total revenues of the company while watches have about 45%. The balance is accounted for by the new businesses viz. Precision Engineering, Accessories & Licensed Products

In jewellery, gemstudded jewellery, which has higher margins as compared to plain gold jewellery, has seen its share rise steadily to 30 per cent. Designer wear brand Tommy Hilfiger have also been launched International markets Titan has also introduced a perfume under the brand name Evolve

International Business
One of Indias first companies to market a consumer brand overseas. Titan watches are present in 26 countries outside India Titan is among the top 3 watch brands in several Asian countries Titan is exploring South Africa this year. Total export sales of Rs99 crores ($22 mn) in 2010-11 including watch components.

Jewellery
Three major brands Tanishq, Gold Plus and Zoya Largest jewellery retailer in India 121 Tanishq boutiques 29 Gold Plus stores 2 Zoya stores Manufacturing facilities in Hosur and Dehradun Innovative Services Golden Harvest / Future scheme, gift vouchers, gold exchange schemes and made to order facility Loyalty Programmes -Anuttara & Ananta Customer First and Lean initiatives in manufacturing and retailing

Eye Wear

Precision Engineering
Leverages engineering capabilities B2B business balances risk of B2C businesses The Opportunity India growing as a manufacturing base for precision products Cost pressures and offset requirements guarantee a long term opportunity High cost of switching for customers Large & growing market: US$ 32 billion globally Catering to Aerospace /Automotive Industry Oil Exploration & Production Machine building and Automation Business

Indias largest optical retail chain (169 stores) State of the art eye-testing facilities Products include frames, sunglasses, contact lenses, ready readers, lens cleaning solutions and other accessories Three in-house brands Titan, Eye+ and Dash Several international and luxury brands Gucci, D&G, Armani, BOSS, Esprit, Daniel Swarowskiand Mont Blanc Key differentiators Style consultants, Zeroerror prescription, free eye testing, scratchresistant lenses, lens accuracy certificate

Business Overview /Profit Contribution

Financials
Last Annual Financial Statement for FY 20102011
Income from watches up by 23% on y.o.y from 200910 Income from jewellery up by 43% on y.o.y from 200910 Total Income UP by 43% on y.o.y from 2009-10

Stock Market Details & Financial Ratios

Financial Ratios Net Operating Profit Per Share Operating Profit Margin (%) PBIT (%) Gross Profit Margin (%) Net Profit Margin (%) Current Ratio Quick Ratio Debt Equity Ratio Asset Turnover Ratio March 11
141.58 9.56 9.05 8.91 6.40 1.33 0.53 0.08 10.35

Particular BSE NSE Market Cap EPS P/E Book Value Price/Book Latest Div (%) Div Yield Face Value Industry P/E

19 Sep 2011

222.00 222.35
19,709 Cr 5.55 40.06 13.01 17.07 125.00 1.12 1.00 23

Financials
Financial Overview
PBT up by 87% on y.o.y from 2009-10 PAT up by 72% on y.o.y from 2009-10 Market Cap recently crossed US$ 4 bn mark

First Quarter Performance 2011-12

Retail sales Q1 of 2011-12

Competitors
The major players in the Indian watch market include HMT, Titan and Timex. The other players include Westar, Shivaki, Maxima, SITCO. Foreign brands such as Cartier, Piaget, Omega, Tiffanys and Corrum, Gucci, Longines, Casio, Citizen, Tag Heuer and Espirit are also making an inroad into the Indian market From the stock market perspective, the main competitors are
Dynamic Microsteppers Ltd. KDDL Ltd (Kamla Dials & Devices Ltd) Timex Group India Ltd.

Subsidiaries/Parent Company

Milestones / Brand Evolution of Titan

Milestones / Brand Evolution of Titan

Milestones / Brand Evolution of Titan

Brand Extensions
Titan extended the brand and launched Titan Eye, Fast Track, Xylsus and entered the eye gear, shades and youth watch spaces. all these brand extensions enjoyed tremendous support from the strong brand equity of TITAN and in due course of time has developed in to strong brands themselves like Fast Track and the same is expected in the newer brand extensions as well.

Future Plans:
Targeting three-fold growth in revenue in 5 years to Rs. 14,000 croremaking us a 3 billion dollar company Huge opportunity in International Markets Opportunity in Jewellery: Rs. 100,000 croremarket Eyewear Rapid expansion of our world-class Titan Eye+ stores to dominate the optical industry in India

Awards/Recognitions

Recent News/Events
Date Time Headline 30-Aug-2011 Titan eyes Rs 3,500 cr turnover by 2015 from watch business Date Time 25-Aug-2011 Headline Titan Industries set to explore new verticals Announced that it is planning to foray into the silver watch segment by next year as it wants to change its brand image to a lifestyle retail company. Moreover, the company also plans to enter into the helmet market.
Managing Director Bhaskar Bhatt said, "Titan is working to perfect a technology that will ensure that silver does not get tarnished, without which entering this sector could be disastrous. Titan is also looking to enter segments like pens, steel and even silver jewellery.

Date Time 29-Jul-2011 Headline Titan Industries Q1, 2011-12 net profit surges by 76.3 percent Industry News:
17/12/2009 7/4/2009 16/6/2008 27/9/2006 22/8/2006 23/6/2006 23/6/2006 16/6/2006 1/6/2006 26/4/2006 Stylish watch retailer expected to open unit at AIRMALL Egana to expand its retail outlets More global luxury brands to foray into Indian watch industry Omega unveils series of Planet Ocean wrist watches Sonata watches offers discount scheme Omega names Abhishek Bachchan as new brand ambassador Omega to expand its ops in India Citizen Watches to expand in the north Citizen Watches sets up showroom in Kochi Sonata watches names Dhoni as brand ambassador

HR Practices/CSR Initiatives
Code of Conduct for Non-Executive Directors Whistle Blower Policy Tata Code of Conduct (Can be accessed @ http://titan.co.in/files/Tata-

Code-of-Conduct-2011.pdf)

Careers
Robust leadership-development systems Innovative reward mechanisms at Titan Industries Encourages internal mobility as a means of building expertise, generating synergy, and promoting self-improvement. Titan Industries has been rated highly by the Gallup engagement survey - with scores for satisfaction, loyalty and advocacy far higher than the average scores of Gallup India The Company has also been rated No.1 in Retail category and 24th overall by Great Places to Work (2009), an institutional study, in the Economic Times.

Contact p10kirank@iimidr.ac.in +91-8085728146

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