Titan Industries Ltd, is evaluating the option of setting up exclusive outlets in Indonesia and Vietnam.The world’s fifth largest manufacturer and retailer of watches and jewellery also plans to up presence in the domestic market.
A company official said, “The firm has point of sales and is weighing options to set up exclusive outlets in these countries.” The official did not divulge details on the investments and the number of outlets expected to be set up.
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Titan, which logged revenues of Rs 900 crore last year, has presence in 26 global markets, including the Middle East, Saarc countries and the Far East, with 1,700 point of sales and 86 exclusive outlets. In November, the company set up two exclusive stores in Malaysia. Harish Bhat, the chief operating officer (COO) of Titan Industries (watches), said, “We want to focus on the Asian continent and garner a market share of 15-20% in the next five years.”
However, Morgan Stanley analysts Hozefa Topiwalla, Girish Achhipalia and Divya Gangahar feel 2010 may be a bad year for Titan, as the company could be impacted by macroeconomic headwinds. They foresee earnings growth of just 3.6% during the year. In a report, they said the watches business could face problems beginning the fourth quarter of this fiscal itself.
But Bhat maintained that recession hasn’t hit sales. He added that Titan plans to launch 200-400 new collections in various categories next year. To be launched in January 2009, Orion Collection, priced between Rs 5,000 and Rs 8,000, will be the next line of watches targeting next generation achievers. A kids’ line, which is being test-marketed, is also due in 2009.
Titan’s watches division has a 65% share of the domestic organised market, which is estimated at 42 million pieces annually and is growing at 8% year-on-year. The company plans to sell 10 million watches this fiscal compared with 90,00,000 in 2007-2008. Watches currently contribute 30% to Titan’s revenues and this division is expected to grow 20% this fiscal against 18% last.
To stand out in a crowded market, Titan will spend Rs 100 crore in 2008-09 on marketing its brand. It will also strengthen presence in department stores such as Westside, Shoppers Stop etc. Titan will add 65 exclusive retail stores this fiscal to its existing network of 260 stores.
As per Sep 08 shareholding of the Titan Industries, Rakesh Jhunjhunwala is holding 2,581,062 shares of Titan Industries in the name of Jhunjhunwala Rakesh Radheshyam.
