Titan Company Limited (500114) Earnings Call Transcript & Summary

Good morning, everyone. It's wonderful to be back here again. I have known many of you for nearly 2 decades. It's been a wonderful journey together with all of you. I think at the core, you're all well wishes of the company and everything else, actually springs from that feeling, from that relationship. And it's been a great journey of being encouraged, challenged, critiqued by all of you on an annual basis, at these conferences earlier, once in 2 years now, and quarterly calls and other kinds of interactions. So thank you very much from the bottom of my heart for, in a way, keeping this part of a very, very critical part of the financial performance of the company, the governance of the company, in the right place for maximizing value for all the shareholders here and outside. Thank you very much for that. And given the nature of India today, as an economy and the opportunity that it represents, especially for a company like Titan, 2 years back, we chartered out -- around the time when we came here and met you last, we chartered out a program called the Titan Turbo, which is actually turbocharging towards the future. It's because the surrounding conditions for a company like Titan were very, very opportune. And I would like to begin with that opportunity first. If you see the -- any report from any consulting company, any economist, speaks about an accelerated change in the top income classes of this company -- of this country, even as the country marches towards a $5,000 per capita income. So it's very marked in the top two income segments, which are called the elite and the affluent. And in this decade, the share of those households to the total is expected to double. And Titan Company is very, very closely aligned with these households for its business. Almost every new business that we get into typically sort of caters to these segments. And that's a good thing from a Titan company point of view, which advantage is not available for mass market companies who would cater to middle class and the lower middle classes. The second thing is that -- just give me a second, please. Sorry about that. The second thing is that in virtually every category in which we operate, and we have chosen to enter categories which are informal, unorganized, by and large. So in any category we enter, even after many years, Jewelry is now 27, 28 years, we're still in a high single-digit market share for the jewelry business of Titan, for example. And likewise, in many other categories other than watches. So therefore, the headroom, the formalization accelerates in a period of affluence-ing that's happening, and that formalizing, that acceleration, will give us one more tailwind in this growth journey. The third is Bharat markets are rising in affluence, rising in access, desire. And everywhere we go, for example, whether it is Ambikapur in Chhattisgarh, or Dumka in Jharkhand, or Malda in Bengal, or [ Polaji ] in Tamil Nadu, or Kudal in Maharashtra, smallest of towns, Jharsuguda and Odisha. Many towns that some of us haven't heard of, but we go and plant the flag there and the flag is starting to fly really strongly in those markets. And this, given the kind of country, I don't know how many of you have traveled really deep into India. And many of us in Titan, because we are a company like that, have done that. And when you go to a town which is 4, 5 lakhs, you go to a small town like Satna Madhya Pradesh, in It's a very small town. I mean, in that sense, but there are maybe 3 lakhs people, which is a lot of people. And when a Zudio and a Tanishq are next to each other, even though a Zudio is going into Satna. So therefore, the almost unlimited depth of that opportunity, particularly from a decadal point of view, is very, very strong. That's another third thing. And of course, a lot of them want Tanishq, a lot of them want Titan. Certainly, all of them want Tata. And therefore, the power of that is taking us there. And of course, outside India, the diaspora is claiming its Indian-ness even more so. There seems to be a sense of destiny -- certainly feeling of destiny among Indians outside India about our country has really come of age, and we are like one of the top countries in the world. And they're proud to wear the Indian-ness on their sleeve, celebrate Indian-ness like never before, so the weddings and the festivals and all that. And the products that we make, and particularly jewelry, is very much central to that Indian-ness. And we are seeing the benefits of that even as I speak. So in a way, the opportunities are very strong and multidimensional. And therefore, this whole turbocharging is built on that evidence, on that foundation of multiple tailwinds. And I'll just give you a flavor of the company in FY '27 and leave it to the CEOs and Ashok to speak about all those in greater detail. One is that we've always considered ourselves as a string of pearls company. We wanted to make many things which adorn people and which make people feel and look good. And we are focused on products which come on the person of a person, on the body of a person. And some of you have certainly spoken about it's taking us some longer time to get them to scale, and that's -- we are aware of that. I mean, there has been a certain attempt to accelerate that. And we have done some good work in the last few years, but in the next 3, 4 years, we expect to scale those much better. So whether it is smart wearables, which picked up, really speaking from 2021 in a serious way; or fragrances; women's bags, Taneira, every one of which has got a very strong opportunity. We're looking at a big scale-up in the next 3 years between '24 and '27, 3x in wearables, 2x in fragrances and 3x in women's bags and Taneira. These are all volume numbers because certainly, in a company like Titan where the ticket size of jewelry is INR 100,000-plus. It's a little incomplete, and not the right thing to compare revenue share of other businesses. Whereas perfume -- bottle up perfume is, on average, INR 2,500. It's 1/40th. Smart wearable is maybe INR 3,500, INR 4,000, 1/25 and so on. And therefore, the numbers of customers that we have is a very important metric from a lifestyle products company point of view. So this is a very important share change in volume that we see in the next 3 years. A respectful international business share. Now because the jewelry industry in India is so large and Tanishq and the other brands together is -- are also very large, the outside India is still small but growing at a very rapid pace. We have done so much in the last 3.5 years that we've actually, from the first store that we set up in October of 2021, really scaling up at a blistering pace. But since it's a very late start, the share is low. But between FY '24 and FY '27, we see a marked change from 2%, more than doubling to 5% in share to the total business of the company. And we see a lot of opportunity here. Certainly, in the NRI, PIO side, but equally, as we are imagining possibilities in the in America and North America, among the white Americans, African-Americans, Hispanics, Asians and here Emiratis, Jordanians, Filipinos, many other nationalities, local and other nationalities which live in the GCC area, in Singapore, we are certainly starting to look at those customers who live, shop in the areas where the Tanishq brand is set up. And we are reimagining jewelry for them and starting to think about how we can get a decent share of our total business from other than Indians. And I'm sure that will also have some kind of bonus sitting on the growth side. We're also looking towards a more balanced financial performance portfolio across all our businesses, and I will leave it to Ashok to talk about that. Obviously, the age of each business has a bearing on its financial performance. And our most recent business, in a sense, is the bags business, which is just about 1.5 years old. Really speaking, and if I include Fastrack, maybe 3, 4 years. Obviously, it's not yet pulling its weight. Whereas the mature businesses, like watches, wearables is new; jewelry, of course, and eye care, they are certainly pulling their weight in terms of the EBIT margin profile. Of course, with some room for improvement without doubt, but acceptable levels, nevertheless, of EBIT and ROCE. But Taneira, bags, perfumes, international, wearables, those have to fire better. And we are looking for improvements happening in these in the next 3 years so that the overall dispersion on the EBIT margin as well as the return on capital employed is lower and there is a certain sense of good deployment of the total capital that the company has. But I will certainly assure you that from a management -- I remember many, many years back when I was the CEO of the jewelery business, there have been conferences where some of you have asked, "Shouldn't you be focusing only on jewelry?" For example. Or only on a few businesses and things like that. And we have replied that we are actually a lifestyle products company. Equally, our focus is on the number of customers that we excite with every product that we make. And when the lady uses her SKINN Noura in the morning, the impact that it has on her is no less than when she wears a INR 10 lakhs necklace the evening of Tanishq. And we certainly believe in that idea, the price of the product or the size of the business is not the only measure of our own raison d'etre. And -- but at the same time, we understand that we need to bring each one of them to some level of scale, some certain leadership in the category in which we are there, and of course, deliver an acceptable level of financial performance. So all these are sort of evolving and we expect to reach that by '27. And from an overall time invested point of view, I can also assure you that the central -- these are all independent teams working on these businesses, all costs of the businesses are captured in the P&L of those. So therefore, there is no subsidy or some waste sitting outside that. And some of us who are in the center are prudent enough to devote only the appropriate time, including the future, that each business represents for that and not in a way leave out -- so it's an efficient, effective way of overall top management time. Coming to the last part of my talk, which is on the subject of ESG. This is something very close to our hearts. We've been a very conscious ESG company, much before the word ESG was actually even coined way back. And we've been like that for a long time, but now we are putting all this under this framework because that's the vocabulary of the times. In FY '24, we touched 600,000-plus people, and 100,000-plus, 1 lakh-plus transformed. By transformed, for example, a cataract surgery that we delivered free to somebody is transforming that person's live. Or a person we enable to become good at handling computers and employed, becoming employable. That person's life is transformed. Or a little girl who's passed from fifth standard and went into sixth, her life is transformed. So that is the definition of transformation. So out of all the 600,000 people that we touched, 100,000 belong to these kinds of categories, and we take a lot of pride in that. Let me just run you through just pictures of the kind of stuff we do. So this is the Titan Kanya program. This is the LeAP program, which is skilling of youth. We do a lot of work on arts and crafts, supporting artisans of various tribes across the country. We do work in many parts of India, in Karnataka, in Tamil Nadu. This is a picture from Uttarakhand, where we work with villagers in an integrated manner to improve livelihood. This is our Happy Eyes program, where we take experts to villages and check the eyes of kids, adults, conduct cataract surgeries, give specs to them. On the subject of water, this is the lake which adjoins our corporate office. Some of you may have come there and seen that. And we also do a lot of work Uttarakhand to help communities which are needing water by bringing water through gravity to their doorsteps or strengthening the water tables in those areas through multiple interventions. We've done a lot of work in supplier transformation. The supply responsibility side is very strong. There's a program called 4P, which is people, process, place, planet, in the jewelery business, which actually a benchmark practice in the industry. And the TSEP is the Titan supplier engagement protocol, which we have brought in into the diamond cutting and polishing processes of our partners to transform that as well. And we plan to take it wider into the other parts of the company. A lot of work done on the diversity equity inclusion side and a lot of acceleration in the last 18 months on this, and we are very proud and we're very focused on bringing equity for -- starting with women, but also other disadvantaged segments subsequently and changing the culture of the organization to become much more inclusive, expanding the funnel of people coming into the organization at all levels so that we have -- even this room, it's not just Titan, but even this room should look more diverse some time in the future. And I think every organization is working towards that. We're very strong in governance. I'm not sure how many of you know, but in 2021 in the first-ever award constituted by Economic Times and Amrop, Titan Company was voted as the best Board in the country. And we -- it was -- every big board was there, from HDFC, to Infosys, to Tata Steel, to TCS and you name it. It was all Boards in the country, and we were voted the best Board after all that. And it's a big -- it was a big moment of pride for us. And lastly, on ethical standards, we are certainly a torch-bearer company when it comes to ethical standards. Our corporate office is named Integrity. It is not named the Titan Summit or the Titan Palace or whatever anything like that. It's called Integrity for a reason and I wouldn't obviously belabor the point here. And we take a lot of pride. In fact, the -- when you ask employees at large in Titan, why do you like Titan most? The question is almost always because of the ethical standards of Titan is the first thing that comes up, and we take a lot of pride in that. And we do a lot of work, and we are a benchmark company in the group as well, a group which is very well known for ethics. So that is about the broad scope of the ESG thing. And while we have done a lot of work on this subject, and you saw the photographs of our work. We do believe that there are pieces on the ESG side that we need to now step up on, particularly on the environment side. We have done a lot of work on society and governance, but environment is, in a way, a low-hanging fruit or priority. So on energy, from consumption to substitution with renewables, a lot of work is waiting to be done on energy. Water, I mean, it is in fact perhaps even more pressing in India as a subject than energy is today. Circular economy. We do a fair amount of recycling of our jewelry. 40% nearly of our production now is recycled gold, and we are dreaming big to reach much higher levels. Diversity, equity, inclusion, I spoke of. Partner responsibility. We have done substantial work on the retailer, distributor partner relationship over decades and decent work on the vendor partner side, but we have some more distance to travel on that. I'll just show you a film. [Presentation]

So we really feel proud that we are extremely stakeholder-focused company. And the route to shareholder value creation is actually putting the stakeholders in the center of everything that we do, and that's certainly proved to be a very right and very human approach over the decades, and we will continue doing that. And just closing on why would -- how would Titan continue to deliver success over the next many years and many decades? Very strong brands and very strong customer value propositions. So we take a lot of time, put in a lot of effort to build the CVP, as we call it, and build the GTM, the go-to-market strategy. And once the CVP is strong and the GTM is clear, then the scaling becomes simple, easy, effective. Deep network reach into India. We are now close to 3,000 stores. We have our flags flying. I gave you the names of some of the towns everywhere. And that deep reach, nobody can beat us in many of the categories that we operate. Exceptional customer relationships at scale. We've got 33 million customers in our Encircle database. And with our CRM engines now, we are connected with them digitally. But hundreds of thousands -- in fact, millions of those people are connected physically with the 20,000-plus staff that we have. There is a deep relationship which is between them. That is, again, a big thing to beat for anybody in our industries. Capabilities across all parts of the value chain. We are an expert, starting from design, development, manufacturing and sourcing, retailing and customer experience, merchandising, brand-building, after-sales service, supply chain. You name it, we either own it or we control it. We have deep expertise, and that expertise helps us to deliver competitive advantage, on the one hand, in every category. Customers prefer us because of that deep expertise. And the maximizing of the profit opportunity also comes because of that control of all parts of the value chain. Benchmark partner relationships. With vendors, with distributors, with franchisees, it is a relationship of a very different order where there is a deep personal connect that people of Titan have with those partners. And of course, coming to the people of Titan itself, the culture, capability and commitment which the people of Titan have, that combination is, again, a very, very unique combination. So that's where I end. Thank you very much. Looking forward to all the presentations from my colleagues and of course engagement after that. Thank you.

So good morning. Thanks, Venkat, for that introduction and sets the agenda for the day. It's a beautiful day, and let me take you on a ride to a whole new world of Taneira. It's a brand that we are building with a lot of TLC, so please hop on and let's go on the ride. So that's the plan. I'm going to take you through the market size and the scenario, the competitive landscape. I'm going to share what the brand vision is. And thereafter, talk to you about the brand promises and customer value proposition. We are also going to tell you that how we are winning the customers and how we are really building this business for scale and what is our FY '27 ambition. So saree is a 5,000-year-old category. It's actually a design wonder. So if you think of it, it's a free-sized unstitched garment that has lasted for over 5,000 years. Now how many categories can we really talk about like that? It's never gone out of style. And if I were to go Taylor Swift, we never go out of style, we never go out of style. And it's a large category as well. It's a INR 50,000-plus crores category. And if you look at overall women's ethnic wear category, that market is over INR 1.25 lakh crores. And it's growing as well, so market estimates put it at 6% to 8% CAGR on revenue. That's a competitive landscape. So if you see on the horizontal axis is the price, low to high; and on the vertical axis, you have design, low to high. And if you see the top-right quadrant, that's where all the market designers are. And the bottom-left corner is -- or the bottom-left quadrant is where all the mass market brands are. And our brand is positioned to own the design-led mid-premium space. Some more research. So that 60% of saree purchases are for weddings and festivals. And if we really want to win in this category, we have to win wedding and festivals, and that's exactly what the plan is. Our vision is to become India's most-loved women's ethnic wear brand, and we are well on our journey to become that. Our brand promises and CVP, this is what we have chosen to be, and we have best of India -- we bring the best of India under one roof in our stores and online. Our sarees are handcrafted and they are design-differentiated, and we are building on the trust, the legacy of Tata trust. So we choose from over 100 clusters across India, and we have a very delightful cluster mix of national and state-specific clusters. We bring the craft and cluster stories alive in our stores through very impactful visual merchandising and a very knowledgeable staff. We want to position Taneira as the thought leader in the Indian textile space. We are working directly with over 6,000 weavers. And if you also include the artisans, we are working with about 12,000 weavers and our artisans from across the country. Our sarees are design-differentiated, and we focus on the diverse crafts and art. And we achieve this through a very talented in-house design team, and we put across and bring out almost 16 new collection drops every year. So this is how we are building on trust. Every claim that we make about our products are backed by either a tag or a certificate or a lab report. So if it's a pure Zari saree, there will be a Zari authentication certificate. And if it's a pashmina, we provide a pashmina lab report with every pashmina store that we sell. Our sarees our handloom-marked, and we -- for the silk sarees, we provide the silk mark tag. This is really drive a lot of authenticity and transparency. Our product tags are the most detailed ones in the industry. And you can have all the information, which is very transparent, and we put it out there for our customers. We are embedding sustainability in everything that we do. So when it comes to sustainability of the environment, we are insisting on eco-friendly dyes from our vendors. We're transitioning to sustainable cotton that uses 40% less water. We have a very strong portfolio of plant-based fibers. And we are crazy about sustainability of crafts, so we are preserving and promoting the rich and diverse textile crafts of our country. We are also looking and driving sustainability of livelihoods. We care for the well-being of our weavers and artisans through -- and we are empowering them through continuous employment. So having set the tone for our brand promises and customer value proposition, let me share with you how we are really winning our customers and winning them at their full life and they're becoming our fans for life. It has to start with the product portfolio. So we have just the right design-differentiated assortment for all our customers and for all the occasions in their lives. And we are -- we have -- we are appealing to all the different consumer cohorts, from the value seeker to the discerning. We are building an emotional connection with our customers. So it's not just a transaction when they make a purchase, but it's actually a relationship that we are developing for life. So -- and we do that through embracing the regional cultural codes. We celebrate with them. We become a part of their momentous milestones in their lives. And we allow them to express themselves fully through events like the Taneira Saree Run, which I'm going to talk about a little later. And we are also celebrating the women artisans and the women master craftsmen and their role of preserving the adds. Our campaigns are very impactful. So we showcased design differentiation and we connect across generations. And our Diwali campaign, which is the largest campaign, is a very high-octane 360-degree campaign every year. This is one example of the current campaign that we are running, and it's called Cottons of India. Let me play it for you. [Presentation]

So we have been able to reimagine and reignite even a humble category like cotton sarees in a way that's never been done before. And with this campaign, our sales are already over 3x over last year. We are also inspiring and influencing conversations around the categories, whether it's through the right placement to drive aspiration or harnessing influencer collabs to build relevance and endorsements, and also meaningful association and sponsorships in relevant forums. We are also building the brand as a fashion destination. So we tied up with Vogue, for example, last year. And we highlighted all the collections on Vogue last year and we're building a fashion statement. Now coming to wedding and festive, and that's really important for us, and that's what the whole plan is. We have the right initiatives in place for tapping this wedding opportunity through having providing the best-in-class wedding assortment in Banaras & Kanjeevaram, those are the wedding clusters, from having in-store wedding zones in key markets to having bridal master classes and wedding mailers, and strategic partnerships like the one with Tanishq wherein we engage with the customer from the moment they buy their engagement ring right up to their first anniversary. And we are also providing authentic experiences to our customers through events through our affiliate media like Wed Me Good and Bridal Asia. We have the relevant assortment for every wedding festivity and wedding is a ceremony that last many days, and there are many events, so we have the right assortment for every wedding festivity and every wedding event. And we want to be the go-to place for all wearing purchases for our customers. We're also allowing customers to post their pictures of their momentous occasions during the wedding ceremony on our social handles. And they are doing that with a lot of pride wearing Taneira sarees for their key events. India is a land of festivals, and we are celebrating every festival with great pomp and show. We bring out 15 different capsules for our regional festivals, and we have over 200 designs for the Diwali collection, which is the biggest one. We work with a lot of local influencers who act as catalysts in crafting candid conversations in regional languages as well. This is our campaign for last year, and it was a runaway success. [Presentation]

And it's not just Diwali. So we are -- this is an example of how we are celebrating all the festivals across the country, whether it's Onam in the South, to Pujo in Bengal. And we have -- we bring out collections suited for these regional festivals as well. And that's how we are acquiring customers for life and making them really our fans for life. And we have a very strong store-led customer acquisition programs, which are driving acquisition as well as retention. So whether it is Taneira at home, wherein our retail staff actually takes the shortlisted sarees which have been shortlisted through a video call with the customers, to the homes of our customers, and they then make their final choice in the comfort of their homes. And we're doing a lot of apartment pop-up activities in the vicinity of our stores to drive awareness. We celebrate their birthdays, anniversaries. And not only that, we engage them with a lot of craft activities in store. And when it's new product launches, we involve our customers so they become a part of the launch. Apart from that, we are also doing a lot of digital local lead gen and influencer marketing to drive awareness, acquisition and retention. This is one great example, it's an industry first, where we are amplifying awareness with our Taneira Saree Run. So more in the video. [Presentation]

So we've done 5 such saree runs. Two in Bangalore, one in Kolkata, one in Pune and another one in Hyderabad. And the atmosphere is really buzzing, lots of energy. And what we are trying to portray here is that sarees not a limiting garment, but it's actually liberating garment. And that's how the customers are rewarding us. So with the 89 NPS, I think we believe that it's the best in the industry. Our 4.9 Google rating, a 70% conversion of walk-in customers and 40% repeat for our mature stores. These are metrics that we are really very proud of. So now how we are building this business for scale now that we have our customers who just love our brand, our products, and they love the experience of having been associated with us? And that comes -- the first lever is the store footprint. And if you see in FY '22 exit, we were at 20 stores; and FY '24, we exited with 74 stores. And we have plans to add 25 to 30 stores every year for the next few years. And we are strengthening our presence in metros. So if you see in Hyderabad, in FY '22, we had just one store; and today, we have 6. In Kolkata, in FY '22, we didn't have even one -- even a single store; today, we have 4. So we are focusing on driving a lot of -- populating a lot of stores in the metros. And we're focusing on market share gain in metros first, and then we go to Tier 2 and Tier 3. We are -- we have increased our average store size from 2,500 to 3,000 to 3,500 square feet with very impactful facade. We are very focused on driving an asset-light model. So by the end of this year, we will have 80% of our store which are franchisee stores. The second lever is looking at exploiting portfolio opportunities that exist within the women's ethnic wear category. So apart from sarees, we are now focusing also on kurtas sets and lehengas. And we believe we have a role to play there. And a role -- and that is going to help us bring a lot of scale to our business. The third lever is providing access price points. And we want -- we are providing some delightful prices, starting prices across categories for -- to recruit a lot of customers and expose them to the brand. And this is -- we have already -- we already set on this journey and it's yielding some great results. We are driving a lot of innovation across different areas of our business to drive scale. So the whole open browsing experience is, again, an industry first, wherein a customer can browse through the entire collection in the store without any help. We bring out the best of India under one roof, which is also an industry-first initiative. And through an endless aisle, our customers can shop through seamlessly across online and off-line channels. We are collaborating with a lot of tech start-ups in our supply chain area. So whether it is to provide a weavers app so that we have a good visibility on production status, and our sourcing team and design team can communicate with the weavers directly, and the weavers can also keep a check on their statement of account. We are -- another start-up we are working on is on demand planning and store replenishment. And that's so very critical in a category like this, whether supply chain is so broken, the back end is so broken, it's fragmented and unorganized. We are trying to put some method in the madness. We are -- another startup that we are working is on warehouse management system because we are -- at any point of time, we are working with over 2 lakhs SKUs, and that can be very complex. And with the fourth startup that we're working, is to improve our last-mile delivery and visibility in that area. Now this is a program in the supply chain area which we are really very, very proud of, is the Weavershala program. And it is fostering weaving excellence. We are upgrading the infrastructure for our weavers' workplace, and we are actually uplifting their lives. And I have a video I would like to share. [Presentation]

Thank you. And I believe it's our responsibility to modernize the back end for this category. And this is our FY '27 ambition, is to be a INR 1,000 crores brand at UCP, and we believe we are well on our journey to achieve that. And thank you, my times up. I hope you enjoyed the ride.

Good morning. Am I audible?

Yes.

I'll begin with a brief update from where I left 2 years back. We set a goal for ourselves of 40% growth on top line in FY '23 and 50% for EBIT. We pretty much delivered that. We ended the year at INR 1,100 crore and an all-time high of EBIT about almost INR 100 crore. That was FY '23. Coming to FY '24. It has been a year of many innovations and experiments. We launched 5 powerful new products starting with Zefr, our foray into luxury frame segments and soon to follow its sunglasses. Two new variants came in our smart sunglass category Gen 2 version of EyeX and Vibes, 2 new lenses, one for comfortable driving, particularly in the night, and an affordable version of our best progressive lens called Ultima at a price of INR 25,000. These 5 products made a big impact. If I were to tell you that their contribution in the last 6 months since you have launched during the last independence day, most of our innovation stories are brought to the market around independence day. Contribution is about 15%, significant enough. We took a baby step towards integrating audiology into our critical expertise. Eight of our stores today are equipped to do diagnostics and eventually sell hearing aids. Good start there again. While the world of retail, more specifically, optical world is obsessed with upselling and cross-selling. We are actually pretty much obsessed with the idea of honest selling. And now we have a homegrown tool what's called to sort of identify any deviation in any transaction that you have made in order to make sure customer gets just the appropriate solution. Notwithstanding whatever we want to sell, yes? So that's something like an industry first. And I think we are considering filing it for patent. As much as we are strong on innovation in the area of products and processes, we have been pretty inventive when it comes to communication. Time permitting, I'll show you one of our most successful campaign last year. As far as internal e-com channel is concerned, thanks to last 2, 3 years of perseverance, I would say. This channel is growing at the rate of 3x. And we are playing a pioneering role when it comes to smart glasses. And as you look at the numbers, clearly, this is a category on the rise, and we are in the pole position. You know we are International and Diny will talk about it a lot more. We have 4 stores in UAE now. And if we were to sum up the last year, FY '24, we had a brilliant first half. First half, we almost had high double-digit growth and pretty much as per our plan. It is a quarter 3, which kind of derailed us. The festival season got split into 2 months did not help our cause. As a result, we ended up the year with a modest growth of 5%. This is our top line trend. We ended last year at INR 1,161 crores. And this is the EBIT trend. Two take away from here. We have wiped out -- worked our 13 years of accumulated loss. Now we are net positive. And if you look at the slides of last 4 years, our profit figures only have improved. Margins declined last year. What I'm trying to say here is that we have built a solid foundation of a business. The way we are going to look at the future is on this foundation today. The opportunity that we are going to talk about is frankly nothing new. It has not dramatically shifted overnight. But what has changed is the lens through which you are looking at it. You are familiar with these numbers. Multiple times, we spoke about 55 crore Indian needs vision correction, 20 crore in the category, multiple reasons why more people will come to the category. I'll leave all this aside, focus on the last one. Currently, there are about 8 crore to 10 crore people every year in the market buying prescription eyewear. Contrast that with what we do. We sell through our Titan Eye Plus retail chain to about 15 lakh -- 1.5 million people, 2% market share. That is the first thing to note. If you go further a little more in deep, look at the Single Vision market, which in a way, represents the youth. There are about 5.5 crores to 6 crores pairs of lenses are being sold every year, we sell 600,000, overall percentage is about 1%. But look at the top 2 layers. We are about 20% -- our share is about 20% in that. We are playing in that space. But 90% of the market is below 1,000. Like it or not, whatever is the hype out the industry about multiple billions that is being projected, this is the real truth. Now looking at Progressive Lens segment. This is complex, okay? Roughly about 1 crore pairs of lenses are being dispensed every year. And 95% of this segment, this -- Progressive Lenses are below INR 6,000 price point. And the top 2 layers, we have almost 1/3 market share which, in a way, is a testimony of our technical competence, capability and progress in the area of design manufacturing of lens, understanding and depth of optometry. That said, the bulk of the market is where we are hardly relevant. Now let's move to nonprescription segment, the Lifestyle segment, which is Sunglass. Market size is estimated to be INR 3,000 crores or more. It doesn't matter whether INR 3,000 or INR 4,000 crores, our share is less than 10% even there. And we have only one brand delivering about INR 200 crores. There is a huge play of volume growth happening at below INR 750. And like every other Lifestyle product, the premiumization is any way happening. We sell other brands to our retail stores. We have 900-plus stores. If you look at the top 108 stores. Last year, we did a revenue of INR 302 crores, which means 12% of my network does about 40% of sales. Now at INR 300 crores, this 108 stores would mean this is the single largest premium retail chain in the country. No one comes even near it, yes? And this is one segment which is unaffected by any economic volatility and is growing. And it will be interesting for you to know that we are serving who's who of the country without necessarily chasing. But we are also surprised with each of the images of various customers in our many of our stores. I would talk about the challenge a bit, meaning last year, we suddenly experienced a bit of a headwind, especially in the quarter 3. And the main issue was slow customer growth, right? As much as we did our internal soul searching, we also did market research and through the consumer research, what came out is loud and clear. We are seen as clearly an expert, but you are also seen as expensive. We are trusted, but less fashionable. In short, we are not delivering great economic value to customers, more specifically younger lot. So given the size of the market, 8 crore to 10 crore people are buying every year, given that we have built very strong competence in some areas, given that our market share is only this much, given that certain Lifestyle category, we have only played very, very limited game. We have come up with a 4-pronged strategy that would enable the future that we want to really dream of. First is to bring parity specifically price parity in the affordable fashion economic segment. This is actually highly commoditized. Lenses are being produced in millions in China, everybody buys it from China. There is no room for differentiation. And let's be honest, we probably have not paid enough attention to that segment in a way, made competition's life a lot easier. And we heard our customers, we are making a significant shift here. And we believe we'll acquire a lot more customers and more specifically younger lot. Progressive lens business is a complex business. It is a multifocal game, right? You have to adjust for multiple focal length issues of a customer. It needs competence, it needs expertise, it also needs certain heightened sense of customer orientation because every customer goes through a unique journey of adaptation. Speaking for myself, I'm wearing Progressive for last 12 to 14 years. And every time I change a lens, it's a unique journey. And I can -- I'm sure if I ask my friends who are wearing Progressive lenses, they would probably agree with me that this is not an easy category to get into. So we have built probably in the country as a network, we have the best competence, best capability to exploit this segment. So rightfully so, we believe we should lead this category. It is obvious that we need to have a greater share in sunglass category, and we'll accelerate the premiumization of our 108 stores so that we sit on top of the retail pyramid in the optical industry. And foundation remains the same. Expertise and empathy will continue to drive us. This strategy has come into play, meaning, we have concluded on this sometimes by end of December, and we started taking action around this. First and foremost, what we did is we revamped our complete frame portfolio with a very high level of trust on fashion. Today, if you walk into any of our store, by and large, I think the first impression that you get it would be probably quite different than what you would have seen 6 months back. We simplified our lens menu, rationalized prices, both for Single Vision as well as for Progressive lenses. Some cases, the drop has been as high as 50%. And we launched our latest Progressive lens is called Initia at a killer price of INR 1,250. I would really wonder who will give you a lens of the quality that we claim at the price of INR 1,250. Of course, there are people who are giving you free progressives. If you have not checked, you should check it out and maybe we'll unravel some from that as well. When it comes to sunglasses, we are getting into multiple layers. We just launched our TEES range of sunglasses at the price of -- at a price point of INR 600, exclusively for e-Com channel. And on the other extreme end, we have launched our Aristo sunglasses, which is 18 karat gold sunglasses. Whatever we could manage to supply before Akshaya Tritiya, 50% of it got sold out in 4 days' time. So in short what I'm trying to say, and rest of it is happening in WIP as we are playing all the way. Not only that, we are entering into Premium Sunglass Retail, through a new format called Runway. First, this is the image of our nearly ready store in Terminal 1 of Delhi Airport and probably 2 weeks' time, it will be operational. 30 million people are expected to walk although this corridor. Once we got our housing orders, product portfolio, corrected pricing altered, we started a 360-degree campaign. Talking about affordable fashion through print, including vernacular, digital influencer. [Presentation]

This is our latest launch. We said truly progressive at INR 1,250. It is making wave for the customers who are looking for progressive solution. And here, I would like to sum up the changes that we have made. Today, we have an anti-reflective lens at INR 500. We have a blue lens at INR 750, you got a progressive of INR 1,250. And our frame with the good range and style starts at INR 750. So in other words, HMC specs, meaning anti-reflective specs, you can get it at INR 1,250 Titan, INR 1,500 Blues Safe and a progressive solution at INR 2,000. So that's the sum and substance of all the changes that we have made. And it is -- see, as I speak, our network is also undergoing a major facelift. More and more of our stores are going to look like this new age, trendier, youthful. And the premium store that I spoke about are going to look even more premium with high-end clinic, clinic investment itself is INR 30 lakhs, just the equipment and a very different way of display of our merchandise. So all that is kind of in phased manner in deployment. And April is the first month where I would say that all the 4 are in action. I'll give you a glimpse of some early results. Affordable fashion segment, we are almost doubling at the rate of double that we are growing. Progressive buyer, Single Vision buyer, Sunglass buyer, all of which you can see the trend, quarter 3 struggle there after the kind of the hockey-stick effect that you are seeing. And overall buyer growth is a healthy 12% that we haven't seen in many, many, many quarters. So in short, whatever we thought are the strategies are showing that we are in the right track. A little bit about our other channels. Distribution channels struggled, big time last year, no 2 ways about it. So therefore, we also decided that instead of chasing thousands of dealers, we'll focus on the top thousand dealer and make something worthwhile for both sides. And this is an industry where distribution channel is a little, I would say, they got way too much of -- and coming back to marketplace, we are talking to our partners. We are getting our house in order all over again. And years back, we did it in watches, and you can see where e-com channel of watches has reached today. And it is a similar arrangement we are working with both the partners. I think they also see in the merit of what we are saying. And while another couple of months, we'll be spent in getting this done, numbers will follow thereafter. Internal e-Com, we have done well, and my guess is that we'll continue the momentum. INR 30 crore investment is envisaged in the area of capacity and capability building more for our back end. As far as the new things are concerned, runway stores, you saw one. Second one is committed to open by the end of this month itself, June. And 4 more stores, altogether about 6 stores before Diwali, hopefully, otherwise end of the year. And we are selling hearing aids to 8 stores. We sold -- we screened 500 people, many of them are a captive audience, which is the reason that we adopted this as a possible option of synergy. 500 people screen, 100-hearing aid sold. It's about 1 crore. Number is not big, but as I said, I'm not making an extra effort. It is my same customer needing more than one solution. And expanding to 20 doors. By the end of September, we will look at the big picture and decide our play. Diny is going to cover most of the international. I think I know for sure, the 6 more stores are getting added to UAE, and we are exploring 2 more countries. With all that, we believe we will cross -- we'll exceed the top line of INR 2,000-plus crores by FY '27 with an EBIT margin of 12%. Thank you. This is all I had to say. And I'll leave you behind with our most spoken about viral campaign of last year. Many of you would have seen it. Thank you. [Presentation]

Hello, and good morning. Delighted to be here today and to present on behalf of the Watches & Wearables Division. So in 2024, we are celebrating the iconic milestone of 40 years of the incorporation of Titan Company. And watches is where it all started. So on this 40th milestone year, we have a very exciting plan for Watches & Wearables Division. I'll start first with the net sales value trend over the last many years. If you see in this chart from FY '15 to FY '20, it took us that many years to grow from about INR 1,800 crores to INR 2,085 crores of net sales value with CAGR of 3%. This is also important because at that point, we really believe that the watch market, analog watch market, we have a very high market share and the headroom for growth is low. Interestingly, it was when the -- when COVID hit in FY '20, FY '21 and to an extent, FY '22, when the dip happened, it actually gave us time to reflect and to size the market and to see it with an entirely new length. And that, which I will present to you now, let us to really evaluate what are the opportunities, what is our current market share? And where can we envisage huge growth areas. And this has led us to moving from INR 2,187 crores NSV in FY '22 to last year's INR 3,740 crores, which translates to the consumer price, which is what internally we look at of more than INR 5,800 crores of revenue. So this was the last 2 years with a CAGR of 31% and last year was a 19% growth. And this was particularly interesting and impressive in a year when overall a lot of consumer and especially discretionary and lifestyle categories faced a lot of headwinds. So like I said, it was in the low -- in the depth time of lows, which was '21, '22, when we crafted the INR 10,000 crores, and this is a net UCP, not the NSV, what I said, revenue ambition. I had shared it as a big goal, a big dream like a North Star for our division. The last time we had met in the Investor Meet, 2 years back. And then we started building the strategy, which I will take you through. In '23, '24, we realized the strategy also needs the adequate structure for it to be fully executed and implemented. And this year, we are in a very good position where the strategy is clear, the structure is in place, and now we are going towards execution and synergy. So the DNA of the Watches & Wearables division is about opportunity spotting. And the big opportunities are premium, women, Gen Z. It's not like these have not been there, but the real explosion of opportunity has led us to get significant more revenue and market share. The other big DNA is on Innovation, and I will take you through how product innovation, channel innovation and the manufacturing backbone ISCM has integrated supply chain and manufacturing is at an unbelievable level of constantly improving and innovating. And the last one is Value Extraction, which is how do we get more out of the same and to really unleash operating leverage. So these are the 3 big opportunity segments, premium. I think more has been spoken about premiumization. I don't really need to talk about it. But in terms of watches as a category, we are seeing clear premiumization and this is going to continue for the next many years. Women. Women consumers in India have been very kind to us. We've built a lot of equity. And now it is time to actually serve them in completely new ways. And you will see this in my presentation, both in all of the segments that I cover, that we are focusing on women, Indian women consumers in a big way. And the last one is Gen Z, which is the youth. Gen Z is a very interesting cohort. They were actually born and raised in a digital age. And consequently, the way they think, the way they behave is fundamentally different, and they like to shop online, of course. The beautiful thing is that they are very open to experimentation and they are constantly exploring and embracing new brands. So this is really the context of the Indian consumers landscape where -- which have kind of informed all of our strategy decisions going ahead. So as I said earlier, it was last financial year '23, '24 when we reorganized. So the structurally now we have got 3 different business verticals, Mainline Analog, which is really all watches below INR 25,000 consumer price. Premium Analog and Smart. And now there are distinct teams with operating heads who are responsible for all of the initiatives under these 3. I will start with Mainline Analog. In fact, this particular chart shows the structure and the size of the analog watch market. As I mentioned earlier, we have traditionally operated in the INR 1,000 to INR 5,000 and the INR 5,000 to INR 25,000 watch price point. And in these 2, as you can see, we actually have almost 50%, if not more, market share. But what has happened in the last few years is that the less than INR 1,000, which is a very affordable fashion kind of segment, it's a huge pie in terms of volume, almost 46 million, not very high, obviously, in terms of value. But then we have a lower market share. We had not -- did not have any kind of playbook that can play there profitably. And I think most interestingly, above INR 25,000. These are estimates we really don't know, but we know that this has grown very rapidly post-COVID in the last 3 or 4 years, it's grown at very high growth rates. And there also, we have a very small market share. So obviously, our strategy is to strengthen where we are already strong and gain more and more market share as well as make inroads in the other 2 segments, the mass fashion as well as in premium where there seems to be a lot of headroom. I will move into Mainline Analog. Like I said, these are all the watches -- analog watches below INR 25,000. There are 3 key levers here that have been working and that we continue to work. The first is premiumization. As I mentioned earlier, there is a lot of product innovation that has powered this premiumization game for us in the last 2 or 3 years. This is an example of a watch Titan Meteorite from the Stellar series. This has priced at INR 120,000. We made 300 pieces and we are sold out. And this is -- this is a really impressive achievement for a brand like Titan, which is seen as very trusted, but midrange to be able to get consumers who queue up to buy this. There is a lot packed into this watch. And this is an important thing that it's not just that the kind of watch we make at INR 15,000, INR 20,000, INR 30,000 and the kind of what we make at INR 120,000. There is a dial crafted from 120,000 year old Meteorite. And of course, it has a bespoke automatic caliber. When I'm talking about the movements, it's has a lot of in-house R&D that has powered this, the amount of focus on horology and especially on material and movement is the foundation in which this product innovation is being built. Some more examples. This is a Ceramic Fusion Watch, where there is a play of ceramic and metal and also a very impressive movement. These are some more watches from the Titan Stellar collection, which was launched last Diwali. There is -- the watch on the right with an Aventurine dial, which has got a very shimmering kind of look, which goes very well with this astronomy themed collection and also Titan's in-house automatic caliber. Premiumization has not just been seen in Titan, is also quite evident in a youth brand like Fastrack. Last year, we launched Fastrack Automatics at INR 10,000. We have never actually launched anything above INR 5,000 or INR 6,000 in Fastrack before that. And we were surprised the kind of response it had. Of course, it has a unique Fastrack look with a very unique brown plating, again, our own in-house movement. Premiumization is also being played out through our portfolio of international brands. We have brands like Tommy Hilfiger, Kenneth Cole. Last year, we launched this brand called Cerruti 1881. It's French, though it sounds Italian. And it's at a very good price point of about INR 28,000 to INR 40,000, has done exceptionally well and is now scaling up very rapidly. So other than the house brands, international brands is playing a very big role in the premiumization journey. Premiumization has also been played out in the channels. As many of you would know, we sell through multiple channels. We have our exclusive brand outlets, Titan World, which has about 630-odd stores right now. Fastrack stores, which has -- where we have about 225 stores and Helios, which is currently about 240 stores. Other than that, we have large -- we are present in large-format departmental stores like Shopper Stop, Lifestyle, Reliance Trends, et cetera. We're also present in -- around 8,000 multi-brand outlets. About 1,000 of them are actually also selling premium products. So these are the many places where we are selling our premium products. And the focus is now on experience and storytelling because as you saw, the products are very much there. The Titan World channel chain has literally transformed itself pre-COVID. It used to be called World of Titan and the name change is not a mere name change. We have done significant renovation. It's a completely new modern international, and I would say, overall, the look is very, very different. We have, out of the total number of stores, 70% have already been renovated. And of course, all new stores are coming up in the new look. There is a big service to retail focus. After-sales service is seriously a secret sauce for us. We have 2.5 million service consumers who walk into these stores for their after-sales service. And that is a huge customer acquisition tool. And the last one is lead generation. Very interesting that we have on our website and our apps last year, we had 80 million people who visited. That is an amazing number for a stand-alone like a brand website, [ Strike ] app. And these 80 million, only a fraction actually complete the transaction online, but this is a very powerful source again of customer -- lead generations and many of these are going into our EBOs -- into Titan World. Next, I move into Helios, which has been a sensational success story in the last 3 to 4 years. It's India's largest multi-brand premium watch chain right now, like I said, about 240 stores. We have a lot of Swiss brands, and they're doing very well, again, indicative of the overall premiumization trend. The combination of Helios and Titan World under one roof, what we internally call Destination Store, and we have about 150-plus such stores in the country, are really powering the growth of the category. I think it gives the unique in one place under one roof to have the best of international brands under Helios, including Swiss, and the best of Titan in the Titan World -- in the adjacent Titan world. The next big lever is Raga. Raga is a beloved brand of Indian women, has come a long way. Last year, we crossed a landmark of INR 5,000 crores. But that again, UCP will roughly translate to about INR 370 crores of NSV. One of the biggest and most exciting and loved women's brands in India. Please have a look. [Presentation]

So rather going from strength to strength, and we hope to double the turnover in the next 2 to 3 years. Next, I move to Mass fashion. We have brands like Fastrack and Sonata. Last year, we faced a lot of headwinds in these 2 brands and somewhere around the middle of the year we launched 2 sub-brands Vyb by Fastrack, which is only for young women and Poze by Sonata, which is for both men and women. And these watches -- these 2 brands -- sub-brands have done exceptionally well, mainly in the multi-brand outlets as well as in marketplace e-com. They offer exceptional fashion at very affordable prices. And at the same time, we are also looking at reinventing Sonata, which has been the affordable brand. But now we find that the consumer truth is that people want fashion more than a very robust quality. Of course, quality is important, but in the general wave, the whole proposition of Sonata as well as Fastrack is becoming more fashion forward. These 2 brands sell mainly through the 2 channels of MBOs, which is multi-brand outlets as well as marketplace e-com. Just a couple of points. Our MBOs are decades old mom-and-pop watch stores and have actually faced the brunt of multiple waves of headwinds. One is a general move towards online. The second is with the kind of huge uplift that of look and feel and customer experience that our EBOs are going through, the MBOs are looking -- we're tending to look little dated. And -- so what we have done is we've undertaken a program called MBO transformation and out of the 8,000 odd, the top 970 stores, we are working with the stores to improve their look and feel, a; b, become much more digital and customer savvy and also help them move up to higher price points than what they are currently doing. Marketplace e-commerce has been a very big lever of growth in the last 2 years. As you all know, post-COVID, there has been an overall adoption of e-commerce and especially in fashion categories like watches. In the lower price points, it is really a very big playground. Very happy to share that we are right now at about just under 30% market share in the marketplace platforms, and we are aiming for a 40% share in these platforms, again, in the next 2 to 3 years. Next, I move to Premium. Premium watches has been something that we have always looked from afar, but now we are in and we are doing well, and this is how we are planning to play. We have a Brand Play as well as a Retail Play that is planned. In the Brand Play, and this chart actually shows Premium, which is INR 25,000 to INR 1 lakh. We have Aspirational Luxury, which is really INR 1 lakh to INR 10 lakh. But within that, also, there may be some difference. And Absolute Luxury, which is greater than INR 10 lakh. We are present with our Brands, Edge and Xylys in the premium brand play. We are present in the Retail Play through Helios. In Aspirational Luxury where the other brands, the big brands are already you can see in the screen, our brand play is Nebula. And I will talk about new retail lay called Project Zeus that is coming up in the Aspirational Luxury and a bit of Absolute Luxury in the retail side. So these are brands for the Premium site. And these 3 brands are now -- with the premium business vertical coming up, they have completely unleashed in our raring to go. Edge has been a Titan trademark for more than 20 years. It's completely now in a different growth path. Of course, the slim movement, but with the new age material of ceramic, it has become something else. It's a force to reckon with and a lot of design and innovation. Nebula is our 18-carat gold range, and it speaks of Indian heritage, precious metal, which is gold and precious stones and craftsmanship. And Xylys, which was -- which is our Swiss offering from the House of Titan, very bold in design and of course, stands for Swiss. So the 3 different brands are actually occupying 3 different mind spaces in the Premium watch category. I will take you through 2 short videos, which will kind of showcase the essence of the brand's Edge and followed by Nebula. [Presentation]

That's edge for you, and this is the, enter the world of Nebula. [Presentation]

Next, I move on to Project Zeus. So multi-brand premium wash retail in India is very -- is there. It's been there for a long time, and we have the big chains. What we were looking at is which are the growing but currently underserved segments, and we came up with these 3. The first is called H.E.A.R.T, which stands for high earning and ready to treat. Internationally, there is a segment called HENRY, which is H-E-N-R-Y, standing for high and not rich yet, and we just felt that's not a good place. We converted it to H.E.A.R.T, and H.E.A.R.T actually describes our customer very well. These are a lot of young people in this country who have a lot of money. They are in their 30s, 40s, they are new entrants. They are not people who are born to old wealths. They are creating their own wealth. They are well traveled, well read and they are spending a lot of money in new categories like watches, like footwear, like alcohol. So there are a lot of things that these young people are expressing their personality with. And I'm very happy that watches -- premium watches is very much higher on that list. The second is women. Women are less than 10% of the premium watch market. They're not really welcomed. And we also don't have a very large representation of watches, products. As well as sales staff in the premium watch outlets. And the third is wedding. And we know as Titan Company, how big wedding is as an opportunity and to really cater to wedding customers, who often come in groups and their whole buying process is different. So we are using these levers to create the Zeus proposition. Zeus is a current working title. We will soon when we launch the first store come out with the name that we've chosen. But the idea in Zeus, it's going to be multi-brand. We will have a curated set of brands. Almost all our Swiss from INR 20 lakhs to INR 20 lakhs, very different customer experience immersive in-depth storytelling, large areas dedicated for customer engagement. It's designed by an international London-based agency. And I think the third pillar of warm, inclusive, insightful and supportive customer experience, which is particularly critical for the H.E.A.R.T consumer who may not be that informed about the world of premium watches. So this is really our plan. The first store is actually coming up in Mumbai in the next 3 or 4 months. And our plan is to launch 3 stores in this financial year. Finally, I come to Smart. Of course, this is a completely different world. And this is where the industry landscape is. If you see the first row of figures, this is an incredible growth. 11.6 million pieces in '21 moving to 30 million, around 30 million in '22 and crossing 50 million pieces in '23. But that is the volume growth, but look at the value growth. So what has happened is that there have been a lot of players who rushed in and we have had this situation in the average consumer price trend line which is crashed from [ INR 2,410 crore to INR 1,532 crore ] in a matter of 1 year. And this is really the situation. It's a volatile situation. There's a price war going on, a lot of undercutting a lot of -- a very -- a lot of inventory built up in the system. I mentioned it in the last investor call too. Low differentiation among products of various brands and a very high e-commerce dependence. This is the current situation. If I go -- move to the next slide, I will take you through what is happening in competition. This -- the first table is from data from IDC, which is International Data Corporation, which typically compiles data of all electronics categories. IDC is showing us, these are the top 5. This is from April '23 to March '24 for the entire financial year. As you can see that Titan at #4 is the one brand that's growing and growing very healthily. Having -- and we've, of course, gained many market share points. But the point is that it is a critical -- an inflection point in this category. We -- IDC is also predicting volumes not to grow. It is a place where there will be correction and there will be a very big opportunity for Titan Company when the dust settles. So what is our strategy? We are doing what we do best. And really, those are the long-lasting pillars of success. Design and Brand. We have the best in India. Technology edge, we are also building a lot more technology through partnerships. As you know, we had taken some a small stake in a company called CueZen, which is working with us on different algorithms, et cetera. Also with Philips, and Polar, these are technology industry associations we have. And channels, which is other than the online, which is really where a lot of this is getting sold, to really leverage on ground channels, which we are in a unique position to have a lot of dominants on. So these are in Fastrack, which is in the lower price points. These are some of our products which are coming up. As you can see, there is a shift towards a lot of more "watch looking products", and a lot of fashion coming in. So this is really what is happening on Fastrack. For brand Titan -- and Fastrack is actually all of that market share was mostly Fastrack that you saw. For brand Titan, which is at a mid-premium price point, we expect that after the correction in the market, there will be a lot more demand for mid-premium, high-quality, high-technology products, which is when the Titan game will really amp up. And for that, we have a whole host of things that are differentiating whether it is premium materials, faster display, watch faces, technology partnerships, unique strap offerings, AMOLED screens. So all of this is going to come in and give differentiated and premium offering to smartwatch consumers. So if I calculate, I talked about how the volumes have grown in '21, '22 and '23. Almost 100 million people, Indians, have bought smart watches. Maybe a large percentage will come back and buy their second purchase and the second time around, they're going to buy a high-quality product. So these are some of the Titan launches that are geared up, Heritage, Maestro, and Elxir. Elxir is for women. This is with a strong differentiation on the design. And on channel play, like I mentioned, marketplace e-com, where a lot of it continues, but actually, IDC also reports that in the last quarter, the share online -- on ground has gone up. The share of online has actually gone down. So we are very pleased. We will continue the momentum with our marketplace e-com partners. We will double down on on-ground channels with execution excellence and conversions, and retail, multi-brand outlets and LFS. And mobile distribution, which is a whole new game for us. We just started it a few months back. We are gearing up for a significant scale up so that people who enter mobile stores will also get access to our brands and products. So that's really on the whole strategy. This is where we are. This milestone in the journey, the [ ambition ] that we had talked about, which is INR 10,000 crores net UCP, which roughly translates to a INR 6,500 crores in NSV, continues to inspire us. It is a very big North Star for thousands of people in the division. As you saw, growth levers of Mainline Analog, Premium Analog and Smart have been established. Now as a division, we are focusing on margin delivery of 12% to 14%, that's the band that we are looking at. This will also come through advertising cost focus and variable overhead's cost. We know that in order to get the kind of 19% growth that we did last year, we actually spent almost double that in advertising. Our brands are very strong and powerful. In fact, in the last 1.5 to 2 years, Titan brand metrics have just risen. And it's really now time to leverage that powerful momentum of our brands. We will leverage all assets to the fullest. We have launched an internal program called Project Alchemy, which is to look at every last asset we have and squeeze everything out of it. And overall, my entire team and our entire ecosystem of partners, distributors, watch dealers, vendor partners, CFAs across the length and breadth -- in fact, partners across the country -- across countries also, we are all geared up to go and achieve this dream. Thank you very much.

And if there are some people outside, if you could request them to -- after some very exciting presentations and beautiful videos and imagery, it's time for us to look at what the jewelry business has to share. So welcome once again to the Investor Day here. And the last time we met was about 2 years ago, and I remember sharing with you that we had taken a goal for FY '23 of a 30% growth over FY '22 and a 2.5x on FY '22 to FY '27, Happy to share that we have been able to achieve those goals and well on course for the FY '27 numbers as well. But what's more and what's new? We have seen, amidst significant competitive intensity and action, about which I'll cover a little later, a very, very good CAGR in the last 5 years. A 19% CAGR. And even the Studded revenue has been at 18%. The Studded ratio has marginally dipped, but that's because there's been growth in both the Gold and the Studded businesses, and we are beginning to see them as 2 businesses, not just 1 business or not just a ratio. We are also very proud to report healthy growth in volumes and the way we measure volumes, as we've shared, is on buyers. It's been a 13% CAGR. These numbers are excluding Caratlane right now, with Caratlane, the numbers go up a couple of percentage points. Same-store growth has also been pretty good. I don't have a CAGR on same-store growth. But in the last year, we had about a 15% CAGR growth on Tanishq, which also augurs very well. In terms of the market and the way our market share has been in the last 5 years, we have -- we were around the 4.5% of the market. This is, again, excluding Caratlane figures for now. And that has nearly doubled over the last 5 years. The market itself has grown. Most of the market has grown on the back of gold price increase and some amount of action on the Studded play. Our share gain strategy has worked. All the engines of growth have fired. And despite the very growing and intense competitive activity from existing and new players, we have stayed the course. We had said we'll try to gain by 1% market share year-on-year, and that's the progress that we've been making and reporting. You all are familiar with the growth engines. I think Venkat has already established that over the several years. We added a couple of newer ones, which is core and Digital. Even these have progressed very well. All the engines have fired pretty well. In fact, everything is on plan or better than planned. Nothing is below plan. Even something like store expansion or High-Value Studded -- High-Value Studded interestingly, and Solitaires, I have clubbed them. They have seen a fluctuation the initial couple of years from FY '19 through COVID saw some stress, but last 3 years, we have been seeing a fantastic growth there as well. Having said that, the definition of High-Value Studded in my mind are changing, we used to always say INR 2 lakh-plus. But now I think the High-Value should be INR 5 lakh-plus. But to stay consistent with what we have shared in the past, we've kind of retained that definition here. We are certainly seeing even more traction in the INR 5 lakh-plus and INR 10 lakh-plus in line with the premiumization of the market. A lot of good work has happened in regional markets and I have clubbed wedding and regional, as you see because there's a high correlation. The markets where we have gone intense in terms of regionalization, whether it is Tamil Nadu, whether it is Andhra Pradesh, whether it is West Bengal or some of the Bharat markets, which are parts of the Hindi belt, we have seen a very high correlation with the wedding contributions also being very high there. And that, in turn, indicates that we need to go much, much more local if you want to grow the market share in those categories. On digital, a lot of work has happened during COVID and post-COVID. Digital influence, omni, phygital, whichever way you want to call it, a lot of learning from Caratlane, which we've integrated into the Tanishq ecosystem. And of course, customers themselves have kind of adopted digital like how. So it's been huge. I mean even giving a multiple on this is meaningless, it's just something which we have seen a massive, massive, massive increase. And I think as of last year, it's close to 10% of our contribution now. It used to be next to nothing. What has worked well? These are some of the learnings over the last few years that we have been engaged on. On the retail side, besides the expansion, we've added quite a few stores, about 250 Tanishq and Mia stores, and about 175 Caratlane stores in the last 3 years, but we've also transformed, to be precise, 89 older stores up till FY '24 in 2 years itself. And I'll walk you through some of that in terms of images, and the transformation is both in size, impact, capacity and customer experience. As I mentioned, we see Gold and Studded as 2 segments, and you can win in both. And just because something is growing faster or something is growing relatively slower, the ratio might impact, and that's why you saw the 30% and 29% studded ratio, but then the massive share gain opportunity sitting in gold-intensive markets. In markets, in regional markets, in smaller towns, in more traditional markets. Even wedding is largely dominated by gold. So in a way, if we have to continue the market share journey, there is going to be an aggressive growth in Gold as well. I must also share here that in the last 5 years, maybe due to the gold prices, gold coin and Bullion has grown at a very aggressive rate as well. In fact, almost 2x of the rate -- average rate of the growth of the brand. And that indicates a customer reality of how much interested they are in gold, thanks to the gold price. Gold prices have more than doubled in the last 4 -- 5 years. As a portfolio, between Tanishq, Caratlane, and Mia, many questions keep coming up saying, why do you need so many different plays, and by some of you and even in the market. I must share here that a large part of Tanishq Studded comes in the sub-200,000 and sub-100,000 in terms of sheer number of buyers. In fact, Tanishq has been the pioneer in democratizing diamonds in this country. So naturally, we have a huge customer base there. But when you put all of these 3 brands together, because they appeal to different mindset and different product languages and a different approach, between us, we are able to dominate that segment. We are seeing very healthy double-digit buyer growths there. And that augurs well for us because it builds the funnel on the basis on which you can migrate customers towards High-Value. So this funnel is very critical. Pretty much like the core that I talked about in the previous slide. The core is very important. Sometimes we forget that while we are strong in what we are, 41% of our business comes from core. So it's very critical that we keep that nurtured and nourished well so that we are able to create karma for the future. Inventory. So many investments have happened in the last 2, 3 years, some investments in inventory because that's what's helped us grow, whether it's in Solitaires, High-Value Studded, Wedding, regional markets. And in all of these the turn gets diluted because the turn is not as much as in the other categories. So therefore, you will find some inventory related, but we've been able to manage capital employed through a smart combination of Gold sourcing and Bullion selling, et cetera, from our exchange gold. We've also invested a lot in growth. Whether it is marketing, whether it is gold rate and pricing, whether it is customer offers, whether it's -- and as you go regional, you need to be much more competitive. Certainly, let's say, when we went into Tamil Nadu, we needed to ensure that we play a reasonably competitive game when it comes to making charges and gold rates. Gold Exchange itself has been an important driver. And certainly, these come at a cost. So there is a cost to investing in growth. There is also a cost to investing in capability building. With competitive intensity rising, we need to ensure we keep upping the game, be it on design, development, manufacturing, we've, in fact, added new product development centers. We've added stone sourcing capability. We have expanded the size of some of our manufacturing units as well as stone sourcing offices. We have put up labs. We have invested in ensuring that there is no contamination of naturals and LGDs across the ecosystem. Huge amounts of investments have gone there. We've done a lot of work on material innovation with rising gold prices. We know that it's important to solve for the customers' price point requirement, therefore, lightest weight jewelry, which requires product engineering on the one side through a smart combination of component making lightning, making hollow tubes, hollow bangles, reducing the quantum of gold in the overall studded product material composition as well as in terms of coming out with a new hard alloy, which enables us to create thinner gauge, lighter weight jewelry, but yet giving you the right quality and functional quality and aesthetic quality. A lot of work is also going on in terms of talent and talent infusion, especially not just on the front line, but also right through the value chain in bringing in new capability. We have worked with many consultants in stone setting. We are working with a reputed player in high-value product development. So all of that requires us to keep upping the game besides the many other investments which are very visible to us. This is what the spread looks like today and the opportunity is huge. There are about 54 or 57 towns, which are the mini metros, metros, and the Tier 1, but there are 220-odd or 215-odd towns, which are in the [ sub-10 lakhs ]. Venkat talked about the huge opportunity. Today, Tier 2, Tier 3, Tier 4 and below 1 lakh population towns also, including from 10 lakhs below to 1 lakh population towns, these contribute to about 30% of our top line. The CAGR, obviously, in this area has been much higher than the average. I think we've grown at about a 25% CAGR. There are towns while Venkat threw some at you, I'm going to read a few more. Habra in West Bengal, Bhimavaram, Nawanshahr, Udupi, Eluru, Karimnagar, Madhubani, Katihar, Munger, Baksar, Gobichettipalayam, Purnia, Korba, Khanna, Bhilwara, Malda, and the list can go on and on. Small town opportunity is huge. We also see a lot of affinity. People are wanting the Tanishq brand. We see a lot of desire in these towns because digitally connected customers are there. And more importantly, we see a lot of loyalty because those markets are genuinely underserved. People have not seen that kind of customer service, professionalism, transparency in policies. So the opportunity there is very high. If people were going once a year to buy products from the next biggest town, now they can come 2 or 3 times in the year. So the entire ecosystem develops because after us comes also other big organized competition and everybody invests and suddenly jewelry category becomes more visible. So it's a very positive thing, and we are very excited about this. A little -- a few glimpses of the retail transformation program that has been going on, which many of you may not be aware of, but actually pictures speak more than what I can say. This is a store in Jaipur, on MI road, which is a traditional market. It has a different [Foreign Language], a pink [Foreign Language]. You can see that the store is drawing inspiration from local crafts and the local architecture, the [Foreign Language] out there. It's truly beautiful if you ever get a chance to go. Our Dickenson Road store has been one of our oldest stores. It was only on the ground floor. Now it's got two levels. And I think we could take the third and the fourth level if we could get it, but it's not easy to get it. This is a store in Baroda. It looks like a palace and it's a second store in Baroda, and it's outstanding. It hit the first year itself INR 100 crore-plus. Bhubaneshwar, a recent launch in Chandrashekarpur. This store has taken the breath away. Our regional business head from the East was sharing that many of the associates are saying, [Foreign Language]. And some very small towns. They are very excited about it. And again, you can see the infusion of local art and craft. These stores are not just bigger. On an average, these 90 stores, which I'm talking about have grown about 40% to 50% in the store size. Average store size has gone up from about 4,000 to 6,000. Some stores have gone up 3x and 4x as well. So the capacity has gone up, our ability to deal with peak day sales. So typically, on a DT, Dhanteras or an Akshaya Tritiya, we might be dealing with 1 lakh to 1.5 lakh customers in a day across the chain. And peak periods and peak period action is there. So managing capacities is also important besides the impact. And the fact that each of these stores are so big, it gives us an opportunity to create a wedding zone, a high-value zone, an everyday zone so that we are able to segment customer needs, a [Foreign Language], a very nice, respectable [Foreign Language] area. So a lot of things which are private viewing room, a baby care room and so many other things that are very essential for running these stores, a customer event room as well. This is in Pandri, Raipur. I think I had shown a pick of this last time. This is one of our latest ones in Pondy Bazar. By the way, this is about less than a kilometer or so away from Usman Road, which is across, which is also a huge store, and this is a huge store. And very interestingly, both stores are doing well. We thought there's going to be some give and take between them, but both stores continue to do. And this one is very, very new. It's got a new format as well. But beyond the engines of growth and some of the things that I've shown you, there are some interesting competitive advantages that I wanted to share. I had shared a little bit about the brand narrative last year, I mean, 2 years ago, last time, I will share a little bit more. The ones in blue, I'm going to cover a little bit more. So I'm not going to spend time right now. I'll talk about them during the slides. But there's a large piece around people and partnering. I think, Venkat, brought it alive very, very well. And I think what matters is how authentic we are with our customers, with our partners, with the frontline staff, with the [Foreign Language] community, what wonderful work that we've done in the past reinforced very strongly during COVID. I don't know I'll repeat it again here that more than 1 million customers were reached out on empathy calls by our RSOs during those 2 months of lockdown. There were people who had created a spreadsheet of doctors with specializations, there was all kinds of work that happened. Even with our [Foreign Language], we have these total [Foreign Language] employee engagement that we do with our vendor partner [Foreign Language]. There's an ecosystem of about 14,000 [Foreign Language] and an ecosystem of 10,000 frontline staff. So as a wholesome organization, I think, it's the right thing we do. We do it because we think it's the right thing to do. But I think the benefit of that we get is the blessings of all these 25,000 people and so many other wonderful people. Our customers also I'm sure who get to know about what we do, or even if we don't, I think somewhere the goodness spreads. And I don't think I can share better than what this book should be able to tell you. I have the privilege of sharing Venkat -- Venkat has authored this book, on the Tanishq story. It has got amazing anecdotes last night. He told me to read one chapter before I do the presentation. I landed up reading the rest of the book from that particular chapter and that was at some 12:30 or 1:00 in the night. It makes for -- it brings alive the culture, the anecdotes actually bring alive the reality. And I can't really do justice to this. I think I recommend all of you to pick up this book. So I think the other piece, which is very important is this whole focus on a wholesome value chain. In the previous presentation, we had covered some elements of that, so I'm not covering it here again. But just to give you an update, we now are water -- net water positive in Hosur because we've invested in 1.4 crore liter rainwater harvesting sums inside the factory. We have a miyawaki forest of 6,000 square feet inside the Hosur plant. We are solar. We have invested in a huge amount of solar power. So entire Tamil Nadu related grid that we have invested in is going to cover up. So actually, we are moving towards a very, very sustainable thing besides all the wonderful things that Venkat spoke about. And yes, the 4P framework, the [Foreign Language] connect and the entire transformation. I think more than 95% of our partners today have moved from cottage to basic to standard and some are in the world-class space. So the journey has been extremely satisfying. And we are creating another very interesting exercise in Midnapore, which is where a lot of our [Foreign Language] come from. And we are creating a world-class capability building center in Midnapore and a huge manufacturing setup. It started small. It started during COVID time when we said, work from home or work close to home, why should it be only for all of us why not [Foreign Language]. So it's a seat that we planted today. Hopefully, it will become miyawaki forest in the future. This is a little bit about the brand narrative. I think most women when they see some of our campaign, they say, "Tanishq gets me". [Presentation]

Celebrating the woman in her real self in the way -- in which only Tanishq can get her, is something that we feel connects the many millions who really aspire for Tanishq, and who love Tanishq. We spoke last time also about the way we go about connecting with our customers. Venkat spoke a little bit about it this time as well. And I showed you the many festivals and the many events that we celebrate, we celebrate birthdays and anniversaries. We celebrate anniversaries and birthdays at people's homes. Some of our older customers say our children may have forgotten our birthday, but Tanishq does not forget. And the -- it's a huge number, huge number that we actually do it. It's part of a building block exercise in our entire activity. I want to share with you an illustration of how we went about Akshaya Tritiya this year, and we do this pretty much for most of our festivals. So first of all, the preparation starts a month, 1.5 months before when we do cascades with our business partners and associates with the entire field team. We talk about how much to plan for how to plan, how will we reach out to so many customers. The customer reach out starts 3 to 4 weeks before the Akshaya Tritiya offer period starts. We reached out this year, for example, to 1.4 lakh individual customer homes by each of our store staff across the network with surprise gifts. In the West, I was told that they gave a nice hamper of Alphonso, well chosen Alphonso mangoes as a hamper, which just delighted the customer. I mean it's such a small thing, but it touches their heart. Many, many interesting, every different store does it with some guidance. And this is something which really -- sometimes customers come back. I believe in a recent event we held in Indore, we had about 1,000 customers who attended a massive event and two of them actually came with gifts for us, saying [Foreign Language] Some of our customers have taken our store staff for movies. Some of them come to just have a cup of coffee. The day of Akshaya Tritiya, this time the [Foreign Language] was from 6 -- it was actually from 5:00 AM, but we started our stores at 6:30, we had informed everybody. There was lamp lighting. There was a [Foreign Language] that was created. In fact, lamp lighting, the [Foreign Language], which is here for some of you may not know, in many of our south stores, there is a lamp lighting every evening and customers come and light the lamp. When we inaugurate a store, we first get the customers to light the lamp, then the store staff light the lamp, then the regional office and corporate office, and the chief guest lights the lamp. Because we believe we are all there to serve the end-customer. The kind of planning that goes in terms of how to manage these customers on a day, the hospitality, the [Foreign Language] that gets served, it's a festival. There are children running around. It's crazy, it's chaotic. It's worth visiting some of these markets during Akshaya Tritiya or Dhanteras, but this is something which -- and that night went on til 2:00 AM for many people -- and the store team fully energized and excited. We are a lot about -- actually design, craftsmanship and engineering. A lot of the engineering, we may not get to see, but it's lots of stuff flowing in, learning from [ watches ], learning from TEAL, learning from the entire engineering company we are. But here, I'll just showcase a little bit of two collections. One was the previous Diwali collection, '22 Diwali, which was Alekhya, which was about enameling. It was inspired by Pichwai and Miniature paintings. Lot of enamel work, craftsmanship from Gujarat, Jaipur. We also had work done in Kolkata. So actually 3, 4 different workmanship and craftsmanship came together in the same collection and sometimes in the same product to create something unique. Similarly, we had launched a [ Chora ] collection in that same year. And for Tamil Nadu in collaboration with a partner, where we revived [ Chora ] symbolism, we did many such collections. We did a temple inspired collection for Odisha, et cetera, but this is just to share with you how different [Foreign Language] from different parts of the country, along with engineering and craftsmanship coming together to build a superlative design. This is something which we launched during this Diwali. That is '23, the Dharohar collection. Both these collections, by the way, fabulously received. We were not sure whether people want to go back to heritage. It was inspired by ornaments and intricate crafted jewels and other products or, let's say, items of the past. But the way it got interpreted into the jewelry and the kind of [Foreign Language]. If you can -- if I'll read out to this, we went South for Nakashi work, North for Kundan inlay, Carved Stones and Chitra, West for Badroom and Chandrasi, and East for delicate Filigree, and tamp work. All of this coming together to create a truly magical impactful collection. So design, craftsmanship, product development and engineering all coming together. But quickly coming to the business end of things. So those are some of the softer things that we are good at beyond the engines of growth that you are all familiar with. Lots of forces, Venkat covered very well, all the pieces that are really working well for India. There is the premiumization, Suparna also covered about women and self-expression, as well as the premiumization piece. There is volatility in gold. There is a fluctuating consumer sentiment. There has been volatility in pricing even on diamonds. All of that results in demand volatility for sure. The moment gold prices go up suddenly or they certainly come down or there's fence-sitting that happens. But once the new normal gets established and customers come back in. The same thing we noticed in the case of Solitaires last year. And we've had to take some corrective actions. We are working towards it. Again, it's been a very uncertain period of time. Also, it results in margin pressure. I'll cover a little bit more about the margin pressure. But certainly, when gold prices go up, it has a multiple impact on margin. And we will cover a little bit further. Competitive intensity has been increasing and quite aggressive. I've tried to bucket them. There are segmented play. There is mainstream players, national chains, mainstream players, regional chains, key independents. There are about 50 to 60 different players whom we are tracking all the time across many markets. Across 50, 60, 70 towns. And there's also emerging fine jewelry players who are there, including some emerging LGD players, which have come in recently. Many new players expected. We've heard a little bit about some of them. And the existing players are getting well funded. So they're all expanding significantly. They have access to capital. Many of the independents are becoming organized. Some of them are expanding into 2 or 3 stores in the same city or adjoining cities and doing a good job. They actually own the customer, which is a really high-value customer, [ INR 10 lakh-plus, INR 5 lakh-plus, ] lot of flexibility, a lot of deep connect that they have within those customers. And everybody is sharply defending that of whether it's on gold prices, whether it's on making charges, whether it's on pricing overall. Many players also focusing a lot on Studded, which is good because when many players make noise about Studded, that category will grow, and therefore, we should naturally also gain besides whatever work we do. Amidst all this, our portfolio is there. I think we are well covered in all aspects of the portfolio. And therefore, we are still confident and we will continue to grow share, despite this competitive intensity to have grown share from 4.5% to 8%, actually 8.5%, 8.6%, including Caratlane. If I were to include that, over the last 5 years, gives us the confidence that we should be able to progress forward. Because the India opportunity is big, I think my figure there might be incorrect. I think it's USD 2,500, I read recently. You guys will know better. We are 8%, but 8.6% if I include Caratlane of INR 500,000 crore to INR 525,000 crore market. Premiumization and aspiration, not just in the top towns, but in many, many towns of India growing. There are 500 Middle India towns. There used to be about 400 Middle India towns about a decade ago when AC Nielsen came out with their findings, 1 lakh- to 10 lakh-population towns, today, there are 500. We are present in 180 of those. We are present in about 31 sub-1 lakh-population towns, many of them feeder markets. And of course, there is a young and modern segment, which is waiting to self-express. And there's regional markets where our market shares are still much lower than the average. Very happy to report that in a market like Chennai, where we would have been less than 2%, Venkat, some years back -- today, it is 8% plus and it's come to the national average. And very interestingly, in a market like that, while we started with gold, we have pumped up the Studded play in the recent past. So once you acquire the customer, you can migrate them upwards. And therefore, it's important that we keep the longer-term horizon in play and not get carried away by 1 month, 1 quarter or 1 year. And that's what we are focused on. So therefore, the implications for us is continue to prioritize top line growth, there is huge headroom in the market. We have a strong portfolio play drive Studded in a big way using this portfolio play and including acquiring customers at the top of the funnel. And with the competitive intensity that we are seeing, we must widen the moat, we must differentiate, we must build new capabilities, and that will require investment because that's what will keep us ahead of the curve, as opposed to getting saddled and stuck by what competition is doing, we should keep moving the bar ahead. So our ambition. And I'm saying this is an ambition, not necessarily a guidance, but you can take it for whatever is. This is what we are chasing. If we have to get to the last time's commitment of 2.5x on FY '22 to FY '27, given the growths that we have seen in the first couple of years, our asking rate is only 15% CAGR. And therefore, that's the floor in our mind. Our ambition is 20%. Our aspiration is 20%. Therefore, we have said 15% to 20% CAGR is somewhere. If we are -- if everything works well for us, if we are lucky if all the forces play out the way it is, why not 20%. And certainly, we are very, very confident that we will not go below the 15%. And that's the logic for this 15% to 20%. We serve across the -- and this is across the portfolio. We serve around 3.8 million customers last year. We are hoping to -- in a given year, the customer base is much larger. This is the number of people who buy from us every year. We hope to be serving 6 million buyers by FY '27. We are hoping that the market share -- combined market share of our portfolio from 8.6% should land in the early double digits. And therefore, we think that perhaps the market may be -- it could be anything between around the INR 700,000 crores mark or something plus or minus that I would say, INR 700,000 crores to 750,000 crores. There are various estimates, we really don't know. And in terms of share presence, we should be in 300 to 330 towns, because this is a moving target. Now this is a figure that we can say for 2 years at a time. But over years, even every 2 years, there's -- the Middle India towns, which get ready, what we believe is for Tanishq keeps moving. So it's 300 plus, it could be 300, it could be 320. We are saying right now confident of 100 more Tanishq stores in the next few years. It may be more depending on how it goes. Certainly, 150 plus in Mia and more in CaratLane, I will cover that very shortly. So this is our ambition. And with the blessings from all the good forces in the world, hopefully, we should get there. A quick look at what each brand is looking at in terms of different things, not necessarily what we already do well. We've been doing a lot of work on modern customers, both in gold as well as studded. We think modern gold is a good opportunity, lightweight, sub-100,000. A lot of work going on there. The opportunity can only increase self-expression, youth, modern segments, lightweights. We believe we should work a lot more on being a diamond destination for the high-value studded. Whether it is for classic fashion, collectibles, wearables, flamboyance, ROR stands for rarest of the rare. We have introduced a property called Ethereal Wonders. It's branded Ethereal Wonders, where we bring rare gemstones and rare diamonds, put it in the form of an exhibition, invite some of the top customers, we have in some customers [ who we don't have ]. And we invite them into a red carpet kind of an event, an exhibition over 3, 4 days, and we've seen terrific response. Some of the ticket values there are sitting in crores. They are really rare, and it's in partnership with some of our partners who are stone suppliers, et cetera. So very interesting. The picture here, in a way, gives you a sense of one of them, but there are many others. If some of you would like to be party to that and are interested, please let us know, we'll be very happy to call you there. We've done a lot of work on Solitaire. We have grown very well on Solitaire over the last 3, 4 years. The last 6 months have been a little sticky because of the international prices of Solitaire having corrected downwards, partly due to international economic stress, partly due to China not seeing anything great and so many other things happening there. But -- and partly due to the supply of rocks and polished-stone being well in excess of the demand. The Bullwhip effect, they didn't catch up with understanding how much should we be supplying. And after that, there has been some correctors. So the price has stabilized. It may remain as to where it is, it may remain a little soft. It may pick up only when international markets revive, and especially China is a big one. U.S. is the other one, Europe and many other places. But we have worked on 2 lines. We have a Celeste line, which is focused on nano-faceting and it's called the [ First Light ], it's in partnership. It's the first ever, visibly, you can see the brilliance of the product. We've had some struggle on the supply chain. Hopefully, this year onwards, it should track and that should really take us up there. We also have some special cuts for the classic line, and therefore a lot of excitement in this despite what some of you might be hearing in the market. Wedding and regional markets continue to be big. We focus on about 16 to 18 communities, but we've taken new communities at a point in time, focused on them. What we've also done now is increased the number of events and functions that women celebrate. It has truly become a big fat Indian wedding. We've seen it like how there is a Bollywood effect, which is kind of creating this big fat Indian wedding across, in Chennai proper, you see enough Sangeet Ceremonies. So how can we get our store and store staff to target different customer segments for different events, different kinds of products from engagement to wedding, many events to first anniversary. That's the whole journey that work is on. That's Nayanthara by the way, who is a rockstar for the south. A very quick look at Mia. Mia is for the Star In You, and some of you might have got the Rakul Preet ad, which was there. I'm not going to spend time here, but she's been our brand ambassador, and this was the collection which was launched in Diwali. Growing in retail visibility and footprint. This is our flagship store in CP 1,600 square feet. We have few 1,500-plus square foot stores, but many of them now 1,000 square feet. And earlier, there were some 500 to 700 square feet. So we are upgrading that as well. About 180 EBOs in 77 towns now and growing fast, including places like Bilaspur, Vijaywada, Bramapur and many other places. The Middle India story continues there as well. It is a young restless and fashion forward brand, sharply focused on Gen Z. Gen Y. The product language is very sharp, very specific. It's all about fashion, style, self-expression, minimal, a lot of 14-carat, 80% is studded, and we have a presence in about overall 450-odd POS, including 280-odd Tanishq stores and 180 EBOs. Read that last POS as EBO. Our ambition is to serve 1 million customers by FY '27. And that's about 2.2x to 2.5x. It's an aspirational number. It doesn't add up so easily. But yes, 1 million customers is what we want to serve. We should be present in about 300 to 350 EBOs or stand-alone Mia stores and the balance Tanishq stores, 750 POS across 150 towns. And certainly, we are expecting to double the turnover in the next 3 years compared to FY '23, so -- sorry, FY '24, last year's turnover. A very quick look at Zoya our own -- India's truly own Lux brand. Pillars have been around exclusive craftsmanship, patented cuts, rare stones, bespoke products, we have entire bespoke service, where individual customers are involved in a bespoke creation, some of it can take 8 months. Some of them a year. And they're involved in the creation of the product at every stage, including a visit to the factory and the craftsmanship interaction as well. Personalized experiences, I'll touch upon that. Luxury is expected to explode in India. I mean everybody is talking about it, there are many numbers of how UHNI and HNIs are there. And so many brands are excited. The luxury brands are here, in a big way. Our ambition is to grow revenue 2.5x in 3 years. By the way, it has grown from about INR 60-odd crores to close to INR 300 crores in the last 4.5 years or so -- 5 years or so. And I think it can -- we are not that worried about the crores. It does as much as the excellence and the pinnacle of craftsmanship that this brand stands for and exclusivity it creates. Not too many luxury brands in India, more than INR 100 crores. Even some of the older luxury brands, which were there and which are no longer there in jewelry, used to do less than INR 100 crores in India. A lot of it was also being exported. We have moved from 3 to 8 boutiques. In fact, as we speak, there are 11 boutiques. We have opened 3. Some spilled over from the previous year. We are hoping to get to 15% by this year and maybe 20. We are also present in about 8 galleries in some select Tanishq stores. And there is international presence as a gallery in at least 3 out of the 4 stores, if not more. In the U.S., we're seeing a lot of excitement and traction around. So who knows 1 of these days, you might find a Zoya store in some market in the U.S. This is a [ linking road ]. Many of you might not have even seen it, but it stands out. It's a beautiful store. There is a private room inside most of the Zoya stores. The 1 in Taj Mahal Palace, maybe some of you have been there. It is doing very well. We have now opened 1 in Brady House very close to [ behind Bombay ], the Starbucks and Sabyasachi Lane that is there. That's one of the new ones which has opened spoken. There's one come up in [indiscernible]. This is the one in Jubilee Hills, which stands out and somebody asked me, do you guys actually make money on this store and we said, yes, we do -- we have a clear way, we are on the path to make money. It's a beautiful store on Jubilee Hills. So I think the address, the impact and the speed telling inside the store is very critical besides the product itself being of a superlative category. What many people don't know is the personalized curated experiences that we are able to do last year, 340 from concerts to culinary to sporting. We have a concierge service, which we take great pride in for international events. I think that whole world of luxury is about really customizing the experience as much as a product and the in-store experience as well. And this is something that we have now built a terrific competitive advantage. A quick look on the CaratLane, I'm covering it because we need to cover a lot of ground in these 45 minutes, and I'm going to take 10 minutes a little bit more. We are in the business of enabling people to express their emotion and CaratLane has really grown from strength to strength. The brand is really bustling with energy, terrific growth, a blistering top line growth, 60% in 3 years CAGR and 47% in the last 5 years. This is the NSV figures. Consumer price terms, it will be around INR 3,400 crores. It is clearly a bond digital omni full-service brand. We're talking about online orders. We are talking about try at home, store visits, [ speeding ] leads, 100% of the customer effort is digital. 90% of it might reflect in the store in terms of sales, but it's a completely joint closure omni. CaratLane Live is something which is terrific where you can engage in live video calls. The entire impulse of the organization and the entire huge back-end team there is to get a human interaction going. And we've learned from that even in Tanishq that's exactly what we've done. And this is really -- this is the app and how it looks. It's a constant improvement. I think you have some several million app users and several lakh, almost 1 million. Even in Tanishq, by the way, there's about 6 lakh monthly active users on the app. So lot of learning from each other and a lot of action on this side. Retail has been terrific. We have 272 stores in more than 100 cities, and there's an opportunity to add another 100 cities and 150 stores within the next 3 years. And that doesn't end it there. I'm sure Middle India will keep growing. The opportunity is huge. We don't just look at same-store growth, but we look at catchment growth as the CaratLane team has educated me from time to time. And sometimes the same-store growth may be in single digits, but the catchment zip code level kind of definition of catchment growth last year, for example, was 22% and total growth of 34%. So CaratLane is doing differently, and we are very proud of the way they're doing it. But it has also become a formidable retail force. It is visible, it's present. It's like how across these many, many -- and with every new set of stores, I think there's an evolving thing. This is a signature store at Indiranagar, which the team is very, very proud of. We are all very proud of it. Amazing, this beautiful every day, the kind of [ vision ] that's inside the stores, I think, if you all have not had a chance to visit some of the newer CaratLane stores, you will see some terrific work there. There's also learning while CaratLane has learned a lot from the physical retail from Titan, Titan has also got something to learn from CaratLane. So we're very proud of the kind of work. And the customer is at the center of it solving her needs and ensuring that she is constantly delighted is a very important piece. And I think that's the science that the team has brought in. These are some of the iconic collections. You'll find in every CaratLane store, about 4 or 5 iconic collections in windows. These are some of them. These are classics. These are beautiful. These are identity products. Some great work on this as well. Customer NPS has been climbing and there's something called repeat rate, which the team measures in terms of the total number of customers we have as a customer base on a 1.5 million, the repeat rate is 17%. So getting more and more people to come more often through the app and otherwise is a perennial drive. These NPS scores are now comparable to Tanishq 85%, 88%. So we are truly best-in-class in this piece. There is opportunities, not just in towns but in products, and we are talking about strengthening the 50,000-plus space. There's a lot of work that has gone in the sub 20,000, the 20,000 to 50,000 in certain categories like Mangalsutras and earrings and finger rings, but I think there's opportunity sitting even in the 50,000 to 100,000 space and even beyond. A very quick look at an interesting revolutionary tech that enables video messages in the jewelry. [Presentation]

There are lot more applications for this. This was just an introduction. I think this is going to be a great tech innovation, which -- lot of work is going on in the background. We'll come back to you with more updates in the future. But the ambition is to certainly double the customer base. Clearly, there's an opportunity to hit 400 plus, 425-plus stores and 200-plus towns within the next 3 years. and an exciting journey on international, which Diny will probably cover a little bit. But the first one coming up soon and then thereafter, mostly in North America and thereafter, many other markets, I'm sure. I think somebody was saying everybody is thinking about lab grown. I hope you're going to cover something on lab grown. I'm going to share with you what we have learned, okay? We recognize this as an important development in the industry. We recognize that we have to be mindful of it. There's something going on in one of the biggest markets in the world in the U.S. So what's the learning from the U.S. market? The U.S. market actually has now seen a good 50% of the bridal segment, which is the center stone big rock engagement drink, which is a very big piece has got in volume terms shifted from natural to lab grown. But that is where the impact has happened. And that is a very large part of the U.S. emotion and the U.S. rituals of buying jewelry and that is bought whenever they get married, they may get married multiple times, but nevertheless, that's when they -- but the rest of the time, they don't really buy that. They buy a lot of other adornment stuff. And there I think lab grown has yet to kind of catch up. Some impact is there. When this journey started in the U.S., a lot of supply was not there. Now the supply has gone crazy. I think every diamantaire or most diamantaires in India have invested. China has done something CVD technologies on HPHT is on. CVD can do smaller diamonds also up to 1 carat. HPHT can do bigger diamonds also. Earlier, it was kind of segregated. Supply scenario has gone bonkers. Consequently, this is how the wholesale price has come down. It's -- in fact, it's come down to below $100 per carat. So this graph is not fully accurate, $100 a carat is the wholesale price of the lab grown today. That has created a huge impact on jewelers in the U.S. The Signet Group as well as several other players have seen average order value shrinking. So what they jumped into and then suddenly realized, oops, their revenue has taken a hit. So while -- and volumes -- penetration has not necessarily gone up. It's already penetrated. And therefore, there is a lot of price instability. A lot of people have lost money. Jewelers have lost money, intermediaries have lost big time. Now the entire business is on memo or consignment. Wholesale prices have collapsed, but retail prices have not come -- they've also come down from maybe $3,000, $4,000 to $1,500 a carat. But imagine still between $100 to $1,500, every new player who comes will come in and discount. We have heard Walmart might come at $400 a carat. Anything is possible. That whole market will get commoditized as and when whatever happens. In India, the players have emerged after they realized U.S. [Foreign Language], let us do something here. And many of these people have started supplying. And here, therefore, the pricing is a little more reasonable. It is not in that $1,500, it's maybe about $1,000 a carat. So there is money, but every new player that comes is going to keep bringing it down. So there are two impacts on this. One is how do you make money in this category? Will it necessarily increase the penetration of diamonds in the country? India and U.S. is not going to behave in the same way. There's a stored value concept in India, not there in the U.S. To a large extent, not there and to a large extent here. Secondly, in India, adornment is a big play, not the center stone engagement ring. For those who buy Solitaire, they want value, also something that will remain with the next generation. In the smaller diamonds, the cost economics unit cost still not working out as effectively, but tech product, it can keep coming on. By the way, this is not the bottom. We have heard China might even automate the cutting and polishing of the small diamonds in which case that $100 can become $50. Last year, we heard of [ Rakhis ] with lab grown diamonds. See, the moment -- and many fashion brands are looking at this, whether it is LVMH, whether it is Pandora, whether it is Swarovski and many others here, I am sure you'll find it on Prada bags, you'll find it. So how is category going to evolve? And will it remain in the space of precious jewelry or will there be 2 segments? Million-dollar questions, all of you are more intelligent than we are. And therefore, we are observing where this is going. What we've learned from the U.S., let's not just jump into it for the heck of it. There is no immediate benefit of early mover advantage. okay? So look at what's happening, I understand, where it's going, be clear that segments which will remain at Tiffany, Bvlgari, Cartier are not going to touch. Many other mainstream jewelers have touched and they have fallen into deep trouble. So what is the game to be played. If at all, it has to be played? And where will this category go is something which is unclear, we are observing. We are in touch with industry. We are trying to learn. Our entire activity is to learn. There is a lot of activity hotting up in India there are 30, 40 players. They're putting up stores, many of them struggling, some of them managing. But will the margin remain, will it gets squeezed and then how the unit economics work. So it's a whole world out there. I can't be more knowledgeable than this, but this is what we are observing and learning. And therefore, we are also saying observe, understand, learn, think, figure out if and we should do something, we will decide. We'll come back to when we have. To recap, this is the aspiration. And while the revenue growth is there, there's a question on everybody's mind margin [Foreign Language] Time is up, they're telling me last slide. So thank you for giving me those 10 minutes extra to cover some more ground. Gold price escalation has 3 big impacts. Firstly, when prices go up, I'm not taking about demand. I'm talking only about margin now. There is gold rate wars, which will happen. AMC as a percentage of the customer says, why are you charging me so much for the same design? Gold rate has increased, but then what? So there's pressure. There's a voice from customer as well. The mix itself can change. Customers may decide to downgrade on the kind of products they pick up in gold. In studded, there's a weighted average impact of the contribution of diamonds and gold in the total product composition. There's diamond, there is [indiscernible], and there is gold. Now the margins are better in the first two and in gold, the margins are lower. So the moment the gold rate goes up. The net effect of that is a dilution in the percentage of the studded GC. And that -- when it goes up with this level, it becomes very difficult to claw back. We have to do a lot of actions. In fact, a lot of work. Internally, we call it a GC Max project, and we've done it in the past 3 years ago. We have kicked that in already, but it does take time to climb back. And the kind of gold price increase we have seen, and we are continuing to see and the geopolitical uncertainties and the central banks buying gold, we are unsure if the gold price is likely to correct dramatically downwards. It's likely to remain range bound and could also go up. So therefore, this is an ongoing activity for us, be it product mix, be it material innovation, therefore, enables product and design reengineering, sourcing efficiencies in terms of stone buying, pricing opportunities to look at where we can look at dispersion and clearly tightening of operating efficiencies while investing for growth. So it is a complex piece to ensure that we claw back, but I think we owe it to ourselves and to all the stakeholders that -- can we get EBIT margins to -- and this is not a quarter EBIT margin. I want to clarify, it is a annualized one. And therefore, we are seeing this -- currently, there is volatility and therefore, you can -- volatility may be a strong word, as Ashok corrects me, it maybe fluctuation. There will be fluctuation in the EBIT margin. But on an annualized basis, this is where we think we want to anchor all of our expectations. We need to continue to grow. The headroom for growth is there. We need to improve capability and differentiate and therefore, we will have to invest to ensure that the opportunity to get to the double-digit market share is not lost. Last piece, I'm leaving it for you. [Presentation]

Thank you, Ajoy. Good afternoon, everybody. This is the International Business Division's first outing at the Investor and Analyst meet, but it certainly won't be the last. Because like, Venkat said, we aim to get to that 5% share of Titan's revenue, and that is hopefully happening quickly. So let me jump straight into the presentation. So like Suparna said, this is where it all started. So for International Business, this is where it all started in its 2.0 version. We opened the first Tanishq store in Meena Bazaar in Dubai on Dusshera day, October 2020, right, in the middle of COVID. And there's been no looking back since then. We are now up to 16 Tanishq and Mia stores around the world, 8 of them in the UAE, 4 in the U.S., 2 in Qatar, 1 in Singapore and 1 opening in Oman on Monday. The first international Mia store is already open in Burjuman Mall in Dubai. Dubai is a good place for us to try out all our experiments and perfect the template, perfect the model before we scale it up. Like Ajoy said, CaratLane will follow. Zoya, we have presence in the form of galleries, but we really want to get to a full Zoya store soon and really create that experience that Zoya provides. Zoya provides a very, very different experience and we want to do that. In 2020, during COVID, our watch partner in UAE wanted to shut down 22 of the watch EBOs that we had. We took them over at that point in time. Now we are up to 45 EBOs in watches around the world, and that number we are looking to grow it even more. The other interesting thing is in terms of the diversity. So Venkat spoke about diversity from a gender standpoint, but 1 of the things that in IBD we look at is diversity from a nationality standpoint. And today, we have 16 nationalities of staff serving over 60 nationalities in terms of customers. So the diversity that we have is really very wide. And in terms of turnover growth, we've been pretty much doubling every year. From INR 250 crores to INR 500 crores to INR 1,000 crores last year. So that rate of growth, we hope will continue. And we are adding a lot more stores. So by the end of this year the 45 watch EBOs would have grown to 75. The Tanishq and Mia stores would have grown to -- I mean, Tanishq would be 25, another 5 Mia, and we've also opened the first Titan Eye+ in Dubai. We'll show you some pictures of that. And we hope to increase that to about 10 stores as we go along. Now one of the things I realized as I got into running this division is that actually all of us in IBD are sitting on the shoulders of a giant. Some of the stuff that you heard from the previous presentations, you probably would not have really picked up the value of that, and it's tremendous because wherever we've gone, wherever we've tried to do something new, the reception that we've got from the diaspora customers that Venkat spoke about. The reception that we've got from other international customers has been phenomenal. And a lot of that is what has been built here in India. All we have to do is transpose it a little bit, modify it a little bit. But fundamentally, what's worked here because it's core, it's about good customer relationships. It's about doing the right things. A lot of that works anywhere in the world. So let me show you this, and there are a couple of layers to the story. So the gentleman that you see in the center, the Sardaar, is [ Sahej ]. He is the son of [ Harmeet Ji ], who is one of our partners for the last 20, 25 years, runs 1 store in Karol Bagh and 2 in Dwarka. And when we started international operations, [ Harmeet ] was one of the first people to put up his hand saying, "I want one of your Dubai stores. I'm going to move my son there, and he will run it." And [ Sahej ] has been doing extremely successfully well with the store. This is in Karama, which is, by the way, a South Indian locality. So you can imagine Sardaar running a store, selling to Mallus and Tamilians, but it's working very well. So that is, again, one of the qualities of the characteristics of what we've built in Titan. The partners have been participating in this international opportunity and super excited. The second part of the story, that's Mr. and Mr. [ Gautam ], and this is on 80 days. So like Ajoy showed you the illustration of what happens in the well-oiled machinery of India Tanishq on 80-day. This was at 8:30 in the morning at the Karama store on 80-day May 10, where Mr. and Mrs. Gautam had made a visit to the Nanded Gurudwara about a month back in Maharashtra, which is their home state. And when they went there, they thought about [ Sahej ], and they picked up Rumala Sahib, which is the shawl and they brought it back and they came into the store on that morning at 8:30 before the store got busy and they said, "We just want to thank you for all the love that you have given us." So I think this really the -- what Titan Company and its brands have been able to do to the customers. You saw that a little bit in the last few stories that customers spoke about in Ajoy's presentation. So what we've exported. I mean, there's a lot of jewelry, and we're very proud of the jewelry that we've moved from India into international markets. But what we are even more proud about is what we've been able to take into international markets, which is the core of Titan, which is the customer experience, the elevating experiences that we have created. So Ambuj, we've also reached 89, which is your NPS score. You won't find a number here that's below 80, nor will you find the number on the right-hand side, which is the Google ratings, which is below 5.8. So -- sorry, 4.8. So which is, again, something that we think when we went into Dubai, many of the jewelry stores did not have seating. The Dubai jewelry was actually more of a -- it's a hustle business, right? You come in and grab a customer, service is the last thing that people think of in their mind. So Tanishq going in there has sort of recreated the market in terms of setting the standards very differently, allowing customers to be treated very differently. So a lot of things changed in those markets with the entry of Tanishq coming in. Top left is a store in a mall in Dubai, 1 of our early bets, and this was 1 of the stores amongst all of those stores that was not doing well. But as we persevered with it, Yesterday, Ajoy and Venkat, this store was the #1 store in Dubai yesterday's sales. So Dubai Silicon Oasis has really caught up and come back. Right-hand side is the Tanishq in Singapore, Serangoon Road, the corner of [ Mustafa ]. So if you ever go to Singapore, anytime soon or take a look at it, you can't miss the store, terrific visibility and pulling in a large number of Indian customers as well as tourist customers coming into Singapore. This one is the Mia opened in the Burjuman Mall and getting in a lot of non-Indian customers also because it's located in the mall. And that's really where the ability to go beyond the diaspora, we feel, will really happen. Now if you look carefully at the interior of the store, you will see that it's a little different from the Tanishqs in India. This is the Dallas store. It's a 5,000 square feet store in Dallas. And when we looked at the U.S., we thought we'd take the opportunity to contemporize the Tanishq look. So this is more modern and more, say, contemporary take on the way Tanishq is in India. And this has worked extremely well with our customers around the world, and this is something that we were actually looking at bringing back into India as well. This is Tanishq Chicago. Again, a very large store, again, doing extremely well. This is the Tanishq in Houston. And the partner here is [ Azmat ], who is our partner in Allahabad and Moradabad. Again, interesting story here as, [ Azmat's ] wife is now running the store there, [ Ayesha ] and doing a terrific job of keeping both sides of the world going. So their Allahabad and Moradabad stores as well as the Houston store are being managed by this husband and wife team. And really a brilliant team at managing customers and customer relationships. So that's 1 of the strengths that we have. This was 80-day outside Dallas. So both during Dhanteras just about when the store opened and on 80-day, you had these kind of long queues flowing outside of the store. This picture went viral around the U.S. and a lot of Americans were kind of stopping by as they were drying saying, what's going on here? Has Apple launched a new brand called Tanishq. So it did create a lot of interest. And on the right-hand side, you can see the kind of interest the brand generates. On festival days, the stores are packed, and it really takes a lot of work to keep all the customers happy and serve them on time. Now this is another characteristic that we are really good at, which is listening to our customers. And that's part of the strength, part of why we are so successful, not just in India but around the world. So on the left-hand side, you have [ Biate ], who's our Chief Designer for IBD, part of Revathi's team talking to customers. So it's not just the IBD team. And when Venkat in his presentation said imagine all the possibilities. Some of that is coming from conversations like the one he is having here with a couple of American customers to understand what their needs from jewelry are. And this is what will help us go beyond the 35 million odd diaspora Indians, who give us a good starting point, but once we understand what the requirements of customers, like the two women in the picture are, we can make pretty much any product. I mean unlike making an iPhone, which requires a certain technology capability, jewelry making does require technology capability and craftsmanship, but we have that capability. So there is no jewelry anywhere in the world that we cannot make, no watch anywhere in the world that we will -- we cannot make. And when we come to eye care, we have some really good products and a great competitive advantage there. All of these customer understanding is translating into a set of products like this one, which was launched out of the Middle East. It's based on the 8-pointed star, which is a sort of quintessential element in Islamic and Arabic architecture and this did very well in the Middle East, not just with Arabic customers, but also with Indian and other international customers who wanted something to remember the Middle East by. This is a taweez, which is an amulet. It's popular both amongst the Muslim community as well as amongst us in India, the Hindus. We use this for protection. And here, the combination of the taweez concept with filigree work from India was, again, very well received. This is an example of a requirement that came up from the U.S. saying there are a lot of women there need to balance their personal and professional lives. They want products that can be both worn to the office as well as worn for a party in the evening, and this was created from -- to meet that requirement of the need for premium wear in the U.S. And it has also got certain patents. It's a signature setting where you have the prong setting on one side and you have a channel setting on the other side. And this, we applied for design registration in the U.S., and this is the first design patent that is being given to Tanishq in the U.S. A few of the visuals in terms of the type of impact that we are trying to create in the Middle East and in markets like -- I mean in the Middle East and Qatar and UAE. And this brings us to the Titan Eye+ story. So 1 of the things that Saumen spoke about is the market share that we enjoy in the top 2 rows that he showed you, which is the premium segment of customers, right? This has translated beautifully when we opened this store in the Middle East because in those markets to get high-quality eye care, you've got to pay a really high price. So there aren't too many opens or there are hardly any options where you're getting a good quality product at a reasonable price. And that's really the value that Titan Eye+ has been able to create 3000-plus customers, 90 NPS score, 20% of our customers are non-Indians and in terms of overall performance across all the stores, both in India international, the score comes in the top 15. These are the 3 of the other stores that we have launched. So we have a total of 4 tightens stores. We plan to expand this to about 10, develop the template in the Middle East, working in UAE as well as looking at Saudi. And then we hope to be able to take this to other international markets, too. Now this is where it really started. Titan has been present internationally with watches since 1992, and all of what Suparna spoke about, the mainline analog aspect, the premium focus, the focus on women. All of these are helping us build the brand internationally. We were present for a long time with watches, but selling to Indians predominantly. Now that has changed because we can't really depend on the Indian diaspora to sell watches too, whereas we can depend on them when we sell jewelry. So for watches, we have to move beyond the Indians to international customers. And all of the work that India is doing is really helping us. The interesting thing that we are understanding or learning from this is that brands like the 3 big brands, Casio, Citizen and Seiko. They're all struggling with growth today. Whereas in India, we are enjoying the 20% growth that Suparna spoke about. And that scale and size that we have in India, 20 million odd products that we sell allows us to create a certain capability, a set of products, which we can take into international markets. And that's really what we are excited about. So we are focusing on more and more EBOs to build the brand presence to showcase the products like this 1 that you're seeing in Kuwait. These 2 are in Vietnam. We're also looking at rebuilding the relationships with partners. We've had partners in these countries for many years, but some of them are been -- they needed to change as we've got more of the products and we needed to get a better presence in modern retail, we needed to get a better presence in the electronic channels for the smart products. We needed new partners. And we're changing some of the partners, bringing in new partners as we go along. And this was a brand launch and a dealer meat in Vietnam, where we work with our partner to showcase the products to a whole bunch of new dealers. We also are working on building the brand by tying up with several properties, including the TCS Marathon. So where are we heading to? Where are we going to? We want to get to around 50 Tanishq stores around the world, complemented by Tanishq websites. So tanishq.ae, tanishq.com which is the U.S. website and tanishq.signapore are already up and running. We will add more websites as we go along. We need to gain share in the GCC. We are a late entrant there. Many other jewelers were already present, and we have to catch up. But in North America, we're pretty early into the market and we want to dominate that market and we will keep extending beyond many more. And the diaspora market gives us a beachhead. It allows us to get going, get started, build a profitable business quickly. And once that scale and the profitability is achieved, it gives us the legitimacy to extend beyond the Indian diaspora, go to other nationalities, whether it is Emiratis in the UAE or whether it is Americans in North America. And also taking both Titan watches and Titan Eye+ across to more international customers. Hopefully, at some point in time, we will get to Taneira as well and Fragrances business. And like Venkat said, from 2% to 5%. So that's really what we are looking to do $500 million or USD 0.5 billion and 0.5 million customers around the world. And just to give confidence that is happening on Dhanteras -- sorry, on 80, we were 2% of Titan's revenue last year, but on 80-day we were 3% of 80-day revenue. So in that sense the direction is slowly progressing and surely, we will hit that 5%. But the last slide is really this that today, we've been able to build 400 Titanians around world. Some of these are our partner employees who are running the partner stores. And in terms of nationalities, if you look at it, like I said, we have a fairly diverse spread of nationalities. Our gender diversity is also pretty high at 33%. And 1 of the things that we are really very proud of is that our Dubai location, the company's second global retail has now become GPTW certified there. I mean that's something that Titan has done very well in India. We are known as a great organization to work for. And Internationally, also, we've been able to carry that one more flavor of the parent organization. So let me leave you with this visual. The one in the center has 8 different nationalities there. So there is a Pakistani, there is an Emirati, there is an Egyptian, there is a Nepal, there is an Algerian, there is a Philippino and there is a bhutanese national. And finally, of course, person on the right, this is in UAE. So that is a good Mallu Indian to complete the complement. And this is Eissa, one of our Emirati employees recently visited Bangalore, and this is what he has. So here Mr. Eissa Al Khawaja, our first Emirati Associate from Titan Global sitting in Bangalore, enjoying some Iranian food in good company of Indian gentlemen. Eissa, how is your experience?

I would have to rate it out of 10, it's10, everything is good.

So the score he gives Titan is a 10/10. So thank you very much.

Okay. Good afternoon. What a fantastic visuals, videos, stories. And while some of the visuals and videos we are showing our marketing and branding progress, some of them were showing the deep relationships, which we enjoy. But some of the videos, particularly in Venkat's presentation that Uttarakhand women, transformation of [ Kariger Park ], [indiscernible], they actually fill up our hearts with warm, make our eyes moist. Because at the end of it, all of us are humans and the superwoman story. So folks, actually, I want to tell you because we are in capital markets and finance world, we really need not be so hard noted. We can actually give a big hand to all the presenters who brought, please guys on the back. All the presenters who brought these stories such beautifully and made what Titan is actually good at. What I thought that for finance section, the good starting point would be that we reflect on what's happening in and around us in the last 4, 5 years. If you just think about 4 years back, in May '20, none of us would have even imagined that we can have this kind of gathering in such a beautiful hall and conversing with each other. So pandemic, 2 years, and what it did ultimately, like one is that if you look at, and I will show you some of the numbers that our various categories have a very, very different trajectory coming out of pandemic or during pandemic. Their recovery paths were very different and that you will see in the number. But what else pandemic did that it brought actually very, very high inflation and interest rates. The liquidity, which got infused by various central banks, actually when the pandemic was ending and we were hoping for a normalized world, I remember February '22 around we were preparing our budgets for FY '23. And we thought we, at last, we are going to have a very, very normal world. And then the whole inflation and a steep increase in interest rates started happening all around the globe. You all remember that. I'm just trying to bring together, and that ultimately led to K-shaped recovery. And Venkat talked about how Titan is more serving the upper half of the K letter and that is how perhaps we are slightly insulated. Also, while economic turmoil or economic environment of a sticky inflation and now the delay in interest rate cuts was not sufficient, in the same February, simultaneously almost, geopolitical tensions started. Russia, Ukraine war exactly February '22 started. Now that recently, we know in October '23, we have another tension going on. And what does it do all to us in the last 5 years that if I show you some of the graphs, gold has almost more than doubled. And it appears and Ajoy touched about that, that it's going to remain at the elevated level, there is a high degree of chance this being now neutral currency being favored by all central banks, this is going to even further go up from here. But it actually solidifies gold as a very, very strong asset class. And to me, it appears when a consumer gets used to a price level, they will again -- and which we are seeing. Sometime in steep price rise, the bullion starts getting fever, and we also sell more coins than proportion slightly goes up. But actually, gold is becoming more and more solid, and there is no expectation for it to come down in near future, rather it will keep getting stronger. And whatever Ajoy spoke about the impact of that, those impacts are there. Even diamond and that peak, which you see in between, this was at the onset of Russia and Ukraine war, supply chain getting disrupted and prices peaking and people buying and building inventories, which is yet to get cleared completely, and then now the corrections also, which Ajoy spoke about. I think, and I have heard that actually, Sensex and Nifty or any country share market index reflects the mood of economy. And if that is true, then Indian mood of economy has been pretty upbeat. And that also, in a way, reflects because I believe all of you are very wise people. And if you have taken Nifty to that level, you must have some reason behind that, some reasons behind that. And I think the whole India story that the largest -- one of the large economy, growing fastest in the world, the whole rising affluence and aspirations, the young demography, the whole digital savviness, I'm sure some of those factors are kind of working to give this kind of result. The point also which I wanted to talk about that when the real interest rates were going up globally, actually, gold should have come down. And that is what I think a lot of people took out money from gold ETFs because that was the dots, which was working very well so far that if the real interest rates are going up, then gold is not a very attractive asset, and one should go towards some other financial securities. But in spite of that, in the last 12 months, when the real interest rates have been rising, gold also have been rising. And that what brings to the point that now connecting dots are becoming very, very difficult. Rules are set rules, which we are there to understand the world and economy are kind of getting questioned or getting upset, and which makes the world uncertain. How do you think about future becomes more complicated, and that is where I think the core values, core foundation, which Titan has built over the last 40 years, helps us to navigate and will help us to navigate future along the way. Now let us look at Titan, how -- what we have been doing last 5 years? Given the environment, which was there, I think it's not a bad performance. It's a quite good performance. Overall -- and all the numbers which I'm presenting, they are consolidated basis. Consolidated basis, as you heard the stories, we have now CaratLane. We have international business. We have TEAL also, which is another engineering company, which we have in Titan. They are large enough, they are growing fast enough and they are outside stand-alone Titan. So it's important that you also start paying attention to our consolidated numbers because a lot more is happening even outside Titan stand-alone numbers. So we grew 19% over the 5 years. But if you look at different businesses, and as I spoke about that, the business recovery, business bounce back has been pretty different. Jewelry has been, I think, in a way, well supported just during COVID and after COVID, a lot of savings, et cetera, kind of jewelry received a share of wallet in that way. So I have a 5-year, so 5-year CAGR is given. But in last 2 years, clearly, pre-COVID recovery of most of our categories have been pretty impressive in FY '23 and FY '24. That's the last column. Now just think about what has happened over 5 years. While Venkat spoke about the volume of customers. And I will tell you that 88% jewelry, which because of the higher growth rate over last 5 years, from 83% to 85%, 88%, but it contributes about 10% to 11% of our customers. So if in a year, about 25 million of customers are served by Titan, or 26 million, then 10% contributes that 88% of the revenue, and rest 90%, and they are almost same customer persona who can kind of keep buying, and that is where the importance of other businesses and customers financially as well as number of customer wise. The other shift which has happened, which Diny presented, it was 0.8%. Now it is 2.2%. Hopefully, will become 5%, and I have something to talk about that also. Within Watch business, Wearables, which was just 3%, now have become 14%. And some of the decisions which affects portfolio in the last 5 years, I have tried to just bring a complete list, however big or small they wear. Some of them proved to be very good for us. You can see we did Hug innovation, which is now Titan Smart Lab in Hyderabad and is, in a way, backbone for our smart Wearables business. We opened international subsidiaries for supporting our international business. CaratLane is now almost 100% subsidiary for us, a very, very successful progressive acquisition. Clean Origin is an LGD U.S. company, where we have a minority stake, not doing so well. CueZen supporting our smart wearable business. Again, a U.S. AI tech enabled health, fitness-focused algorithm company. We exited from Favre Leuba, which was our -- 10 years back, we have, I think, got into that. And another JV, which we have with Mont Blanc that also. So these are the 5 year -- some of the things, some of the things have worked very well. Some of the things have not worked so well. The other important many presenters talked about the -- this is the during 2019, '20 where were we? Jewelry was almost less than 1%. CaratLane was almost 100% digital. They have just started a few stores, but a very low number of stores and watches was 9%, EyeCare, 4%, and the emerging businesses, mostly women's bag -- not women's bag, fragrances, et cetera, were there, which was 8%. And if you look at now '24, 20% of Titan sales is either on e-comm or very, very influenced through the digital channel. The convergence are influenced. And how jewelry will be almost from 1% to 15% and CaratLane is there. The watches is in between 19% analog and 51%. So the digital channel, the whole omni stuff, the excess part which Venkat spoke about, the excess available to T2, T3, T4 customers and everyone else, this has enabled to a great extent. This is the retail footprint, how in the last 5 years. And you will look at the graph that first 2, 3 years of the -- which were COVID-impacted we were really slow, stores were not expanding, but in last 2, 3 years, it has really accelerated, whether addition of towns, whether addition of stores or whether the retail square feet area. So all have, in last 2, 3 years, really we have accelerated. And again, by business, by segment, if you want to see there is again 5-year and then there is a 2-year because real explosion in the -- explosion is too hard word, but real growth has happened in the last 2 years as far as retail, and this momentum is likely to continue. Now moving on to profits, how EBIT has behaved. In FY '19, we had INR 2,000 crores at a consolidated level, delivered 10.1%. Now we are at 11%, INR 5,241 crores. Have grown faster than revenue, 19% was revenue CAGR, about 21% is EBIT CAGR. These are various businesses. Again, consolidated numbers. So jewelry, if you want to reconcile in your mind, 11.6% has CaratLane Plus and international, which is right now overall business level minus and that is why 11.6%. The consolidated jewelery business of Titan has remained where it is it was in FY '19. Watches, again, every business have a story within the EBIT things, which you might have picked up in the presentations. Jewelry would have product mix issues. We talked about CaratLane and IBD at consolidated level. Watches, the Wearables going up from 3% to 14% part of the portfolio. You have seen that would have kind of created a little bit on the margin side. EyeCare, you saw completely turning around as far as the profitability of the business is concerned, and that is where 0.5% to 11%. And emerging businesses, some are plus, some are minus, and that is where -- this includes steel and TCTL, all those businesses. Further drill down on margins. This is the gross margin story at the company level. We actually have come down from 28% to 26%, 220 basis points. And again, it has got business mix issue, which you saw jewelry becoming slightly more dominant. It has a product mix issue within businesses. It has investment issues, which Ajoy particularly spoken about what they are doing in the business. And it also has the tactical offers, discounts, exchange program, anything across businesses, which we have done to ensure that we continue to grow at a leadership pace. So that's the gross margin story. This is the total cost story. So we lost 220 basis points at gross margin level, but we gained 3.2% at fixed cost level. And that is where -- and this focus is like is going to continue. You picked up, of course, in watches presentation, Suparna talking about project Alchemy and cost focus. But there's a huge renewed cost focus in the form of War on Waste 2.0. People didn't speak about, but that's happening in jewelry, that's happening in EyeCare. And we are, again, relooking at that how this can be further extracted? And this is how 2.2% going there, 3.2% kind of coming through operating leverage and extracting fixed costs, we delivered almost a percentage higher on operating profit. I'll move on. This is the 5-year cash flow, how -- where the money came from? How did it get invested? You can see roughly INR 18,000 crores of operating cash profit got generated in 5 years. And the working capital to INR 8,000 crores. We did CapEx on our existing business of INR 1,800 crores and paid taxes, INR 4,000 crores. So INR 4,000 is the operating free cash flow, which got generated in last 5 years. And after that INR 4,000 crores, of course, there are other elements. INR 2,800 crores is the dividend payment. INR 5,000 crores is a strategic investment largely in CaratLane and some of the other stuff, and we funded for that. We have borrowed INR 6,200 crores, so net-net INR 2,500 crores. So that's the 5-year cash generation story. And all this profit, revenue growth, EBIT margin, slight improvement and the cash flow generation has resulted in kind of maintaining healthy capital returns, which were there in '19 or before that. And even -- so things are not at odds. It is not growth versus margin versus capital. I think if you work diligently, you can keep growing at a pretty fast clip. You can deliver EBIT on a sustained and stable basis, and you can maintain your capital efficiency. Not a very -- I would not say that it's a very, very easy task. But yes, if you are diligent about your execution and mindful about capital, these things are not difficult to deliver. And I will further bisect for you the return on average equity because all of you know that there are -- these are the only 3 levers, which kind of finally affect, which is how much you are sweating your assets, which are asset turnover, how your margin efficiencies are improving, which is the PAT margin 7% to 7.4%, and how you are funding your assets? So if you will see from '19 to '24, we have increased our return on equity. It has basically come through some improvement in margin, which is the efficiency of use of our resources. And some has come from the financial leverage, which we have created in the balance sheet. The asset efficiency has come down from 1.86% to 1.6%. The dominant part of this inefficiency happened during COVID time. And this is the most stickiest thing to recover back. And particularly, inventory turnover actually improved from FY '23 to '24, but this is the slowest to improve. You can get back your growth, you can get back on margin track, but capital, the inventory norms, which kind of slowed down during COVID period are gradually recovering. And I expect perhaps we can work on that and recover over next 2, 3 years. And that should help them return on equity to further improve. So just summarizing the last 5 years. I had presented this slide last time also that we grew 19% top line, profit after tax 20%, EBIT margin improved 90 basis points. We have demonstrated that for 15% to 20% of organic growth, we really don't need to go outside for capital raising. Our internal cash is sufficient, our internal accruals are sufficient to help us to grow 15% to 20% on an organic basis. So now I thought I'll just cover 2, 3 more slides. There is some fine prints below. Can you guys read it? That fine print is not readable, no? I borrowed this from your industry only, this fine print, so that you read and you understand. And what I'm going to talk about is -- so this is just summarization. Every presenter, in some way or the other, particularly Venkat, Suparna, Ajoy, everyone talked about that what is the large opportunity landscape where Titan is standing at? And the last point, market share is low single digit or just high single digit market share in various categories. And even if you remember Superna slide that 50% of watch market is on the top end of the premium and the bottom end. We are 50% market share at the bottom, which only represents 50%. And in that top end and bottom end, we are in single digits. So there is a large opportunity there also. So otherwise, sometimes we think, in watch, we have a very, very dominant market, and we cannot grow because already sitting at 50%, how can you grow further, but there are 2 places which represents actually 50% of analog watch where we just have 6%, 7% market share. So that opportunity is across business divisions, and that's a very, very powerful opportunity. I will not talk more about this. There are strengths, which have been demonstrated by all the presenters, all the businesses. And some of the newer businesses, which you would have see how diligently and meticulously we are making that happen. It might be sometimes slower, particularly in Taneira, you would have picked up. It is almost playbook of Tanishq jewelry, which is in the play for the Sari and ethnic wear business, which is in the making. And it takes time, but I think customers are loving it. We are internally loving it while creating it. And our viewers are loving it. So I think the whole value chain is getting very excited about that category. Diny spoke about how the same goodness is getting transported to international market and is working very well for us. Again, this is summarization of all the challenges which you heard through various presenters. I spoke about that macro environment has been tough. Going forward, it is not likely to be changing anyway. We need to be used to stay in this kind of world and kind of the competition, particularly in our -- everywhere it is there, but particularly in Jewelry, right now at this point of time, it is at heightened level. Gold rate, we talked about. Product mix in jewelry, which I think Ajoy explained that high gold rate and the diamond jewelry also it starts impacting margin. So some of these are the challenges around growth as well as margin. But I think we have far more offsets available with us, which actually weighs heavier than the challenges, and we believe we can kind of, going forward, take advantage of this. Premiumization is a really macro trend in a way in India story. International opportunity, you heard about it. We are addressing affordable mass fashion in EyeCare as well as in watches in a big way. Hopefully, and I will cover that, we believe that in the next 3 to 4 years, business mix where emerging businesses will perhaps contribute slightly higher than what they are doing right now. And again, the whole thing can start shifting back where international business and Taneira and women's bag, et cetera, will contribute much more in terms of financial and yeah. So I was doing your work, at least I was trying to think that what are the questions which you would have about us. And you might have got answers of many. So I just thought I'll also attempt and maybe add to some of those thinking. And then let us see. I think the biggest question in your mind is that is jewelry margin pressure is temporary, or it is kind of how long it will last? Frankly speaking, we also don't have a precise answer to this. But we believe, Ajoy presented in detail, that there are offsets available to us. We are doing -- we have built a very, very a solid brand, which customers love. The [ GC Max program ] takes some time to kind of rebalance the gold and diamond equation in diamond jewelry. And with all those things, we believe it might take 3 quarters, 5 quarters, we don't know. But it should certainly come back to the trajectory where it used to be. I think Suparna answered that 12% to 14% is the first milestone where we are trying to get. Growth is working well. You thought in EyeCare, what about growth, what about margin? Both things have been answered by Saumen very well. Growth is last 4, 5 months. Of course, we need to sustain more, but I think we have a very, very positive early experience of whatever we have done. Margin is always a good story. If growth comes in EyeCare, margin would come. Is international business profitable because that's growing fast? And you are worried that it will be a drag on us. So store level, all international stores are generally equally profitable and sometimes more profitable than India. But at a business level, it is yet to become profitable. And I thought I will summarize some of these things in the -- so what is our priority? Our priority is growth for these businesses, and we want to deliver stable margin. So these are the margin bands they will grow at 15% to 20%. Hopefully, they will work on these margin bands. We will try to sometimes go towards over a 2, 3-year period. I would remind you, they will try to go towards the higher end of the band. As far as the emerging businesses are concerned, the priority is to scale up these businesses. So they are expected to grow 30% to 40%. For sure, they can do it. Their aspirations are actually even higher than that. But 30% to 40%, they would grow. And the whole pack, some of the businesses are already profitable or breaking even. Fragrances business is already profitable. But as a fact, I'm saying, by FY '27, they will certainly be breaking even at a consolidated level, respect for cash and capital would continue, so we will be every time very mindful that our ROCE is always 30% plus. So that's the summarization and outlook, so I was just thinking after this, do we need a Q&A session? Thank you, guys.

First of all, thank you so much for great presentations. And definitely, every time I come here and listen to the communication you make with customers and consumers, it dazzle us with the emotional correct the Titan makes and continues to make, so congratulations for that. My question is, obviously, jewelry and I'll probably ask a little bit a couple of more questions in Jewelry, and I can ask a couple of more if I have the time, but I'll -- in the interest of time, I'll stick to Jewelry first. Now as your competition has been kind of buzz word that has increased, and I heard repeated mentions of competition rising, and I relate with it that a lot of regional brands have started the template that you have provided for network expansion and kind of how the pricing and capital-light network rollout, all the rest of it. And you sort of now alluded to lower margins as well. My worry is that this margin of 12% to 13%, also a bit of a one-off for a few years, it was 10%, 11%. And then we had 12%, 13% margin. My worry is that is this competition will come at that expense? There's a clear trade-off between how margins will appear and how the growth will be maintained. Do we see a risk here that to maintain 15% to 20%, it will come at increasing cost and this 12% guidance is not sacrosanct? So my worry is that whether are we seeing more pressure?

I think it's a valid question. Ashok's summary kind of, I thought covered it. I believe there will be some interim fluctuation that you can expect because every time -- because it's not just competitive intensity. I think the greater forces at play are the rising gold rate. One element of that is competitive intensity. But I think there's an impact of that on the gross margin, especially on the studded side. And unlike many, there was one hypothesis somebody had asked me in the previous investor call, saying that when gold prices go up, they start to pick up because gold becomes expensive. Actually, it's counterintuitively, it goes the other way around. Even the studded kind of remains a little low. And then once the people get happy with the gold rate, they're saying, this is what it will be, people come back in. Actually, gold rate affects both segments. So actually, it's more the gold rate volatility and the gold rate elevation, which requires and it is not just us, it is everybody in the market. Any competitor is facing the same situation. All brands will face the same situation whenever gold prices go up. So I think that's part of life, and we will continue to -- as I said, we owe it to ourselves to ensure that we remain in that margin profile because that's what good execution is about. But the future is always unpredictable. And it's our job as management to try and make that happen the way we believe it should happen. I don't know what better answer I can give you, but maybe Ashok, if you have something else you want to add?

We have gone through -- I don't want to add this hedging bit of it on this that sometimes sudden spike may give some people sitting on a good gains, which they can again use for their customer offers, et cetera. But that has happened multiple times. So -- and we have come out every time with good basis of completely remaining hedged all the time and still delivering much better margin compared to industry. So why this time it would be different? So -- but that -- those also adds to some of the forces when gold price all of a sudden goes up.

And sorry for asking this question. You had covered it I know, but what I'm really asking is that whether as the competitive intensity has risen at the margin and probably will rise, does it have a pricing kind of -- you have to respond to pricing? Is it happening at the real time? What I'm asking is, as you look at pricing of others and yours, do you feel the need to respond time and again?

No, I don't think it's about responding to pricing. It's about ensuring that we -- at the prices at which we operate, we ensure that we claw back the gross margins. And then operating efficiencies and other war on waste helping us to lift the EBIT. It's not about suddenly giving a discount and suddenly making an offer here and there. No. That bit is -- sometimes in some quarters, it may be up and down, but that's not the big worry.

Got it. So that's very helpful. Ajoy second question I have was on lab-grown diamonds. Clearly, you have given a good perspective from the U.S. market and how it is part of the bridal piece quite a lot. And you also allude to that Indian market is where it is seen a storage of wealth and people are worried about whether wealth is part of the equation. My question is that isn't this then a large opportunity for Titan because Titan can, in fact, stand as a guarantor of or a market making that if you stay within my system of buying and selling, this price or this value is guaranteed. While if you go outside that, I cannot guarantee that. But if you are buying and selling within my system, it is -- so it's in a way that lab-grown diamond, even if it's sort of theoretically it may be going down because of the excess supply. But if Titan were to control that ecosystem within its own customers and suppliers, wouldn't that be a way to monetize this? I don't know whether you get my question, but what I'm saying is that you guarantee a buying price and you sell and then customer stays within Titan's ecosystem if they buy lab-grown diamonds?

See, it's difficult to control the prices of lab-grown diamonds because the entire ecosystem is not determined by what India does, okay? I mean 85% of lab-grown diamonds or 90% of lab-grown diamonds are sold in the U.S. as we speak. And there's a lot of investment that is constantly happening in lab grown despite the excess capacity that has got built. And the way in which the growers will amortize their investments will determine the price at which they can sell. Marginal prices, there can be enough -- there are enough and more price warriors sitting there, huge players. So frankly speaking, you really can't control the prices. In fact, I think, with technology, the prices will fall even further. So when prices keep falling at that rate, there is no way in which you can assure any price store of value for the customer. It may surprise many of you that even for small diamonds, the customer values the price at which she has bought it, and feels very uncomfortable if she comes to realize that there may be no value to it. Many times, customers come to us with studded products, they are bought from some other players in the past, some independent jewelers whatever they say, and then we say, really, we can't accept this because this is something which we really don't know how to value unless we remove the stones and see what it is. And they are extremely disappointed when they go back to their respective jeweler whom they bought from. Even for very small diamonds, we are talking about $0.01 and $0.02 and $0.03, forget the 1 carat, which is $0.100 so there is a very strong value orientation in Asian markets towards precious jewelry. And for whatever it's worth, diamond studied jewelry is seen as a very integral part of precious jewelry. So until that mindset itself changes towards this is something which can be a use and throw or becomes an adornment play and sure, there will be some people who will do that. The question is, is the opportunity far larger than the huge risk of dilution of what might happen with your natural business, which we have seen very strongly happening in the U.S. We need to think about both. And if the opportunity really turns out to be so big and exciting, nothing stops us from making some play with some brand in some form. But right now, as we see it, there is no dramatic and great advantage in being an early mover because the opportunity will never run away. It can be captured whenever you want. But the risk of impacting our existing businesses can be very, very high. We have seen it happen in a big way. Value erosion can be a real threat and possibility in the entire jewelry industry is actually worried, even the diamantaires who have invested in both are most worried about that because they worry about what will happen to their entire business. So I think this is a very tricky situation. And it's not -- unlike a technology-oriented product, where there are significant first more advantages in terms of learning and adapting and then thereafter, here, it is ultimately an adornment play. It may not be that complex to solve for it whenever we think it's critical to solve for it. So, to be honest, saying anything more at this stage doesn't make sense. And we'll come back to you whenever we think there's something to share.

This is Atul from Motilal Oswal Asset Management. Sir, I have a follow-up on the lab-grown business. So like we've seen, say, in the last 1.5 decades with say, CaratLane evolution, where you had a new channel which came into being and which today, like, say, Caratlane INR 3,000 crore business for us. So wouldn't you think that maybe not to impact your existing business at Tanishq or the other stores in the jewelry business. But don't you think in the lab-grown business, it's time to incubate another brand which at least sets the ball rolling. Because if some of these things get big, I'm sure there is enough amount of venture capital money basically who's trying to find and fund ideas in this space. And there will be another CaratLane or another Bluestone, which will emerge in the lab-grown space. So why not incubate a brand by ourselves rather than maybe, at a later stage, looking out or maybe partnering with anybody. So maybe any opinion on that, sir.

We take that as an input. I don't have an opinion on that.

I will also, if you let us take his name and address and we call him in our strategy discussion next time, whenever we are discussing this topic.

And secondly, sir, in terms of the jewelry business margin. So in terms of when we talk to some of your franchisee owners, et cetera, Generally, it doesn't seem that the brand that Tanishq is there is price sensitivity to the customer who's walking in your store, like all the videos that we saw, there is an emotion attached to the brand, right? So in your opinion, where is the issue coming in, in terms of the margin in the Jewelry business? What is the biggest in terms of hindrance to perhaps maintaining or growing margins in Jewelry business?

I think we clarified both in the presentation and again, the previous question, the larger part of the margin pressures come when gold rates rise very, very high. And when there is sentiment impacted by what is the kind of product mix that you can deliver. That's the bigger piece. Competitive, that's why it was boulder in my pressure. And the competitive intensity is a part of life. Life goes on. Now it doesn't mean because life goes on, customers happy to pay -- continue to pay more and more premium. We already had a significant premium to the market. And in which case, the customer also is looking at jewelry as an important piece of investment from their angle. Even if it's adornment, they want it to be an investment. So they also think a lot about making charges. They also think about, okay, how much are you charging for the -- per diamond, carat rate, et cetera, et cetera. So we cannot ignore what customers feel, irrespective of what competitors are doing or not doing, irrespective of the premium. We still have a premium over the gold rate compared to virtually all players in every market, even after hallmarking we have. So there is an extent to which premiums can keep rising. And there is -- and especially when you think about it this way. Let's say, when gold price was at INR 3,000 or INR 4,000 a gram, and, let's say, making charge for that at 15%, let's take a 20% rounded figure was maybe INR 800 crores to INR 1,000 per gram. Now that same product, assuming with some inflation thrown in. Now if you're going to charge 20% of INR 7,200, it's INR 1,500 per gram more. And if there is a 10-gram product, so the impact is there on the customer, and therefore, to -- it's not that the premium customers don't want a discount. In fact, the most requests I get is from premium customers to share the my discount coupon. So I think the value orientation of the Indian consumer and the hard reality in the way in which jewelry is bought, where everybody knows the bill of material of the product that we are selling is a hard truth of this market and this category. We cannot ignore it. If we ignore it, we ignore it at our own peril. And certainly, if you're talking about regionalization and going into markets which are much smaller towns where the growth opportunities are coming, Certainly, there is more sensitivity because a traditional customer, there is a gold customer for them to first come in and think about Tanishq, yes, aspiration is there. But am I afraid to walk into a Tanishq store because My God, their prices are so high or the making charges are so high. Those are questions that we answer all the time. So it is a balance. I think you just can't come on infinite premium. And there is a limit to which we think we should be able to judge where we should pitch it.

[indiscernible] from Macquarie. So I wanted to just switch gears and probably focus on the watch business. Now if I look at the 2022 analyst meet, which we had done, we had given a guidance on not just the expectation that we can have from a UCP perspective, but also the margin expectation versus that level, we have toned it down. Now does that indicate, a, that the nature of the industry requires a lot more near-term investments? Or is that -- are you essentially delaying that 18%? Or do you see this as structurally a 15% kind of that is the margin structure given Wearables is going to be a larger share. So would love to hear your thoughts on this.

Yes. Thank you. It is what like that. When we had -- when I had shared the 18%, it was very high bar that we had put. And then over the next 2 years, we internally also saw that we were chasing growth, and it is difficult to keep both growth and margin at that kind of sky high number. At this point, we are internally still focusing on more than 14%. There are multiple dimensions. Certainly, wearables being a larger part, which has a lower margin is very much part of that. But I think from the time that we had outlined the dream to now, the number of balls in play and interplay between that is not fully clear. For example, at that time, our focus on premium was not that high. Now we know premium is a very big opportunity. We have we are taking very big and bold moves there. Premium -- our premium brands are at a very healthy margin. Having said premium retail will be at a different margin profile. So of the multiple growth levers that we are chasing, how actually it pans out is hard for us to predict. But certainly, that's why we have toned it down to that number.

And the second part, I mean, from a medium-term perspective, leave aside the 27%, but do you see structurally this is a different margin business than what you earlier envisaged? Or you still retain that maybe 18% will come in probably 3, 4 years further around the line or something like that?

I think 18% is hard. What could be if all guns are firing and especially analog, mainline analog and premium analog are doing very well. It could cross 14% and go to maybe 15% or 16%.

Got it. And the second, just a clarification issue to Ajoy. Sorry, I'm bringing it back to the discounting, clarifying it here. What I'm hearing from you on the discounting pressures. And if I -- please correct me, there seems to be -- I mean, -- and is the understanding that the customer is willing to pay an x percentage or x rupees premium for the superior design and beyond which it is becoming harder, because see the periods of high gold price increase in the quarter or periods wherein there is volatility. We have seen that even earlier. I mean and thankfully, we have Venkat here, so I can always reach out to him to share earlier experiences, but you've seen this earlier. And we haven't had a comment where high gold inflation is a cause of concern for margins earlier. It was expected that high gold prices should aid leverage to some extent or could aid leverage. So I'm trying to understand, is this not just because your comments seem to indicate when you talk about the INR 1,000, 1,500 price point, you seem to test the customer concern or willingness being a question mark? Or am I reading too much into it? Would love to hear your thoughts on that.

I think I shared what -- I'm not sure what more comments I can offer other than the fact that there is a limit to which you can keep commanding a premium on a continuous basis in a very short period of time. Just imagine if gold prices go up by 5% in a span of 1 quarter, then the customer is certainly going to ask that question, and it is not just the it is not that gold prices have seen this kind of more than doubling in 5 years. And you're talking about a 15% to 20% jump in gold prices. So it's unprecedented. I don't know whether we've had instances Venkat where gold prices have been galloping at this rate and whether we had that. That is one part of the story. The second part is that when gold prices go up so dramatically, on the state side, because of the mix of different, let's say, elements between gold and stated, there is an impact on the gross margin. And that gross margin certainly start showing up as pressure, we climb back from it. So I'm not sure what exactly are kind of alluding to maybe I've not got your -- question properly, maybe Venkat might be able to answer some of this better.

Yes. See, if you go back 10 years, certainly, -- and yes, 10 years, certainly, the nature of competition for Tanishq was much less muted. Today, I mean, if you go to a city like Ahmedabad, then you look at a brand like Kalamandir okay? Now Kalamandir there and given the entry barriers in this industry being low, today, anybody actually can come in and set up a beautiful store, start buying at least on the surface, exclusive jewelry have a store experience, which is reasonable the brand may not at all be strong. But from a store of value point of view, from an adornment point of view, start running the business adequately. And from those customers to whom value is more important than brand, status and all that, start making a difference to a brand like Tanishq which needs to acquire new customers also all the time for growth. So therefore, whether it is the gold rate markup, which we used to enjoy at a very high differential 10 years back, or even the ability to keep increasing the making charges, which, again, we could do at a greater rate earlier. Those advantages have reduced, when you have those 40 competitors that Ajoy was referring to across the country. And that is what reduces the premium and puts pressure on the gross margin. And finally, on the EBIT margin as we are talking about today. So the gold rate has a bearing on the diamond jewelry margin, particularly and also when the gold rate is so high, the making charges are now INR 1,000 plus and all that. And therefore, we can't -- it's not a discounting as much as the ability to keep that difference continuing. So we have to sort of, in a way, bring down that 20% may have to become is 19%, for example. It's not a discount, but a price correction to remain competitive and remain offer value for money. So certainly, that situation is rather different today compared to 10 years back. And the gold rate has 1 role to play, but the increasing competitive situation also has a big role to play. And he also spoke about, therefore, the need to widen the moat. The moat has become narrower, and we need to invest in multiple things to widen that moat so that over a slightly longer term, we reach back, we clawback part of, in a way, what we have lost.

And this would logically be -- I mean, when you say GC reset, it could be just a pricing action or could be in the form of just product launches. Is that the right way to think about this? Or is that lever not the relevant lever anymore, the pace of new launches? I'm just trying to understand, see, when you say 3 to 5 quarters, 1 is just hoping for things to turn around. But clearly, you have levers that you've shown historically in terms of the way you move margins or you've been able to invest for growth properly. And I'm just trying to appreciate how this situation could be different or is not different.

I'll add 1 or 2 more flavors to this. See when we want to grow, we also said we have to grow by gaining share from the unorganized sector and from -- by penetrating more, most of the growth, which segments do you think it's coming from the very profitable segments or the very high premium segments? Secondly, even from a product in studded, you have to grow the category, finally started -- our sense is it INR 70,000 crores, INR 75,000 crores out of that INR 525,000 crores. So the growth opportunity is also coming from some of the segments, which can be margin dilutive and the extent to which you can correct that portion by taking premiums elsewhere is not that straightforward. In terms of launches, your point is well taken. In fact, we are constantly launching products and collections. And we've shown you only 1 or 2 just from the interest of time, we launched more than 15, 20 collections and drops right through the year and our entire exercise is being able to create delight through design and craftsmanship and engineering to be able to even extract more value. So -- and customers do appreciate that. So that's an engine which is running at a certain pace, and that continues. So that lever remains. In fact, there were many levers which I showed on the right side, which will help us. So in my mind, it's not a hope. I feel you're being a little harsh in our judgment that you're hoping that the [Foreign Language]

That's why I just wanted to clarify, not otherwise. But thank you.