TITAN INDUSTRIES LIMITED
TITAN INDUSTRIES LIMITED6 August 2010‘Delivering value by creating desirable brands’1
DisclaimerCertain statements are included in this release which contain words or phrases such as“will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,”“intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,”“will pursue” and similar expressions or variations of these expressions that are “forwardlooking statements.” Actual results may differ materially from those suggested by theforward-looking statements due to certain risks or uncertainties associated with ourexpectations with respect to, but not limited to, our ability to implement our strategysuccessfully, the market acceptance of and demand for our products, our growth andexpansion, the adequacy of our allowance for credit to franchisees, dealers anddistributors, technological changes, volatility in income, cash flow projections and ourexposure to market and operational risks. By their nature, certain of the market riskdisclosures are only estimates and could be materially different from what may actuallyoccur in the future. As a result, actual future gains, losses or impact on net income couldmaterially differ from those that have been estimated.2In addition, other factors that could cause actual results to differ materially from thoseestimated by the forward-looking statements contained in this document include, but arenot limited to: general economic and political conditions in India and the other countrieswhich have an impact on our business activities; inflation, unanticipated turbulence ininterest rates, foreign exchange rates, the prices of raw material including gold anddiamonds, or other rates or prices; changes in Indian and foreign laws and regulations,including tax and accounting regulations; and changes in competition and the pricingenvironment in India. The Company may, from time to time make additional written andoral forward-looking statements, including statements contained in the Company’s filingswith SEBI and the Stock Exchanges and our reports to shareholders. The Company doesnot undertake to update any forward-looking statements that may be made from time totime by or on behalf of the Company, to reflect events or circumstances after the datethereof.1
Titan IndustriesThe surging spirit of India !3
Titan Industries 4PioneerBreaker of rulesLeader in two businesses: premium and massmarketManufacturer, designer, brand owner, marketer,retailer and after-sales service providerUnique cultureFirst company to dare to challenge the SwissB2C and B2B playerIn four businesses from 2007-08One of the Jewels of the Tata Group
Our Heritage – the TATA Group Titan is a part of the TATA Group having a turnover of aboutUSD 70 bn (2008-09) with 1/3rd coming from India, equivalentto over 2.5% of India’s GDP and having the biggest marketcapitalization in India The Tata group is India’s largest employer in the private sector– 357,000 employees across 85 companies The TATA group has achieved many Firsts for India: 5First private sector Steel millFirst private sector Power utilityFirst luxury hotel (Taj)First Airline (now Air India)The World’s least expensive car (Tata Nano)India’s largest software company (TCS)India’s largest watch & jewellery manufacturer (Titan)
About Us Titan is the world’s fifth largest, integrated manufacturer-brand6for watches Commencing production in 1986-87, the Company is today theleader in the Watch & Jewellery businesses in India First & largest player in the branded jewellery segment inIndia with “Tanishq” 60% share of the organised watch market in India Over 90 million watches sold across 30 countries,cumulatively Manufacturing Facilities Main Watch & Jewellery plants in Hosur near Bangalore Watch assembly plants at Dehradun, Baddi, Pantnagar andRoorkee.ECB plant in Goa; small Jewellery-making facility at Dehradun Investment of US 150 million in 450,000 sq.ft. state-of-theart manufacturing facilities Owned by TATA: 25.17% and TIDCO: 27.88% Professionally managed by TATA group & an independent Board
Recognition and Awards in many categories India’s most admired consumer durables companyhaving the most trusted brand in India -TITAN. Both TITAN and TANISHQ adjudged best retail brandsin IFF survey JRD QV (Malcolm Baldrige) Award in 2006 to theWatch Division, and score was re-affirmed in 2007and in 2008. ET and “Great place to work survey” selects Titan asbest employer in Retail and among the top 25nationally President of India Award for best employer of thephysically challenged.7
Our businessesWatchesJewelleryEyewearPrecision Engineering8CurrentlyMarketingour Products in26 countrieswith a largerfootprint in theMiddle East andAsia-Pacificregions
Our BrandsTITANSONATAFASTRACKXYLYSTANISHQGOLD PLUSTITAN EYE ZOYAZOOP!9HELIOS
Our businessesB2C businesses: ProductsB2C businesses: RetailPremium2 stores4,534 sq ftMidpremium299 stores301584 sq ft116 stores2,68511 sq ftFastrackaccessories95 stores80914sq ft27 stores,13607sq ftMass29 stores49,284 sq ftWatchesJewelleryOthersWatches 102 stores6,628 sq ftB2B businesses: PED and MBAJewelleryOthers
Retailing.Widespread anddifferentiated95TitanEye stores116Tanishqstores2 Zoyastores299World strackKiosks2Heliosstore
2009-10 – Summarised Results(Rupees in Crores)Sales / Income from OperationsLess : Excise DutyNet Sales / Income from OperationsAdd : Other incomeNet Sales / Income from 4211.864686.28Profit before interest and taxesLess : InterestProfit before taxesLess : TaxesNet profit after 0250.32Capital Employed227.09371.8078.02125.02801.93Additional Amortisation of trademarks during the year – Rs.24.04 CroresWatches – Rs. 18.44 CrJewellery – Rs. 5.6 Cr12
ADDITIONAL AMORTISATION OF TRADEMARKSIndia will be adopting International Financial Reporting Standards (IFRS) from 1 April2011.One of the requirements of the Accounting Standards is reflected in AS 26 whichmandates a review of the expected economic benefits from the assets held by a company.Until 31 March 2006, the Company was exporting its products (watches and jewellery) tothree overseas associate marketing companies in London, Dubai and Singapore. Thesecompanies were marketing the products to distributors and other buyers in theirrespective territories, and consequently, the Overseas Trademark Rights to TITAN,TANISHQ and the other trademarks used by the Company were also held by an overseasassociate company.From 1 April 2006, the Company started exporting its products directly to the overseasdistributors and other buyers in various countries. In August 2006, the Company alsobought over the Overseas Trademark Rights at the book value of about Rs 63 crores andhas since been amortising this intangible asset at 10% annually. About one-seventh of thisvalue pertains to jewellery and the balance pertains to watches.In March 2009, the Company discontinued its jewellery operations in the USA, and theJewellery Division decided to concentrate on operations in India and to totally discontinuethe export of jewellery. Thus, there would be no future economic benefit from theoverseas trademarks pertaining to jewellery, and the Company has therefore amortisedthe balance intangible pertaining to jewellery. A similar exercise was then done forwatches and a total additional amortisation of Rs 24 crores has therefore been accountedfor 2009-10.13
THE THREE YEAR JOURNEY INCOMEUp13%Up%2314Up27%
THE THREE YEAR JOURNEY CAPITAL EMPLOYED15
THE THREE YEAR JOURNEY PROFITABILITYUp39%Up57%16
MARKET CAPITALISATIONCrossed US 2 50385003462101802003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10Market Capitalisation1730thJune2010
April – June 2010 – Summarised Results(Rupees in Crores)Sales / Income from OperationsLess : Excise DutyNet Sales / Income from OperationsAdd : Other incomeNet Sales / Income from SegmentsProfit before interest and taxesLess : InterestProfit before taxesLess : TaxesNet profit after taxesCapital 08.6327.3581.28268.76276.3095.68241.37882.11
2010-11 – Q1 Highlights Company Income crossed Rs 1250 Crores (over US 265 million) PBT crossed Rs 100 Crores (over US 20 million) PAT crossed Rs 80 Crores (over US 17 million) All businesses benefited from improved Consumer sentiment 19and from a longer Wedding “season” during the quarterWatches saw good growth in the premium TITAN brand,resulting in a better product-mix and improved marginsJewellery saw sales growth of 49%, inclusive of a 20% rise in goldpricesThe Eyewear segment grew by about 30% and made a smallprofit, but the retail business is yet to break evenPrecision Engineering also grew its topline, but made a smalllossThe total number of retail outlets across all three businessescrossed 560 and the total area of retail space crossed 700,000sq ft
PERFORMANCE – 2010-11 – FIRST QUARTERINCOMEUpUp22%Watches300200100017249%J ewellery95025420910005000Income Rs. CrIncome Rs. CrCompanyUp%4212618108842008-09 2009-10 2010-11206362008-09 2009-10 2010-112008-09 2009-10 2010-11150010005000616Income Rs. Cr
PERFORMANCE – 2010-11 – FIRST QUARTERWatches (EBIT)604020017J ewellery (EBIT)42298060402002008-09 2009-10 2010-112008-09 2009-10Rs. CrRs. CrCompany (PBT)200100044641092008-09 2009-10 2010-11213551Rs. Cr682010-11
PERFORMANCE – 2010-11 – FIRST QUARTERCAPITAL EMPLOYEDWatches400292J ewellery34926928020026002402008-09 2009-10 2010-11254Cap. Emp Rs. CrCompany61276088250002008-09 2009-10 2010-11222762008-09 2009-10 2010-11Cap. Emp Rs. Cr1000278Cap. Emp Rs. Cr
I. Watch Business23
The Watch Market & Industry inIndia India is an under-penetrated market for watches – only 27% of Indians own a watch Total estimated market in 2009-10Volume 44 mn unitsValue: Rs 3100 Crores (USD 600 Mn) at retail(We have a 22% volume share and a 40% value share) Vast proportion of the Indian market is below Rs 500 65% by volume (24% by value) Market has been split into: Low end, Mass market,Premium, and Luxury24
Watch Market MapFormal / ClassicRaymond LonginesNebulaXYLYSPriceRs 5001000TimexFastrack2000400010000Espirit, Swatch FossilGiordano,DKNY,CarreraTommy HilfigerFashion/Sporty25500030,000 Tag HeuerHugo BossC Dior
Our market and brand leadership of 50% uses themuscle of a vast distribution network11,000Dealers26ALL INDIA2500Towns295ShowroomsWorld of d storeHelios745CentersService Centers2Towns345Towns
OUR WATCH BUSINESS – OVERVIEW27
INTERNATIONAL BUSINESS 28One of India’s first companies to market a consumerbrand overseas.Titan watches are present in 26 countries outside India“Titan” is among the top 3 watch brands in severalAsian countriesTitan launched in South Africa in July 2010.Sold over 625k watches valued at Rs 70 crores.Total export sales of over Rs 101 crores in 2009-10including jewellery, watch components and precisionengineering items.
II. Jewellery Business29
Jewellery – Market & Industry highlights30
TANISHQ TODAY – A BRIEF OVERVIEW31
Gold Plus :Size of the opportunity32 Semi-urban and rural market estimated to be as much as 40% of thetotal : Over Rs 30,000 crs. Value conscious consumers, buying traditional jewellery Very fragmented industry with under-karatage still prevalent in manyparts of the country A new business model and a new brand to exploit this opportunity Sales of Rs 390 crs in 2008-09, and over Rs 440 crs in 2009-10 29 outlets as at 31 March 2010.
OUR JEWELLERY BUSINESS – OVERVIEW33
III. Precision EngineeringBusiness34
Precision Engineering BusinessRationale Leveraging Engineering capabilities B2B business – balances risk of B2C businessesThe Opportunity India growing as a manufacturing base for precision productsacross industries Cost pressures and offset requirements guarantee a longterm opportunity High cost of switching for customers Large & growing market: The global market for precisionengineering products addressable by Titan is Rs.135,000 cr.35
Current position: 3 segments 3 streamsMarket size Rs.1,35,000 Cr.AutomotiveMarket sizeRs.575 Cr Precisioncomponents Dash boardinstrumentsAerospaceAutomationSolutions Sub systemsDomestic &InternationalMedicalDomesticMarketOnlyTSMGStudy36
Precision Engineering BusinessThe Customers Eaton, USA Hamilton Sunstrand, USA Microtechnica, ItalyBosch, IndiaLucas, IndiaTata Motors, India Timken, India Ford, UK Visteon, USA / IndiaThe Plan Targeting a break-even in 2010-1137Turbo Energy, IndiaStanadyne, IndiaTyco Electronics, India
IV. Eyewear Business38
THE EYE WEAR BUSINESS Started in 2004-05 by marketing Sunglasses under theFastrack brand Targeted the youth segment Pilot project for Prescription Eyewear started in March2007 90 Titan Eye outlets as on 30 June 201039
THE EYEWEAR MARKET – AN UNTAPPEDOPPORTUNITYIncidence:30% of population typically needs correction in vision 300 mnUsers: 84mn users – which is about 25% of those who need the correctionConsumers change their glasses / frames once in 3 to 4 years on an averageMarket size: 25-35 million units per annum Rs 1500-1800 crores per annum Repeat purchase is a regular feature from adolescence to old age.Customer lifetime value is very high Almost everyone over 40 yrs needs correction. Growth: Market has been growing in double digits 15-20% per annumand likely to sustain Demand drivers: Urbanization, literacy, Penetration of TV & computers,Poor eye health due to lifestyles/ improper diet, etc.40
OUR BUSINESS PROPOSITIONTo enter as a retail brand – Chain of Stand AloneStores41 Product / Service Offering:-Eye checking, Optometry-Range of frames - Titan & licensed brands-Range of Branded Lenses-Sunglasses – Titan, Fastrack & licensed brands-Contact Lenses, Accessories
WHERE WILL WE PLAY IN THE VALUE CHAINOUTSOURCEDesignandMarketingFrame andlens mfg.WholesaledistributionLens mfg. e up withreputed lensbrands & Instore fitting labsFocus on strengths and high margin areas:DESIGN, RETAIL, SERVICE & MARKETING42
Way Forward43
2010-11Turnover to grow by about 20% over previousyear to target Rs 5,700 crores (US 1.25 billion) Operating Profit to grow in similar fashion Continued retail network expansion to330 World of Titan outlets130 Tanishq outlets30 GoldPlus outlets40 Fastrack outlets125 Titan Eye outlets15 Helios outlets2 Zoya outlets 44
The last five years saw a three-foldgrowth 0720092008Income in Rs. Crores2010
and in the next five years we will becomea US 3 billion company ! 02000046201120122013Income in Rs Crores20142015
Further information is available onwww.titan.co.in47
THANK YOU48
One of the Jewels of the Tata Group. 5 . B2C businesses: Retail 299 stores 301584 sq ft 116 stores 2,68511 sq ft 27 stores,13607 sq ft 95 stores 80914sq ft 2 stores 4,534 sq ft 2 stores 6,
job on the list. While Titan’s cabin and bed give you first-in-class innovation2 plus plenty of room. No matter how epic your plans, Titan’s ready. 2013 Titan. Nissan. Innovation that excites. CHANGE WHAT’S POSSIBLE. 1See Nissan Towing Guide and Owner’s Manual for proper use. 2Ward’s Light Vehicle Market Segmentation. MY13 Titan vs .
EL TITÁN OBSESIONADO EL TITÁN OBSESIONADO BARRY LIGA EN UN INSTANTE, EL UNIVERSO PUEDE CAMBIAR. En el planeta Titán, apenas existía el crimen. No había pena de muerte, ni ninguna institución capaz de retener a alguien con la fuerza y la inteligencia de Thanos. La gente de Titán solo encontró una solución: el exilio. No de la Ciudad .
Warranted parts must be returned to Titan Air, Inc. within 60 days to receive credit. PURPOSE / APPLICABILITY . This manual is intended to provide installation, operating and service information on Titan Air’s TA Series direct-fired air make-up units. Other Titan Air units, such as
Siegenia Lift & Slide Patio Gear - HS Portal 413-414 17. TBT TBT Selection Guide 417-418 Siegenia Titan AF 419-420 Contents Contents Siegenia Titan AF PAS24 421-422 Siegenia Titan AF 24 423-424 Siegenia Titan AF 24 PAS24 425-426 18. T Pivots Pivot Gear Guide 429-430 T-Pivot 431-432 19. Xpert Tools Xpert Air Dentist Drill 438 Xpert Air .
04 TITAN SLICING SYSTEMS // Product Catalogue 2013 Designed and engineered in New Zealand, the Titan 200 Slicer delivers cutting-edge food processing technology in a surprisingly compact machine. With a brief of delivering the biggest throat possible within the smallest possible footprint, the Titan 200 packs all the features of the larger models
TITAN and TITAN XD are ready to tackle the tough jobs, with flexible rear-seat storage, thanks to a lockable cargo organizer that helps keep things secure and out of sight. 18, 26 The container s top even folds out to create a flat floor for easy loading. 18, 26 TITAN s truck bed is smart, strong, and capable, with features like a
Titan Pay Features 04 No need of a phone, battery or PIN to transact PIN is not required for transactions up to Rs 2000/- (As per RBI guidelines) Does not require a power source (battery) to work Tap and GO Up to 3 Titan Pay watches can be linked to a single SBI account Permanently Block Titan Pay watch through the YONO app. Instantly Enable/
Titan that exist on another remote control, you can copy those functions from the original remote to Titan by following the steps in the LEARNING section of this Users Guide. Backlighting The Titan universal remote control includes a keypad backlight. This allows for easy key navigation in dark ambient light conditions. If you wish to disable this
