In 1984, the Tamil Nadu Industrial Improvement Company (TIDCO) took a quiet guess of ₹10 crore on an organization that will not solely promote watches but in addition goals.
4 many years later, that very guess is price round ₹1 lakh crore. The corporate? Titan. The unlikely investor? TIDCO — a state authorities physique most Indians have by no means heard of.
Most individuals do not even know TIDCO exists. But it quietly sits on probably the most jaw-dropping funding returns any establishment has ever made in India.
It is a story about endurance, partnership, and the quiet energy of backing one thing you imagine in — lengthy earlier than the world catches on.
Now with the docudrama Made in India: A Titan Story streaming on Prime Video, an entire new technology is within the model and is asking who really owns Titan? And the way did that firm make nearly 10,000 instances its authentic funding?
Discover out right here.
The deal that kickstarted Titan
TIDCO invested practically ₹10 crore in Titan again in 1984 when watches weren’t a enterprise alternative, and HMT was on the wrist of each Indian. At a time when India was within the throes of the Licence Raj, watches had been thought of a luxurious merchandise which required a number of authorities approvals.
When the legendary industrialist JRD Tata and his protege Xerxes Desai went in opposition to the tide, TIDCO not solely made a dangerous funding of ₹10 crore approach earlier than there was any trace of a enterprise. It additionally offered Tatas with land in Hosur, industrial infrastructure, regulatory clearances, entry to licences and political backing.
For his or her half, Tatas got here to the desk with administration experience, branding and distribution.
Titan modifications the foundations of the sport
For Tata Industries, or somewhat JRD Tata and Desai, Titan was not nearly competing with HMT. It was about altering the foundations and telling the India story to the world. As an alternative of promoting mechanical watches, they guess on the far more correct and trendy quartz expertise.
Titan did not market watches as merely timekeeping gadgets however as vogue equipment and aspirational merchandise. This line from the collection sums up Titan’s technique, “Ye ghadi sirf un logon ke liye nahi hai jinka waqt achcha chal raha hai, unke liye bhi hai jo apna waqt badalna chahte hain.”
Beneath Desai’s management, Titan’s concentrate on design, promoting and buyer expertise remodeled India’s watch business. In the present day, Titan has advanced into probably the most valued corporations inside the Tata Group.
Moreover this, Titan has efficiently diversified from watches to Tanishq, Fastrack, eyewear, sarees, and fragrances.
SEE WHY | Why Titan Firm stands tall within the Tata Group
How Titan obtained its ‘Edge’
In 2002, Titan got down to conquer the world with Edge, the world’s slimmest quartz watch, which is just 3.5 mm thick. This was not simply one other new product for Titan. It was the second when Titan realised that it might differentiate itself in opposition to different manufacturers by means of distinctive design, technological innovation and premium craftsmanship.
As an alternative of being considered as a mass-market producer from India, Titan used Edge to place itself as an organization able to creating aspirational merchandise. This turned vital as Titan expanded into the Center East, Southeast Asia, and chosen European markets.
Edge was additionally the benchmark when the Tata Group firm found that its future lay in telling the India story to the world.
This line by JRD Tata within the collection completely sums up Titan’s method with the Edge, “I need the best watch on the earth, solely made in India. Titan is not going to be only a watch. It might turn into the id of this nation.”
DO CHECKOUT | Raking It In: How Titan Firm is Reinventing itself
How did TIDCO win over Titan?
When Titan was integrated in 1984, it was arrange as a three way partnership between Tata Industries and TIDCO. Initially, TIDCO held round 27-28% stake, whereas Tata’s stake was decrease. TIDCO owned a bigger slice of the corporate since Titan wanted a state accomplice to get licenses, land and approvals in the course of the Licence Raj.
Whilst Titan obtained listed on the bourses, the Tata Group’s direct possession went down with time as TIDCO largely maintained its holding. Tata Industries’ stake went down due to capital-raising rounds, restructuring inside the conglomerate, and dilution after the IPO.
Because of this, TIDCO finally turned the corporate’s largest shareholder with a stake of round 27.88%. By merely staying invested, TIDCO allowed many years of compounding to multiply the worth of its stake.
Regardless of the fixed discount in its stake, the Tata Group gained vastly from Titan because it turned one of many crown jewels of the conglomerate’s portfolio. The attraction of the Tata title went up because of manufacturers like Tanishq and Titan.
TIDCO beat the Tatas by way of funding and never operations. It invested lower than ₹10 crore within the Eighties and held on to that funding.
