Encouraged by its impressive performance in the first quarter April-June 2005, Titan Industries has chalked out an ambitious growth plan that envisages expansion of the company's watch products, jewellery beefing up its international business, besides streaming its precision engineering division through technology upgradation. To fund its growth, Titan is tapping the market with a rights issue of partly convertible debentures (PCD) of Rs 600 each in the ratio of one PCD for every 20 equity shares held. It expects to mop up around Rs 127 crore.
The monies raised from the issue will go towards setting up facilities and working capital requirements of the company's various divisions, Mr Bhat said. While on the retail front Titan plans to put up exclusive 150 Tanishq stores in five years time, it is also looking at setting up its own flagship large stores in major metros, he added.
Likewise, as part of its overseas expansion plan, Titan has integrated all three wings under the ubiquitous International Business Division to be based out of Bangalore with a separate COO heading it. The aim, Mr Bhat observed, was to have a coherent global strategy which will see Titan expanding into new markets like Indonesia, Pakistan, CIS countries, the Middle East and Africa besides taking its jewellery into the US market in a big way. The overseas business which has been growing at around 8 to 10 per cent annually is expected to double once the overseas plans are put in place, he added.
Two parts debenture
The NCDs will carry a coupon rate of 6.75 per cent per annum payable annually and redeemable at the end of five years. Titan's watch division grew by 41 per cent to Rs 134.48 crore from Rs 95.54 crore during the first quarter of the current financial, the jewellery division also recorded higher sales at Rs 116.12 crore against Rs 114.12 crore.