Tata Group firm Titan Industries is eyeing a near three-fold increase in its turnover from watches division to Rs 3,500 crore by 2014-15, driven by new designs and network expansion, according to an analyst report.
The company also expects its eye-wear division to break even by 2012-13, according to the report filed by brokerage firm Prabhudas Lilladher after meeting Titan Industries CEO Bhaskar Bhat.
"In watches, Titan targets Rs 35 billion turnover by FY 2015 (Rs 12.5 billion in FY2011) to be driven by network expansion, introduction of new designs as well as shift towards branded segment," the report said.
Titan is also looking to expand its eye-wear and accessories business with 177 stores by getting into new sub- categories.
"It is targeting FY 2013 break-even and believes potential margins can be higher than watches," the report said.
For the jewellery business under Tanishq brand, Titan will concentrate on opening large format stores for better inventory turns and less than 24 months break even, it said.
The company has not yet seen any impact of the economic uncertainty on any of the businesses yet.
"Neither has it (Titan) experienced any impact on account of government regulation regarding PAN card (for any purchase of above Rs 5 lakh in jewellery, PAN number is mandatory) as its ticket size is far lower between Rs 30,000 and Rs 50,000," it said.
However, it has been only been two months since this came into effect. So management expects a proper assessment to take at least six months, it said.
"Given the rising gold prices and anticipated potential impact on its volumes, in the medium term Titan aims to work around the price points by offering lower caratage jewellery (18c, 14c etc) and creating more opportunities of purchase," it added.
