Titan the watchmaker brand from the Tata stable, is understood to be valued at around Rs 350 crore, said a top official of the company. Titan Industries had mandated the leading brand consultant Interbrand to assess the value of the brand. The company undertook the valuation exercise for “strategic management purposes”.
According to company sources, there were three main reasons behind the brand valuation exercise—to communicate to shareholders the value of the brand, to assess the drivers for growth of the brand and determine whether the investments behind the brand were justified.
The official clarified that Interbrand is yet to come out with their formal note on the brand valuation. One of the factors which was revealed by this exercise is that the “The World of Titan” showroom has struck a chord with the consumer and hence investments in that sphere was well justified. “It was adjudged as one of the drivers for growth” he said.
“The World of Titan” is exclusive to Titan, selling the widest collection of Titan watches. The showroom also has a watch care centre, which besides supplying genuine spares, straps and batteries establishes a benchmark in customer care.
According to Market analysts the brand valuation exercise is significant as the company is extending the Titan brand to leather accessories. Products will be test marketed in select cities over the next 2-3 months. However, the market expected the brand value to be around Rs 500 crore.
Analysts also pointed out that brand valuation would also help the company in its capital infusion programme, which could be either in the form of rights or preferential issue. The company is expected to announce its plan by the end of March 2003.