Dynamic by Design Annual Report 2016-17
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DYNAMIC BY DESIGN ANNUAL REPORT 2016-17 1 TITAN ANNUAL REPORT 2016-17 K 12,717 Cr. REVENUE K 1,164 Cr. EBITDA REPORTS FY 2016-17 FY 2016-17 STATUTORY HIGHLIGHTS $ 6.5 billion MARKET CAPITALISATION K 8.58 EPS 7400+ EMPLOYEES K 20 Cr. CSR SPEND 2 Titan is one of India’s leading lifestyle brands. Transforming The Titan Vision the categories we have entered has been a defining part of “We create elevating our approach to business, since inception. Dynamism is thus, experiences for the people we habitual for us and pervades every aspect of our identity and touch and significantly impact operations. the world we work in.” Our strategy of identifying product opportunities, leveraging our design and execution excellence to help create and lead a category, and to consistently evolve our offering has been a defining trait in our history. We are dynamic by design and by nature and our investments in technology, people, and the The Titan Mission society complement this character. We do this through a pioneering spirit and a caring, value-driven culture that fosters innovation, drives performance, and ensures the highest global ABOUT FINANCIAL standards in everything we do. TITAN 02 STATEMENTS 105 The World of Titan 02 Standalone Financial Statements Business Overview 04 Independent Auditor’s 106 Operational Highlights 08 Report Driven by design 10 Balance Sheet 112 Titan Values and Quantum Leap 12 Standards Profit & Loss Account 113 Dynamic in A Digital 14 Customer Orientation Cash Flow Statement 115 Landscape Customers take precedence Significant accounting 117 Revitalising Tradition 16 over all others, always. policies Empathetic Employment 18 Employee Appreciation Notes 130 We value and respect Titanians 20 Market Environment and endeavour to fulfill their Stakeholder Value 22 needs and aspirations. Consolidated Financial Creation Statements Performance Culture and Designed to Give Back 23 Independent Auditor’s 169 Teamwork Board of Directors 24 Report At Titan Company, high performance is a way of life and Awards 26 Balance Sheet 174 is nurtured by teamwork. Profit & Loss Account 175 Creativity and Innovation Cash Flow Statement 178 Driven by innovation and STATUTORY Significant accounting 180 creativity, we focus on smarter CONTENTS policies approaches and newer REPORTS 28 technologies. Notes 192 Passion for Excellence Management Discussion 28 In all our pursuits, we and Analysis ceaselessly strive for excellence. Board's Report & 38 Annexures Corporate Citizenship We ensure that a part of 68 Corporate Governance our resources is invested in Report environment and community Business Responsibility 88 betterment. Report 1 33rd Annual Report 2016-17 ABOUT TITAN | The World of Titan Titan Company is a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO). We are an organisation serving in the lifestyle space, operating pan-India and in 32 countries around the world. We specialise in identifying a sector, bringing industry best practices to it and eventually leading the same. We ushered in a radical shiftift in the Indian watch market by introducing futuristicuristic quartz technology, complemented by internationaltional ststyling.yling. In the following years, we forayedd into some of the most competitive spaces in the lifestylelifestyle industryindustry such as jewellery, accessories, andnd eyewear. Being a high-value offering, our Jewelleryewellery business is the maximum revenue-generatingting entity under ththee Titan umbrella now. Throughgh the Tanishq brand, both contemporary and traditionaladitional jjewelleryewellery are being offered. Our ‘Zoya’ brandbrand caters to the luxuluxuryry segment with exquisite diamondamond cocollections.llections. In the recent years, Titan hashas explored the fragrances market and is experimentingng witwithh InIndiandian etethnichnic wear by introducing brandedded sarees. Our constant growth is the result of suchh categorycategory additions over the years. THE WORLD OF TITAN THE WORLD 2 Dynamic by Design Titan Company Limited Our Strengthsngths Brand Buildinng Trusted brand byy lakhslakhs ofof Indians forfor qualityquality and assurance. About Titan Diversified productuct offerinofferings.gs. Ability to cater too all sections of the sociesociety.ty. Broad based entityity straddlingstraddling both super-premiumsuper-premium and mass segments.segments. Prowess to introduceduce and redesignredesign consumer trends. Design and Development 800+ New products Technology enabled Award-winning Collections In-house design every year. eyewear products. design capabilities. under multiple studios. Statutory Reports Financial Statements sub-categories of jewellery. Manufacturing 12 manufacturing and assembly facilities covering all products.oducts. State-of-the-art Karigar Centres ensuring quality craftsmanshipmanship in jewellery.jewellery. 11,000+ 5th MULTI-BRAND OUTLETS LARGEST WATCHMAKER IN THE WORLD 1,366 STORES ACROSS BRANDS 3 33rd Annual Report 2016-17 ABOUT TITAN | Business Overview Watches & Accessories In Titan’s thirty-year journey, it has stayed ahead of the Brands IN-HOUSE curve with exquisite design and technology. In fact, today BRANDS it is the leading watchmaker in the country, in terms of Titan volume. Major brands, sub-brands and licensed brands Fastrack are within its portfolio. These are delivered through an Sonata extensive number of retail outlets and online channels. Favre Leuba Xylys Nebula LICENSED BRANDS Titan EDGE Crafted with the finest ceramic, the all new Tommy Hilfiger Titan Ceramic Edge is the slimmest ceramic Police watch in the universe. FCUK Annie Klein Kenneth Cole Esprit Customer Touchpoints EXCLUSIVE BRAND OUTLETS 474 World of Fastrack Reflex Titan Stores The very first Sonata Act activity tracker 155 Fastrack from the Fastrack India’s first safety Stores brand. watch, offered exclusively for women. OWN MULTI BRAND OUTLETS 49 Helios Stores Sophisticated Design OTHER & Development MULTI BRAND OUTLETS Present across 11,000+ dealers LARGE FORMAT Several Watches for Exclusive International Watches made departmental every occasion collections for award-winning using materials stores and retail and every women, kids, designs like ceramic, brands. purpose youth and leather, metals connoisseurs and plastic ONLINE www.titan.co.in and market places including Amazon, Manufacturing Customer Service Flipkart and Jabong Six state-of-the-art, watch and Largest network of exclusive service EXPORTS component manufacturing/assembly centres- 704 watch care centres across 270 towns. 2,264 Points BUSINESS OVERVIEW OVERVIEW BUSINESS plants. of sale in 32 countries. 4 Dynamic by Design Titan Company Limited Jewellery Titan’s Jewellery division started in 1995 with the introduction of ‘Tanishq’ showrooms in India. The brand was introduced with the objective of making jewellery an adornment product as much as an investment. In the fragmented Indian jewellery market, Titan created a differentiation by offering premium designs at attractive price points. One of the most trusted names in the space, Titan’s jewellery division has grown in size and in number of brands to become the largest and the most respected Indian jewellery retailer today. Mia ‘All Rounders’ The collection complements the modern working women’s lifestyle. Tanishq ‘Queen of Hearts’ Necklace collection is inspired by royalty. Brands Points of Sale TANISHQ EXCLUSIVE BRAND OUTLETS ONLINE Flagship brand 239 Tanishq stores www.tanishq.co.in www.caratlane.com ZOYA 32 Mia stores Luxury segment 15 Caratlane stores play Largest jewellery retailer in the country. MIA Tanishq sub- Manufacturing brand for work Primarily in-house studded jewellery manufacturing. wear jewellery Plain gold jewellery manufacturing outsourced to trusted and CARATLANE experienced craftsmen. A Tanishq 3 manufacturing facilities. partnership, 4 state-of-the-art Karigar Centres, empowering artisans while e-commerce ensuring quality. brand Design Excellence Tanishq ‘Shubham’ Collection launches with exquisite designs like Mirayah, Inspired by the ancient Rivaah, Queen of Hearts, Niloufer, Shubham and Divyam designs of Dravidian Capability for in-house design. temples. 33rd Annual Report 2016-17 5 33rd Annual Report 2016-17 ABOUT TITAN | Business Overview Eyewear Titan Company made its foray into eyewear in 2007, offering a variety of differentiated products to the end consumer consisting of frames, lenses, contact lenses and accessories under a single roof. At Titan Eyeplus, frames from in-house brands (Titan, Dash etc.) and international brands (Mont Blanc, Ray-Ban, Tommy-Hilfiger, Hugo Boss) are made available. Our stores offer a 20-step, error-free eye-testing process, which is directly linked with lens-makers at our back end, to deliver ready-to-wear spectacles within the least waiting time. Brands Manufacturing TITAN EYE PLUS Retail Stores TITAN Main in-house frames and lenses brand State-of-the- Satellite lens Frame manufacturing labs in major facility to commence FASTRACK and GLARES art lens lab in cities to improve operations soon. In-house sunglasses brand Chikkaballapur. turnaround time. Customer Touchpoints Differentiators TITAN EYE PLUS Zero-error, remote eye-testing by trained optometrists. India’s largest optical retail chain with Tie-up with Sankara Nethralaya for training of store staff 448 Stores. and optometrists. Sunglasses sales through departmental Branded, fashionable, and quality eyewear at store kiosks and multi-brand outlets. affordable prices. Precision and Engineering Division A B2B business