Sunday, January 14, 2024

What goes... Comes back... The Jet Airways Way

What you do to others WILL come back to you. It is a sort of cause and effect. And when we see LIVE EXAMPLES of such cases, we refrain from inflicting pain on others for selfish gains. At the end - Wise people learn from others mistakes. JET AIRWAYS could be one such example.

Teary-eyed and dejected, aviation veteran Naresh Goyal felt so hopeless about the system that he told a special court last week that he would prefer to die in prison. For a man who ruled Indian skies, that's quite a fall. 

While one may pitty the fate of a person who once ruled Indian skies, the reasons that lead to his fall his unethical business tactice can give us a different opinion.

To read the full article, kindly visit:

  • Hailing from Punjab, Goyal started his career in the late 1960s in a relative's travel agency. 
  • He quickly learned the ropes and set up Jetair Pvt. in 1974 to provide sales and marketing services to foreign airlines. 
  • After representing global giants such as Cathay Pacific and Air France for years, he established Jet Airways soon after the Indian economy was liberalised. 
  • When Jet Airways launched commercial operations in 1993, its competitors were Damania Airways, Sahara India or Air Sahara, ModiLuft and East-West Airlines, along with government-owned Indian Airlines and Air India. 
  • There was a time when any major aviation policy by the government was speculated to have the prints of  Mr.Naresh Goyal's.
  • "He knowingly or unknowingly caused more harm to Indian aviation than good through his ways of functioning," Jitender Bhargava, former executive director of Air India, told NDTV Profit. "Goyal prevented airlines from starting operations and later growing by creating stumbling blocks through political clout and influence in the policymaking—only to thwart competition."  The 5/20 policy formulated by the government can be cited as one major example of that, according to Bhargava. The policy required carriers to complete five years of commercial operations and own 20-aircraft fleet to begin international operations. No other country had such a rule. Goyal, according to sector watchers, was even said to be behind derailing Air India's divestment in early 2000s.
  • Goyal, according to sector watchers, was even said to be behind derailing Air India's divestment in early 2000s.
  • The Tata Group, along with Singapore Airlines, had withdrawn the proposal after criticism from trade unions and political backlash. 
  • As a result, Jet Airways climbed higher and gained domestic market share, backed by its world-class service with no other airline to match it. 
  • The next step was going public, which it executed successfully. Its initial public offer was subscribed 4.25 times on the first day.

Emerging Threats 

  • Indian market changed with the launch of new carriers such as InterGlobe Aviation Ltd.'s IndiGo, Air Deccan, SpiceJet and Go Air (now Go First). As the number of flyers increased, low-cost became the name of the game and the quality of services took a back seat. 
  • Feeling the threat from budget airlines, Goyal overplayed his hand by acquiring Air Sahara for Rs 2,200 crore. After the expensive acquisition, Jet Airways' costs began to balloon on international routes. Rapid network expansion, not enough in-house talent and price war among low-cost carriers created the perfect storm that rocked Jet Airways. The 2008 financial crisis hit demand and oil prices soared. Jet Airways, already burdened with rising costs, resorted to heavy borrowing.

Unending Turbulence  

  • When Kingfisher Airlines was in dire need of funds and Vijay Mallya was pleading the government to allow foreign airlines to buy stake in domestic carriers, Goyal was reported to be against such a policy and denied the need to tie-up with a foreign carrier. When Mallya's Kingfisher stopped commercial operations in 2012, Jet Airways' efforts for survival came under the spotlight.
  • Conveniently, Goyal changed his view: "Today, I may not need FDI, but tomorrow I may need," he was quoted as saying. In another "twist of fate" that year, Jet Airways got a booster as the government changed its foreign direct investment policy. It allowed foreign airlines to own up to 49% stake in Indian carriers, just when Goyal was hunting for more funds to keep Jet Airways going. 
  • Etihad Airways acquired 24% stake in Jet Airways for Rs 2,000 crore when India and Abu Dhabi agreed to increase flights under the bilateral agreement. But that respite didn't last. Over the next few years, IndiGo's business model, led by single aircraft and frugal operations, became something to imbibe to run a sustainable and profitable airline. Jet Airways again needed funds. 
  • In April 2019, a consortium led by State Bank of India refused to inject more funds in Jet Airways as it crumbled under huge debt and years of loss. Etihad didn't come to rescue either this time. At the time, Jet Airways operated over 120 aircraft and flew on hundreds of routes. And the airline was grounded and ceased operations. Soon after, the lenders initiated bankruptcy proceedings against the airline and the National Company Law Tribunal admitted the case in June 2019. Allegations came to the fore that Goyal was siphoning funds from the airline. Jet Airways' board, which included Goyal and his wife, had to step down. The Enforcement Directorate began examining Etihad Airways' investment in Jet Airways, reportedly on claims of violation in foreign direct investment rules. Goyal was barred from leaving India.

Losing Hope 

  • In May 2023, Canara Bank filed a complaint with the Central Bureau of Investigation, accusing Goyal of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct. Based on the CBI's FIR, he was arrested in September by the Enforcement Directorate for alleged fraud of Rs 538 crore. The case has since been heard in a special court.
  • When Goyal first emerged in the aviation scene, many pointed to his charming ways and how he had the potential to become Indian aviation's face after JRD Tata. Years later, during the hearing last week, he stood with folded hands and bowing before the court to express how he's missing his bedridden wife in the jail. "He came before the court with continuous tremors in his whole body and hands," the judge said. The 74-year-old said his wife is bedridden and their only daughter is unwell, too. Referring him to JJ Hospital would be useless and he conveyed reluctance to travel to hospital from the Arthur Road jail.

While the Airlines may Survive - Naresh Goyal may not. That is true for any one who does unethical business.


Monday, January 1, 2024

Reflections of 2023

 We had made an YouTube Video on "Roller Coster Ride" on 15th may 2022 - explaining the underlying opportunities in the then lackluster markets. Indeed it was a timely video showcasing the merits of investing.

Infact, it could be interesting to watch this video again and see what we said then:

While many of us are rejoicing the market rally, and many think the turning point for markets has been the state election results on November 2023, markets showed signs of growth way back in May 2023 itself - exactly one year after we posted the above mentioned video.

Since FII's were net sellers since october 2021, it was the Mid and Small caps which were ruling the roost till Nov 2023. The state election results gave clarity on upcoming elections and FII's joined the bandwagon to pump in record money in the last two months of 2023. 

In Nifty 50 stocks, 48 ended the year positively. And large cap index gained 20% in 2023. 

But the real winners in 2023 has been Mid and Small Caps - which gained 44% and 49% respectively. 

The Midcap 100 index surged 46%, driven by REC Ltd. and Power Finance Corp., which gained 3.5 and 3.4 times, respectively. Mazagon Dock Shipbuilders Ltd. witnessed a near threefold increase in its share price, led by the push for indigenous defence production. Of the Midcap 100 pack, 93 stocks ended in the positive. Aditya Birla Fashion and Retail Ltd., ACC Ltd., and Page Industries Ltd. were the top laggards and experienced declines of 22.5% and 10%, respectively.
The Smallcap 250 rose by 49% in 2023. BSE Ltd., with fourfold gains, emerged as the top performer in the pack. Suzlon Energy Ltd. saw a 3.6-fold increase, capitalising on the thrust for renewable energy. Campus Activewear Ltd. and Easy Trip Planners Ltd. faced challenges. 

  • Nifty Realty led with an 81% surge, driven by Prestige Estates Projects Ltd., DLF Ltd., and Brigade Enterprises Ltd. 
  • Nifty Auto and Nifty Pharma also performed well, growing by over 47% and 32%, respectively. 
  • The auto sector gained due to steady demand, a softening of commodity prices and favourable policy changes this year. 
  • However, sectors like Nifty Bank, Nifty Oil and Gas, and Nifty Financial Services experienced more modest gains of 11%, 12%, and 12%, respectively.

IPO Market:
A vibrant IPO market is curcial for a healthy secondary market. 2023 will certainly be remembered as the year of the primary markets. And more infamously, IPOs in the SME space. Out of over 150 companies that hit the primary markets in the SME space, 51 companies hit subscription levels of over 100 times and 12 of those hit subscription levels of over 300 times! A logistics company received subscription for Rs 10,100 crore against the IPO size of Rs 32 crore. Another SME IPO received Rs 18,800 crore worth of bids against an IPO size of Rs 78 crore. And the most subscribed IPOs were not oversubscribed 'merely' 100-200 times. Kahan Packaging was subscribed 730 times. Speaks of the mania in the markets in 2023. 

Going Forward...
FII's have just resumed their investments. And you have a BIG event in 2024 - Central Government elections in May 2024. Markets are running up on expectations. But investors need to keep in mind the following:
  • Investments made when past year(s) returns have been muted - gives Best returns.
  • Last year has been spectacular. Expecting similar kind of returns in 2024 may be tough.
  • Run up to the elections is usually noisy. That can create lots of volatality.
  • Cut in interest rates is widely expected in 2024. If that happens - that can fan liquidity and fuel inflation too. It can pump up stock price.
  • Above all - a run up in stock price (hence MF's NAV) has to be substantiated by rise in earnings. It is ultimately the fundamentals which justify / determine the stock price.
  • Having said that - while one year forward may be tough to predict, over next 3 to 5 years Indian economy is bound to do well. 
  • So Investors who need funds in next 1 years needs to be cautious. All others can invest at every opportunity you may get in the markets.
  • But it FII's continue to invest - 2024 could be an year for Large cap's. 
So multitude of factors - election results + Interest rate cut + FII Investment + Earnings Growth justification - are likely to dictate 2024. Asusual - it is Interesting times ahead...

Wednesday, December 27, 2023

Be Passionate - Be Crazy - #Motilal Oswal

 The difference between being passionate and being crazy is often hazy at best.

The most passionate individuals often seem to be nuts. The most gifted and successful artists, entrepreneurs, scientists, you name it, are often said to be a little crazy.

One such is our Stock broking partner - M/s Motilal Oswal Financial Services at Mumbai. While their office - Motilal Oswal Tower (MOT) is an iconic building in Prabha devi in Mumbai, the things that they do there is sometimes wiered. While illuminating the building to suite the occassion like Christmas or Diwali is ok, there are things that may look crazy to first timers.

It begins with the LIFT BUTTON - For going up - you have BULL symbol and for going down you have a BEAR symbol. That sums it up. Do they mean - what goes up cannot stay there for ever and it has to come down. ... or something else. 

And I leave it to your imagination on how dealing room, Cafetaria and wash rooms looks like. 

You can breath, see, feel and experience stock market all through this building. Indeed it is a place to visit for stock market investors . 

Secret Behind Success... Mr. Pankaj Tiberwal of Kotak AMC

Retaining Talent - is THE BIGGEST CHALLENGE in any profession. But you can't do much when people want to move out for whatever reason it is.

In Investment Management industry - it is this talent that dictates results. While no one is to debate the role of process, team work etc, it is the ultimate decisions - made by fund managers - which deliver results. And when such fund Managers call it a day - for what ever reason it may be, it is indeed a loss to the organization. But it could be good for both people - if they are able to evolve better than before.

Rarely Fund managers have a decent exit. One such has been for Mr.Pankaj Tiberwal of Kotak AMC. Infact he has left a farewell note - for the benefit of everyone. 

Following is the gist of this letter:

  1. Joins Kotak MF in 2009
  2. In 2010 – Fund manager of Kotak Emerging Equity Fund (Rs.113 Cr) and Kotak Small Cap Fund (Rs. 127 Cr). Today KEEF is Rs.36000 Cr (2nd largest Midcap Fund in Industry) and KSC is 13000 (4th largest Small cap in Industry)
  3. 400 unique names identified and invested in 14 yrs

  4. Point to Point return – can be influenced by start date and end date
  5. Rolling return is better metric
  6. Investment philosophy:

  • Trust takes time to build. Can be lost instantly. Reputation and Integrity – most valuable
  • Avoid short cuts. Maintain ethical decision making.
  • To Cut noise: Invert. Rather on focusing on where you can make 2x return over 1-2 Yrs, focus on where you can lose money over next few yrs. Maintain check list of factors for company selection. Avoid BIG mistakes.
  • Process – more important. Fundamental analysis.
  • Portfolio Construction – Gorilla to King Kong Strategy. Invest in 50 leading names – some could become King Kongs.
  • To avoid:

    1. Avoid extreme portfolio allocation. Monitor Sector / Stock weight relative to benchmark
    2. Don’t Chase Momentum
    3. Prioritize valuation cosiderations
    4. Focus on earnings capacity rather than earnings itself.

  • Stay Calm – Avoid overconfidence - Meditate 15 to 30 min a day

Prasanth Jain - Farewell : Not so great

One of India's longest serving fund manager Mr.Prasanth Jain quit his job in July 2022. 

In the last minute I got a message that there is a zoom meeting which will be addressed by Mr.Prasanth Jain for one last time at HDFC Mutual Fund. It was scheduled by 4pm or so - if I recollect right. I was right there on time. And the meeting ended in flat 15 minutes. 

And a month later the fund house 'released' a 'farewell' letter writtend by Prasanth. For a person who has created so much wealth for investors, for a fund house which sold all its funds saying his name, it was indeed a shabby farewel. 

Anyway - thought of posting this letter today for following reasons:
  1. is indeed a treasure trove of information.
  2. Another fund manager - from another AMC has also resigned and he has also posted a farewell letter. Before I post Pankaj's letter - I thought it is right to post Mr.Prasanth Jain's letter.

Here's an extract from the letter where Jain shares his key learnings:

a. In my experience, efficient markets hypothesis does not hold true, especially over short to medium periods. Markets can be driven by emotion and herd behaviour for extended periods

b. Sizing is very important. Any portfolio will have its share of big winners, winners, losers and big losers. In my case roughly 1/4 were losers, 1/100 were big losers, 1/20 were big winners and the rest were winners.

c. The data above in (b) highlights what Warren buffet has famously said – Rule no 1 don’t lose money, rule 2, don’t forget rule no 1. I have made more mistakes of omission than commission – some prominent missed opportunities were Asian Paints, Bajaj Finance, Eicher, Kotak Bank, Divi’s laboratories, etc., but successfully avoided the long list of businesses that caused large and permanent loss of capital.

d. Markets are reasonably efficient over long periods. The duration of mispricing or inefficiency can vary from several quarters to several years. It is important in this period to stay the course and remain solvent (for a mutual fund manager this means to retain the job / fund).

e. Equities are a generous asset class. The tailwind of a growing economy and growing companies overshadows mistakes of timing and security selection in diversified portfolios in most cases over long periods. The key is patience to stay invested for long periods.

Sunday, October 15, 2023

Impeccable Vellayan Subbiah – Executive Vice Chairman, TI Industries, Chairman SRF Ltd.

Son of M.V.Subbiah of Murugappa Group

UG from IIT Madras

MBA from the University of Michigan

2009 – DBS ends partnership with Cholamandalam Finance

Aug 2010 – S Vellayan takes over as MD of Cholamandalam

Till he stepped down in 2017 – Cholamandalam Income compounded at 25% and profits compounded at 42.87%. 

Today Cholamandalam trades at a premium to competition — 6.85x 12-month trailing price-to-book compared to 1.99x for Mahindra Financial and 2.99x for Sundaram Finance.

2018 to 2022 – MD of Tube Investments

TI Industries – 

o 2018 - Market Cap: Rs.4000 Cr.

o 2023 – Market Cap : Rs.64000 Cr.S

o The market cap has compounded at 72.74%

o Today’s PE: 66X

o FY 20-23 : Sales – Compounding at 47.25%, Profit after Tax – Compounding at 46.11%

o 3 Main Verticals – Engineering , Metal formed Products, Industrial Chains

o 70% revenue from automobile industry

o To derisk – 3 Pillar Strategy - diversifying into:

Organic Growth in Existing Business.

Venture Capital Style investing

Optic Lens – for automotive industry

o Currently manufacturing 5 Lakh lenses a month

3 Wheeler Electric Vehicle Manufacturing

o TI Clean Mobility

o Acquired 2 companies: 

Celestial eMobility – Mfr 55 HP e Tractor

IPL Tech Electric – Mfr Medium & Heavy duty commercial vehicles

o Current production Capacity per annum:

E 3 Wheelers – 19000 Units

E Tractors – 25000 Units

E Trucks – 2500 Units

o To rampup production: invested Rs. 1950 Cr along with Co investors. Additional Rs.1050 Cr mobilization is underway.

Inorganic Growth

o Acquired CG Power for Rs.800 Cr in FY 21

o Turned it from loss to profit in just one year

o From loss of Rs.1323 Cr to profit of Rs. 1295 Cr

o Green pasture in Manufacturing space

Acquired Lotus Surgicals

To participate in infra growth – invested Rs.140 Crores into manufacturing of large diameter tubes

Mr. Ashish Bharat Ram of SRF made S.Vellayan’s as the chairman of SRF, a multi speciality chemical company. He says “…What I admire about his leadership style is that he believes in hiring the right talent, empowering his team, and allowing them the freedom to execute and deliver successful outcomes. His ability to think creatively and critically to solve complex problems and make informed decisions has helped him stay ahead of the competition,” 

Vellayan strongly believe that: debt must be a manageable burden, ensuring that it never surpasses two times the annual free cash flow — a threshold designed to maintain financial stability. He has achieved that by equally mastering the art of strategic partnerships to mitigate the capital burden on his company.  

In a recent analyst call S. Vellayan says “Most of our businesses are focused on first getting an established position in the domestic market and following that up with export opportunities. We are very focused on both capital allocation and capital efficiency, which is why for the surgicals business we partnered with Premji Invest to reduce the capital outlay. For the EV business, we partnered with Multiples to reduce the potential capital burden,”

He understands that nurturing growth requires patience — an antithesis to the marathon mindset on the Street fixated on quarterly sprints

Full article can be read at:

Friday, September 8, 2023

The Choice Keeps Growing... in Indian Mutual Fund Space

After a long time - the choice has started growing for the Indian Mutual Fund Investors. Veteran Fund managers who were working with various fund houses but quit the job for whatever reason it is, are now back with their own mutual fund companies.

Here is an article that we published in our newsletter - MONTHLY MEMO - elaborating on the benefits of growing choices.

Added to this list are two other celebrated fund Managers - Mr. Samir Arora of Helios Capital (Ex-Alliance Mutual Fund) and Mr.Kenneth Andrade of Old Bridge (Ex IDFC Mutual Fund). And not but not the least - Zerodha - One of India's leading discount broking house - is also in the fray with a mission to bring in the Vangurad experience to Indian Investors.

And here is an article on the heating up Asset Management Market: Do take time and read it out

Wednesday, September 6, 2023

TIA 20-20 : Stock Taking

As I gear up to attend TIA’s Bullet proof Investing on coming Saturday 9th Sept 2023, I was reflecting on the immediate past event – the 20-20 event that happened on 18th Feb 2023. 

Tamilnadu Investors Association (TIA) is India’s first investor associations - way back in 1989. it is one of India's finest associations imparting knowledge on regular basis. They conduct two mega PAID events every year : 20-20 being one and Bullet Proof Investing is another. Both events happen in Chennai – on national, if not on international standard. For me, it is like PILGRIMAGE TO OMAHA - to attend Warren Buffet's BERKSHIRE HATHAWAY AGM.

20-20 is an event in which 20 Investors / analysts come and share their investment thesis for 20 minutes each. Hence the name 20-20. The main take away for investors is – they can learn how to approach in analysing – rather than buying a stock blindly on hear say. And if at all one invests, they need to do their due diligence before investing.

And Bullet Proof investing is an event where in veteran investors – who have proved themselves – share their rich experience. Unlike 20-20, there are usually 6 speakers in the Bullet Proof Investing Seminar.

While it is a paid event – the ideas shared there are immediately / instantly tweeted by ‘good hearts’. And in stock market – all that investors want is TIPS. As a result, the points discussed there become open secret. 

But the real objective of such meeting is to make investors involve in evolving an investment process and stay invested for long term.

20-20 Stock Analysis:

This calendar year’s 20-20 event happened on 18th Feb 2023. On Monday – 20th Feb 2023, Sensex was then 60691. As of 6th Sept 2023, while composing this article, Sensex is 65650. On Sensex, that’s a gain of 4959 points or 8% gain. 

But the portfolio of stocks discussed in 20-20 event on 18th Feb 2023 has already gained by 51%. And some of the ideas discussed are real DIAMONDS. Out of the 20 stocks, 3 stocks did not fire up. All other have rewarded investors decently.

Moral for investors here is:

  • Investors need to put in time and efforts to understand the companies they invest in.
  • In this internet age, many investors get lured by Youtube for quick money. They are not ready to do the homework – understand the company, gain conviction and then invest.
  • While looking at the list above – it is easy for investors to identify those companies that gave good returns. And many of them would prefer to avoid companies that gave negative returns. But in reality, we know the results only in hindsight. No one – not even the presenter of these investment ideas would have imagined the results. In stock investing, the participation in a companies growth is much more important. Profits are often by-products of this investment journey.
  • There is little use in just getting to just know the stock ideas. The real real benefit can flow through only if you invest in those ideas in which you have gained conviction. But to gain conviction you need to spend time in attending such seminars. 
  • Now, some may think – IS IT WORTH THE TIME?. Taking a day off and attending such events  - that too a paid event - may sound like WASTE OF TIME AND MONEY. But the results speak for themselves. I leave it to the readers to decide on the worthiness part.

To conclude – You donot need an invitation to make money. If you wish to make it, you need to be open minded and be willing to learn, invest and benefit. 

Sunday, August 20, 2023

Know your Company - TITAN

TITAN - is a name synonymous with watches in India, while Tanishq is for Jewellery. As a company, while many of us may think watches could be their main business, TITAN draws 88% of its revenue from Jewellery segment 

TITAN has its registered office in Hosur, Tamilnadu.

Titan company commenced operations in 1984 under the name Titan Watches Limited. In 1994, Titan diversified into jewellery with Tanishq and subsequently into eyewear with Titan Eyeplus. In 2005, it launched its youth fashion accessories brand Fastrack. The company is the largest branded jewellery maker in India, with more than 80% of its total revenues coming from the jewellery segment. As of 2022, Titan has a 6% market share in India's jewellery market. As of 2019, it is also the fifth-largest watch manufacturer in the world.

Titan Company Limited was inaugurated on 26 July 1984 under the name Titan Watches Limited in Chennai. A plant was set up to manufacture quartz analog electronic watches in the State Industries Promotion Corporation of Tamil Nadu, Ltd. Industrial area at Hosur. In November 1986, Titan Company and Casio signed a MoU proposing to manufacture 2 million digital and analog-digital watches. In 1989, a satellite case plant was set up in Dehradun, Uttarakhand at present with a manufacturing capacity of 500,000 watch cases annually.

In September 1993, the company changed its name to Titan Industries Ltd. as it ventured into other range of products other than watches.

In 1994, Titan launched its jewellery brand Tanishq.

In 1998, the company launched its watch & accessories brand, Fastrack, targeted at a younger audience in a bid to compete with Timex.

In 2001, Titan launched kids’ watches brand, Dash. The brand saw poor performance and was discontinued in 2003. In 2004, the company entered into an agreement with Moet Hennessy Louis Vuitton Group, to service the latter's range of watches in India through its customer care centres. In 2005, Fastrack was positioned as an independent accessory brand targeting the urban youth. With the objective to become a fashion brand, Fastrack launched sunglasses in the same year and launched bags, belts and wallets in 2009.

In 2016, Titan opened prescription lens manufacturing facilities in Noida, Kolkata, and Mumbai to improve its order processing time. 

Taneira is an ethnic wear brand from Titan that retails hand-woven sarees from different weaving clusters of India.  The brand was launched in 2016.  The first retail store was opened in Bengaluru in 2017 with more stores followed in New Delhi and Hyderabad.

In 2016, Titan entered the wearable devices market by introducing its smartwatch, Juxt, made through a collaboration with Hewlett Packard. In 2017, the company 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. The company had a 7.4% market share in the wearable devices market as of 2018.

In November 2020, Titan opened its first overseas Tanishq store in Dubai as well as an exclusive website for Dubai showcasing its collections.



A Titan Octane series watch.
The watches division comprises brands Fastrack, Sonata, Raga, Nebula, Octane and Xylys. In 2011, the company secured licence for marketing and distribution of Tommy Hilfiger and Hugo Boss watches. Favre Leuba was incorporated in 2012. In 2018, the division accounted for ₹2,126 crore in revenue which was 10% of the total of the company.


In 2007, Titan Industries forayed into the fashion accessories industry with the launch of sunglasses. It introduced Titan Eye Plus that makes frames, contact lenses, prescription eyewear, and sunglasses. The division accounted for ₹415 crore in FY 2016-17 maintaining a stable growth of 8%.


Xerxes Desai started the brand Tanishq in 1995. Zoya was launched in the luxury segment, while Mia, a sub-brand was under Tanishq for work-wear jewellery. Titan's total revenue grew 20.44% in 2017-18 to ₹15,656 crore, of which jewellery sales fetched ₹13,036 crore. In 2016, Titan invested in CaratLane. As of 2022, Titan has a 6% market share in India's jewellery market.


In 2013, Titan launched six variants of perfume in the Indian perfume market under the brand name ‘Skinn’. They collaborated with world-renowned perfumers including Alberto Morillas and Olivier Pescheux.

Subsidiaries and affiliate companies

Titan Engineering & Automation Limited is a wholly owned subsidiary of Titan. It was formerly known as Titan-Precision Engineering Division. The company now deals in machine building, automation and component manufacturing.

Swiss watchmaker, Favre Leuba, was acquired in 2011 and incorporated as a subsidiary of Titan in 2012. The company was acquired for €2 million. Its headquarters in Solothurn, Switzerland.

In 2023 Titan Sold Favre Leuba To Ethos Watches.

Titan acquired a 62% stake in CaratLane 2016 for $50 million.

In Aug 2023 ,Titan has acquired another 27.18% stake in CaratLane Trading from the jewellery brand’s founder and his family for Rs 4,621 crore in cash, following which its stake in the company will increase to 98.28%.

Titan Watch Company Limited, Hong Kong, is currently a 100% subsidiary of Favre Leuba AG, Switzerland.

In 2015, Titan entered a joint venture to sell products of Swiss luxury brand Montblanc through its retail outlets. Titan's equity share in Montblanc India Retail Private Limited is 49% and Montblanc Services B.V. holds 51%.

Naming the baby - Tanishq

Tanishq, part of the Tata group, is today the market leader in branded jewellery in India.  Tanishq is such a beautiful brand name.  Have you ever wondered, how was this name born?  

Here is the story, narrated to me many years ago by the late Xerxes Desai, founder of Titan Company and also the creator of Tanishq.

"During the early days of jewellery export, we had used the brand name Celeste in the European market.  But we soon realised that Celeste had already been trademarked by another company in India.

So, we thought of the word Tanishq.  I was clear that the word should possess a feminine and Indian feel to it.  It would also be useful for the names of our two promoter Companies to be reflected in the name.  So, "Ta" stands both for Tata and Tamil Nadu, the two promoters of Titan"Nishq" means a piece of jewellery.

The name sounded even better when Fali Vakeel of our advertising agency Lintas pointed out to me that Tanishq, when sliced differently, is a combination of "Tan" (body) and "Ishq" (Love).  I thought to myself, oh my, these are words which go so well with jewellery.

But what is really interesting is how the name Tanishq began echoing in my mind at the very beginning.  I am fond of dogs, and I owned a Harlequin Great Dane at that time, called Monishqa.  Also, the young daughter of a close friend, whose brains we had picked in the early days of Titan, was name Monisha.  So, I used these names often, and I think they triggered Tanishq, which sounds quite similar!  When I tossed it around in my mind after that, this word sounded very poetic and beautiful." 

So, for Xerxes Desai, Tanishq it was.  A Tata brand that has gone on to transform the jewellery market in India, over the past three decades.