Presentation on SWOT

Analysis of Titan
Company

Presentation by:- Mustafa Ankleshwaria

XIIth Commerce
NO.: 9
 Tata Group
Tata Group, the parent company of Titan company is an Indian
multinational conglomerate holding company, Founded in 1868
by Jamsedji Tata, the company gained international recognition after
purchasing several global companies. One of India's largest
conglomerates, Tata Group is owned by Tata Sons.
The Tata group comprises over 100 operating companies in seven
business sectors: communications and information technology,
engineering, materials, services, energy, consumer products and
chemicals. The group has operations in more than 80 countries
across six continents, and its companies export products and
services to 85 countries
Each Tata company operates independently under the guidance
and supervision of its own board of directors and shareholders.
Significant Tata companies and subsidiaries include Tata Steel, Tata
Motors TCS.
 Titan Company

Titan is a joint venture between the Tata Group and the Tamil Nadu
Industrial Development corporation.

It commenced operations in 1984 under the name Titan Watches

Limited. In 1994, Titan diversified into jewellery with Tanishq and
subsequently into eyewear with Titan Eyeplus. In 2013, Titan entered
the fragrances segment with the brand Skinn and, later that year, it
ventured into the helmets category under its brand Fastrack.

Today, Titan Company is Tata Group's largest consumer company

and is the fifth largest integrated own brand watch manufacturer in the
world.
Major competitors of Titan Company

TIMEX
Timex is an iconic American heritage watch brand renowned for its
timeless designs. Founded in 1854, Timex has established a
tradition of creating high-quality, innovative watches to suit the
needs of every customer. Timex® watches have been a part of
consumers' lives for over 160 years, and today combine high-end
Italian designs with cutting edge German engineering to offer
customers quality products.
One of the largest watch makers in the world, Timex Group
companies include the Timex Business Unit, Timex Group Luxury
Watches, Sequel and Vertime.
CITIZEN
Citizen is an electronics company primarily known for its watches, and
is the core company of a Japanese global corporate group based
in Tokyo. CITIZEN WATCH is a true manufacture d’horlogerie with a
comprehensive manufacturing process that extends from creating a
watch’ s individual components to its final assembly. The company
operates in more than 100 countries around the world.

CASIO
Casio Computer Co., Ltd. Is a Japanese multinational
consumer electronics and commercial electronics
manufacturing company headquartered in Shibuya,
Tokyo, Japan. Its products include calculator, mobile
phones, electronic musical instruments, analogue
and digital watches.
 SWOT Analysis of Titan Company
One of the world’s top five and
India’s biggest watch
manufacturer.
Titan watches are exported in
over 30 countries.
Different sub-brands under the
brand Titan have been successful
in their positioning
India is an under penetrated
market for watches
Global expansion and tie-ups
with global watch and Jewellry
brands
Competition not as elite as
Titan.
Titan brand has to face issues to
tackling fake imitations
Haven’t penetrated the global
market as some other international
watch makers.
Leadership crisis in coming years.
Broad target segment may lead to
lack of focus in brand strategy.
Being an international brand, the
company's business is affected by
recession and economic instability.
Indian market have recently
experienced a bit of rockiness and will
continue for FY19-20.
Descriptive analysis of Titan Company’s
Strengths

Titan has a large network of exclusive stores and service centres.

One of the world’s top five and India’s biggest watch manufacturer.
Titan watches are exported in over 30 countries.
Different sub-brands under the brand Titan have been successful in their
positioning.
Strong advertising and brand presence of Titan.
Titan owns over 60% of the domestic market share in the organized watch market.
Descriptive analysis of Titan Company’s
Weaknesses

Titan brand has to face issues to tackling fake imitations.

Titan hasn't penetrated the global market as much as the other
international watch makers.
Titan except for their jewellery sector has tremendously ignored
the Indian traditions and their adverts are more international based
then what they should be Indian based.
Titan management have based their leadership among people
who are all set to retire in the coming years, so the mantle of
leadership which will be passed to young leaders, who might not
be able to control the company like their predecessors.
Descriptive analysis of Titan Company’s
Opportunities

India is an under-penetrated market for watches.

Global expansion and tie-ups with global watch and Jewellry brands
Titan can focus on more brand awareness and having watches catering to
every segment
Indian watch and lifestyle sector has not seen a major player except Titan, so
Titan can exploit this situation for a long time.
Many analysts including Rakesh Jhunjhunwala have a positive impression
of Titan and despite of it’s weaknesses have a considerable interest in Titan for
the coming years
With the Ongoing Trade-War between USA and China, major imitations of
Titan watches would be soon forbidden in USA markets which leave the
opportunity open for Titan watches.
Descriptive analysis of Titan Company’s Threats

Broad target segment may lead to lack of focus in brand strategy

Stiff Competition faced by foreign brands, particularly in the premium segment can
decline Titan's market share
Being an international brand, the company's business is affected by recession and
economic instability
Indian markets have recently experienced a bit of rockiness and will continue for
FY19-20.
With the physical measurements now can be sensed through mobile devices via
bluetooth, fitbit bands don’t seem to have a bright future.
 TOTAL INCOME
EXPENDITURE

NET PROFIT
PBT
Quarterly results of Titan Company in Fiscal Year

NET PROFIT, Quarter 1, 349.17

PBT, Quarter 1, 486.98
EXPENDITURE, Quarter 1, 3823.57
TOTAL INCOME, Quarter 1, 4354.52
NET PROFIT, Quarter 2, 314.38
PBT, Quarter 2, 445.89
EXPENDITURE, Quarter 2, 3939.72
TOTAL INCOME, Quarter 2, 4433.62
F. Y. 2018-19

NET PROFIT, Quarter 3, 416.23

PBT, Quarter 3, 599.5
EXPENDITURE, Quarter 3, 5087.98
TOTAL INCOME, Quarter 3, 5733.15
NET PROFIT, Quarter 4, 294.58

*Figures in Crores
PBT, Quarter 4, 395
EXPENDITURE, Quarter 4, 4286.49
2018-2019

TOTAL INCOME, Quarter 4, 4727.18

 Analysis of Titan Company’s Fiscal Year 2018-2019

Overall consolidated Net Profit for FY19 reported a 14.4% jump for the quarter ended
March 31.
In FY19, consolidated income stood at ₹19,779 crore, while consolidated net profit
was ₹1,389 crore.
The company's jewellery business(Tanishq), grew 22% to ₹4,105 crore during the final
quarter while profit for the business stood at ₹499 crore. While the watches segment
grew modestly at 8% to ₹531 crore.
Titan’s margin has contracted in the past five years, as a result of a 8.52% average growth
in revenue exceeding 7.00% in average net income growth, indicating that that a smaller
percentage of revenue is being converted in to net income despite the top line growth.
Titan’s most recent margin of 7.01% appears to follow this trend, indicating that earnings
growth has likely been driven through an increase in revenue rather than improved cost
management.
 Behind the success of Titan
Bhaskar Bhat
Bhaskar Bhat is a B.Tech (Mechanical Engineering) degree holder of IIT
- Madras, and a post graduate diploma holder in Management from
IIM – Ahmedabad,
Since 1983 Bhaskar has been associated with the Tata Watch Project,
later to become Titan Watches Ltd., and now Titan Company Ltd. At
Titan, Bhaskar dealt with Sales & Marketing, HR, International
Business and various general managerial assignments.
He was awarded the Distinguished Alumnus Award of IIT Madras in
2008.

C.K. Venkataraman
Venkataraman has headed the Jewellery Division since January
2005. He is a post graduate diploma holder in Management. He
has worked in the Advertising and Marketing functions before
becoming the Head of Sales & Marketing for the Titan brand in
2003.
Titan board has elected Venkataraman to succeed Bhaskar Bhat as
M.D. Of Titan Company from September 2019.
Hope you enjoyed the
presentation