Titan plans premium watches

As part of brand extension, Titan Industries, plans to foray into the Rs 250 crore (Rs 2.5 billion) premium watch market, dominated by the Swiss brands.

"We are looking at brand extension by launching our third brand of watches to enter the high-end premium watch market in India," Titan Industries managing director Bhaskar Bhat said in Kolkata.

The company, which adopted a twin-brand strategy in 1998 with the launch of Sonata after Titan, was likely to come up with the new brand within six months.

While refusing to name the new brand, Bhat said it would provide a 'home grown alternative' to Swiss brands, which rule the premium segment of quartz watches.

The high-end premium segment had a low volume of about 100,000 pieces but a high value of Rs 250 crore worth of sales per annum. There was no Indian brand currently present in the category.

The company, which expected about 17 per cent growth to sell six million watches during 2003-04, was also planning to reposition its Sonata brand for the vast rural market.

Besides the domestic market, where Titan commands about 20 per cent share, the company was also upbeat about overseas market, expecting to sell about 500,000 pieces this fiscal.

The company, which went for globalising its 'Titan' brand in 1992, has a presence in 29 countries, including the Middle East and Far East.

"We are currently marketing Titan brand in 29 countries. About 10 per cent of our total volume is exported. Product development, packaging and retailing are done in the overseas markets as is being done here," Bhat said.

However, the proposed new brand, which was now on the drawing board, would be launched only in the domestic market, he said.

Asked about the jewellery business, he said, Tanishq, a subsidiary of Titan Industries, was expected to garner about 20 per cent growth this year to reach a turnover of Rs 450 crore (Rs 4.5 billion).