Farmers - Mislead or mistreated?

 Message from the Managing Director Dear Shareholders, The Financial Year 2023-24 was yet another year where we delivered highly satisfactory financial performance. The year had its share of challenges be it geopolitical tensions, rising gold prices, Proud flags of Titan Company flying in many cities across the globe and the international business eyeing an impressive USD 500 million in UCP (Uniform Consumer Price) value by the Financial Year 2026-27 sticky inflation, etc., which often subdued consumer sentiments. We could overcome the challenges by delivering exceptional customer value propositions across our businesses. C K Venkataraman Managing Director TITAN COMPANY LIMITED 8 Annual Report 2023-24 03-112 CORPORATE OVERVIEW About two years back, during the Financial Year 2022-23, all the leaders of your Company had got together to dream about the future, as we have done every 5 years over the last 2 decades. The result of that engagement was the Titan Turbo Ambition and Strategy where Titan Company and all its subsidiaries were to lift their standards and sights to the next level. Underpinning that whole dream where multiple advantages that your Company had, the Financial Year 2022-23 Annual Report outlined these, but they are worth repeating. The households in the top two income classes in India from whom your Company derives most of its business, are expected to double their share within the total number of households by 2030: there is a strong tailwind in place The market share of most of our businesses/brands in their respective categories is low and this provides significant headroom for share gain: this will provide a second tailwind effect Bharat continues to provide a large opportunity, driven by the aspirations of hundreds of millions living in small-town India Our brand assets, our all-round capabilities and the passion and power of the large Titan family are unmatched Our customer relationships are deep and wide. Our digital maturity will continue to capitalise on these. With all this propelling us, we are planning to turbocharge towards the Financial Year 2026-27, with the following goals in sight: An all-round step-jump in our standards of excellence spanning product innovation, customer experience and multiple areas of operation A more wholesome business portfolio across all the lifestyle product spectrum, with our ethnic wear, smart wearables, fragrances, and women’s bags contributing substantially to our overall customer base Proud flags of Titan Company flying in many cities across the globe and the international business eyeing an impressive USD 500 million in UCP (Uniform Consumer Price) value by the Financial Year 2026-27 The technology/manufacturing subsidiary of Titan viz., Titan Engineering & Automation Limited, coming into its own, creating a substantial niche for itself on the global stage The Company sighting ` 1,00,000 crore in UCP value (consolidated basis) and the financial performance of all the parts of the Company showing marked improvement The ESG performance of the Company improving substantially, particularly through efforts around energy, circular economy, and partner responsibility. The next many years, as it has always been, promise much excitement! C K Venkataraman Managing Director 263-445 FINANCIAL STATEMENTS 113-262 STATUTORY REPORTS Annual Report 2023-24 9 Titan’s Financial Blueprint Steering Growth with the Turbo Programme Strengthen processes for efficient scale management Invest in technology, compliance and risk management to enhance customer experience Focus on both established markets and emerging frontiers, capturing a bigger market share Dive into underserved markets with compelling offerings that resonate with every customer Leverage strategic financial planning, including sourcing optimisation, agile budgeting, and savvy investment prioritisation. At Titan, the finance function serves as the powerhouse behind the Turbo Programme. It is what drives us towards new dimensions of operational excellence and scalability. Mr. Ashok Sonthalia Chief Financial Officer Path To Progress TITAN COMPANY LIMITED 10 Annual Report 2023-24 03-112 CORPORATE OVERVIEW Ambitions Expanding into new markets with the potential to scale non-jewellery segments Leveraging technology to enhance operational transparency Becoming a carbon-neutral and water-neutral Company, contributing towards holistic growth. We undertook a transformative leap by setting up Programme Management Office to achieve global standards of excellence. We achieved this through re-imagining processes to ensure simplification, risk mitigation, appropriate level of controls and scalability. We implemented the I-Assure system, a comprehensive compliance management tool that ensures adherence to global regulations by monitoring, reporting and documenting requirements. This system streamlines our compliance with a user-friendly dashboard, custom reports and reminders for over 1,500 users, thereby, reducing risks and non-compliance. Our Operations Control Group team audits all stores and factories, ensuring full stock verification and regulatory compliance. We deliver quarterly reports and use Frequent Audits (F12) for monthly random checks. Mr. Ashok Sonthalia asserts, We are not just focused on growth but also on refining our processes to ensure that as we expand, we continue to embody the excellence that we are renowned for. Through the Turbo Programme, Titan’s finance function not only supports growth but also actively defines it. Yearly Triumphs Programme Management Office I-Assure System Operations Control Group Through our AI and MLpowered OCG 2.0 initiative, we advance tech-driven financial governance, setting new standards in retail excellence. 4,500 Audits conducted in Financial Year 2023-24 450+ Number of Regulations on Track 263-445 FINANCIAL STATEMENTS 113-262 STATUTORY REPORTS Annual Report 2023-24 11 Titan’s Ethnic Wear Odyssey Redefining Grace Preserving weaving crafts sustainably for future generations Building appeal for a heritage category with younger and urban audiences by reinterpreting traditional weaves in contemporary styles Creating access to the best of Indian crafts under one roof by rapidly expanding footprint across metros and other cities and prioritising omnichannel strategy Leveraging supply chain efficiency and design prowess to design affordable, authentic textiles Leveraging adjacent categories like kurtas, lehengas, and blouses to complete the offering Opening larger format stores Manufacturing products using sustainable plantbased fibres and eco-friendly dyes. The Indian Dress Wear Division aims to become India’s preferred ethnic wear label for women, boosting Titan’s 360-degree lifestyle portfolio. Mr. Ambuj Narayan CEO, Indian Dress Wear Division Path To Progress TITAN COMPANY LIMITED 12 Annual Report 2023-24 03-112 CORPORATE OVERVIEW Ambitions To become India’s preferred women’s ethnic wear brand by the Financial Year 2026-27, expanding its presence with 180-200 stores Establish Taneira as the choice of modern Indian women seeking to blend the traditional with the contemporary Reimagine traditional crafts and textiles through cutting-edge design and innovation. Organised the “Taneira Saree Run” in three cities, featuring 15,000 women, breaking stereotypes by showcasing sarees as a liberating and versatile garment. Released exquisite collections like The Queen’s Collection for Diwali – saree designs inspired by the five elements of nature Parichay – An exclusive line of Tussar silks celebrating rare crafts and artforms like Chamba Rumal, Thangka painting and Chittara folk art. Taneira’s Weavershalas, an initiative to modernise weaving infrastructure while preserving traditional procedures, has reached many weavers and is rapidly adding more! The objective of creating a modern, ergonomically designed environment is helping add women to the artisan workforce and inspiring the younger generations to take up the profession with pride and purpose. Mr. Ambuj Narayan remarks, The Turbo Programme drives Titan’s Indian Dress Wear Division to honour Indian crafts and empower today’s women to embrace their culture and femininity via a contemporary expression of a traditional category. Yearly Triumphs Saree Runs Collections Weavershala 263-445 FINANCIAL STATEMENTS 113-262 STATUTORY REPORTS Annual Report 2023-24 13 Making our Mark Across the World Titan IBD’s Journey across the Globe Targeting Indian consumers who have been anticipating our brands being launched in their markets Capitalising on the diaspora’s growing size and rising per capita incomes Focus on consumers who are increasingly affluent and are inclined to premium offerings Using trend mapping to unearth opportunities for deeper penetration in global markets Curating new products exclusively for the preferences of our International consumers for e.g.: Titan Crescent - Ramadan collection launched during Eid Titan Wander - watches inspired by the world’s topographies Gift of Rifa, inspired by the 8-pointed star motif. At our global touchpoints, 16 nationalities are serving customers from over 70 nationalities with NPS score near 90 and Google review scores of 4.9 out of 5 We have given Indian Americans a “Home away from Home” in the form of Tanishq stores – a space they feel is an extension of India and feel comfortable going back to. Also, we now actively engage with our customers to better cater to their preferences and trends. The International Business Division is bringing Titan to the world, one new market at a time. Mr. Kuruvilla Markose CEO, International Business Division Path To Progress TITAN COMPANY LIMITED 14 Annual Report 2023-24 03-112 CORPORATE OVERVIEW Ambitions To reach revenues of USD 500 million and serve 500,000 international customers by Financial Year 2026-27 Build our brands as truly International, thereby creating greater consumer aspiration. We have added 9 new Tanishq and 1 Mia by Tanishq stores in the Financial Year 2023-24, expanding the international jewellery footprint to 17 stores We now have 43 exclusive brand outlets for watches in 10 countries The first international Titan Eye+ store was opened in Burjuman Mall, Dubai in January, 2023. We have added 3 more stores since then. Over the past three years, the revenue has grown from H 100 crore+ to touch the H 1,000 crore mark. Some of the Tanishq stores in the USA have hit a topline of H 100 crore within a year of launch We have doubled our turnover every year starting from H 250 crore to H 500 crore and finally reaching H 1,000 crore mark. We have collaborated with the Design Excellence Centre (DEC) to study consumers and trends in global markets to create the products of global appeal like pastels, pearls and quiet luxury. Mr. Kuruvilla Markose notes, The next 10 to 15 years are going to be exciting for us. We will see both the Indian economy and India’s presence internationally growing, and fast. Titan’s dominance in India allows us to use the diaspora as a beachhead to showcase our product range across the world at large