TITAN COMPANY LIMITED

Titan Company Limited, formerly known as 'Titan Industries Limited' was incorporated in 1994. The Company changed its name from Titan Industries Limited to Titan Company Limited on August 5, 2013. Titan Company is the world's fifth largest wrist watch manufacturer and India's leading producer of watches. The Company is engaged in manufacturing and sale of Watches, Jewellery, Precision Engineering, Eyewear and Other accessories and products. They produce watches under the brand name 'Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys'. Titan Company established leading positions in the Jewellery, Watches and EyeCare categories led by trusted brands and superior customer experience. It has diversified into Wearables, Indian Dress Wear and Fragrances & Fashion Accessories as well. They manufacture precious jewellery under the Tanishq brand name. As on 31 December 2020, Titan's retail chain (including CaratLane) stands at 1,854 stores, with a retail area crossing 2.4 million sq.ft. for all its brands covering 292 towns. The Company is structured into four verticals namely Watches and wearables, Jewellery, Eyewear and Others where 'Others' include Accessones, Fragrances and Indian dress wear. Accordingly, the Company has presented its segment results under these business segments. The Company launched its operations as a joint venture between the esteemed Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO). The Company commenced their business in the year 1986. It set up an integrated watch manufacturing facility at Hosur in Tamil Nadu in the year 1987 with initial technical know-how from Europe and Japan. In October 1992, they came with a right issue to the part of finance for its expansion programmes. In the year 1995, they diversified into Jewellery under the brand name of Tanishq to capitalize on a fragmented market operating with no brands in urban cities. Apart from the domestic market, the company started the manufacturing of watches for several prestigious international brands during the year 1997. In the year 1998, the company launched the second watch brand, Sonata. In the year 2003, the company leveraged their manufacturing competencies and branched into Precision Engineering Products and Machine Building. They diversified into fashion Eyewear by launching Fastrack Eye-Gear sunglasses, as well as Prescription Eyewear. The company's Precision Engineering Division supplies precision components and also manufactures dashboard clocks as OEM to car manufacturers in Europe and America. The division also provides fully integrated Automation solutions. During the year 2004-05, the company launched two brands namely Fastrack sunglasses and Tommy Hilfiger Watches. They entered into the fragrance business through launch of Evolve and these are available in UAE, OMAN and Bahrain. During the year, the company set up a new watch assembly unit at Baddi Himachal Pradesh with an assembly capacity of 2 million watches per annum. In the year 2005, the company launched their second Jewellery brand under the name of Gold Plus aimed at the mass market and for capitalizing on the opportunity in small towns and rural India. During the year 2005-06, the company merged their Retailing team and Customer Service and rechristened as the Retailing Services Group. They launched XYLYS, a new brand in the fast growing premium 'Swiss Made' market segment. The brand was launched in Mumbai, Delhi, Bangalore and Hyderabad. In the next year, they expanded their footprints to 11 towns of the country. In January 2008, the company launched their all-new collection of chronograph, multifunction and retrograde watches with international styling, Octane from Titan. The collection embodies speed, energy and power. Also, they made a tie-up with Sankara Nethralaya for a technical collaboration for training optical store personnel for Titan Eye+, the optical division of the company. In April 2008, they set up large World of Titan showroom in Lahore, a Titan exclusive store in Karachi. In June 2008, they made partnership with the World Wildlife Fund (WWF-India) to spread awareness about some of the most endangered species in India through a collection of uniquely designed Titan watches. During the year 2008-09, the company entered the US Jewellery market with the opening of two Tanishq Stores, one each at Chicago and New Jersey. They expanded their retail network by adding 135 new stores (1,78,235 sq.ft.) across watches, jewellery and eyewear businesses. As per the scheme of amalgamation, three domestic subsidiary companies, namely Samrat Holdings Ltd, Questar Investments Ltd and Titan Holdings Ltd were amalgamated with the company with effect from April 1, 2007. During the year 2009-10, the company expanded their retail network with a net addition of 52 stores (81,267sq.ft.) across Watches, Jewellery and Eyewear businesses. They added one more Tanishq Boutique Retail Chain, which was the first of its Large Format Store strategy set for the Brand. This store spans across 20,000 sq.ft on Usman Road, Chennai, considered to be the hub of Jewellery buying in South India. Also, Gold Plus closed one of its stores in Bheemavaram in view of its low market potential. Eyewear expanded its retail chain to 82 stores. In March 29, 2010, the company established one more assembly unit at an excise duty free zone in Uttarakhand State, with a production capacity of 5.0 million watches per annum having-a total built up area of 4,500 sq mtrs. During the year 2010-11, the company expanded their retail network with a net addition of 122 stores (724503 sq.ft.) across Watches, Jewellery and Eyewear businesses. They also entered into the South African market with the launch of their products. Their 'World of Titan' network grew to 311 stores by the end of the financial year 2010-11. They launched two flagship stores, in Mumbai and Delhi. During the year, the company launched collection of watches, such as Purple by Titan, an offering of fashion watches; Raga Aqua, a new collection whose evocative designs were inspired by the oceans and seas; Tycoon by Titan, a new collection of gold look watches; and new products in the automatic watches range, which cater to premium consumers. In January 2012, as per the scheme of amalgamation, Tanishq (India) Ltd was amalgamated with the company. In March 29, 2012, the company commenced commercial production in their new integrated state of art Jewellery Unit set up in the excise free zone in Pantnagar, Uttarakand. The new Pantnagar Unit has been commissioned at an approximate cost of Rs. 15 crore for the manufacture of studded jewellery and is estimated to achieve a turnover of Rs. 250 crore during the financial year 2012-13. In 2012, the company won a total of 3 awards at the ET retail awards which was held in Mumbai on the 18th of January 2012. The company also Won 2 awards at the 12th edition of Images fashion awards night. The company has been certified to ' OHSAS 18001: 2007 ' Management Systems. The company was selected unanimously by the jury as the Best Governed Company 2012 by Asian Centre for Corporate Governance & Sustainability. The company won the Client of the Year award at the Campaign India Digital Media Awards 2012. On 16 December 2013, Titan Company announced the opening its 1000th retail store in Bangalore. With this, Titan became the first Indian specialty retailer to open 1,000 stores in seven varied formats under watches, jewellery and eyewear categories. In 2014, the Company entered into a Joint Venture agreement with Montblanc Services B.V. Netherlands for establishing operations in India for carrying on single brand retail trade. Titan Company Ltd which is engaged in manufacturing of watches/accessories, jewelry, precision engineering and eyewear stated that their jewellery division has launched first Karigar centre for jewellery manufacturing in Hosur. In 2015, the company added one more feather to its Manufacturing Excellence and Commenced World Class Stainless Steel Case production in Coimbatore. On 23 November 2015, Titan announced that it has joined forces with HP Inc., one of the world's leading information technology companies, to launch a range of smart watches in India and select international markets. On 3 December 2015, Titan announced that its joint venture with Montblanc Services B.V, Netherlands has commenced operations. Montblanc Services B.V holds majority 51% stake in the joint venture company and Titan holds a 49% stake. The joint venture company was formed for carrying on the business of single brand retail trading of Montblanc products in India. On 10 December 2015, Titan announced that the Reserve Bank of India has permitted FIIs/RFPIs to invest up to 35% of the paid-up capital of the company under portfolio investment scheme. The Board of Directors of Titan Company at its meeting held on 6 May 2016 approved the acquisition of a majority stake in Carat Lane Trading Pvt. Ltd. (Carat Lane) subject to due diligence. Carat Lane was incorporated on 20 September 2007 and is a leading online jewellery brand and sells its products through its website Caratlane.com. The company has also developed omni-channel capabilities and has currently 13 stores across the country with plans to ramp up the retail stores significantly in the future. On 14 July 2016, Titan announced signing of Share Purchase Agreement for acquiring about 62% stake in Carat Lane Trading Pvt. Ltd for a cash consideration of Rs 357.24 crore. Carat Lane clocked revenue of Rs 141 crore for the financial year ended 31 March 2016. In August 2016, Titan completed the acquisition of about 62% stake in Carat Lane. On 12 October 2016, Titan Company announced that the company has since inception been exploring opportunities in personal lifestyle categories. One such category is special occasion ethnic wear for women which will now be piloted for understanding consumer attitudes and preferences. The pilot, which may include setting up a few stores, is expected to last about 12 months at the end of which the company will take a decision on the future course of action. On 16 January 2017, Titan Company announced that it has decided to consolidate its portfolio by migrating the Gold Plus network to become a part of the Tanishq network. Titan said that customers in the larger cities of South India have evolved in their tastes and aspirations and Titan's main jewellery brand Tanishq has kept pace with them. Given that evolution of the customers and Tanishq as well as the need to focus all energies and resources in today's circumstances, Titan Company has decided to consolidate its portfolio by migrating the Gold Plus network to become part of the Tanishq network. Titan had launched its second jewellery brand Gold Plus in 2005 for small-town South India, to better cater to the needs of the more traditional requirements of those customers. On 20 February 2017, Titan Company informed the stock exchanges that the High Court of Madras has sanctioned the Scheme of Arrangement between Titan Company Limited and Titan Engineering & Automation Limited for transfer of Precision Engineering Business Undertaking of the Titan Company Limited to Titan Engineering & Automation Limited, a wholly-owned subsidiary of Titan Company, in terms of an order passed on 12 December 2016. During the year 2016-17, Titan's eyewear division added 95 new stores. Also during the year, the company announced the introduction of 30 minute delivery of spectacles. The company purchased land during the year to set up frame manufacturing. In the watches segment, the company ventured into smart watch category, launching 4 smart products (Juxt, Juxt Pro, Sonata Act, Fastrack Activity Tracker Band) to rave reviews. As on 31 March 2018, the company has one joint venture, one associate and 5 subsidiary companies under its roof. Titan featured as one of the top 10 Innovative Company Brands at Bengaluru Brand Summit & Hot Brands 2018. Titan won 7 awards for excellence in communications at the Brand & Corporate Communicators Meet 2017. Titan won the first prize at the 7th Innovation Practitioners Summit organised by AIMA for the Lens Analyser Project. Titan won the first prize under innovation category at the 29th Qimpro Qualtech Award 2017 for the Lens Analyser Project. The World of Titan won the Best Customer Experience Program in the Retail Sector at Customer Fest 2018. Favre Leuba's Raider Bivouac 9000 won the Watchstars New Star award for the best new watch in 2018. Tanishq Lean Retailing awarded with ET Now global award for Retail Excellence. As on 31 March 2018, the Company had 1,480 stores, with over 1.9 million square feet of retail space delivering a retail turnover of over Rs 15,656 crore. As on 31 March 2019, the company has one joint venture, one associate and 4 subsidiary companies under its roof. During the FY2019, the company spent towards Capital Expenditure amounting to Rs 1095 crore. During the fiscal 2019, the Group increased its stake in one of its subsidiaries i.e., Carat Lane Trading Private Limited by 3.08%, increasing the total ownership to 69.47%. The increase in percentage holding is on account of private placement of shares done by Carat Lane Trading Private Limited to Titan Company limited. Total cash consideration of Rs 10,000 lakhs was paid to Carat Lane Trading Private Limited on account of this transaction. The Group also disposed off its entire shareholding in Titan TimeProducts Limited to Danlaw Technologies India Limited on 18 June 2018 at a consideration of Rs 1,850 lakhs. As on 31 March 2019, the Company had 1,595 stores, with over 2.05 million square feet of retail space delivering a retail turnover of over Rs 19,000 crore. Titan wins in Pitch Top 50 Brands, 2018, in the Evergreens Category'. Fastrack wins at the Afaqs Foxglove Awards 2018 for Shut the Fake up' campaign. Sonata wins the Best Brand Launch of the Year' at the Brand Equity Marketing Awards'. Tanishq won the 'Images Excellence Awards for Jewellery Retail' at IMAGES Fashion Awards 2019. Tanishq wins at the IREC 2019 summit for Jewellery category. During the FY2020, the company spent towards Capital Expenditure amounting to Rs 1197 crore. As on 31 March 2020, the Company had 1,739 stores, with over 2.27 million square feet of retail space delivering a retail turnover of over Rs 20,000 crore. As on 31 March 2020, the company has one joint venture, one associate and 6 subsidiary companies under its roof. During the year FY 2019- 20, the Company has invested CHF 8.76 million in its Swiss-based subsidiary Favre Leuba AG's share capital. Titan Watch Company Limited is a subsidiary of Favre Leuba AG and hence it is a subsidiary of the Company. The Company holds a 49% equity stake in Montblanc India Retail Private Limited (Montblanc), a joint venture entered into with Montblanc Services B.V., the Netherlands for operation of retail boutiques in India for Montblanc products. During FY2020, the Company invested an additional amount of Rs 7.74 crore through rights issue in Montblanc. The Dubai-based Titan Holdings International FZCO was formed as a Free Zone Company, for which the Certificate of Formation was issued on 22 October 2019, with a view to carry out business activities and invest in the share capital of any other companies/entities either as a joint venture partner or as its wholly owned subsidiary company for carrying out business activities. The Company did not have any business operations during FY 2019-20. Titan Global Retail LLC was formed on 15 December 2019 as a subsidiary of Titan Holdings International FZCO. In FY 2020-21, Titan launched Grandmaster collection. During the year 2021-22, Tanishq opened 36 new stores, Zoya added 1 store, CaratLane added 31 stores and Mia by Tanishq added 10 stores. It launched Titan EYEX, a first-of-its-kind smart wearable product. It launched several new analog collections such as Titan Solidarity, Edge Ceramics, Octane Aerobatics, Ladies' Edge and Unending Beauty, and Raga Silver to cater to different lifestyle segments. It launched Titan Smart' Watch. During the Financial Year 2021-22, there were new additions of 33 stores for Titan World and 33 stores for Helios. Over 40 Titan World Stores were renovated. Titan Watch Company Limited, Hong Kong ceased to be a subsidiary of TCL WSAG and became a subsidiary of Titan Holdings during the year 2022-23. Irth Bags, a new brand was launched in October 2022. During the year 2022-23, the first international Titan Eye+ store was opened in Dubai. Some of the noteworthy collections launched during the year include Tick Tock 2.0', Style Up 3.0', Urban Camo' and Mixmatched'. The Company launched the latest collection Unveil 2.0', which offers distinct and unique designs for Sonata. It launched SKINN Nox' and SKINN Noura' to improve our premium product portfolio. It launched 'CREST' a Manager Promise initiative which outlines the desired behaviour from all Titan Managers and includes values such as empathy and inclusion. Several collections like Crystal Fusion, Retro and Crystal Burst were launched. Taneira@Home program was started during the year to provide customers with the comfort of shopping while being at home and the first all women staff store was launched in Gurgaon. The Company opened 180 new stores, including 5 Fastrack stores.