Titan Industries Ltd., an Indian company that got 96 percent of sales from watches and jewelry, plans to boost its aircraft parts unit revenue six-fold in five years as it taps rising local output of aerospace hardware.
Sales from the unit that makes components for companies including United Technologies Corp. and Hindustan Aeronautics Ltd., will rise to 10 billion rupees ($188 million) by 2018 from 1.5 billion rupees currently, N.P. Sridhar, business head of Precision Engineering Components at Titan, said in an interview in Bangalore yesterday. The company will pursue partnerships, including with clients, to spur growth, he said.
Titan, which is India’s largest maker of branded jewelry by market value, is expanding the business that serves aeronautical and defense industries as the nation seeks to cut arms purchases from overseas. The government is developing policies mandating foreign companies have local partners or use domestically sourced components to boost growth.
The company also supplies the Indian Space Research Organisation as well as United Technologies’s Pratt & Whitney unit and state-owned Hindustan Aeronautics, or HAL.
“HAL has a huge number of defense orders and they aren’t able to execute,” Sridhar said. “They want bigger organizations to help them. We are still small, but down the line there will be strategic partnerships that will help us grow.”
Jewelry accounted for 79 percent of Titan’s 88 billion rupees of sales in the year ended March 31, while watches made up for about 17 percent, according to data compiled by Bloomberg. The rest came from the company’s eye wear and precision engineering businesses, which includes aircraft systems that operate wing flaps, engine controls, fuel injection systems and auxiliary power unit components.
The company, which is a Tata Group venture and was set up in association with Tamil Nadu Industrial Development Corp. in 1984, makes precision engineering components at its facility near Bangalore and in Goa.