Montblanc JV to start ops

The proposed retail joint venture between the Titan Company and Netherlands based writing instruments manufacturer Montblanc Services BV is expected to see operations starting by January, 2015.

Speaking to reporters on the sidelines of opening Titan largest watch store in South India in Chennai, Bhaskar Bhat, managing director of Titan Company Ltd, said: have signed the JV, but the operations have not started.

The operations will start once the stores shift out of the existing tie up of Montblanc with the distributor. In the beginning itself, the JV would be of a size of around Rs 80 100 crore. He added, the name of the JV firm is being finalised.

ALSO READ: Tata firms sell assets to avoid knocking on parent door

have not done any study. But, according to Montblanc estimates, there is a potential of three times of the present sales (of Rs 80 100 crore) for this business. It is not big in size for us, but it would be a nice experience and we would get to know about the sector, he added. He said that Titan investment into the venture is less than Rs 100 crore. The JV is purely for single brand retail outlets and does not involve any manufacturing plans.

According to recent reports, the writing instruments brand belongs to the Richemont Group that clocked Euro 10 billion in revenues last year and owns several companies in the luxury goods space such as Cartier, Van Cleef Arpels, Piaget, Vacheron Constantin, Jaeger LeCoultre, IWC and Panerai.

ALSO READ: Titan: Jewellers to gain from improved return ratios, growth prospects

Commenting on the other businesses of Titan, he said the company is planning a capex of Rs 250 crore during the present year. Of this, around Rs 150 crore would be for increasing the manufacturing capacity in various product categories, including precision engineering facility in Hosur, a jewellery facility expansion in North India, expansion relating to watches and in eyewear for which the place for expansion has not been finalised. The company capex is categorised into manufacturing and retail.

The company would also be looking at growing its recently added categories such as perfume brand Skinn. The products have been accepted well and there is a good opportunity in the segment, said Bhat.

He added the company has also started selling Helmets.

The discontinued Golden Harvest scheme would have an impact of around 10 15 per cent on Titan jewellery business and the company is looking at clarity from the Centre and RBI on taking advance from the customer.

Speaking to reporters, Bhaskar Bhat, managing director of Titan Company, said almost 25 per cent of the company jewellery business was from the Golden Harvest Scheme, a customer advance scheme of Titan jewellery division Tanishq.

However, in an internal study conducted by the company, it found that while around 10 15 per cent of this impacted business would return as the customers would buy paying cash, while around 10 15 per cent would be felt on the company jewellery business.

ALSO READ: Gold import rule easing yet to impact availability

However, he added the company is not planning to rearrange the scheme and has stopped the scheme as it does not want to break the law by any means. According to the new Company Act, 2013, the schemes of the nature with a duration of 12 months would be considered a deposit and cannot pay over 12.5 per cent return.

When asked if the company could launch the scheme for a shorter period, Bhat said that even then there are chances that some customers would not purchase even after the term is over and it would be an issue for the company to maintain their money as per the new regulation. Almost 79 per cent of the turnover of the company is from jewellery.

ALSO READ: Jewellery shares rally as RBI eases gold import rules

Under the Golden Harvest scheme, the customer needs to pay a fixed amount every month with Tanishq for 11 months. The 12th month installment is paid by Tanishq. Hence, the customer can buy for more than what they pay. Under the scheme, the minimum installment value is Rs 500 and it can increase it to any amount as long as it is in multiples of Rs 500, according to Tanishq website.Montblanc JV to start ops

The proposed retail joint venture between the Titan Company and Netherlands based writing instruments manufacturer Montblanc Services BV is expected to see operations starting by January, 2015.

Speaking to reporters on the sidelines of opening Titan largest watch store in South India in Chennai, Bhaskar Bhat, managing director of Titan Company Ltd, said: have signed the JV, but the operations have not started.

The operations will start once the stores shift out of the existing tie up of Montblanc with the distributor. In the beginning itself, the JV would be of a size of around Rs 80 100 crore. He added, the name of the JV firm is being finalised.

ALSO READ: Tata firms sell assets to avoid knocking on parent door

have not done any study. But, according to Montblanc estimates, there is a potential of three times of the present sales (of Rs 80 100 crore) for this business. It is not big in size for us, but it would be a nice experience and we would get to know about the sector, he added. He said that Titan investment into the venture is less than Rs 100 crore. The JV is purely for single brand retail outlets and does not involve any manufacturing plans.

According to recent reports, the writing instruments brand belongs to the Richemont Group that clocked Euro 10 billion in revenues last year and owns several companies in the luxury goods space such as Cartier, Van Cleef Arpels, Piaget, Vacheron Constantin, Jaeger LeCoultre, IWC and Panerai.

ALSO READ: Titan: Jewellers to gain from improved return ratios, growth prospects

Commenting on the other businesses of Titan, he said the company is planning a capex of Rs 250 crore during the present year. Of this, around Rs 150 crore would be for increasing the manufacturing capacity in various product categories, including precision engineering facility in Hosur, a jewellery facility expansion in North India, expansion relating to watches and in eyewear for which the place for expansion has not been finalised. The company capex is categorised into manufacturing and retail.

The company would also be looking at growing its recently added categories such as perfume brand Skinn. The products have been accepted well and there is a good opportunity in the segment, said Bhat.

He added the company has also started selling Helmets.

The discontinued Golden Harvest scheme would have an impact of around 10 15 per cent on Titan jewellery business and the company is looking at clarity from the Centre and RBI on taking advance from the customer.

Speaking to reporters, Bhaskar Bhat, managing director of Titan Company, said almost 25 per cent of the company jewellery business was from the Golden Harvest Scheme, a customer advance scheme of Titan jewellery division Tanishq.

However, in an internal study conducted by the company, it found that while around 10 15 per cent of this impacted business would return as the customers would buy paying cash, while around 10 15 per cent would be felt on the company jewellery business.

ALSO READ: Gold import rule easing yet to impact availability

However, he added the company is not planning to rearrange the scheme and has stopped the scheme as it does not want to break the law by any means. According to the new Company Act, 2013, the schemes of the nature with a duration of 12 months would be considered a deposit and cannot pay over 12.5 per cent return.

When asked if the company could launch the scheme for a shorter period, Bhat said that even then there are chances that some customers would not purchase even after the term is over and it would be an issue for the company to maintain their money as per the new regulation. Almost 79 per cent of the turnover of the company is from jewellery.

ALSO READ: Jewellery shares rally as RBI eases gold import rules

Under the Golden Harvest scheme, the customer needs to pay a fixed amount every month with Tanishq for 11 months. The 12th month installment is paid by Tanishq. Hence, the customer can buy for more than what they pay. Under the scheme, the minimum installment value is Rs 500 and it can increase it to any amount as long as it is in multiples of Rs 500, according to Tanishq website.Montblanc JV to start ops

The proposed retail joint venture between the Titan Company and Netherlands based writing instruments manufacturer Montblanc Services BV is expected to see operations starting by January, 2015.

Speaking to reporters on the sidelines of opening Titan largest watch store in South India in Chennai, Bhaskar Bhat, managing director of Titan Company Ltd, said: have signed the JV, but the operations have not started.

The operations will start once the stores shift out of the existing tie up of Montblanc with the distributor. In the beginning itself, the JV would be of a size of around Rs 80 100 crore. He added, the name of the JV firm is being finalised.

ALSO READ: Tata firms sell assets to avoid knocking on parent door

have not done any study. But, according to Montblanc estimates, there is a potential of three times of the present sales (of Rs 80 100 crore) for this business. It is not big in size for us, but it would be a nice experience and we would get to know about the sector, he added. He said that Titan investment into the venture is less than Rs 100 crore. The JV is purely for single brand retail outlets and does not involve any manufacturing plans.

According to recent reports, the writing instruments brand belongs to the Richemont Group that clocked Euro 10 billion in revenues last year and owns several companies in the luxury goods space such as Cartier, Van Cleef Arpels, Piaget, Vacheron Constantin, Jaeger LeCoultre, IWC and Panerai.

ALSO READ: Titan: Jewellers to gain from improved return ratios, growth prospects

Commenting on the other businesses of Titan, he said the company is planning a capex of Rs 250 crore during the present year. Of this, around Rs 150 crore would be for increasing the manufacturing capacity in various product categories, including precision engineering facility in Hosur, a jewellery facility expansion in North India, expansion relating to watches and in eyewear for which the place for expansion has not been finalised. The company capex is categorised into manufacturing and retail.

The company would also be looking at growing its recently added categories such as perfume brand Skinn. The products have been accepted well and there is a good opportunity in the segment, said Bhat.

He added the company has also started selling Helmets.

The discontinued Golden Harvest scheme would have an impact of around 10 15 per cent on Titan jewellery business and the company is looking at clarity from the Centre and RBI on taking advance from the customer.

Speaking to reporters, Bhaskar Bhat, managing director of Titan Company, said almost 25 per cent of the company jewellery business was from the Golden Harvest Scheme, a customer advance scheme of Titan jewellery division Tanishq.

However, in an internal study conducted by the company, it found that while around 10 15 per cent of this impacted business would return as the customers would buy paying cash, while around 10 15 per cent would be felt on the company jewellery business.

ALSO READ: Gold import rule easing yet to impact availability

However, he added the company is not planning to rearrange the scheme and has stopped the scheme as it does not want to break the law by any means. According to the new Company Act, 2013, the schemes of the nature with a duration of 12 months would be considered a deposit and cannot pay over 12.5 per cent return.

When asked if the company could launch the scheme for a shorter period, Bhat said that even then there are chances that some customers would not purchase even after the term is over and it would be an issue for the company to maintain their money as per the new regulation. Almost 79 per cent of the turnover of the company is from jewellery.

ALSO READ: Jewellery shares rally as RBI eases gold import rules

Under the Golden Harvest scheme, the customer needs to pay a fixed amount every month with Tanishq for 11 months. The 12th month installment is paid by Tanishq. Hence, the customer can buy for more than what they pay. Under the scheme, the minimum installment value is Rs 500 and it can increase it to any amount as long as it is in multiples of Rs 500, according to Tanishq website.