Bengaluru: Watches and accessories firm Titan Co. Ltd listed aggressive sales growth as part of its plan for the 2017-18 financial year in an investor presentation that it filed with BSE on Friday.
In the presentation, which was used in its annual investor forum meeting held in Mumbai, the company also listed “calibrated network expansion” and “exploring new opportunities” in its overall agenda for the current financial year. Deriving benefits from its Quantum Leap programme, an internal efficiency improvement programme mainly focused on cost reduction, featured in its plan for the year too.
For its jewellery, sold mainly under the Tanishq brand, Titan said there were opportunities for growth from the wedding and high-value diamond markets. Jewellery contributes a major chunk of Titan’s overall revenue.
A week ago, the company reported a 7.4% increase in net profit to Rs 2,007.1 crore in the fourth quarter, while revenue jumped 43.89% to Rs 3,486.99 crore. Those numbers were helped by double-digit revenue growth from all segments, led by jewellery.
Titan’s market share in jewellery was 4% in the year that ended 31 March 2017. Its target is to increase that to 5% in the current financial year and to 6% in 2018-19, the company said in its latest filing.
It is also looking to expand its retail footprint so “there’s a Tanishq wherever” its customer is. Its Golden Harvest Scheme, which typically contributes 15-20% of that division’s sales, is expected to continue to account for close to 20% of revenue this year and next.
The company’s fourth quarter results included double-digit revenue growth in its watches division, which was the last to recover within the firm after demonetisation. Sales growth from its Fastrack brand, aimed at the youth, grew 10% in 2016-17. The road ahead for Titan’s watches business will be smart and design differentiated products, and an expansion and renovation of its retail network, it said.
For the eyewear division, much smaller than its watches and jewellery segments, the focus will be on scaling up in terms of store count, driving same-store-sales growth, marketing and a new spotlight on sunglasses, Titan said. The company has a separate sunglasses business unit under its eyewear vertical and is now creating a small team that will exclusively handle this unit.
In 2016-17, the firm added 95 new eyewear stores in the year, taking the total count to 472. It closed down its Spexx store format and instead introduced a new low cost version of its stores for small towns. It plans to add 25 new eyewear stores in the regular format, 12 in the low cost version and 3 factory outlets in the current year.
As part of its eyewear omni-channel strategy, Titan will offer virtual trials, home eye tests and trials, same day pickup and store appointment scheduling services for customers going ahead. It has also started constructing a frame manufacturing facility and expects both trial and commercial production at the plant to begin shortly.