Titan aims Rs 10,000 crore sales from watches & wearables in 3 years

Titan Company, country’s leading jewellery and watches company, has set an ambitious target of doubling its sales from the watches & wearables division in next three years. According to a top executive from Titan Ltd, after successfully overcoming the COVID induced challenges the Bengaluru-headquartered firm is ready to accelerate its growth.

“We have set a target of achieving Rs 10,000 crore in net consumer price revenue by 2025-26. It's a very ambitious figure. The category is growing handsomely and we want to ride that wave. The clarion cal has charged up all segments of our team in figuring out how do we meet the goal,” Suparna Mitra, CEO - watches & warbles division, Titan Company told Business Today.

Titan, the market leader in branded jewellery and watches categories, gets over 85 per cent of its Rs 28,799 crore annual sales. In FY20, before the full impact of the COVID, it had raked in Rs 3,996 crore from its watches & wearable division. Following which, its revenue dipped as consumers remained indoors. In FY2023, however, it managed to increase the net sales value of the business segment by 44 per cent year-on-year.

“This year has been fantastic [so far]. In the first quarter, we grew by some 160 per cent due to a lower base. In September quarter, we grew by 20 per cent y-o-y, while in the third quarter we recorded a 15 per cent growth,” said Mitra.

In FY2021, the first quarter was a complete washout due to the lockdowns during the first COVID-19 wave and it finally ended the year at 60 per cent of FY2020 revenue. However, in FY2022, the recovery was quick and Mitra managed to reach 90 per cent of the FY2020 revenue.

According to her, contrary to the general perception, analog watches continue to remain at the top of consumers’ priority list, while premium watches are pulling Titan’s sales post-COVID. Currently, it gets some 10 per cent of its sales from smartwatches. However, the company is now looking to transform its portfolio and take the competition head on in the smartwatches space.

Titan has already chalked out its plan to create a space for itself in the smartwatches space, which in turn will boost its business in coming years, says Mitra.

Global brands like Apple and Fitbit remain the leading players in the premium smartwatches space (priced above Rs 40,000), while the bottom of the market (below Rs 4,000) is dominated by local brands - leaving ample space for growth.

“The smartwatches market has exploded in last two years. At the top of the market there are brands like Apple, while at the bottom there are multiple local brands. So, we are positioning Fastrack in the Rs 2,500-6,000 price range, followed by brand Titan - starting at Rs 6,500 and going up to Rs 15,000. We believe, this is a space where a lot of Indian consumers would like to make their next purchase,” she said.

Also read: Wipro shares slip 30% in a year; time to buy, sell or hold?

Also read: From PE multiples of up to 800x on Jan 24, this is where Adani group shares are trading at