Titan Industries Ltd has acquired global rights to the trademarks of Swiss watch brand Favre Leuba. Mr Bhaskar Bhat, Managing Director, Titan Industries Ltd, told Business Line, that the “high end of the watch market was growing in India and this acquisition will give us an opportunity to tap that market.”
The Indian watch giant has, in a filing to the BSE, said that the company signed a binding offer on November 16, 2011, with Valfamily S. L., Spain and Maison Favre Leuba, S.A Switzerland, for the acquisition of brand Favre Leuba. This acquisition is being pursued on an asset purchase mode, for a sum under €2 million (Rs 13.8 crore), the BSE notification said.
“The strategic rationale behind the above acquisition is to complement and strengthen the existing watches brand portfolio of the company with a Swiss heritage brand,” according to the company.
Favre Leuba was created in Switzerland in 1737. The Swiss brand will straddle both the Titan and Xylys brands. The latter is a ‘Swiss-made' brand from the Titan portfolio.
Premium watch category
A Titan official said the premium watch category has been growing the fastest at 25-30 per cent annually and is around 15 per cent of the Rs 4,000 crore organised watch market. Favre Leuba will allow Titan to have a premium offering now in the high-end watch market. While it can parlay the brand in the Indian market, it will also look at re-launching the brand in other markets as Titan has acquired the global rights for the Favre Leuba brand. The acquisition will give it access to technology to make high-end mechanical watches which are in vogue now.
Titan had entered the European market in the late '90s under its own brand but the foray was not successful.
Revenues
Titan Industries reported revenues of Rs 6,533 crore, while PAT stood at Rs 433 crore in FY11. The scrip gained 2.9 per cent to close at Rs 211.90 on the BSE. Trading volumes surged to 6.57 lakh shares against a two-week average of 4.12 lakh shares
The Swiss brand will straddle both the Titan and Xylys brands