After a slack spell in the past financial year, Bhaskar Bhat, Managing Director of Titan Company Ltd, wants to stoke the growth engine. “Yes, indeed,” declares Bhat, “This year, the mantra within is growth…in sales, productivity, customer satisfaction, employee engagement and innovation.

“Of these, from a business perspective, it is sales growth that will give us profit growth,” continues Bhat. Business is all about growth, one would say, but for the watches, jewellery and eyewear maker it’s particularly important. Three years of healthy growth tapered last year given a poor business and consumer spending environment. Sales growth was 8.1 per cent and profit growth 2.2 per cent (see table).

Bhat is optimistic when he says, “Our bet is that the India growth story is alive. Even if the election outcome was not what it was, we would still have invested in growth.”

Chary of putting a figure to projected growth this year, except to say it will be in double digits, Bhat says the investments will be for the short and long term as well. This will entail network expansion in jewellery and eyewear, fresh capital expenditure on manufacturing in all divisions, more investments in new categories such as fragrances, helmets and to resurrect Favre Leuba, the luxury Swiss watch brand it bought in 2011.

“These are based on our belief in the potential in India for lifestyle categories. A short downturn in consumer sentiment should not deter us from making the longer-term investments,” avers Bhat. The company expects a capex of ₹250 crore this year.

This year, Bhat says the company will consolidate its business, strengthen existing categories. For example, it has a small share of the wedding jewellery business and intends to expand it. “The next challenge will be the internet, not from a threat perspective, but how to leverage it. We have a large brick-and-mortar network around the country so fulfilment of orders is easier. We have an e-commerce business, but it’s just ₹60-70 crore, I feel it can be double the size,” he explains.

Titan may explore making wall clocks, which would be a natural extension of its watches business. Titan withdrew from the table clocks business over a decade ago as it wasn’t profitable then.

“But the opportunity is standing right in front of us now. I’ve been urging the team to look at it though there is no plan as of now. But seeing the success of Seiko in wall clocks we are encouraged,” he elaborates. Titan’s multi-brand watch chain Helios distributes Seiko clocks as well.

Titan will aim to re-launch Favre Leuba this year, though Bhat says, “I don’t mind waiting some more; we have got to get it right. We’ve been talking to a number of luxury Swiss brands on what we should and should not do.” Titan has to tie up both the manufacturing and distribution in Switzerland as the brand will be as Swiss as they come. These watches may retail in the ₹50,000 to ₹1 lakh price band.

Related Topics
comment COMMENT NOW