Currenty priced at around Rs.205/- as on 12.06.2013
After entrenching its presence in watches and jewellery segments over the past 25 years, it's slowly finding its feet in the eyewear segment. The publicly-held company is enabling itself to look at a slew of products ranging from sarees to writing instruments, mobile phones, musical instruments, educational accessories to kitchen equipment among others.
As per the management it was not necessary that they would enter all these segments, but they were enabling themselves to look at various categories. " They have created a 'New Business Division' under a dedicated CEO to look at various segments we can look at. The basic premise on how it enters a segment is based on a few critical aspects. The market should be large, it should be unorganised and how it can differentiate in that segment with its innovations and strong brand image," .
Titan Industries has been relying on innovation to a large extent and has been actively funnelling in various innovations from across its workforce. It has set up an ‘Innovation School of Management’ (IScM) to address the objective of creating the ability to innovate and making it a culture among its employees. It co-created a customised learning course on innovation with an industry-leading consultant.
IScM offers a six-month course and students are given challenges to work on in an innovative manner. They are trained in various tools and techniques to develop innovative thinking capability, and the head of departments are trained as a mentor to use the innovation outcomes.
The school focuses not only on the results, but also on the process of making people think differently. After three days of classroom training, they are given four hours a week of free time to work on the project and mentored for two hours a week. As of now, the integrated supply chain management unit of Titan jewellery division has 185 trained innovators.
In addition to it, Titan Industries, which also has a growing presence in the precision engineering segment catering to the aerospace and mechanical engineering segment, is expanding the scope of this division by supplying equipment to sectors such as oil & gas exploration.
Titan Industries’ targets:
Jewellery: All types of ornaments, jewels, diamonds, gold, silver, platinum, metal alloys, precious and semi-precious stones of all kinds.
Logical expansion of its eyewear business: Contact lenses, hearing aids and related accessories.
Lifestyle platform: Apparels, garments, sarees, bags, belts, caps, helmets, headwear, wallets, fragrances, perfumes, writing instruments, mobile phones and other personal convenience articles, devices and musical instruments, entertaining apparatus, sound equipment.
Educational aid: To design, develop and render content through educational workshops, conferences, theatre and entertainment shows gadgets, entertainment products, food and beverages.
Tapping solar energy: Solar panels, solar powered home lighting systems, batteries, fans, torches, solar lights, solar mobile,solar cookers, etc.
Titan Industries: The script was recommended at Rs. 46/- , ex 1:1 bonus and ex 1:10 split on 6.11.2008. (cum bonus and pre split price of Rs. 919/- on 6.11.2008). It has grown over five times in over four years time. It is a fantastic company with a very high visibility of business model and will give compounded ROR of over 20% p.a. for the next 5-10 years. Currently it has fallen to Rs. 205- from Rs. 300/- due to curb on Gold imports by Govt. of India. Worth buying at around Rs. 200/-. Likely to appreciate back to Rs. 300/. plus range in next 6-12 months time. Bluest of blue chips and a jewel among st the listed Indian companies.Likely Earning Per Share for Financial Year 2013-14 is Rs. 10/-.
Update as on 25.6.2013
Recent newspaper clippings:
Titan adds 'Skin' to boost lifestyle portfolio
Titan Industries, the $2-billion jewellery-to-watch retailer of the Tatas, is readying a big push into the small but high-growth Indian fragrance market under the brand Skin, a move that possibly signals a broader interest in the personal care industry.
Bangalore-based Titan, best known for eponymous watches and Tanishq jewels, will employ a new trademark, Skin, to launch fragrances priced at Rs 995 and Rs 1,995 as part of a business diversification, said people briefed on the matter. The company has explored multiple new business forays to reduce dependence on jewellery retailing, which accounts for 80% of the revenue currently.
The high volatility in the bullion market, and growing political sensitivity around it, may hasten new business plans. Titan in the past has talked about expanding the lifestyle product basket to offset cyclical threats to jewellery retailing. The roll-out of optical stores under Titan Eye Plus was one such move.
Titan's board of directors has decided (subject to shareholder approval) to change the company name to Titan Company Ltd to reflect the changing focus on lifestyle products.
The entry into the Rs 1,200-crore fragrances market will see Titan battling ITC (which tapped this segment under Essenza Di Wills) and global heavyweights such as P&G (Old Spice, Hugo Boss), Coty Inc ( Calvin Klein, Davidoff) and Puig SL ( Nina Ricci).
But significantly, Trademarkia, a visual search engine for more than 6 million trademarks, shows registration called Skin by Titan, with a listing of cosmetic preparations, toiletries, perfumes, aromatic body care products such as body lotions, shower gels, shampoos, conditioners and soaps.
Titan might not restrict itself to fragrances — domestic demand growing at 25% annually, according to PwC estimates — and explore adjacent segments in personal care. This would broaden the scope of the new foray; giving one of India's most admired consumer companies a sizeable market to play in.
Critics have long argued that Titan's business diversification (after Tanishq) has been incremental, chasing mostly high growth yet niche markets.
Titan operated 953 stores (with 1.27 million sq ft retail space) to show up with Rs 10,000 crore turnover last fiscal. While Rs 8,100 crore jewellery and Rs 1,400-crore watch businesses grew 14.8% and 9.6%, respectively, income from other segments comprising precision engineering, eye wear business and accessories grew 26% to Rs 414 crore.
The high volatility in the bullion market, and growing political sensitivity around it, may hasten new business plans. Titan in the past has talked about expanding the lifestyle product basket to offset cyclical threats to jewellery retailing. The roll-out of optical stores under Titan Eye Plus was one such move.
Titan's board of directors has decided (subject to shareholder approval) to change the company name to Titan Company Ltd to reflect the changing focus on lifestyle products.
The entry into the Rs 1,200-crore fragrances market will see Titan battling ITC (which tapped this segment under Essenza Di Wills) and global heavyweights such as P&G (Old Spice, Hugo Boss), Coty Inc ( Calvin Klein, Davidoff) and Puig SL ( Nina Ricci).
But significantly, Trademarkia, a visual search engine for more than 6 million trademarks, shows registration called Skin by Titan, with a listing of cosmetic preparations, toiletries, perfumes, aromatic body care products such as body lotions, shower gels, shampoos, conditioners and soaps.
Titan might not restrict itself to fragrances — domestic demand growing at 25% annually, according to PwC estimates — and explore adjacent segments in personal care. This would broaden the scope of the new foray; giving one of India's most admired consumer companies a sizeable market to play in.
Critics have long argued that Titan's business diversification (after Tanishq) has been incremental, chasing mostly high growth yet niche markets.
Titan operated 953 stores (with 1.27 million sq ft retail space) to show up with Rs 10,000 crore turnover last fiscal. While Rs 8,100 crore jewellery and Rs 1,400-crore watch businesses grew 14.8% and 9.6%, respectively, income from other segments comprising precision engineering, eye wear business and accessories grew 26% to Rs 414 crore.
Now, it is in the process of rechristening itself as Titan Company Ltd to reflect its morphing into a complete lifestyle company, has set itself a target to go after a wide range of products suited for the emerging lifestyle.
As per the management it was not necessary that they would enter all these segments, but they were enabling themselves to look at various categories. " They have created a 'New Business Division' under a dedicated CEO to look at various segments we can look at. The basic premise on how it enters a segment is based on a few critical aspects. The market should be large, it should be unorganised and how it can differentiate in that segment with its innovations and strong brand image," .
Titan Industries has been relying on innovation to a large extent and has been actively funnelling in various innovations from across its workforce. It has set up an ‘Innovation School of Management’ (IScM) to address the objective of creating the ability to innovate and making it a culture among its employees. It co-created a customised learning course on innovation with an industry-leading consultant.
IScM offers a six-month course and students are given challenges to work on in an innovative manner. They are trained in various tools and techniques to develop innovative thinking capability, and the head of departments are trained as a mentor to use the innovation outcomes.
The school focuses not only on the results, but also on the process of making people think differently. After three days of classroom training, they are given four hours a week of free time to work on the project and mentored for two hours a week. As of now, the integrated supply chain management unit of Titan jewellery division has 185 trained innovators.
In addition to it, Titan Industries, which also has a growing presence in the precision engineering segment catering to the aerospace and mechanical engineering segment, is expanding the scope of this division by supplying equipment to sectors such as oil & gas exploration.
Titan Industries’ targets:
Jewellery: All types of ornaments, jewels, diamonds, gold, silver, platinum, metal alloys, precious and semi-precious stones of all kinds.
Logical expansion of its eyewear business: Contact lenses, hearing aids and related accessories.
Lifestyle platform: Apparels, garments, sarees, bags, belts, caps, helmets, headwear, wallets, fragrances, perfumes, writing instruments, mobile phones and other personal convenience articles, devices and musical instruments, entertaining apparatus, sound equipment.
Educational aid: To design, develop and render content through educational workshops, conferences, theatre and entertainment shows gadgets, entertainment products, food and beverages.
Tapping solar energy: Solar panels, solar powered home lighting systems, batteries, fans, torches, solar lights, solar mobile,solar cookers, etc.
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