Mumbai: Titan Industries Ltd is planning about Rs1 billion of capital expenditure in FY11, and is eyeing expansion opportunities in parts of Asia and South Africa, managing director Bhaskar Bhat said on Thursday.
Part of the planned capex will be used for the firm’s retail expansion plans as it adds more stores in the next fiscal, he told reporters.
The firm, India’s top watch and jewellery retailer, plans to add between 120-150 stores under various brands and will raise the capex through internal accruals.
He said Titan will add 5 large stores in the next fiscal which typically have an area of 2,500 square feet and showcase a larger watch collection.
The firm would also spend the capex on manufacturing activities and IT infrastructure, he added.
The company sells watches under a range of brands including the premium Titan and the economy brand Sonata. It has two jewellery retail chains-Tanishq and Goldplus.
Titan, part of the diversified Tata Group, is also looking for expansion opportunities in parts of Asia and South Africa, Bhat said.
“We are exploring new markets, mainly in Asia, and we have already launched in Vietnam. We are also exploring South Africa where we have started doing market research,” he said.
Titan, which last year shut down stores in the US because of the global economic slowdown, is currently present across 28 countries globally.
“We are changing our strategy a little by selective marketing program in each of the countries where we find potential. Saudi Arabia, Vietnam, UAE- these are markets we have selected where we believe we can achieve higher market share”.
Bhat also said the firm is expected to close the year ended 31 March with revenues of $1 billion, which represents a growth of about 20% over the previous fiscal.
At 3.10 pm, shares of Titan were up 3.03% at Rs1,865.9 in a weak Mumbai market.