Titan to ramp up precision engg business

The Rs 800 crore Titan Industries will be adding substantial muscle to its precision engineering business in the coming fiscal.

The company, which had announced that it will be entering this business during last year, is testing the waters and has raked in business of around Rs 8-10 crore in the recent past.

Managing director Bhaskar Bhat said: "Our watch manufacturing facility is among the best in the world. The expansion of getting into precision engineering business is logical for us given the expertise we have built up over the years in this sector. We are looking at automobile and the highly critical aerospace segments initially and should be finalising a business plan in three months."

Titan is one of the largest integrated watch and jewellery manufacturers in the world and manufactures over 7 million watches and 2 lakh pieces of jewellery annually. It has manufacturing units at Hosur, Dehradun and in Goa.

"We have appointed a consultant to advice us on the nuances of the precision engineering business and whether we will be adding manufacturing lines to the existing one and what should be the quantum of investment required for this business will be ready by April 2004," noted Bhat.

On the debt burden of Rs 450 crore, which amounts to a debt-equity ratio of 2.7:1, Bhat said with the restructuring of the company in place, "we are hoping to bring the ratio to 2:1 in the next two years."

Titan is looking at 12 per cent growth rate for its watch business, while a strong 30 per cent growth is the target for its jewellery business.