November 2024 | 2664 words | 10-minute read
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Titan is often cited as a remarkable example of corporate success, featuring in management school case studies, but few know that we stumbled upon the opportunity to make watches almost accidentally and that it was a rather long and arduous but serendipitous journey,” says Xerxes Desai, founder and first Managing Director of Titan Watches, in Titan: Inside India’s Most Successful Consumer Brand by Vinay Kamath. Mr Desai says this tale began on a fateful night in March 1977 when he received a call from his associate Anil Manchanda, who said: “There are five projects I have shortlisted. The best among them is watches.”
But it was not until July 1984 that The Watch Project — backed staunchly by JRD Tata, the then Chairman of Tata Sons — would finally see the light of day, when Titan Watches was incorporated as a joint venture between Tata Industries and the Tamilnadu Industrial Development Corporation. This would set in motion a movement that would redefine the way watches were perceived in India — from mere timekeeping devices to personal expressions that blend design and engineering.
Like clockwork
When Titan entered the Indian watch market, it was largely an unorganised sector, with primarily low-end watches being sold. Highlighting Titan’s novel operating strategy, CK Venkataraman, Managing Director, Titan Company, says, “We have chosen markets and categories which were unorganised, where customers were underserved, and where there were not many or any organised players … We became an expert in all parts of the value chain in that category and … we were able to build a customer value proposition which was very strong. The same approach has been carried forward by Titan over the decades to enter more categories.”
“Titan is a company created by its people, their passion, dedication and belief. … Titan not only survived but also became a market leader by ruling the hearts of the Indian consumer, and in the process establishing itself as a jewel in the Tata crown.”—N Chandrasekaran, Chairman, Tata Sons
Taking methodical strides, Titan invested in a world-class integrated watch manufacturing facility in Hosur, Tamil Nadu, making virtually all the parts that go into a watch. It utilised the finest equipment, aided by a collaboration with France Ebauches, a major producer of quartz analogue movements. From introducing automation for case machining to manufacturing high-end stainless steel cases, Titan left no stone unturned in infusing quality and reliability into its systems. By 1987-88, the first year of operations, Titan emerged as the leading Indian producer of quartz analogue watches.
Concurrently, Titan undertook extensive design planning to develop product lines to reflect its vision of being present in every segment of the market. Through powerful advertising campaigns, it unveiled brands at multiple price points, with a multiplicity of looks and functions. These included Titan, the flagship brand, Titan Raga for women, Fastrack for youth and Sonata for the economy market.
Product design remains at the core of the Watches and Wearables Division’s strategy — it is the pillar on which the brands have been built. “Design has always been an integral part of our growth story,” says Suparna Mitra, Chief Executive Officer, Watches and Wearables Division, Titan Company. “We do a lot of innovation in materials like ceramic and titanium, in plating and also in the movement, which is the heart of the watch.”
By making significant investments in innovation and R&D, Titan produced several notable products, such as Titan Edge, the world’s slimmest watch, in 2002. The journey towards developing in-house mechanical movements began in 2011, and this strategic decision paid off in 2021 with the launch of the Titan Edge Mechanical, India’s slimmest mechanical timepiece.
In 2016, Titan entered the smartwatch category with the launch of Titan JUXT in collaboration with HP. And with the acquihire of Hug Innovations in 2020, it established Titan Smart Labs to develop its own smart products.
Early in its business, Titan also invested in fashioning a sophisticated consumer experience, bringing about a retail revolution through its exclusive chain of showrooms that are now called Titan World Stores, Helios — launched to cater to the growing preference for premium and luxury watches — and Fastrack Stores. In 2002, it launched Titan Watch Care Centres for after-sales service.
Over the years, Titan has maintained a firm finger on the pulse of changing consumer behaviour, which led it to adopt an omnichannel strategy in 2019. Today, it is present across large-format stores, exclusive and multi-brand outlets as well as e-commerce channels, with 1,120 stores in India as of FY24.
The Watches and Wearables Division has transitioned from a conventional lifestyle player to a multi-category leader, with a revenue of Rs 3,930 crore — a 19% y-o-y growth — in FY24, launching 34 products in wearables alone, including one with an AI-powered running coach. Looking ahead, it aims to gain market share through premium brands like Titan Edge, Nebula and Xylys.
Striking gold
After changing people’s perceptions on watches, Titan decided to transform another unregulated market. In the 1990s, the fragmented Indian jewellery market rested on the fulcrum of the family jeweller, who people trusted blindly for certifying the authenticity and quality of gold ornaments. Sensing an untapped opportunity, Titan leveraged its strengths in design, manufacturing, marketing and retail to launch Tanishq, its flagship jewellery brand, in 1996.
Tanishq’s ads declaring ‘Beware, there is a thief in the family’, prompted people to take a closer look at the quality of their jewellery. In 1997, the brand unveiled an ingenious solution to the problem it had highlighted — the Karatmeter, a machine that could accurately measure the purity of gold in a non-invasive way. These innovations coupled with the company’s commitment instilled a strong trust in the brand, propelling it to its subsequent success and position as India’s largest jewellery retailer.
“Tanishq put a lot of emphasis on the wearable aspect of jewellery, viewing it as an accessory that is elegant and that aligns with the changing tastes of women and the aesthetics of their clothes as opposed to regarding it as an investment to be stored in the cupboard,” says Mr Venkataraman.
Seeking to capitalise on opportunities in the wedding and high-value diamond jewellery segment, Tanishq has increased its presence in low market share cities and Middle India through a regionalisation strategy. Today, the division offers premium designs at attractive price points through a diverse ecosystem of brands. Mia, which started off as work wear jewellery, has transformed itself into a fashion forward fine jewellery brand for millenials and GenZ. Zoya is India’s very own luxe jewellery brand, while CaratLane, an affordable modern jewellery brand, is India’s largest omnichannel jeweller.
Transforming the lives of karigars
The gems and jewellery sector in India has historically been artisan-driven, labour-intensive, and traditional skill based, employing lakhs of people in primitive working conditions. Over the years, Titan has taken efforts to uplift this exploited vital link in the manufacturing value chain — the artisan (karigar). Today, 15,000 karigars work at Titan’s vendor locations. These facilities ensure that karigars have safe working conditions, modern equipment, material, training and accommodation, all to Titan’s exacting standards.
“We have gone well beyond Karigar Park and Karigar Centres and have created a 4P framework to evaluate sustainability of production (People, Place, Process and Planet impact) and basis that have enabled our partners and ecosystem to upgrade from ‘cottage standard’ to ‘Tanishq standard’, which has positively impacted over 15,000 craftsmen and 90% of our manufacturing partners,” says Mr Chawla.
“Powered by Tanishq, our flagship brand, the Jewellery Division’s portfolio of brands is well poised to lead this fast formalising category by continuing to win customers’ hearts, leading them with world-class products and an imaginative narrative,” says Ajoy Chawla, Chief Executive Officer, Jewellery Division, Titan Company.
In FY24, Titan had a revenue of Rs 41,408 crore, a 23% y-o-y growth and an ~8% share of the Indian jewellery market, making it the country’s No 1 brand — with a goal to reach ~10% by FY27 by expanding to 1,250+ stores in 300+ towns.
In 2020, Tanishq expanded internationally, opening its first store in the popular Meena Bazaar area in Dubai to cater to the prosperous overseas Indian diaspora. In 2023, it expanded to the North American market and added its first store in Singapore this year. As of March 2024, Tanishq had 16 international stores. It has set itself the ambitious target of earning $500 million in revenue through international operations by FY27.
Crystal clear
Relentless innovation and responsiveness to evolving consumer needs characterise Titan’s third major venture in the consumer space — Titan Eye+ — launched in 2007. The brand was the first organised player in the industry to create a display for showcasing frames in an open browse format, using world-class equipment for zero-error eye testing by optometrists trained at Sankara Nethralaya, a premier eye care hospital, and style consultants to help buyers choose the right frames and lenses. Titan Eye+ also pioneered the smart eyewear segment in India, with the launch of Titan EyeX in 2019 and Fastrack Vibes smart sunglasses.
Design and product innovation have been integral to the growth of Titan Eye+, which offers a variety of differentiated eyewear. It set up a state-of-the-art lens manufacturing unit in Karnataka, developing innovative designs including the patented Titan ClearSightZ lens coating that offers 99.2% clarity over a broad spectrum of light with minimal colour distortion and hydrophobic lenses that repel water. Beyond retailing the world’s leading brands, Titan Eye+ also stocks Aristo Gold Frames crafted from 18K gold (developed with Tanishq) and Zefr, luxury frames made in Italy and France.
“During the pandemic, Titan Eye+ transitioned from being an eyewear retailer to a broader eye care provider,” says NS Raghavan, Chief Executive Officer, EyeCare Division, Titan Company. “This shift allowed us to offer services and products that not only focus on fashion but also on overall eye health, reinforcing the trust, quality and expertise associated with the Titan Eye+ brand.” In 2023, the brand started a pilot project to integrate audiology in its clinical expertise to help those who require hearing aids.
Over the past four years, Titan Eye+ has entered an expansive phase of growth with 900+ stores in 350+ Indian cities and four international stores — it went overseas in 2023. In FY24, the EyeCare Division reported a revenue of Rs 726 crore, owning ~5% of the Indian eyewear market, and has set a mid-term objective to grow it to 8-10%.
Rapid ascent
In 2013, widening its play in the personal lifestyle segment, Titan launched SKINN, a range of fine fragrances for men and women. “The total fine fragrances category size in India is roughly `4,500 crore, and organised at Rs 2,500 crore; it is growing at a double-digit rate,” says Manish Gupta, Chief Executive Officer, Fragrances and Fashion Accessories Division, Titan Company. “This category is entering into an exciting phase, with customers upgrading from deodorants to perfumes at an accelerated pace and their preferences evolving rapidly on the basis of lifestyle and affordability.”
Titan’s focus from the outset was to offer products that were designed by top global perfumers by accessing the resources and supply chain of the top two fragrance houses of the time — Givaudan and Firmenich, based in Paris. These perfumers visited local markets to understand the unique needs of Indian consumers, to help them create a product that would be as good or better than any international brand at one-third the customer price.
Perfumes were also introduced later under the Fastrack brand, and with the addition of the Fashion Accessories business, Titan launched Fastrack women’s bags in 2009. In 2022, the company unveiled its new premium handbag brand, IRTH. After the recent launch of the first IRTH store in Mumbai, Titan plans to open 100 stores over the next three years. The store is a joyful space that invites women to explore the brand’s curated collection of handbags. Building on its category leadership, Titan intends to reach 4 million+ customers by FY27 through its fragrances, and style 4 million+ women by FY27, making women’s handbags from House of Titan an essential fashion accessory.
Threads that bind
In 2017, Titan forayed into the highly fragmented and unorganised saree segment with Taneira — its ethnic wear brand. “At Taneira, we aim to celebrate India’s rich textile heritage while redefining the ethnic wear shopping experience,” says Ambuj Narayan, Chief Executive Officer, Indian Dress Wear Division, Titan Company. “Our approach towards design differentiation blends traditional weaving systems with modern aesthetics, creating a harmonious fusion that resonates with today’s woman.”
Starting with its first store in 2017, Taneira’s retail experience has been designed for intimate yet relaxed browsing, with a key focus on product storytelling. With its overarching strategy centred on ‘best of India under one roof’, Taneira focuses on two key pillars: wedding wear and ethnic ready-to-wear, including stitched and unstitched kurta sets, ethnic skirts, lehengas and blouses. Kanjeevaram sarees, with their opulent zari work and vibrant colours, and Banarasi sarees, distinguished by their luxurious silk and elaborate brocade, form the centrepieces of its bridal collection.
The brand’s commitment to innovation is evident in its use of new colours, pioneering designs, and unique fabric and yarn combinations. Of equal importance is the assurance of quality and authenticity, as reflected in key certifications around pure zari, 100% pure Pashmina, authentic Patan Patola, silk mark and handloom.
A cornerstone of Taneira’s strategy is its Weavershala initiative, launched in 2022. This programme seeks to improve the working conditions of artisans, upgrading the infrastructure and techniques required to safeguard traditional crafts. Through its 20 Weavershalas across cities such as Varanasi in Uttar Pradesh, Coimbatore in Tamil Nadu, Phulia in West Bengal and Maheshwar in Madhya Pradesh, Taneira collaborates with artisans to ensure the continuity of their craft.
As of March 2024, the brand had 73 stores spread across 37 cities and towns in India. Looking ahead, Taneira intends to become India’s preferred women’s ethnic wear brand by FY27. It seeks to make its products more accessible through large-format stores and online platforms, and plans to expand its presence to 130-150 stores while exploring opportunities in Tier 2 and Tier 3 cities.
Turbocharging the future
Forty years after Titan first demonstrated how a watch could be turned into an expression of a wearer’s aesthetic and personality, the company has emerged as a leader in the integrated lifestyle space with a number of brands spanning a variety of categories and market segments.
In FY23, the company devised the Titan Turbo Ambition and Strategy to evolve into an all-encompassing 360-degree lifestyle brand. “Our attempt is to make the customer share of the new businesses become a greater share of the total customers of Titan, making each of these brands a leading brand in these categories,” says Mr Venkataraman. In FY24, Titan’s total income stood at `47,114 crore, growing 23% over FY23, and the profit before tax grew 3.2% to Rs 4,607 crore, with the Jewellery Division — which significantly contributes to revenue and profit — achieving a milestone of `40,000+ crore in sales.
As Titan sets its sights on the next phase of growth, the invaluable contribution of its stakeholders lies at the heart of its success. “The feeling of ownership from all our stakeholders has always been very high. Everyone here feels that they own a piece of the company. During the pandemic, these are the people who took the company out of the woods and put it back on the success track,” says Mr Venkataraman. A track that Titan has been blazing its own innovative, exciting trail on.
—Sharmistha Choudhury
