Titan has announced plans to expand its market share in the jewellery sector, with plans to increase its store count by nearly 40% to 1,250 across its jewellery brands by the fiscal year 2027 (FY27).
Financial Performance and Growth Targets
For the fiscal year ending 31 March 2024, Titan’s jewellery division recorded a total income growth of 20%, reaching ₹38,353 crore. The company aims to further boost its buyer base from 3.8 million to 6 million and increase its market share from 8.6% to approximately 10-11% by FY27. Additionally, Titan targets a revenue compound annual growth rate (CAGR) of 15% to 20% for its jewellery division during this period.
Expansion Strategy
Currently, Titan operates 464 Tanishq stores across 270 towns. Over the past three years, the company has added 110 new Tanishq stores and 140 Mia stores. For CaratLane, Titan plans to expand to 425 stores in more than 200 towns by FY27, up from its current 272 stores. The company also intends to double the revenue for its lightweight jewellery brand Mia over the next three years.
Titan is also focusing on improving its profit margins in the jewellery division, aiming for a margin range of 11.5%-12.5%.
Diversification into Emerging Businesses
Titan has outlined plans to triple the volumes in its emerging businesses, such as wearables, women’s bags, and ethnic wear, by FY27. The company is targeting growth rates of 30-40% in these segments. For its core businesses, including jewellery, watches, and eyewear, Titan has set a growth guidance of 15-20%.
Eyecare and Ethnic Wear Divisions
Titan’s eyecare division aims to achieve a top line of ₹2,000 crore by FY27 with an EBIT margin of 11-13%. The company plans to expand its presence in the sunglasses market and bring price parity in the affordable fashion and economy eyewear segments. For FY24, the eyecare division recorded a total income growth of 5%, reaching ₹724 crore.
The women’s ethnic wear brand Taneira has set a target to become a ₹1,000-crore business by FY27. Currently operating 74 stores, Taneira plans to expand to 180-200 stores by FY27.
Analysts’ Perspectives
Analysts at Motilal Oswal Financial Services provided insights into Titan’s growth prospects. “Titan is launching premium sunglass retail under a new ‘Runway’ format and revamping its store layouts, with high-end stores requiring an investment of ₹30 lakh each. Titan is investing ₹30 crore in capacity and backend operations and plans to open 4-6 ‘Runway’ stores in FY25,” analysts noted in a report on 1 June.
The diverse portfolio of Titan, including multiple jewellery brands catering to consumers across different income groups and the changing consumer preferences, positions the company for continued growth. Analysts highlight the structural drivers such as the expansion of target users in urban areas and the potential of the store network, contributing to Titan’s market share gains.
For FY24, Titan Company’s total income grew by 23%, reaching ₹47,501 crore, while consolidated net profit rose by 7.4% to ₹3,496 crore.
Implications for the Jewellery Industry
Titan’s expansion plans and focus on diversification signal a shift in the jewellery retail landscape. Jewellers and industry stakeholders can anticipate increased competition as Titan strengthens its market position. The company’s strategic investments in store expansions, product diversification, and emerging businesses underscore the importance of innovation and adaptability in maintaining market relevance and achieving growth in the dynamic jewellery sector.
