Titan Industries, as part of the expansion of its product portfolio, is planning a foray into a new segment -- silverware -- leveraging on its jewellery brand Tanishq.
According to Tata group sources, "The company is currently test-marketing/experimenting the product, and depending on the market response, plans to roll out the range nationally."
The company already has a presence in silver jewellery under the FQ brand. FQ stands for fashion quotient and it caters to young women who want a contemporary look at an affordable price.
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For the company, this will be the third phase in its diversification since it commenced operations in 1986 as a watch manufacturer and later diversified into jewellery in 1994.
The company recently said that it will be entering into the leather accessories and sunglasses categories. While a foray into leather accessories will be made under the umbrella brand Titan, sunglasses will be marketed under its existing sub-brand -- FastTrack -- targetted at the young and fashion conscious consumer.
The move is in the wake of the company's decision to position itself as a personal endorsement/lifestyle goods company rather than just as a watch and jewellery entity.
According to industry experts, Titan's move is in line with the way international jewellery and lifestyle products firms such as Cartier and Gucci have positioned themselves.
The latest diversification will take advantage of the company's strong distribution network. While Titan had earlier considered the possibility of hiving off the Tanishq division, the plan has now been put on the backburner.
The jewellery market in India is estimated to be around Rs 40,000 crore, primarily dominated by the unorganised sector. According to the company, its jewellery division performed better for fiscal 2001-02, while the watch division witnessed a decline due to depressed market conditions.
Titan's turnover increased from Rs 698.87 crore to Rs 727.02 crore, an increase of four per cent for the year ended March 31, 2002. Net profit was down by 44 per cent to touch Rs 13.09 crore in 2001-02 compared with last year.