Titan At 40: Time Flies When You’re Making History!
17 min read
An exemplary story of passion, determination and the undying spirit of entrepreneurship, Titan is undoubtedly one of India’s largest consumer brands and a shining example of the ‘Make in India’ initiative. Thanks to its risk taking ability and commitment to exceptional timepieces, the brand has seen a meteoric rise through the years. What began in 1984 as a simple watch making factory is today a giant conglomerate that generates Rs 1000 plus crore in profits per year and employs more than 7000 Indians across its various divisions all over India.
In the past 20 years, the share price of a single Titan Company Ltd share has shot up by an astonishing 36,218% with prices increasing from Rs 711 to Rs 3730 per share. Tracing the journey of such a formidable business conglomerate which has been in business since the past 40 years, cannot be done through a single article as it involves a number of highs, lows, achievements and roadblocks. So to ensure that readers understand the magnitude of this path breaking brand, we need to closely examine its tale since its inception. We dedicate this article as a tribute to the vision, determination and exceptional business acumen that have propelled Titan to its iconic status today.
The Beginning
In the late 1970’s hotel manager Xerxes Desai was on the lookout for a new venture backed by the Tata Group. As is the Tata way, the Group is constantly on the hunt for new businesses and verticals to infiltrate. So in the 1970s, Desai and his team made some critical observations on the watch market of India. They noted that despite being such a fundamental accessory, the demand for watches was being catered to by the unorganized players. One of the largest of these was Hindustan Machine Tools (HMT). It was also observed that out of the 1.5 million watches produced in India annually, 1 million of these were produced by HMT alone while the half million was produced by other players. For several years, HMT enjoyed a monopoly in the Indian market until this was breached by the House of Tata.
Through extensive research they realized that even though foreign watchmaking brands were not allowed to enter the country, a lot of people were aware of these brands and also owned some models thanks to friends and relatives who lived abroad. This created a thriving black market for watches and also an insatiable demand among Indians. HMT could not keep up with the ballooning demand and this was the exact moment that Tata had been waiting for.
The Tata’s knew that they were sitting on a gold mine and set out to capitalize on this untapped segment. In order to do this, they collaborated with Tamil Nadu Industrial Development Corporation Limited that was also looking for an Indian partner for watch manufacturing. The two companies together formed the formidable brand Titan that we all know today and thus began a new era of watchmaking.
First Steps
The headquarters of this company was located in South India’s Hosur which was just 1 hour away from the HMT headquarters in Bangalore where Titan could easily move experts in watchmaking to their manufacturing unit. The teams at Titan realized that while mechanical watches were an engineering marvel, it was quartz watches that were the inevitable future of watch making. The entire set up of its factories and manufacturing units were created keeping quartz watches in mind. While selecting the intitial team, Desai was disappointed with the local options available as they felt that the workers were unskilled. At this point, Titan made a commitment of generating employment to the Tamil Nadu Government.
The team visited schools and colleges and chose candidates who were aged 17 and above. These candidates had to take a test, and based on the results, they were filtered again. Titan even went to the extent of giving them housing and foster parents if the candidates were required to relocate. As for these candidates, what started as a compulsion to earn gradually turned into a matter of pride. Today, hundreds of families have found careers in Hosur. Their children have settled abroad, entered medicine, and more.
Founding Principles
After three years of research, conceptualizing designs and rigorous training, the first watchmakers were ready. So in 1987, Titan began production of its watches in India. Xerxes Desai was appointed as the first CEO of the brand and was a visionary in the truest sense of the word. He had worked with the Tata group for two decades when he was assigned the task of setting up a wrist watch brand. An alumnus of Oxford University, Desai took Jamshedji Tata’s philosophy of community growth seriously and built the brand around these very principles.
Being a man of style and elegance, he designed fashionable and unique watches, something that was missing in India. The company focused on shaping the brand as premium with international designs, but being mindful of the bulk consumers having budget-constraints. Among the first cluster of five watches, the price range was between Rs 350 and Rs 900. Titan’s signature melody was the cherry on top. The brand’s exclusive brand outlet assured consumers that they were here to serve them even post sale.
Titan also believed in the concept of growing together and also gave business to other manufacturing plants located in the region. Giving these businesses the opportunity for innovation, R&D, new product development and the confidence to invest and grow generated employment for thousands of locals. Each manufacturing unit was treated as their extended workplace, with harmonious relations with its engineers, technicians with a high level of confidence, learning, and hand-holding in many domains of expertise. The units then went on to become watchmakers themselves, however they still fondly remember the brand Titan with respect as well as gratitude.
Spreading The Word
The village Hosur, which had never heard of the Tatas or even remotely knew how battery-operated watches worked, was now making dazzling watches with varied features like gold plated dials with leather straps, steel and gold straps, and gold plated bracelets. By now the brand had some superb products to sell however, distribution was still pending.
Titan roped in advertising ace Ogilvy and Mather who created beautiful print ads that prominently displayed these timepieces through its copy. This news spread like wildfire and it is said that consumers would walk in with newspaper cuttings to show the salesmen which watch they wanted to purchase. The year 1990 saw the launch of the brand’s first independent showroom in Mumbai’s Colaba area. It was inaugurated by Mr JRD Tata in the presence of Xerxes Desai as well as Mr AL Mudaliar, Chairman, TIDCO. The launch was a super success as the store saw millions of footfalls each day. This however, was still the beginning. The surprises that awaited the brand were yet to unfold as they redefined the art of watch making in the country.
Crafted For Success
Armed with a great product, the brand now focused on its distribution and marketing strategies. It was the post manufacturing strategy of Titan that proved to be its litmus test. The brand directly approached retail businessmen instead of selling their products through the pre-determined distribution channels. This was a pivotal decision as the brand invested heavily in the sales techniques and after sale services that the brand Titan is known for. The training provided to these salesmen was so holistic and detailed that they were expected to study not just the watch segment but also segments like premium clothing and apparel as well as jewellery. The reasoning behind this was that the brand wanted to position watches as a viable gifting option which was currently occupied by these segments.
Titan positioned itself as the perfect choice for a gift to a loved one. No matter what occasion a watch was a timeless option that every recipient would love to receive. Titan’s founding managing director, Xerxes Desai, had worked with Ogilvy & Mather (then OBM) to select the signature tune for the brand’s television commercials, which was a piece of Western classical music. Xerxes Desai was a creative person with a keen eye for detail, language and aesthetics. He was a Western classical music and jazz aficionado, and in Suresh Mullick he found the perfect collaborator. Suresh, too, had a keen ear for music, both Western and Indian classical, as they together birthed the brand’s unforgettable melody.
Another brilliant strategy adopted by Titan was its excellent advertising. At a time where brands needed celebrity endorsements to sell their products, Titan broke all barriers by placing half page newspaper ads featuring only close ups of their watches and the price it retailed for. This led to a frenzy amongst buyers and they even showed up at Titan stores holding cutouts of these ads to show the salesmen the exact model they were looking for.
Pushing The Envelope
But the makers thought that merely launching sophisticated watches with compelling advertisements is not enough, considering that people perceive this as a one-time investment if not more. So they heavily invested their time and resources in developing new watches year after year, with irresistible and purposeful features. This was concretised with multi-brand retailing, aggressive collaborations with the outlets, and fragmenting into new sub-brands such as Fastrack, Sonata, Tanishq, Titan Eye Plus and Taneira.
In the year 1993, Titan decided to explore international waters and showcase its products on a global stage. It made a foray into the European market, followed by the Middle East and Asia Pacific. The watches were very well received and showcased Titan as a completely India owned watchmaker. As on date, Titan has sold more than 150 million pieces across 32 countries since the year 1993. In the year 1994, the brand took a more rugged approach to its watchmaking by introducing a line of diving watches and high precision chronographs. These highly advanced timepieces were created in India using superlative materials, polished with high precision watch parts and a sophisticated design code.
In 1997, long time Tata veteran BG Dwarkanath (Fondly known as BGD) and his colleague, Subramanya Bhat, decided to meet Xerxes Desai, to discuss an audacious project with him, one that no other Indian Company had ever undertaken before. They proposed to manufacture the slimmest watch movement in the world. A movement as slim as a credit card. Just 1.15 mm. thin, including the battery. A movement which is robust, and can be mass manufactured for use in beautiful, ultra-slim wrist watches.
Race To Excellence
Impressed by their ambitious proposal, Desai agreed and green lit the project. A project team was quickly constituted, including technologists, manufacturing experts and designers. BGD insisted that the team should have the best minds and not people who could be spared for a project which was in the domain of wishful thinking. This was the beginning of the search for many answers. The first big question, how do you develop such a slim movement, with high time-telling accuracy? This would require a step motor with high torque, yet with low electric power consumption. The team resolved this challenge by working with Audemar, a Swiss company, and then married the step motor to an inhouse-developed circuit board which was equally thin. Later, the step motor was indigenized by the team with even better performance.
It was important that they ensure long battery life of the watch. No customer wants to change a watch battery often. To ensure this, the entire internal mechanism had to draw very little power. All parts had to be miniaturized with strict tolerances. Here again, the technical team worked relentlessly in their laboratories. Eventually, what they achieved was marvelous: the electric power required to light up a 40-watt light bulb for just one hour can power this ultra-slim watch for more than fifty years!
By the year 2000, a working movement was ready. The initial proposal was to sell the ultra-slim movement to Swiss watchmakers, but the Swiss companies refused outright to buy an Indian watch movement. BGD recalls how a representative of a famous brand told him at the Basel Global Watch Fair that an Indian-produced movement would dilute their strong brand image. This was a major setback, however, as is the Tata way, it didn’t stop them from believing in their dreams. BGD had great pride in what his team had developed in India and so did his boss Xerxes Desai. Once they were back in India, Desai decided that if the Swiss companies were unwilling to buy the movement, Titan would use it to launch its own branded ultra-slim watch.
An Icon Of India
In the meanwhile, Michael Foley, the lead appearance parts designer on the project, was working closely with Xerxes Desai to finalise the aesthetic design of the watch. He was excited by the prospect of creating a watch that was virtually invisible and wanted the watch to celebrate the ultra-slim movement inside, to feel as thin as an edge, and not really a surface.
To celebrate this beautiful design philosophy, the unique watch was named the “Titan Edge” and launched in May 2002. Not just a watch which looked like the thin edge of something but a horological marvel which was at the cutting edge of technology excellence. The entire watch, including the internal movement and external case, was just 3.5 mm thin, and feather light, at just around 14 grams in weight. The slimmest watch in the universe, and perhaps the lightest watch too. Priced affordably as well, because Titan had manufactured this product at a fraction of what it would have cost to make in Switzerland.
It was this unquenchable thirst for excellence that pushed Titan into the pinnacle of horological achievement as well as business success and created a brand that transcended generations. Technology, design, belief and persistence had come together to create a product which is today ranked amongst the most iconic watches in the world. It was in the early 2000’s that Titan began its ascend towards becoming one of the most valuable companies in India as it capitalized on a number of opportunities that cropped up during that period. Continuing from our previous edition of the Titan story, this portion focuses on the diversification and marketing efforts of the brand. Up until that time, watches were considered a serious, utility based accessory, worn by working or middle aged professionals. Wearing a timepiece solely for the purpose of fashion and style was unheard of and definitely not something college going kids were interested in.
With more than 80% of the population under the age of 35, Titan spotted this opportunity to tap into the burgeoning youth segment and launched its sub brand Fastrack in the year 2003. Positioned as youthful and trendy, Fastrack was presented as a counter to Timex, which had just walked out of the Titan family. Fastrack watches were lightweight and functional voicing each individual’s unique expression. The brand did well, initially. Its turnover crossed 15 crore in the first year itself, and had grown to Rs. 25 crore. However, then time seemed to stand still. Sales were stagnating and it didn't look as if Fastrack would breach the Rs. 25 crore barrier.
The ageing of the target customer was important; Fastrack had previously positioned itself as a college goer's watch; but students -- at least, back then -- weren't known for their high disposable incomes, unlike young executives. Sales soon dropped to Rs 23 crore inspite of the brand refreshing their designs. The trouble lay with the price. At the time, Fastrack watches cost between Rs. 1,200 and Rs. 2,700, which didn't encourage too many repeat purchases. Realizing that customers are more conscious about the look, rather than the material of the watch, Titan decided to repurpose their offering using plastic materials and bright colours. So the new Fastrack watches were made of plastic, steel or a combination of both. The new avatar also aims for a larger share of the Indian watch market working on the premise that more than half of the watch market is in the Rs 501-2,500 price band, Fastrack has downgraded its price points from Rs 1,200-1,700 to Rs. 500-2,000.
Following this resounding success, Titan once again roped in a Bollywood star for the relaunch of Titan Raga. This time they on boarded actress Rani Mukherjee to encapsulate the beauty and femininity the brand embodies. The campaign focused on women’s watches which constituted around 40-45% of the organized watch sector in India that year. The overall market was expected to grow at the rate of 15% while women’s watches accounted for 2-4% of growth. The Titan Raga campaign was well received by Indian audiences and seamlessly combined both watches as well as jewellery creations.
In the financial year 2009-2010, Titan Company made headlines as it crossed the billion dollar revenue mark for the first time ever cementing its position as a big player in the business landscape of India. This was a significant milestone for the company as it successfully created an empire of trust, reliability and technical advancement in India. In the early 2010s, Titan was already a household name in India, but the brand's aspirations extended far beyond its home turf. As it entered 2013, Titan was gearing up for a decade of unprecedented growth and expansion. It began this phase with a robust strategy focused on increasing its footprint both domestically and internationally. In 2013, Titan had over 400 exclusive stores across India and was present in 27 countries. By 2017, the brand had expanded to over 1,500 retail outlets in more than 30 countries. This period saw Titan aggressively entering new markets, including the Middle East, Africa, and Southeast Asia.
Watches Get Smarter
In 2016, as the watch world was dealing with a new entrant- the smartwatch, Titan embraced this technology with open arms. The brand entered the wearable devices market by introducing its smartwatch, Juxt, made through a collaboration with Hewlett-Packard. Driven by a dual caliber mechanism Juxt housed an analog Titan caliber 6130 and a digital module. The timepiece featured a subtle honeycomb dial, 3D indices and the watch could be paired with smart phones having either Android 4.4 or iOS 8.1 and above operating system. The smartwatch’s features included incoming call notifications, receiving email and social media notifications, reading text messages, staying up-to-date with calendar and appointment reminders.
Doubling down on the smartwatch trend, in 2017 Titan launched a fitness tracker, named Gesture Band under its youth accessories brand, Fastrack. In the same year, it invested $3 million in a Singapore based wearable tech company, CoveIoT. In 2018, the company added new fitness tracker bands. By the end of 2018, Titan had a 7.4% market share in the wearable devices market.
With the advent of smart technology, Titan launched its first smartwatch in 2020 under the brand Titan Connected X. This venture into the wearable tech space was a strategic move to cater to the tech-savvy generation. The smartwatch combined Titan’s signature elegance with cutting-edge technology, featuring fitness tracking, notifications, and customizable watch faces. This diversification into smartwatches opened up new revenue streams and showcased Titan’s ability to innovate.
Navigating The Pandemic
The COVID-19 pandemic posed unprecedented challenges for businesses worldwide, and Titan was no exception. However, Titan's robust digital presence and diversified product lines helped it navigate through the crisis. The company reported a resilient performance in 2020, thanks to its strong e-commerce operations and continued consumer trust.
Though the brand had a visible online presence prior to the pandemic, there was a lot of work to be done to become more digitally savvy. Titan took on this task of ‘Retail Reimagine’, where the brand introspected about the purpose of its ‘World of Titan’ stores, and how it could be relevant to the consumer when the stores eventually reopened. So, the chain was rebranded to ‘Titan World’, placing emphasis on modernity, international brands, premiumisation and smartwatches. There was also focus on becoming omni-enabled. By August 2020, Titan was omni-live across its chain because they had the foresight of investing ahead of time. At the same time, a lot of work was done on the manufacturing side and went from ‘Make in India’ to ‘Make much more in India’. With the supply chain across the world getting impacted, Titan decided to reduce its import content from 49% to 20%. Lastly, there was a transformation of the multi-brand outlet (MBO) channels that received upgrades to make them more efficient.
Blurring Borders
By 2022, Titan had significantly expanded its international presence. The brand's foray into the Middle Eastern and Southeast Asian markets was met with enthusiasm. As of 2024, Titan’s journey is a testament to its adaptability and vision. The company has reported consistent growth, with its revenues reaching new heights. According to recent data, Titan's watch segment alone crossed the ₹10,000 crore mark in revenue, a significant milestone demonstrating its market dominance. The brand's innovation pipeline remains robust, with plans to introduce more advanced smartwatches and expand its luxury offerings under the Titan Edge and Nebula collections.
According to the Tata Group, today, Titan boasts of 500 World of Titan stores and 180+ Fastrack stores across 223 towns. The brand has seen such a phenomenal growth trajectory in the last four decades that it has become one of India’s most recognized brands perfectly embodying Indian values and culture. It is said that Titan clocks sales of 1 watch per 2 seconds! With figures like that is it any surprise that Titan’s enduring legacy combines tradition and innovation, proving that when it comes to watches, they’ve truly mastered the art of making time fly stylishly!
