Titan's ticking fast in Asia, Middle East
The country’s largest watch maker Titan Industries is expected to sell a million units overseas in FY07 on the back of stronger showing in the Middle East, Africa and Asia Pacific regions, even though Europe continues to be a blot on the company’s...
By Boby Kurian, TNN |
BANGALORE: The country’s largest watch maker Titan Industries is expected to sell a million units overseas in FY07 on the back of stronger showing in the Middle East, Africa and Asia Pacific regions, even though Europe continues to be a blot on the company’s international business.
The international operations will account for 10% of Titan’s volume sales expected to touch 10m watches in the current financial year, a company official told ET.
The clockmaker’s latest annual report stated that it was exploring business opportunities in South America for both watches and jewellery products.
The Rs 1,500-crore Titan has consolidated the overseas operations for all businesses, watches, jewellery and other products, under the newly-formed International Business Division functioning out of Bangalore.
Titan brand has moved to leadership position in its category in markets like Oman and Bahrain and has made its presence felt in other core markets in the Middle East.
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Titan International Middle East (TIME), the associate company operating in Middle East, Africa and CIS, saw 17% increase in the sales volume of Titan watches.TIME posted a turnover of $12.6m in FY06 and returned a profit of $0.4m. The company came up with a Pan Arab TV campaign for a better connect with the local population in the Middle East.
The company’s Singapore-based operations, Titan Watches & Jewellery International Asia-Pacific (TAPL), operating in SAARC and ASEAN markets, saw sales volume of Titan watches grow by 9%.
TAPL’s sales stood at S$10.2m and managed to be in the black with S$0.1m in profits. However, the losses incurred by the European operations, Titan International Marketing in London, widened in ’05, despite restricting operations to contain losses.
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While the company had provided for its accumulated losses in Europe, it’s now making further provisioning to the extent of Rs 25 crore in respect of certain loans and advances to its overseas entities towards slow inventories and operating losses. “The strategy to contain losses does not appear to be succeeding, and TIML has now posted losses continuously for over 10 years. Its directors will be meeting soon to review the options before the company,” the parent company’s annual report said.
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