Titan, Tata Group’s daughter company announced that it is targeting a gross revenue of Rs 50,000 crore by FY 22-23 and is forecasting its jewelry business to keep driving the sales of the company.
“Titan now aspires to touch 50 million customers across all its businesses and achieve the UCP (Uniform Consumer Price) revenue of Rs 50,000 crore by 2022-23,” Titan Company Ltd released in a BSE filing.
Therefore, the jewelry business will remain the major driver of revenues of the company. The target revenue is Rs 40,000 crore that will allow Titan to own about 10% of the jewelry market share.
UCP is a synonym for Maximum Retail Price (MRP) of the products for sale. UCP revenues refer to the sum total of the MRP from all the items sold by the firm and includes discounts, channel and franchise partner payouts. These are then subtracted to obtain the net revenue of the company.
Titan is relying on the sale of its watches, accessories, eye wear, fragrances in India and internationally to drive the revenues of the company. Moreover, the firm can also rely on its new businesses such as Taneira to add to the revenues required in order to reach the milestone they have publicly stated.
For FY 16-17, Titan submitted filings reporting a net profit of Rs 761.86 crore and net sales worth Rs 12, 717 crore. The sale of jewelries accounted for Rs 10,237 crore of that sum for that financial year.
However, Titan revised an earlier target they were initially aiming for its jewelry business.
“The company has already stated its ambition of growing the jewelry business 2.5 times its financial year 16-17 revenues by 2021-22. This ambition… is now being extended by one more year,” Titan said.
Titan shares are witnessing a rise of 1.43% in the Bombay Stock Exchange, selling shares at Rs 990.65, per share.