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Titan on major cost-cutting drive

Last Updated 30 March 2016, 19:53 IST
Watchmaker Titan Company has drawn up big plans as part of its cost cutting measures for 2016-17.

Titan is looking at closure of 8 unprofitable company Eyeplus stores besides closure of 13 Spexx stores and 8 Sunglass studios. The company has planned to phase out Spexx as a format and some of the Spexx stores are planned to be converted into Eyeplus stores, Titan said in a presentation to investors at its Annual Investor Forum. According to a presentation by the company, the size of the eyewear market is estimated to be around Rs 5,000 crore, of which Rs 1,500 crore is estimated to be sunglasses. The market is estimated to be growing at 12-15% CAGR by value largely led by new entrants. Large national players like L&M and GKB are estimated to have grown at around 5-7%  over the last five years and have not expanded significantly (L&M 106 stores; GKB 75 stores). The new entrants in the last five years include Vision Express, Vasan Eyecare and Lenskart.

Titan is also relooking its strategy for Eyeplus as far as the mix of company-owned and franchisee model stores are concerned. Sixteen Eyeplus stores which are operated by the company currently, are planned to be converted into a franchisee model. Besides this, the company is also planning to relocate certain stores at lower rentals. Titan Eyeplus is also looking at expanding into international markets. The company is eyeing stores in Bangladesh and Sri Lanka in the SAARC region, and is planning six stores in the region by FY2016.
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(Published 30 March 2016, 19:53 IST)

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