Titan plans about Rs 100 crore capex in FY11

Mar 08, 2010

Titan Industries Ltd is planning about Rs 100 crore of capital expenditure in FY11, and is eyeing expansion opportunities in parts of Asia and South Africa, managing director Bhaskar Bhat has said.

Part of the planned capex will be used for the firm's retail expansion plans as it adds more stores in the next fiscal, he told reporters.

The firm, India's top watch and jewellery retailer, plans to add between 120-150 stores under various brands and will raise the capex through internal accruals.

Bhat said Titan will add five large stores in the next fiscal which typically have an area of 2,500 sq ft and showcase a larger watch collection.

The firm would also spend the capex on manufacturing activities and IT infrastructure, Bhat added.

The company sells watches under a range of brands including the premium Titan and the economy brand Sonata. It has two jewellery retail chains -- Tanishq and Goldplus.

Titan, part of the diversified Tata Group, is also looking for expansion opportunities in parts of Asia and South Africa, said Bhat.

"We are exploring new markets, mainly in Asia, and we have already launched in Vietnam. We are also exploring South Africa where we have started doing market research," Bhat added.

Titan, which last year shut down stores in the US because of the global economic slowdown, is currently present across 28 countries globally.

"We are changing our strategy a little by selective marketing program in each of the countries where we find potential. Saudi Arabia, Vietnam, UAE- these are markets we have selected where we believe we can achieve higher market share."

Bhat also said the firm is expected to close the year ended March 31 with revenues of $1 billion, which represents a growth of about 20 per cent over the previous fiscal.