Titan Industries currently derives most of its revenues from Jewelery and Watches segments. Though the company has Titan Eye + Opitcal Wear business up and running, contribution is insignificant.
Tanishq / Jewellery Business: Retailed under popular brands Tanishq and GoldPlus stores. This segment contributes ~72% of Titan’s retail business. Titan caters to the upper middle and higher income group customers who are not so price sensitive and continue to buy “Tanishq” brand jewelry. Diamond jewelry contributes only 33% to “Tanishq’s” jewelry sales with the balance being plain gold jewelry. Coins business contributes 5% of the entire jewelery business. Tanishq offer exchange security to customers for jewelery purchase. Titan is aggressively expanding its network across metros, mini metros, Tier II cities. It plans to add another 30 Tanishq and 15 GoldPlus stores in FY2009.
In the graph below, you can see that despite higher gold prices in 2008, Titan has managed to increases its gold / jewelery sales. Titan currently has a 3.5% market share of entire retail gold sales in India.
Watches Business: The Jewelry and Watches contributed equally to Titan’s top line in 2006. However by the end of current financial year, watches segment is expected to contribute only 25% of the Titan’s business.
In FY2008 to Titan sold 10.3 mn pieces with licensed brands – Tommy Hilfiger, Hugo Boss and Xylys – volumes increasing by 172% to 0.86 mn pieces and accounting for 8% of total watch volumes. Sonata and Fastrack volumes increased to 5 mn and 1 mn pieces, respectively. Average watch realisation for own brands increased 2.2% to Rs814 in FY2008 from Rs796 in FY2007.