Watchmaker Titan today said that the expansion of its international business would continue to put pressure on its profitability. 

Speaking to mediapersons at the launch of its international range of watches in India, Bhaskar Bhat, managing director, Titan Industries, said a launch of this nature would require large spending on advertisements. 

“Expansion of our international business would mean more capital outlay, which would continue to put pressure on operating margins. The job of reducing costs is still not over. But investing in the brand is very different from dealing with costs.” 

Currently, the company’s debt-equity ratio is over four and interest coverage ratio is at 1.4. 

“Continuous investment is important. It comes in the form of introducing new collections, retailing, and advertising. Such investment gets you growth,” Bhat added. 

The company’s new international range launched today includes 55 designs. 

“Titan is going global in a true sense and this will reflect in everything associated with the brand. It will see a change in something as small as the packaging of the brand, to change in retail identity, which includes showrooms, showroom staff, communications, and pricing. It is expanding its presence in Europe, Latin America, and South East Asia. A teaser campaign for the new launch is already on air. Combined with the restructuring process, and the introduction of new watches in India, this is the biggest change which the company and all its brands (Titan, Sonata, Fastrack, Dash and Regalia) will see in the 50 years of existence,” Bhat said. 

Bhat expressed confidence about the company’s expansion plans in the highly conscious markets such as Latin America, Europe, and South East Asia. 

“We have had a lot of experience in these markets since 1991-92. Europe has been our toughest market, but we have seen success in West Asia and the Far East over the last eight to 10 years. We offer extraordinary value in the form of contemporary styling, good quality, and a terrific price. These break the boundaries of the country of origin. The Swiss operate, but they do so at very high prices. We operate in a very different price segment and offer value for money.” 

...to launch titanium watches 
Titan Industries is planning to introduce a new segment of watches made from titanium. 

CV Venkatraman, business head, Titan Industries, said, the company was experimenting with titanium, and would probably launch the range in the coming year. 

Though Venkatraman could not specify the exact price range for the product, he said, it would be the priced between Rs1,500 and Rs6,000.