Published
Sep 20, 2017
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Titan expects better margins from eyewear business post frame factory launch

Published
Sep 20, 2017

Tata Group’s Titan Company Ltd is expecting its eyewear business to post better margins in the next financial year after its new frame manufacturing facility starts commercial production from January 2018.
 

Titan


Titan registered a growth of 42 per cent in revenue and a 110 per cent growth in Profit before Tax. The sales income grew from Rs 2769.55 crore (approx $434 million) last year to Rs 3944.49 crore (approx $620 million) in the first quarter of the financial year.
 
However, Titan’s eyewear business was flat at Rs 110.67 crore for first quarter. The company had said that the performance of eyewear business was adversely impacted due to a slowdown of the sunglasses category.

With its in house frame manufacturing unit, Titan is hoping for a turnaround in its eyewear business. After production begins, margins will start showing improvement by the end of the next financial year, Ronnie Talati, chief executive officer of Titan’s eyewear unit, told the Mint.

After it started making lenses in-house, the eyewear business’ margins became “much, much” better, Talati said. The frame factory is expected to contribute in a similar manner.
 
The new plant will reduce the company’s dependency on outsourcing and also give Titan more control over quality and help it create differentiated products, Talati said.
 
“We are in it for the long term. We will continue to grow this business just as we have grown the watch business and the jewellery business,” he added.
 
Titan Ltd is India’s leading luxury goods firm owned by the Tata group and has over 1,397 stores across India. There are currently around 470 Titan EyePlus stores and the firm plans to open 50 more in the current financial year.
 

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