Titan Company Ltd:Annual Report 2023-24 Analysis

Titan Company Ltd.: A Comprehensive Overview #

About the Company #

Year of Establishment and Founding History:

Titan Company Ltd. was established in 1984 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO). Initially named Titan Watches Limited, the company aimed to revolutionize the Indian watch market with quartz technology.

Headquarters Location and Global Presence:

The company’s headquarters are located in Hosur, Tamil Nadu, India. Titan has a significant presence in India and has expanded internationally to countries in the Middle East, Asia Pacific, and Europe through retail outlets and partnerships.

Company Vision and Mission:

• Vision: To be a design-led manufacturer and marketer of desired lifestyle products that deliver joyful experiences to the end customer.
• Mission: The company’s mission revolves around innovation, customer-centricity, and ethical business practices. They strive to offer high-quality products that enhance the lifestyle of their consumers while maintaining sustainable and responsible operations.

Key Milestones in Their Growth Journey:

• 1984: Incorporation as Titan Watches Limited.
• 1987: Launch of the first Titan watch.
• 1995: Diversification into jewellery with the Tanishq brand.
• 2005: Expansion into eyewear with Titan Eyeplus.
• 2013: Foray into fragrances with SKINN by Titan.
• Present: Continued expansion across product categories and geographic regions.

Stock Exchange Listing Details and Market Capitalization:

Titan Company Ltd. is listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). As of late 2023/early 2024, the market capitalization is significant, making it one of the most valuable companies within the Tata Group.

Recent Financial Performance Highlights:

Titan has shown strong revenue growth and profitability in recent years, driven by increasing demand for its jewellery and watches. The company has also focused on expanding its retail presence and online channels, contributing to its financial success.

Management Team and Leadership Structure:

The company is led by a seasoned management team with experience in diverse industries. Key figures include the Managing Director and CEO, and other senior executives responsible for various business units and functions. The leadership structure includes a board of directors comprising independent directors and representatives from the Tata Group and TIDCO.

Notable Awards or Recognitions:

Titan Company Ltd. has received numerous awards and recognitions for its brand excellence, innovation, sustainability practices, and employee relations.

Their Products #

Complete Product Portfolio with Categories:

• Watches & Wearables: Titan, Fastrack, Sonata, Zoop, Nebula (premium gold watches), and connected wearables.
• Jewellery: Tanishq (gold, diamond, platinum, and gemstone jewellery), Mia by Tanishq (workwear jewellery), Zoya (luxury diamond jewellery), CaratLane (online jewellery platform), and Shaya by CaratLane (Silver Jewellery).
• Eyewear: Titan Eyeplus (frames, lenses, sunglasses), Fastrack eyewear.
• Fragrances: SKINN by Titan (perfumes and body care).
• Indian Dress Wear: Taneira (sarees).
• Accessories: Wallets, belts, bags, and other accessories sold under various brand names.

Flagship or Signature Product Lines:

• Tanishq: Stands as Titan’s flagship brand in the jewellery segment, renowned for its quality, design, and craftsmanship.
• Titan: The core watch brand that pioneered quartz technology in India and continues to be a major player in the watch market.

Key Technological Innovations or Patents:

• Quartz Technology: Titan was instrumental in introducing quartz watch technology to India.
• Design and Manufacturing Processes: The company has invested in advanced design and manufacturing processes to create innovative and high-quality products.

Manufacturing Facilities and Production Capacity:

Titan operates multiple manufacturing facilities across India, including plants in Hosur (Tamil Nadu), Dehradun (Uttarakhand), and Pantnagar (Uttarakhand). These facilities are equipped with modern machinery and technology to produce a wide range of products.

Quality Certifications and Standards:

Titan Company Ltd. adheres to international quality standards and has obtained certifications such as ISO 9001 for its quality management systems.

Unique Selling Propositions or Technological Advantages:

• Design-led Innovation: Focus on design and innovation to create differentiated products.
• Strong Brand Reputation: High brand recall and trust among consumers.
• Extensive Retail Network: A wide network of retail stores across India.
• Backward Integration: Control over key manufacturing processes and supply chain.

Recent Product Launches or R&D Initiatives:

Titan continues to launch new products and collections across its various categories. Recent initiatives include the introduction of connected wearables, expansion of the Tanishq jewellery collection, and the launch of new fragrances under the SKINN brand.

Primary Customers #

Geographic Markets (Domestic vs. International):

Titan’s primary market is India, where it has a dominant presence in the jewellery and watch segments. The company has also expanded to international markets, including the Middle East, Asia Pacific, and Europe.

Major Client Segments:

Titan caters to a wide range of customer segments, including:

• Urban and rural consumers
• Young adults and millennials
• Working professionals
• Affluent individuals
• Bridal jewellery customers

Distribution Network and Sales Channels:

Titan has a strong distribution network consisting of:

• Company-owned retail stores (Tanishq, Titan Eyeplus, etc.)
• Franchise stores
• Multi-brand outlets
• Online sales through its websites and e-commerce platforms

Major Competitors #

Direct Competitors in India and Globally:

• Jewellery: Local and regional jewellers, Kalyan Jewellers, Malabar Gold & Diamonds, Senco Gold & Diamonds. Global luxury jewellery brands.
• Watches: Timex, Casio, Fossil, Seiko, Citizen, Rado, and other international watch brands.
• Eyewear: Lenskart, other national and international eyewear brands.

Competitive Advantages and Disadvantages:

• Advantages: Strong brand reputation, extensive retail network, design capabilities, and backward integration.
• Disadvantages: Competition from smaller regional players in the jewellery market, price sensitivity of Indian consumers, and challenges in replicating the Indian business model in international markets.

How They Differentiate from Competitors:

• Design and Innovation: Focus on creating unique and innovative designs.
• Brand Building: Investing in brand building and marketing to enhance brand equity.
• Customer Service: Providing excellent customer service and personalized shopping experiences.
• Ethical Sourcing: Commitment to ethical sourcing and responsible business practices.

Industry Challenges and Opportunities:

• Challenges: Fluctuations in gold prices, evolving consumer preferences, increasing competition from online players, and regulatory changes.
• Opportunities: Growing demand for jewellery and watches in India, increasing disposable incomes, expansion into new markets, and leveraging technology to enhance the customer experience.

Market Positioning Strategy:

Titan positions itself as a premium lifestyle brand that offers high-quality products at competitive prices. The company focuses on design, innovation, and customer service to differentiate itself from its competitors.

Future Outlook #

Expansion Plans or Growth Strategy:

Titan plans to continue expanding its retail presence, both in India and internationally. The company is also focused on growing its online sales channels and leveraging technology to enhance the customer experience.

Sustainability Initiatives or ESG Commitments:

Titan is committed to sustainable business practices and has implemented several initiatives to reduce its environmental impact. The company focuses on ethical sourcing, energy efficiency, waste management, and community development.

Industry Trends Affecting Their Business:

Key industry trends impacting Titan include:

• Increasing consumer demand for personalized and customized products.
• Growing popularity of online shopping and e-commerce.
• Rising awareness of sustainability and ethical sourcing.
• Technological advancements in manufacturing and design.

Long-Term Vision and Strategic Goals:

Titan’s long-term vision is to be a global leader in the lifestyle products industry. The company’s strategic goals include:

• Expanding its product portfolio and entering new categories.
• Increasing its presence in international markets.
• Enhancing its brand reputation and customer loyalty.
• Driving innovation and technological advancements.
• Promoting sustainable business practices and corporate social responsibility.

Comprehensive Performance Overview #

3-Year Trend Analysis of Key Financial Metrics (Standalone) #

Revenue Growth #

• FY23-24: 23% increase, reaching ₹47,114 crore.
• FY22-23: Reaching ₹38,270 crore.
• FY21-22: Reaching ₹27,210 crore.

Profit Before Tax (PBT) Growth #

• FY23-24: 3% growth, reaching ₹4,607 crore.
• FY22-23: Reached ₹4,465 crore.
• FY21-22: Reaching ₹2,932 crore.

Net Profit Growth #

• FY23-24: 6% growth, reaching ₹3,543 crore.
• FY22-23: Reaching ₹3,333 crore.
• FY21-22: Reaching ₹2,180 crore.

Sales to Net Fixed Assets Ratio #

• FY23-24: 32 times.
• FY22-23: 32 times.
• FY21-22: 25 times.

Return on Capital Employed (EBIT) #

• FY23-24: 38%.
• FY22-23: 44%.
• FY21-22: 38%.

Return on Net Worth #

• FY23-24: 27%.
• FY22-23: 31%.
• FY21-22: 26%.

Business Segment Performance (FY23-24) #

Jewellery #

• Revenue: ₹38,352 crore (excluding bullion sales), 20% YoY growth.
• EBIT: ₹4,726 crore, 8.3% YoY growth.
• EBIT Margin: 12.3%.
• Same Store Sales Growth: 16%.

Watches & Wearables #

• Revenue: ₹3,904 crore, 18.4% YoY growth.
• EBIT: ₹397 crore, 3.9% YoY decrease.
• EBIT Margin: 10.2%.
• Analog watches revenue grew by 14%.

EyeCare #

• Revenue: ₹724 crore, 5% YoY growth.
• EBIT: ₹85 crore, 13.3% YoY decrease.
• EBIT Margin: 11.7%.

Emerging Businesses (Fragrances & Fashion Accessories, and Indian Dress Wear) #

• Consolidated Revenue: ₹378 crore, 28% YoY growth.

Major Strategic Initiatives and Their Progress #

Titan Turbo Programme #

Focus on operational excellence, customer experience, product innovation, and employee engagement. Re-imagining processes, and global standards.

Retail Expansion #

Aggressive addition of new stores across all brands, including international expansion of Tanishq. Over 100 stores added and 90 renovated for the Watches & Wearables Division.

Omni-Channel Strategy #

Integration of online and offline channels, including ‘Endless Aisle’ technology and home visits with digital catalogs. Doubled digitally influenced sales for Tanishq.

Premiumisation #

Focus on high-value products, particularly in Jewellery and Watches & Wearables divisions. Launch of collections like Titan Stellar and Tanishq’s Dharohar.

Product Innovation #

New product development centers and collaborations with designers. Introduction of lightweight jewelry, smart glasses, and affordable fashion lines.

Sustainability #

Initiatives to reduce carbon footprint, water consumption, and waste generation. Transitioning factories to zero water consumption, recycling, and rainwater harvesting.

Vendor Transformation #

Using the 4P framework to categorize and improve vendor practices, especially in the Jewellery division.

Risk Landscape Changes #

Increased Competition #

Jewellery segment facing increased competition from both organized and unorganized players.

Geopolitical Tensions #

Supply chain disruptions and impact on consumer sentiment.

Gold Price Fluctuation #

Volatile and rising gold prices impacting consumer demand and margins, especially in the Jewellery segment.

Cyber Security #

Risk of data breaches and disruption of operations, mitigated by enhanced IT security measures.

Dependence on Sourcing #

Heavy import dependence on specific product groups in Watches & Wearables, mitigated by increasing in-house and indigenous vendor capabilities.

Regulatory changes #

Extended producer responsibility (EPR) guidelines.

ESG Initiatives and Metrics #

Environmental #

• Renewable Energy: 172.05 lakh units of renewable energy used, reducing carbon emissions by 12,318.51 tCO2e.
• Water Management: Initiatives for water conservation, recycling, and rainwater harvesting. Lake and pond rejuvenation projects.
• Waste Management: Zero Waste to Landfill initiative, recycling of acetate frames, and efforts to reduce plastic packaging.
• Afforestation: Planted and maintained over 1 lakh trees with a potential to absorb over 2,000 tonnes of CO2e.

Social #

• CSR Focus: Girl child education, skill development for the underprivileged, and support for Indian arts, crafts, and heritage.
• Inclusivity: Programs to promote diversity, equity, and inclusion, including initiatives for women, people with disabilities, and marginalized communities.
• Employee Wellbeing: Flexible work arrangements, wellness programs, and support for employees with special needs.
• Vendor Engagement: 4P framework to improve vendor practices, especially in the Jewellery division.

Governance #

• Tata Code of Conduct: Adherence to ethical standards across all operations and with business associates.
• Compliance Assurance: Implementation of the I-Assure system for regulatory compliance.

Management Outlook #

Overall Growth #

Positive outlook, with expectations of good growth and profitability, despite challenges.

Jewellery #

Expectation of continued growth, driven by market share gains, formalization of the sector, and India’s GDP growth.

Watches & Wearables #

Focus on premiumization in analog watches and growth in wearables.

EyeCare #

Strategic shifts with new growth engines to improve performance.

Emerging Businesses #

Aiming for substantial growth in ethnic wear, smart wearables, fragrances, and women’s bags.

International Business #

Target of USD 500 million in Uniform Consumer Price (UCP) value by FY26-27.

Sustainability #

Goals to become carbon-neutral and water-neutral.

Capital Expenditure #

Strategic investments planned for expansion, capability building, and technology upgrades.

Comparative Analysis with Industry Averages (Where Applicable) #

Jewellery Market Share #

Titan’s Jewellery Division aiming to increase market share from 8.5% in FY23-24 to 10-11% by FY26-27.

Perfume Segment #

SKINN by Titan is a leader in the masstige category with a 35-45% market share.

Detailed Analysis #

Financial Position Analysis #

3-Year Comparative Analysis of Assets, Liabilities, and Equity #

Assets (₹ in crore)

Liabilities (₹ in crore)

Equity (₹ in crore) (Consolidated)

Significant Changes in Major Line Items (>10% YoY) #

• Jewellery Segment Assets: Increased by 16.82% YoY, primarily due to retail store transformation and network expansion.
• Others Segment Assets: Increased by 51.5% YoY, reflecting growth in emerging businesses.
• **Watches and Wearables Liabilities:**Decreased by 2.26%.
• Others Segment Liabilities: Increased by 94.21% YoY, driven by expansion in new business segments.
• Corporate (Unallocated) Liabilities: Increased by 376.84% YoY, largely due to the company’s borrowings.
• Total Equity: Decrease by 20.74%

Working Capital Trends #

• Overall Increase: Working capital (Current Assets - Current Liabilities) has increased, primarily due to significant inventory growth across segments, especially in Jewellery.

Debt Structure and Maturity Profile #

• Increased Borrowings: Significant increase in both long-term and short-term borrowings. New Non-Convertible Debentures (NCDs) of ₹2,579 crore were issued, and unsecured term loans of ₹700 crore and secured term loan of 33 crore were taken.
• Maturity Profile: The new NCDs have maturities of 18 and 24 months. Term loans have varying repayment schedules, with significant portions due in the next 1-3 years.

Off-Balance Sheet Items #

• Corporate Guarantees: ₹1,350 crore, provided on behalf of subsidiaries.
• Contingent Liabilities: ₹312 crore, related to tax and other legal matters, comprises of GST, Sales Tax, Custom Duty and Excise duty.

Operating Performance #

Revenue Breakdown by Segment/Geography #

• Jewellery: FY23-24 revenue of ₹38,352 crore (excluding bullion sales), a 20% YoY growth.
• Watches & Wearables: FY23-24 revenue of ₹3,904 crore, an 18.4% YoY growth.
  • Analog watches revenue grew by 14%.
  • Titan World channel grew by 8%.
  • Helios channel grew by 34%.
  • Wearables segment volumes doubled.
  • E-commerce was a key growth driver.
• EyeCare: FY23-24 revenue of ₹724 crore, a 5% YoY growth.
• Indian Dress Wear & F&F(Fragrances and Fashion Accessories): FY23-24 revenue of ₹378 crore, grew by 28% over the previous year.
• Geographical Revenue (Consolidated):
  • India: FY23-24 revenue of ₹50,130 crore.
  • International: FY23-24 revenue of ₹1,487 crore.

Cost Structure Analysis #

• Cost of Raw Materials and Components Consumed (Standalone): Increased from ₹25,085 crore (FY22-23) to ₹33,556 crore (FY23-24).
• Employee benefit expenses (standalone): Increased from 1362cr to 1503 cr.
• Finance cost (standalone): Increased from 240cr to 480 cr.
• Other Expenses (Standalone): Increased from ₹3,092 crore (FY22-23) to ₹3,645 crore (FY23-24), with significant increases in advertising and selling & distribution expenses.

Margin Analysis #

• Operating Profit Margin (Standalone): Decreased from 11.5% (FY22-23) to 9.7% (FY23-24).
• Net Profit Margin (Standalone): Decreased from 8.7% (FY22-23) to 7.5% (FY23-24).
• Jewellery Division EBIT Margins: 12.3%

EPS Analysis #

• Basic EPS (Standalone): Increased from ₹37.54 (FY22-23) to ₹39.94 (FY23-24).
• Diluted EPS (Standalone): Increased from ₹37.54 (FY22-23) to ₹39.92 (FY23-24).

Cash Management #

Cash Flow and Liquidity Analysis #

Detailed OCF, ICF, FCF Components (Consolidated) #

• Operating Cash Flow (OCF): Increased to ‘2,868 crore in FY24 from ‘2,524 crore in FY23. Profit before tax constituted the primary source, adjusted for non-cash items.
• Investing Cash Flow (ICF): Net cash used in investing activities was (‘693) crore in FY24. Major outflows included purchase of property, plant and equipment, intangible assets and, investment property (‘691 crore), investments in non-convertible debentures and government bonds( ‘393) crore.
• Financing Cash Flow (FCF): Net cash generated from financing activities totaled (‘1,329) crore in FY24. Significant inflows arose from proceeds from long-term borrowings (‘3,301 crore), and proceeds from short-term borrowings, net (‘2,328 crore). Outflows during the period included acquisition of non-controlling interest (‘4,696) crore.

Working Capital Management Efficiency #

• Receivables Turnover: FY24 was 51.07 times, compared to 54.56 the previous year.
• Inventory Turnover: FY24 showed 2.32 times, indicating improvement as compared to 2.09 times in FY23
• Payables Turnover: Increased from 30.90 to 40.74

Dividend and Share Buyback Trends #

• Dividend: Equity dividend payout increased from ‘666 crore in FY23 to ‘888 crore in FY24, subject to shareholders’ approval at the ensuing AGM.
• Share Buyback: The Company completed a buyback of shares that resulted in a reduction of ‘236 crore in the Treasury Share Reserve for FY24.

Debt Service Coverage #

• Debt service coverage ratio decreased from 10.98 in FY23 to 6.92 in FY24.

Liquidity Position #

• The Company maintains undrawn funding facilities to cover short-term needs. As of March 31, 2024, these facilities amounted to ‘10,674 crore.

Titan Company Limited: Financial Analysis (FY22-24) #

Profitability Ratios (3-Year Trends) #

• ROE (Return on Equity):
  • FY23-24: 26.80%, FY22-23: 31.20%, FY21-22: 26%
  • Declined in FY23-24, though still strong, may indicate increased equity base or slightly lower net income relative to equity.
• Operating Profit Margin:
  • FY23-24: 9.7%, FY22-23: 11.5%, FY21-22: 10.8%.
  • Decreased in 23-24, is a sign of increased operating expenses or cost of goods sold relative to revenue.
• Net Profit Margin:
  • FY23-24: 7.5%, FY22-23: 8.7%, FY21-22: 8.0%
  • Decreased in FY23-24.

Liquidity Metrics #

• Current Ratio:
  • FY23-24: 1.7, FY22-23: 1.8.
  • Slightly decreased in 23-24, Remains within a comfortable range, showing good ability to cover short-term liabilities.

Efficiency Ratios #

• Inventory Turnover:
  • FY23-24: 2.32, FY22-23: 2.09, FY21-22: 2.1
  • Increased in 23-24, is a more efficient use of inventory.
• Receivables Turnover:
  • FY23-24: 51.07, FY22-23: 54.56, FY21-22: 55.
  • Slight decrease in 23-24, is a slightly slower collection of receivables.

Leverage Metrics #

• Debt/Equity Ratio:
  • FY23-24: 0.53:1, FY22-23: 0.23:1.
  • Increased Significantly in 23-24 due to higher borrowings.
• Interest Coverage Ratio:
  • FY23-24: 23, FY22-23: 299.
  • A very sharp decrease, because of rise of total income, although it still demonstrates a strong capacity to meet interest obligations.

Segment Performance #

Jewellery Segment #

• 20% Revenue Growth, EBIT Margin of 12.3%, and Same Store Sales Growth of 16%.

Watches & Wearables Segment #

• 18.4% Revenue growth with a 14% growth in analog watches. EBIT margins of 10.2%.

EyeCare Segment #

• 5.1% Revenue growth and EBIT Margin of 11.7%.

Emerging Businesses (Indian Dress Wear and Fragrances & Fashion Accessories) #

• 28% Revenue growth.

Working Capital Ratios #

• Working Capital Turnover:
  • FY23-24: 5.05, FY22-23: 4.18.
  • Shows improvement in efficiently using it’s working capital to generate sales.

Industry Comparisons and Deviations #

• Industry Averages: Specific industry average ratios for each of Titan’s diverse segments (Jewellery, Watches & Wearables, EyeCare, etc.) are not provided in the report. Therefore, a direct quantitative comparison is not possible.
• Significant Deviations: Without industry data, it’s difficult to definitively call out deviations.

Titan Company Limited: Segment-Wise Financial Analysis #

Revenue and Profitability Metrics #

Jewellery #

• Revenue: ₹38,352 crore (excluding bullion sales), 20% YoY growth.
• EBIT: ₹4,726 crore, 8.3% YoY growth.
• EBIT Margin: 12.3%.

Watches & Wearables #

• Revenue: ₹3,904 crore, 18.4% YoY growth.
• EBIT: ₹397 crore, 3.9% YoY decline.
• EBIT Margin: 10.2%.
• Analog watches revenue grew by 14%.

EyeCare #

• Revenue: ₹724 crore, 5% YoY growth.
• EBIT: ₹85 crore, 13.3% YoY decline.
• EBIT Margin: 11.7%.

CaratLane #

• Total Income: 34% YOY Growth

Market Share and Competitive Position #

Jewellery #

• Tanishq is India’s largest jewelry retailer. The Jewellery Division’s market share was 8.5% in Financial Year 2023-24, with an aim to increase to around 10-11% by Financial Year 2026-27.

Watches & Wearables #

• Titan is a leader in the Watches & Wearables market.

EyeCare #

• Titan Eye+ is at the forefront of India’s optical retail chain.

Fragrances #

• SKINN by Titan holds a 35-45% market share in the masstige category.

Key Products/Services Performance #

Jewellery #

• High-value studded products, solitaires, and wedding jewelry boosted revenues.
• Lightweight jewelry addressed consumer demand amidst rising gold rates.
• New collections included “Dharohar,” “Ethereal Wonders,” “Kakatiya,” “Chozha,” and “Aishani.”
• Collaborations with designers Rahul Mishra and Tarun Tahiliani.
• Mia by Tanishq’s “SarangHearts” and “Starburst” collections.

Watches & Wearables #

• Titan Stellar, Raga Power Pearls, Edge Ceramic Fusion, and Titan Titanium watches performed well.
• Fastrack launched “Cerame” and “Fastrack Pulse.”
• Sonata added “Blush” and “Unveil” collections.
• Wearables segment saw 31 new product launches, including Fastrack Revoltt and Titan Traveller.
• New sub-brands “Poze” (Sonata) and “Vyb” (Fastrack) were launched.

EyeCare #

• Launched “Zefr” (affordable luxury frames), “DriveZ” and “Neo Sync” lenses, and smart glasses (EyeX 2.0, Vibes 3.0).

Fragrances & Fashion Accessories #

• Fragrances: Launched products below ₹1,000 (Fastrack brand) and new variants in SKINN (Noura, Nox, Nox OUD luxe).
• Bags: Launched Lunch bag, Mom bag, and Canvas Edit collection.
• Fastrack’s denim collection performed well.

Indian Dress Wear #

• Launched The Queen’s Collection for Diwali, regional festival collections and a Khadi Collection.

Geographic Distribution and Market Penetration #

Jewellery #

• Retail expansion across India, with a focus on dedicated wedding floors in Tanishq stores (180 stores).
• International expansion: New stores in Dubai, Singapore, and Chicago, USA (total 16 global stores).

Watches & Wearables #

• Addition of 115 new stores: 43 Titan World, 39 Helios, 33 Fastrack.
• Renovation of 90 stores.
• Makeover of 600+ stores in Multi Brand Retail Channel.

EyeCare #

• Presence in over 900 stores across 350+ cities.
• Focused expansion in 25 key cities.
• International: 4 stores in UAE (Dubai and Sharjah).

Fragrances and Fashion Accessories #

• Fragrances saw growth in offline channels, E-commerce channel. Fashion accessories- expanding via 30 New Stores.

Indian Dress Wear #

• Opened 32 new stores, totaling 73 stores as of March 31, 2024.
• Presence expanded from 22 to 37 cities.

International Business Division #

• Added 9 new Tanishq and 1 Mia by Tanishq stores, expanding to 17 jewellery stores.
• 43 exclusive brand outlets for watches across 10 countries.

Operational Efficiency Metrics #

Jewellery Division #

• Transitioning factories towards zero water consumption.
• Vendor categorization using a 4P framework (people, process, place, planet).

Watches & Wearables Division #

• Movement Decoration Cell for premium Skeleton watches.
• Implemented an 850 kVA DRUPS, reducing battery usage.
• Achieved 79% green power usage.
• Reduced fuel and freshwater consumption.

EyeCare Division #

• Paperless solution for FSV job tickets.
• Waste diversion and recycling initiatives for lens cutting waste.
• Acetate waste recycling into frames.
• Use of bio-based polymer from castor seeds.
• Introduced nano grid mask and plasma technology in lens manufacturing.
• Introduced metal forming technology to make stainless steel and titanium frames.
• Implemented electrochemical cleaning which helped in improving productivity by 4 times.

CaratLane #

• Business delivered 34% growth while increasing its Net Promoter Score from 80% to 88%.

TEAL #

• Awarded Platinum Status by Raytheon Technologies.
• Recieved significant order for Aero Systems and Turbo engines from major customers.

Growth Initiatives and Challenges #

Jewellery #

• Focus: Retail expansion, retail transformation, portfolio of brands approach, premiumization, wedding jewellery.
• Challenges: Supply chain disruptions, rising gold prices, competition, ensuring a sustainable value chain.

Watches & Wearables #

• Focus: Multi-category leadership, premiumization, wearables segment growth, channel expansion (including e-commerce).
• Challenges: Headwinds in affordable analog watches, competition in wearables.

EyeCare #

• Focus: Strategic retail expansion in key cities, omnichannel presence, manufacturing competence, and sustainability.
• Challenges: Industry-wide slowdown.

Fragrances & Fashion Accessories #

• Focus: E-commerce expansion, retail network additions, product innovation, and premiumization (SKINN).
• Targeting increasing online sales to 40%
• Challenges: Highly competitive market, especially below ₹1,000 price point.

Indian Dress Wear #

• Focus: Store expansion, engaging younger customers, omnichannel presence.
• Challenges: Reshaping communication to resonate with younger customers.

International Business Division #

• Focus: Targeting Indian diaspora, curating new products for International Consumers.

Digital Initiatives #

• Introduced Endless Aisle, AI chatbots for personalised advice, frame alignment checker feature in the Titan Eye+ app.

CaratLane #

• Focus: Distinctive, innovative everyday wear designs, intergration of inventory and marketing at pin code level, digital repeat engine.

TEAL #

• Focus: Automation Solutions, building engineering capacity, standardisation and Modularisation.
• Challenges: Geopolitical tensions, rising gold prices, sticky inflation.

Risk Assessment by Division #

Jewellery Division #

Strategic Risks #

• Severity: High
• Likelihood: High
• Trend: Increasing
• Mitigation Strategies: Focus on retail expansion, retail transformation of Tanishq stores, and offering a portfolio of brands approach. Premiumisation is prioritized with a focus on high-value studded products, solitaires, and wedding jewellery.
• Control Effectiveness: Partially effective, as demonstrated by market share growth but with increasing competitive pressure. Market share increased to 8.5% in FY23-24.
• Potential Financial Impact: Significant. Revenue growth of 20% in FY23-24, but sustained growth depends on continued differentiation and market share gains.

Operational Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Stable, but vigilance required due to global uncertainties
• Mitigation Strategies: Upgrading manufacturing capacity at Hosur and Pantnagar, upgraded testing facilities, and new product development centres. Collaborations with local artisans are boosting skill-building.
• Control Effectiveness: Moderate. Improvements in production capacity and quality were observed with new technologies and enhanced gemstone verification.
• Potential Financial Impact: Moderate, capacity and capability building can help.

Financial Risks #

• Severity: High
• Likelihood: High
• Trend: Increasing, driven by geopolitical factors
• Mitigation Strategies: Introduction of lightweight jewellery and leveraging technology.
• Control Effectiveness: Partially effective. Revenue growth was positive at 20% in the financial year, but was partially impacted by the gold prices. EBIT margins were 12.3%.
• Potential Financial Impact: High. Changes in the gold prices can signifactly impact on consumer demands.

Emerging Risk #

• Severity: Moderate
• Likelihood: High
• Trend: Increasing, growing presence of market players in metros and large cities
• Mitigation Strategies: Track developments in the domestic and international space. Track technological developments in this space.
• Potential Financial Impact: Moderate. Affect on the sale and growth of our natural diamond portfolio.

Watches & Wearables Division #

Strategic Risks #

• Severity: Moderate
• Likelihood: High
• Trend: Increasing due to shifting consumer behaviour
• Mitigation Strategies: Focus on premium, women, and Gen Z segments. New business verticals for mainline analog, premium, and smartwatches.
• Control Effectiveness: Positive results indicated by 19% growth in India operations and a doubling in wearables volumes.
  • Potential Financial Impact: High. Analog watches and wearables segments are driving growth.

Operational Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Stable
• Mitigation Strategies: Increased production capacities at the Coimbatore plant, and international collaborations for premium watches.
• Control Effectiveness: Effective. Demonstrated by capacity increases and new product launches.
• Potential Financial Impact: Moderate.

Financial Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Increasing
• Mitigation Strategies: Premiumisation through new products, retail transformation, and e-commerce expansion.
• Control Effectiveness: Positive. Revenue growth of 18.4% in FY23-24, with analog watches growing by 14%.
• Potential Financial Impact: Significant. EBIT was up 397 crore, but de-growth 3.9%.

Emerging Risks #

• Severity: High
• Likelihood: High
• Trend: Increasing. The impact of wearables on watches, emergence of technology driven competitors.
• Mitigation Strategies: Technology, platform and product Development capabilities have been strengthened.
• Potential Financial Impact: Significant.

EyeCare Division #

Strategic Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Uncertain
• Mitigation Strategies: Four-pronged strategy for enhanced customer acquisition. Strategic expansion in 25 key cities.
• Control Effectiveness: Moderate. Revenue growth of 5.1% in FY23-24, but below projections.
  • Potential Financial Impact: Significant. Slowdown in growth for distribution channel.

Operational Risks #

• Severity: Low to Moderate
• Likelihood: Moderate
• Trend: Stable
• Mitigation Strategies: Focus on strategic retail expansion in high-demand areas.
• Control Effectiveness: Ongoing.
• Potential Financial Impact: Moderate.

Financial Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Stable, with focus on improvement
• Mitigation Strategies: Omni-channel strategy and manufacturing competence.
• Control Effectiveness: Moderate. EBIT margin 11.7%
  • Potential Financial Impact: Significant.

Emerging Risks #

• Severity: Moderate
• Likelihood: High
• Trend: Increasing
• Mitigation Strategies: Focus on the overall wellbeing, satisfaction of customers.
• Potential Financial Impact: Significant, especially if new technologies and products gain traction.

Fragrances & Fashion Accessories Division #

Strategic Risks #

• Severity: Moderate
• Likelihood: High
• Trend: Increasing
• Mitigation Strategies: Launching products aligned with global trends, aggressive e-commerce expansion.
• Control Effectiveness: Positive trends seen, but market share needs continuous monitoring.
  • Potential Financial Impact: Significant. Especially in the competitive masstige segment, where the Brand holds substantial share of 35-45%.

Operational Risks #

• Severity: Low to Moderate
• Likelihood: Moderate
• Trend: Stable
• Mitigation Strategies: Accessory Style Lab created for design, channel expansion, and targeted digital marketing campaigns.
• Control Effectiveness: Positive results, with new product launches.
• Potential Financial Impact: Moderate.

Financial Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Increasing focus on digital sales.
• Mitigation Strategies: Target increasing online sales to 40% of total sales.
  • Potential Financial Impact: Substantial. Aiming for a topline revenue of H 500 crore and cater to 6 million consumers by the Financial Year 2026-27.

Indian Dress Wear Division (Taneira) #

Strategic Risks #

• Severity: Moderate
• Likelihood: High
• Trend: Increasing
• Mitigation Strategies: Reinterpreting traditional weaves in contemporary styles. Rapid expansion, prioritizing omnichannel strategy.
• Control Effectiveness: Growing, with 32 new stores opened in FY23-24.
  • Potential Financial Impact: Significant. 5% of total sales coming from e-commerce.

Operational Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Stable, with continuous improvement focus.
• Mitigation Strategies: Weavershala initiative to modernize weaving infrastructure. Larger format stores and sustainable material usage.
• Control Effectiveness: Positive, with 73 stores operational by end of FY23-24.
• Potential Financial Impact: Moderate.

Financial Risks #

• Severity: Moderate
• Likelihood: Moderate
• Trend: Increasing focus on achieving scale.
• Mitigation Strategies: Rapid store expansion and product innovation.
  • Control Effectiveness: Positive. Plans to open at least 35-40 stores annually for the next three years.
• Potential Financial Impact: Significant, with plans to reach 180-200 stores by FY26-27.

Cross-Segment/Enterprise Level #

Financial Risk #

• Severity: High
• Likelihood: Moderate
• Trend: Increasing
• Mitigation Strategies: The Company effectively manages cash flows by leveraging inventory management, advanced technologies, streamlined processes, skilled personnel, and resource optimisation. These elements collectively make a substantial positive impact on Financial Capital.
• Control Effectivenes: Effective
• Potential Financial Impact: High. Affect on overall cash-flow and availability of funds.

Compliance/Regulatory Risks #

• Severity: Moderate
• Likelihood: Low
• Trend: Stable, but subject to regulatory changes
• Mitigation Strategies: The I-Assure system, a comprehensive compliance management tool that ensures adherence to global regulations by monitoring, reporting and documenting requirements.
• Control Effectiveness: High
• Potential Financial Impact: Moderate

Strategic and Management Analysis #

Jewellery Division #

Long-Term Strategic Goals and Progress: #

• Aims for a 15-20% CAGR in topline over the next three years.
• Targets a market share increase from 8.5% in FY 2023-24 to 10-11% by FY 2026-27.
• Achieved 20% revenue growth in FY 2023-24.
• Rapid retail expansion and transformation of older Tanishq stores.

Competitive Advantages and Market Positioning: #

• Tanishq is positioned as India’s largest jewelry retailer.
• Employs a portfolio of brands approach (Tanishq, Mia by Tanishq, Zoya, and CaratLane).
• Focuses on trust, quality, and design.

Innovation Initiatives and R&D Effectiveness: #

• Introduced the hand-crafted Kakatiya collection and the ‘Chozha’ collection.
• Established a new product development center in Mumbai.
• Investments are directed towards stone sourcing facilities and capability centers for Karigars.

Management’s Track Record in Execution: #

• Overseen rapid retail expansion.
• Successfully expanded manufacturing capacity and stone sourcing facilities.

Organizational Changes and their Impact: #

• The increase of the Company´s holding in CaratLane to 99.99% will enhance the Company’s offerings in the jewellery segment.

Capital Allocation Strategy: #

• Focus is on expanding manufacturing capacity in Hosur and Pantnagar.
• Upgrading stone sourcing and testing facilities.

Watches & Wearables Division #

Long-Term Strategic Goals and Progress: #

• Targets aggressive revenue growth, focusing on premiumization in analog watches and leveraging wearables.
• Achieved 18.4% growth in total income for FY 2023-24.

Competitive Advantages and Market Positioning: #

• Titan is a leader in the Watches & Wearables market.
• A multi-channel retail strategy, including Titan World and Helios, supports a diverse product range.

Innovation Initiatives and R&D Effectiveness: #

• Launched Titan Stellar, Raga Power Pearls, and premium automatic watches.
• Introduced two sub-brands, Poze from Sonata and Vyb from Fastrack, to cater to younger consumers.
• Increased production capacities at the Coimbatore plant.

Management’s Track Record in Execution: #

• The management has led multiple initiatives on brands and channels and pursued premiumization.

Capital Allocation Strategy: #

• Focus on increasing production capacities and building capabilities for premium watches through international collaborations.

EyeCare Division #

Long-Term Strategic Goals and Progress: #

• Aims for strategic expansion of retail, focusing on 25 key cities with a net addition of over 50 stores planned for FY 2024-25.
• Revenue growth of 5.1% was achieved in FY 2023-24.

Competitive Advantages and Market Positioning: #

• Titan Eye+ is at the forefront of India’s optical retail chain.
• The division holds a pioneering force in the Indian optical industry, with an “Honest Selling” approach that aims to provide superior customer engagement.

Innovation Initiatives and R&D Effectiveness: #

• Launched Zefr, DriveZ, and Neo Sync lenses, and smart glasses EyeX 2.0 and Vibes 3.0.
• Introduced frames crafted from sustainable materials like castor seeds.

Management’s Track Record in Execution: #

• The management has implemented an omni-channel strategy, successfully integrating digital platforms with retail.

Capital Allocation Strategy: #

• Focus on optimizing investments in high-demand areas, delivering economic value to the division and its franchisees.

Fragrances & Fashion Accessories Division #

Long-Term Strategic Goals and Progress: #

• The goal is to achieve a topline revenue of ₹500 crore and cater to 6 million consumers by FY 2026-27.
• The division is working on aligning all product lines with a new brand architecture.

Competitive Advantages and Market Positioning: #

• The division, through the SKINN brand, maintains its position as the largest brand in the masstige category, with a 35-45% market share.

Innovation Initiatives and R&D Effectiveness: #

• Launched products in value (below ₹1,000), economy (₹1,399), and premium (SKINN Noura, Nox, and Nox OUD luxe) segments.
• Introduced innovative products like the Lunch bag and Mom bag.

Management´s Track Record in Execution: #

• Focuses on agressive e-commerce expansion and retail network additions.

Capital Allocation Strategy: #

• Targeting an increase in online sales to 40% of total sales in the next few years.

Indian Dress Wear Division (Taneira) #

Long-Term Strategic Goals and Progress: #

• Aims to become India’s preferred women’s ethnic wear brand by FY 2026-27, expanding its presence with 180-200 stores.

Competitive Advantages and Market Positioning: #

• Taneira is positioned to offer sarees, dress materials, and ready-to-wear kurtas crafted from pure and natural fabrics, preserving weaving crafts.

Innovation Initiatives and R&D Effectiveness: #

• Launched ‘Taneira Saree Run’ in three cities and ‘Weavershalas’ to modernize weaving infrastructure.

Management´s Track Record in Execution: #

• Strong performance across all business parameters are being delivered by the division´s management.

Capital Allocation Strategy: #

• Rapid expansion with 32 new stores in FY 2023-24, totaling 73 stores.
• Plans to open 35-40 stores annually for the next three years.

ESG Analysis of Titan Company Limited #

Environmental Metrics and Targets #

Jewellery Division #

• 172.05 lakh units of renewable energy used, reducing carbon emissions by 12,318.51 tCO2e in Financial Year 2023-24.
• Specific energy consumption per product sold: 1.77 KW per unit
• Specific water consumption: 0.00908 KL per unit.
• 45% of water was recycled.
• Invested ’ 12.94 crore in environmental conservation/biodiversity.
• Factories are moving towards zero water consumption via recycling and rainwater harvesting.

Watches & Wearables Division #

• Specific energy consumption per product sold: 1.15 KW per unit.
• Specific water consumption per product sold: 0.00545 KL per unit.
• Wind energy contribution: 65%
• Solar energy contribution: 4%
• 49% water recycled.
• Invested ’ 3.89 crore in green initiatives.
• Pantnagar plant increased production capacity and installed an 850 kVA DRUPS, eliminating the need for 320 batteries and 8 conventional UPS units. Achieved 79% green power usage, reducing fuel and freshwater consumption.

EyeCare Division #

• Specific energy consumption per product sold: 0.91 KW per unit.
• Specific water consumption per product sold: 0.00316 KL per unit.
• 44% water recycled.
• Implemented a paperless solution for FSV job tickets, eliminating the use of nearly 500,000 paper sheets annually.
• Diverted 19.8 tonnes of lens cutting waste for energy recovery and cement production, reducing carbon emissions by 5 tonnes.

Company-wide Emissions #

• Scope 3 emissions: 74,129.35 tCO2e.
• Total Scope (1, 2, & 3) emissions: 1,00,743.77 tCO2e.

Social Responsibility Programs #

Company-wide Initiatives #

• CSR spend: ’ 57.99 crore, with 43 social intervention areas, impacting 7.1 lakh beneficiaries.
• Covered 24,176 SC/ST/NT/VJT beneficiaries.
• Supported 41,000+ individuals through skilling for employment, employability, and entrepreneurship.
• The ‘Kanya’ program provided remedial education to over 22,370 girls, with an additional 35,000 girls in the ‘Kanya Sampoorna’ program, which has programs on education and life skills.
• Supported 1,011 households via craft interventions, and provided 43 projects with social intervention.
• Organized “Happy Eyes”, providing compensation and eye care to adults and children.

Governance Structure and Effectiveness #

• Board Structure: 12 Directors, with a mix of Executive and Non-Executive Directors, including 2 women Directors as of March 31, 2024.
• Independent Directors constituted 50% of the Board.
• Board Committees: Includes Audit, Nomination and Remuneration, Ethics, Corporate Social Responsibility & Sustainability, Risk Management, Stakeholders Relationship, and Debenture Committees.
• Compliance: Adherence to Tata Code of Conduct and SEBI LODR is emphasized, with deployment of tools for regulatory compliance.
• Whistle Blower Policy: The company provides access for any employee to report concerns to the Chairman of the Audit Committee.
• Ethics Month: Celebrated across the Company engaging employees, vendors, and business associates.

Sustainability Investments #

• The document does not provide a direct ROI figure for these investments. However, it can be inferred that the Company is making strategic investments, particularly in manufacturing, renewable energy, water conservation, with potential long-term cost savings and enhanced operational efficiencies.

Regulatory Compliance and Future Preparations #

• Compliance: The Company stated compliance with SEBI LODR and relevant Secretarial Standards (SS-1 and SS-2). It also adopted the Tata Code of Conduct. Tools are in place to track compliance with regulations.
• I-Assure System: Implemented for compliance management, tracking regulations, and providing compliance status.
• The document does not note any material ESG-related regulatory compliance issues.
• The Company is registered under Extended Producer Responsibility Guidelines.

Jewellery Division Outlook #

Management Guidance and Assumptions #

• Assumes continued healthy demand during festive periods, driven by an aspirational Indian consumer, despite external challenges like supply chain disruptions and geopolitical tensions.
• Pricing strategies consider premiumisation and offer products that also manage to be good value.
• 95% of purchases stem from in-store interactions.

Market Growth Forecasts #

• Plans to gain market share from 8.5% in Financial Year 2023-24 to around 10-11% by Financial Year 2026-27.
• Targeting a 15-20% CAGR in the Jewellery Division’s topline over the next 3 years.
• Expects continued encouragement for organized retail, accelerating growth trajectory.

Planned Strategic Initiatives #

• Continued retail expansion, and retail transformation of older Tanishq stores.
• Maintain a portfolio of brands approach.
• Focus on premiumisation to boost revenues, particularly in high-value studded products, solitaires, and wedding jewellery.
• Continued expansion and sharp omni play, innovation in technology, product catalogue, and marketing for CaratLane.
• Zoya to strengthen the premium end.

Capital Expenditure Plans #

• Manufacturing capacity expansion at Hosur and Pantnagar.
• Stone sourcing offices significantly expanded, with upgraded testing facilities.
• New product development center established in Mumbai.
• Capability centers for karigars are getting created at Ghatal, Midnapore and Ankurhati, Kolkata.

Efficiency Improvement Targets #

• Maintain industry leading standards in transforming the value chain.

Potential Challenges and Opportunities #

• Challenges: Geopolitical tensions, supply chain disruptions, rising gold prices, increased competition from both organized and unorganized players.
• Opportunities: Growing encouragement given to organized retail, product and process innovation, expanding reach through superior customer service, capturing increased demand arising out of rising gold prices through light weight jewellery, and global expansion (new stores in Dubai, Singapore, and Chicago, USA).

Scenario Analysis and Sensitivity to Key Assumptions #

• Gold Price Fluctuation: Sudden spikes in gold rates could lead to temporary softening of customer demand. Sensitivity analysis not performed, however the management stated that the Division will prioritize growth and marketing to mitigate demand volatility.
• Competitive Intensity: Increased competition is a stated challenge. The impact is mitigated by stated plans, but sensitivity analysis not performed.

Watches & Wearables Division Outlook #

Management Guidance and Assumptions #

• Transition from a conventional lifestyle player to a multi-category leader.
• Growth was led by a combination of healthy increase in the analog watches segment and rising traction in the wearables segment.
• Revenues of analog watches grew by premiumisation and higher average price realisations.

Market Growth Forecasts #

• Mainline analog, premium, and smart segments are to drive the Division’s goals.
• Revenues of analog watches grew by 14% for the year
• In wearables, leverage right products and go-to-market strategies to grow in both affordable wearables and premium smart watches.

Planned Strategic Initiatives #

• Focus on key consumer segments - premium, women, and Gen Z.
• For the mainline analog segment, drive premiumisation through new products and retail transformation in both Titan World and Helios channels. Customer acquisition and volume growth is planned through e-commerce.
• For the premium vertical, gain market share through a portfolio of premium brands like Titan Edge, Nebula, and Xylys.
• Grow the smart segment through product launches and channel expansion, both online and on-ground.
• Pursue premiumisation in analog through brands and multi-brand retail play.

Capital Expenditure Plans #

• Increased production capacities at the Coimbatore plant.
• Create capability for premium watches through international collaborations.

Efficiency Improvement Targets #

• Creating capability for premium watches through international collaborations.

Potential Challenges and Opportunities #

• Challenges: Headwinds in the affordable segment as consumers held onto purchasing.
• Opportunities: Significant opportunities in analog and smartwatches, enhancing customer delight. Leverage technological innovations. E-commerce is an important lever of growth.

Scenario Analysis and Sensitivity to Key Assumptions #

• Affordable Segment Performance: Continued weakness in the affordable segment could impact overall growth. Sensitivity analysis not performed.
• Wearables growth: The plan assumes to leverage the product to increase growth. Any challenges in technology, product launches could pose a risk. Sensitivity analysis not performed.

EyeCare Division Outlook #

Management Guidance and Assumptions #

• Delivering international quality with modern designs.
• Provide superior customer engagement through an ‘Honest Selling’ approach.

Market Growth Forecasts #

• Pioneering force in the Indian optical industry.

Planned Strategic Initiatives #

• Strategic expansion of retail in high-demand areas.
• Strategic expansion in 25 key cities, aiming for a net addition of over 50 stores in Financial Year 2024-25.
• Continued piloting on Integration of audiology in clinical expertise.

Capital Expenditure Plans #

• Optimize investments and deliver economic value to the Division and its franchisees.

Potential Challenges and Opportunities #

• Challenges: Industry-wide slowdown observed in September 2023. Performance below initial projections.
• Opportunities: Strategic expansion of retail presence. Enhancement of customer reach and satisfaction through omni-channel strategy.

Scenario Analysis and Sensitivity to Key Assumptions #

• Economic Slowdown: An industry-wide slowdown impacted performance. Further economic downturns could impact future growth. Sensitivity analysis not performed.
• Retail Expansion: Success depends on effectively targeting high-demand areas and successful franchise partnerships. Sensitivity Analysis not performed.

Fragrances & Fashion Accessories Division Outlook #

Management Guidance and Assumptions #

• Create accessible yet world-class quality products.
• Enhance customer experience with its brand portfolio.

Market Growth Forecasts #

• Perfume segment estimated between H 2,400 crore to H 2,600 crore, growing at 13-14%.
• Targeting increase of online sales to 40% of total sales in the next few years.
• Target to achieve a topline revenue of H 500 crore and cater to 6 million consumers by Financial Year 2026-27.

Planned Strategic Initiatives #

• Monitor evolving consumer opportunities and align product development and pricing strategies.
• Launch products that match global trends by shortening product development cycles.
• Aggressive e-commerce expansion, combined with retail network additions.
• Expand physical footprint by opening 30 new stores by the end of Financial Year 2024-25.

Efficiency Improvement Targets #

• Shorten product development cycles.

Potential Challenges and Opportunities #

• Challenges: Highly competitive market segment below H 1,000 price point.
• Opportunities: Exponential rise of new product lines, millions opting for superior fragrances and good-quality fashion accessories.

Scenario Analysis and Sensitivity to Key Assumptions #

• Competition: Success depends on maintaining/gaining market share in a highly competitive environment. Sensitivity to competitive actions is not quantified.
• E-commerce growth: Achieving 40% of sales online is a key target. Failure to do so could impact overall revenue targets. Sensitivity Analysis not performed.

Indian Dress Wear Division (Taneira) Outlook #

Management Guidance and Assumptions #

• Become India’s preferred ethnic wear label for women.
• Blend innovation with the preservation of Indian crafts and heritage.

Market Growth Forecasts #

• Aims to become India’s preferred women’s ethnic wear brand by Financial Year 2026-27.
• Projected expansion to 180-200 stores by Financial Year 2026-27.
• Plans to open at least 35-40 stores annually for the next three years.
• Expects omnichannel sales to contribute over 10% of total sales within the next 3-5 years.

Planned Strategic Initiatives #

• Preserve weaving crafts sustainably.
• Build appeal for a heritage category with younger and urban audiences via contemporary styles.
• Create access to the best of Indian crafts.
• Expanding presence with 180-200 stores.
• Prioritise omnichannel strategy.
• Leverage supply chain efficiency and design prowess to design affordable, authentic textiles.
• Leverage adjacent categories like kurtas, lehengas, and blouses.
• Opening larger format stores.
• Manufacture products using sustainable plant-based fibers and eco-friendly dyes.

Capital Expenditure Plans #

• Open around 35 new stores in Financial Year 2024-25.
• Open at least 35-40 stores annually for the next three years.

Potential Challenges and Opportunities #

• Challenges: Barriers to saree wearing by developing innovative products and solutions tailored for younger women.
• Opportunities: Rapid expansion of Taneira in terms of both network and product offerings. Untapped markets, where Taneira doesn’t have a physical store yet.

Scenario Analysis and Sensitivity to Key Assumptions #

• Store Expansion: Aggressive store opening targets are key. Delays or lower-than-expected performance in new stores could impact growth. Sensitivity Analysis not performed.
• Younger Customer Adoption: Success depends on attracting younger audiences to sarees. Sensitivity to changing fashion trends not quantified.

International Business Division Outlook #

Management Guidance and Assumptions #

• The next 10 to 15 years are to be exciting, and Indian economy and presence to grow internationally.
• Capitalize on the diaspora’s growing size and rising per capita incomes.
• Target Indian consumers anticipating Titan’s brand launches in their markets.
• Focus on increasingly affluent consumers inclined toward premium offerings.

Market Growth Forecasts #

• Revenue has grown from H 100 crore+ to touch the H 1,000 crore mark in past three years.
• Targeting revenues of USD 500 million and serving 500,000 international customers by Financial Year 2026-27.

Planned Strategic Initiatives #

• Use trend mapping to identify opportunities for deeper penetration in global markets.
• Curate new products for international consumer preferences.
• Actively engaging with international customers to better cater to their preferences and trends.
• Build our brands as truly International

Capital Expenditure Plans #

• Added 9 new Tanishq and 1 Mia by Tanishq stores in Financial Year 2023-24.
• Expanding the international jewellery footprint to 17 stores.
• Currently have 43 exclusive brand outlets for watches in 10 countries
• Expansion of Titan Eye+ stores in Dubai.

Potential Challenges and Opportunities #

• Challenges: Understanding and adapting to local regulations and consumer preferences in diverse international markets.
• Opportunities: Leverage the Indian diaspora as a “beachhead” to showcase the product range globally. Tap into the growing affluence of the Indian diaspora.

Scenario Analysis and Sensitivity to Key Assumptions #

• USD 500 Million Revenue Target: Achieving this ambitious target depends on successful execution of expansion and brand-building strategies. Sensitivity analysis is not provided.
• Diaspora Focus: Success in new markets depends on effectively targeting and resonating with the diaspora. Changes in diaspora spending or preferences could impact results. Sensitivity analysis is not provided.

TEAL (Titan Engineering & Automation Limited) Outlook #

Management Guidance and Assumptions #

• India is emerging as a global manufacturing powerhouse, positioning TEAL to scale its Automation and Manufacturing Services.
• Leverage global manufacturing shift to India.

Market Growth Forecasts #

• Plan to be a leading player in assembly automation space in India and a significant player in Europe and North America.
• To be among the largest suppliers for our existing customers globally.

Planned Strategic Initiatives #

• Automation Solutions:
  • Focus on the Automotive EV Segment (2-wheeler and 4-wheeler) with modular and innovative solutions for battery packs, motors, on-board chargers, and DC-DC converters.
  • Build engineering capacity and competency in the supply chain to enhance presence in the electronic segment.
  • Focus on standardization and modularization for scalability and quick delivery.
  • Enhance local presence in North American and European markets.
• Manufacturing Services:
  • Strengthen relationships with large customers for Turbofan engines, Aero Systems, and Turbo-prop engines.
  • Invest in building capacity for these markets.
  • Build capability for critical semiconductor equipment components.

Capital Expenditure Plans #

• Invest to build capacity for Turbofan engines, Aero Systems, and Turbo-prop engines markets.

Efficiency Improvement Targets #

• Focus on standardisation and modularisation to improve TEAL’s ability to scale and deliver solutions quickly.

Potential Challenges and Opportunities #

• Challenges: Competition in the global automation and manufacturing services market. Dependency on large customers in specific sectors.
• Opportunities: India’s emergence as a global manufacturing hub. Growing demand in the EV segment and electronics segment.

Scenario Analysis and Sensitivity to Key Assumptions #

• Global Manufacturing Shift: Success depends on continued growth in India’s manufacturing sector and global demand for outsourced manufacturing. Sensitivity not quantified.
• EV Market Growth: The focus on the EV segment creates dependency on the growth of that market. Sensitivity not quantified.

Audit and Compliance Analysis #

Auditor’s Opinion and Qualifications #

The Statutory Auditors, B S R & Co. LLP, issued an unmodified opinion on the standalone and consolidated financial statements, indicating no qualifications, reservations, adverse remarks, or disclaimers.

Key Accounting Policies and Changes #

• The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS).
• There were no material changes about the accounting policies adopted.

Internal Control Effectiveness #

• The Board of Directors believes the Company has adequate Internal Financial Controls (IFC) that operated effectively as of March 31, 2024.
• The company maintains an internal audit function with qualified and experienced staff.
• The feature of audit trail implemented for related fields/tables was done in a phased manner at the application as well as the database layer of the accounting software relating to general ledger, account receivable and account payable and hence was not enabled throughout the year. Additionally, audit trail for few tables have not been enabled.
• The feature of audit trail was not enabled from 1 April 2023 to 30 April 2023 at the database layer of the accounting software relating to revenue, accounts payable, accounts receivable, fixed assets and general ledger.
• The feature of audit trail was not enabled from 1 April 2023 to 30 June 2023 at the application layer of the accounting software relating to revenue of spares and service (for the watches & wearable division). We are unable to comment for the database layer of the accounting software in the absence of sufficient and appropriate reporting on compliance with audit trail requirements in the independent auditor’s report of a service organisation.
• The feature of audit trail was not enabled at the application layer of the accounting software for data changes performed by users having privileged access relating to revenue, accounts payable, accounts receivable, fixed assets and general ledger.

Regulatory Compliance Status #

• The Company complied with the provisions of Sections 73 to 76 of the Companies Act, 2013, and relevant rules regarding deposits.
• The Company complied with applicable Secretarial Standards (SS-1 and SS-2).
• There were no instances of non-compliance with stock exchange rules, SEBI regulations, or any statutory authority relating to capital markets in the last three years.

Legal Proceedings and their Potential Impact #

• There are no significant and material orders passed by regulators, courts, or tribunals impacting the Company’s going concern status and future operations.
• Contingent liabilities totaling `309 crore exist, including disputes related to Goods and Service Tax, sales tax, customs duty, excise duty, and income tax.
• The Company has disclosed the impact of pending litigations on its financial position.

Related Party Transactions #

• All Related Party Transactions were in the ordinary course of business and on an arm’s length basis.
• There were no materially significant Related Party Transactions with Promoters, Directors, or Key Managerial Personnel that could potentially conflict with the Company’s interests.
• The Company has adopted a policy on related party transactions.
• Transactions with related parties are disclosed in the financial statements.

Subsequent Events #

• The Board of Directors recommended a dividend of ` 11 per equity share, subject to shareholder approval.
• The company acquired additional stakes from the founder shareholders of its subsidiary CaratLane Trading Private Limited.

Accounting Quality Assessment #

• The Company’s accounting practices follow the prescribed Ind AS standards.
• The Company has an established control framework with respect to the measurement of fair values.

Regulatory Risk Assessment #

• The Company maintains a structured risk management framework and processes for identifying and handling of all kind of risks.
• The Company is subject to regulatory oversight by various authorities, including SEBI, RBI and MCA.
• Regular compliance with applicable laws and regulations, such as the Companies Act, SEBI LODR, and tax laws, is done.
• The Company has systems in place for compliance.
• The company reviews its processes and upgrades the technology to adhere to data privacy.