While jewellery remains the dominant force, contributing nearly 90% of its income, Titan Company Ltd is witnessing a powerful surge in its other ventures. The watches division and its jewellery subsidiary CaratLane are now speeding towards the coveted $1 billion revenue milestone, potentially within the next few years.
Watches and CaratLane: The New Growth Engines
In his first remarks as the new Managing Director, Ajoy Chawla outlined an ambitious vision for the company's non-jewellery segments. He expressed strong confidence in the watches business achieving the billion-dollar target, driven by a dual strategy of premiumisation and volume growth across its brand portfolio.
"Watches are certainly on their course, in consumer price terms, to reach that billion," stated Chawla, who succeeded CK Venkataraman at the helm. He credited this trajectory to the company's multi-brand approach, encompassing Titan, Fastrack, and Sonata, supported by diverse retail channels like Titan World, Helios Luxe, and Fastrack stores.
The financials underscore this momentum. In FY25, the watches business reported a robust 17.2% year-on-year growth, reaching Rs 4,576 crore. CaratLane, the online-focused jewellery retailer, posted revenues of Rs 3,583 crore. In stark contrast, the core jewellery division, while still the giant, recorded revenue of Rs 46,571 crore, marking a 21.4% increase.
The Premiumisation Push and Expanding Portfolio
A significant indicator of the brand's evolution is the dramatic shift in average selling prices. Chawla revealed that the average price of a watch sold across Titan's channels has more than doubled from Rs 3,000-Rs 4,000 seven to eight years ago to over Rs 8,000 today. The division now operates a vast network of 1,259 stores.
Outgoing MD CK Venkataraman highlighted the clear trend towards luxury. "We sold higher-priced watches, going all the way up to... maybe, for a Nebula. We sell quite a few pieces around Rs 3-4 lakh in Nebula," he said, noting a marked rise in the share of watches priced above Rs 25,000. He sees a "decade- or 2-decades kind of opportunity" as millions in India attain higher disposable incomes.
Chawla emphasized that Titan has "truly come of age" as a lifestyle and design-led brand house. "We are fortunate to be operating at a time when discretionary spending is rising and premiumisation is accelerating in India," he said, adding that his focus is on sustaining growth and "increasing the potency of our brands."
Beyond the Core: Damas and TEAL on the Horizon
The growth story extends further. Chawla identified two other businesses with significant potential: the recently acquired Damas Jewellery and Titan Engineering and Automation Limited (TEAL).
Regarding Damas, where Titan acquired a 67% stake for $283 million, Chawla projected it could reach the half-billion-dollar ($500 million) revenue mark in the next 3 to 4 years. Following this GCC-focused acquisition, the company is exploring manufacturing in the UAE for tariff benefits, while reaffirming its commitment to Indian manufacturing.
TEAL, focusing on precision manufacturing for aerospace, defence, and semiconductors, is also seen as a future half-billion-dollar enterprise.
Venkataraman, who led Titan's transformation from a revenue of just over Rs 19,900 crore in 2019 to over Rs 57,000 crore in FY25, reflected on consciously building a "full-fledged lifestyle company." Despite navigating challenges like rising gold prices, which muted buyer growth in lower-ticket jewellery, the company reported a strong 22% revenue growth to Rs 57,818 crore in FY25, aided by studded jewellery and modern designs.
