Titan India is anticipated to increase market share and grow operations in FY24.
Tata-owned Titan Company sees an opportunity to grab a greater market share in several categories of products, expand its business and pass on costs to customers despite inflationary pressures in FY24, said CK Venkataraman, Managing Director.
Titan’s customer base is the upper middle class and above, which gives the company an upper hand despite inflationary pressures, Venkatraman told businessline. “While we are in the midst of finalising our budgets for the next year, we are going to be aggressive with our approach,” he said.
Currently the company’s market share in many of the categories, such as jewelry, eye care, wearables, smart wearables and sarees, is very low, the MD said. “Therefore, the opportunity for market share gain continues to be very, very high for the next many years. Besides, ‘Tata’ name has continued to become stronger and stronger, even through the pandemic — that gives me the confidence of growth,” he added.
When asked if the rise in the cost of raw materials was a damper, he said given the customer base and the growth of the overall retail sector, Titan will be able to pass on the costs to the customers.
Today, 80 per cent of the revenues for Titan comes from its jewelry business. The company has brands including Tanishq, Caratlane, Mia and Zoya with the latter being the latest addition to the company’s host of brands. “Zoya has been rapidly growing for us. In the past six months, its contribution rose from ₹100 crore to ₹200 crore. I expect to see a 5x growth in customer base by 2027,” he said.
Zoya, which is Titan’s luxury jewelry brand is set to open its store at the Taj Mahal Palace in Mumbai taking the total stores to seven.
While he said Titan is perfectly comfortable with the jewelry business bringing in the chunk of the revenues, in FY24, Venkataraman sees growth potential in perfumes, women’s bags, smart wearables and eyewear.
In the coming fiscal, Titan is planning to deepen its omni-channel approach. In this fiscal, it generated 12 per cent of its overall sales from online segment. However, he said post-Covid, people have started coming back to stores. “Titan serves diverse age groups in different segments. Hence, it has enhanced its tech support in a way which helps the company generate online sales as well as allows customers to complete purchases at the stores as well.”
It may be recalled that the Tata group had launched a multi-purpose superapp, Tata Neu, last year. While Venkataraman did not delve into the contribution of sales addition through Tata Neu, he expects a “huge potential” in the coming fiscal.