While jewellery remains the undisputed king, contributing around 90% of its total income, Titan Company Ltd is witnessing a powerful surge in its other key businesses. The watches division and its jewellery subsidiary CaratLane are now in the fast lane, poised to cross the coveted $1 billion revenue mark in the coming few years.
Watches Division on a Premium Growth Trajectory
The momentum is particularly strong in the watches business. Ajoy Chawla, who took over as the Managing Director from CK Venkataraman, expressed strong confidence in this segment. "Watches are certainly on their course, in consumer price terms, to reach that billion," Chawla stated. He attributed this projected growth to a dual strategy: premiumisation and volume growth across its portfolio of brands like Titan, Fastrack, and Sonata, sold through diverse channels including Titan World, Helios Luxe, and Fastrack stores.
The numbers back this optimism. In the 2024-25 financial year, the watches business grew by 17.2% year-on-year to reach Rs 4,576 crore. A clear indicator of the premium shift is the average selling price, which has more than doubled from Rs 3,000–4,000 seven to eight years ago to over Rs 8,000 today. The division now operates a vast network of 1,259 stores across various formats.
Outgoing MD CK Venkataraman highlighted the clear trend towards luxury. The company has sold watches priced as high as Rs 10 lakh under its Nebula line, with significant sales in the Rs 50,000 to Rs 2 lakh range. "The overall share of watches priced at Rs 25,000-plus rose markedly over the last few years," he noted, seeing a multi-decade opportunity as incomes rise in India.
Jewellery Dominance and Emerging Powerhouses
Titan's core jewellery business continues to be the financial bedrock, reporting a robust 21.4% growth to Rs 46,571 crore in FY25. CaratLane, its acquired jewellery brand, also showed strong performance with revenues of Rs 3,583 crore. However, the company is strategically nurturing other ventures to build a diversified lifestyle portfolio.
Chawla identified two other businesses with significant potential. Damas Jewellery, in which Titan acquired a 67% stake for $283 million, is on track to hit a $500 million revenue milestone in the next 3-4 years. Post-acquisition, the company is exploring tariff-mitigation options like potential manufacturing in the UAE, while reaffirming its commitment to India.
Another dark horse is Titan Engineering and Automation Limited (TEAL). Chawla pointed out that TEAL, which focuses on precision manufacturing for aerospace, defence, and semiconductor equipment, also has the potential to reach the half-billion-dollar revenue mark.
Navigating Market Dynamics and Future Focus
Under Venkataraman's leadership since 2019, Titan transformed from a watch and jewellery maker into a diversified lifestyle powerhouse, with revenues soaring from over Rs 19,900 crore to Rs 57,818 crore in FY25 (a 22% growth). He credited a conscious effort to expand into perfumes, bags, sarees, and smartwatches.
The company is navigating challenges like rising gold prices, which have muted buyer growth in entry-level jewellery (below Rs 1 lakh). However, value growth remains strong, supported by studded jewellery, bullion coins, and modern designs in 18K, 14K, and 9K gold. Chawla observed that customers are increasingly accepting lower-carat jewellery when there is transparency, reinforcing jewellery's role as a store of value.
On the international front, Titan's jewellery strategy remains focused on the Indian diaspora. The US expansion started in large hubs like New Jersey, Chicago, and Seattle, with newer markets like Orlando being explored. Both leaders declined to comment on any potential foray into lab-grown diamonds.
Looking ahead, Chawla's priority is clear: sustaining high growth and increasing the potency of Titan's brands. He believes the company, as a house of lifestyle and design-led brands, has "truly come of age," operating in an era of rising discretionary spending and accelerating premiumisation in India.
