Titan Company’s jewellery division comprises its flagship brand Tanishq, apart from Zoya, CaratLane and Mia by Tanishq. For the full fiscal year ended 31 March 2024, the division recorded a total income growth of 20% to ₹38,353 crore.
Mumbai: Jewellery and watch retailer Titan Company is looking to expand its market share in the jewellery business by ramping up store count by nearly 40% to 1,250 across its jewellery brands by FY27, the Bengaluru-based firm said.
It currently has current 900 stores.
For the jewellery division, the company’s largest, it plans to boost its buyer base to 6 million from 3.8 million now, and improve its market share to about 10-11% up from 8.6% while maintaining a revenue CAGR of 15% to 20% by FY27, the company said in an investor presentation released on 31 May.
To be sure, the company’s market share in the jewellery category has nearly doubled over the last five years, growing from 4.5% in FY19 to around 8% in FY24.
Titan Company’s jewellery division comprises its flagship brand Tanishq, apart from Zoya, CaratLane and Mia by Tanishq. For the full fiscal year ended 31 March 2024, the division recorded a total income growth of 20% to ₹38,353 crore.
Expansion Plans
Currently, Titan operates 464 Tanishq stores across 270 towns. In the past three years, it has added 110 new Tanishq and 140 Mia stores. CaratLane’s goal for FY27 includes expanding to 425 stores in more than 200 towns; it currently operates 272 stores. The company also plans to double its revenue for its lightweight jewellery brand Mia over the next three years.
For the jewellery division, it plans to expand its margin in the range of 11.5%-12.5%.
Meanwhile, the company also outlined plans to triple volumes in emerging business such as wearables, women’s bags and ethnic wear by FY27, the company said in the presentation. In the mid-term it is eyeing growth rates of 30-40% for the emerging business.
Over the medium-term the company has kept a guidance of achieving 15-20% growth for its core-business (jewellery, watches, eycare) and 30-40% growth for the emerging business—wearables, Taneira (ethnic wear brand), international, fragrance and bags.
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The company’s plans come as it has undertaken measures to improve footfall and product range across categories such as eyewear and ethnic wear divisions.
For its eyecare division it has set a target to achieve a top line of ₹2,000 crore by FY27 with an 11-13% Ebit margin. In its presentation, the company said it is planning a bigger play in the sunglasses market apart from bringing price parity in the affordable fashion and economy eyewear segment, and focusing on the top 108 stores. In FY24, the company’s eyecare division recorded a total income growth of 5% to ₹724 crore.
“Titan is launching premium sunglass retail under a new ‘Runway’ format and revamping its store layouts, with high-end stores requiring an investment of ₹3o lakh each. Titan is investing ₹30 crore in capacity and backend operations and plans to open 4-6 ‘Runway’ stores in FY25,” analysts at Motilal Oswal Financial Services said in a report on 1 June following the analyst meet.
Similarly, for its women’s ethnic wear brand Taneira, the company has outlined plans to make it ₹1,000-crore business by FY27. The format operates 74 stores at present. The company plans to operate 180-200 stores by FY27, Mint had reported earlier this year.
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Optimistic Outlook
Analysts at Motilal Oswal said the retailer remains optimistic about sustaining growth across segments.
“In the long term, the company’s diverse portfolio instills confidence in sustaining healthy growth with structural drivers such as the expansion of target users in rising urban cities and the potential of the store network, Titan’s expanding customer base (new buyers contributing 45-50%), apart from multiple jewellery brands catering to consumers across income groups; the rapidly changing consumer preferences further potential for market share gain (currently at 8%), and the increasing number of women and young people entering the workforce,” they said.
For FY24, Titan Company’s total income grew 23% to ₹47,501 crore. Consolidated net profit rose 7.4% to ₹3,496 crore.
