Titan Industries::Takeaways Motilal Oswal Annual Global Investor Conferences

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Key Takeaways
Core essence: Titan Industries is best placed to capture the growing demand in the
Indian lifestyle consumption space, led by rising income levels and demographic dividend.
Industry insights
 There are nearly 25 luxury watch brands in India, but only a few brands in the mid
segment are highly profitable.
 India does not have any large established jewelry brands as against quite a few in
China. This increases the attractiveness of the Indian market.
 The Eyewear business offers huge opportunity to change in a large and underserviced
market.
 In Jewelry, Titan has ~5% market share, led by migration from small and local
players; 60% of its customers are repeat customers.
Company vision and strategy
 Sales likely to touch INR140b by FY15; Jewelry sales likely to be INR100b.
 Helios is likely to be a key growth driver in Watches; being the only format by any
brand owner globally, selling watches of other brands. Titan plans to have 100
stores in two years and lead the development of the premium and luxury watch
market in India.
 Titan plans to play across the value chain, from manufacturing to branding to retailing,
so as to capture the value at every end.
 Titan has 177 Eyewear stores and plans to increase these to 300 in another two
years. Its long-term plan is to take the number of its stores to levels similar to US
eyewear retailers that have even 1,500 stores.
 The company does not have any plans to sell watches in developed markets due to
low growth and profitability.
Key triggers/milestones/challenges
 Titan is cautious on near-term demand due to rising interest rates - while demand
growth in Jewelry is intact, demand for watches might suffer. Overall growth rates
in 2Q are lower, post unprecedented high growth in 1QFY12.
 The company is positive on demand in the premium end, as LTL sales growth of
watches in departmental stores has increased by 26%.
 The company plans to end the current year with sales exceeding INR1b for Precision
Engineering, with positive bottomline contribution.


Mr Bhaskar Bhat is the Managing
Director of Titan Industries. He has
been associated with the Tata Watch
Project, which later became Titan
Watches Limited, and is now Titan
Industries Limited, since 1983.
He is a BTech (Mechanical
Engineering) from IIT Madras (1976)
and completed his Post Graduate
Diploma in Management from IIM
Ahmedabad (1978). Most of his
working experience has been in sales
& marketing. He started work as a
Management Trainee at Godrej &
Boyce in 1978. After spending five
years there, he joined the Tata
Watch Project, which was initiated
at Tata Press Limited. He has handled
sales & marketing, HR, international
business and general managerial
assignments at Titan, and became
Managing Director in April 2002.
Mr Bhat is a member of the Governing
Council at the TA Pai Management
Institute, Manipal and the SDM
Institute of Management and
Development, Mysore. He was
appointed Chairperson of the Board
of Governors at the National
Institute of Technology established
in Uttarakhand. He is also Director
at Virgin Mobile India Limited, a joint
venture of Tata Teleservices and the
Virgin Group, UK.