ContentsForward-looking StatementThis report contains forward-lookingstatements, which may be identified bytheir use of words like ‘plans’, ‘expects’,‘will’, ‘anticipates’, ‘believes’, ‘intends’,‘projects’, ‘estimates’ or other wordsof similar meaning. All statements thataddress expectations or projections aboutthe future, including but not limited tostatements about the Company’s strategyfor growth, product development, marketposition, expenditures and financialresults, are forward-looking statements.Forward-looking statements are basedon certain assumptions and expectationsof future events. The Company cannotguarantee that these assumptions andexpectations are accurate or will berealised. The Company’s actual results,performance or achievements could thusdiffer materially from those projected inany such forward-looking statements.The Company assumes no responsibilityto publicly amend, modify or revise anyforward-looking statements, on thebasis of any subsequent developments,information or events. The Company hassourced the industry information from thepublicly available resources and has notverified those information independently.0111802Financial Highlights for FY 2018-19Standalone Financial Statements03Operating Context118 Independent Auditor’s Report04Corporate Overview128 Balance Sheet06Titan Today129 Profit & Loss Account08Business Review130 Statement of18Our Approach to Reporting20Creating Value for our Stakeholders131 Cash Flow Statement22Materiality Approach133 Significant Accounting Policies24Our Business Model147 Notes to Financial Statements33Awards34Outlook35Opportunities36People and Culture37Leadership Development38Board of Directors42Titan Engineering &Automation Limited43Corporate InformationC O R P O R AT EOVERVIEW44S TAT U T O R YREPORTSTo view or downloadthis report, pleaselog on towww.titancompany.in44Board's Report & Annexures75Management Discussionand Analysis85Corporate Governance Report107 Shareholder Information110 Business Responsibility ReportFINANCIALS TAT E M E N T SChanges in EquityConsolidated Financial Statements186 Form AOC-1188 Independent Auditor’s Report196 Balance Sheet197 Profit & Loss Account198 Statement ofChanges in Equity199 Cash Flow Statement201 Significant Accounting Policies218 Notes to Financial Statements259 Financial Statistics261 Notice of 35th AGM

Exploration.Expertise.Excellence.We continue our growth momentum acrossbusinesses, demonstrating the inherent strengthof our multi-brand portfolio and the strongconnect with our consumers.ExplorationExpertiseExcellenceWe are constantly exploring newcategories and nurturing themto emulate the success created inwatches, jewellery and eyewear.It is this quality that enabled usto do quartz over mechanical anddevelop a network of brandedjewellery stores against traditionalfamily jewellers.Each of our curation has a story totell. The story of our expertise andexperience. It is this expertise that isenabling us to grow our portfolio ofstrong brands. Expertise of design,manufacturing and brandingis what Titan is known for andcustomers admire it for.Excellence comes from oursuperlative quality. It is aboutstriving to achieve industryand world leading practices inmanufacturing, quality, designingand retailing. Our excellencealso comes from stringentquality control processes andmanufacturing and operations,which have enabled us to set newstandards for style, quality, designand elegance.

TITAN COMPANY LIMITEDFinancial Highlights for FY 2018-19Revenue19,070 Cr.DD 15,656 Cr.ROCE35.90%35.98FY 2017-18%FY 2017-18EBITDAEPSD 2,111 Cr.D 1,728 Cr.FY 2017-1815.48DD 13.10FY 2017-18ROECSR Spend24.16%D31.61 Cr.24.47%FY 2017-18DividendEmployee Volunteering44421,355 HoursDCr.D 333 Cr.FY 2017-18PBT1,927 Cr.DD 1,571 Cr.FY 2017-18PATD 1,374 Cr.D 1,163 Cr.FY 2017-182Net WorthD6,182 on 31st march 2019D5,194 on 31st march 2018Market CapitalisationD 101,372 on 31st march 2019D83,656 on 31st march 2018

Annual Report2018-19Operating ContextIndia will be the world’s fastest growing large economy anda favourable demography through 2050. India’s diverseand large consumer segments are driving purchases acrosscategories. Rising affluence is the biggest driver of increasingconsumption. India’s economic growth is driven by domesticdemand. The implementation of GST created more flexibilitywithin the country, making it easier to trade between states.India’s nominal year-over-year expenditure growth of 12% ismore than double the global rate of 5%, making it the thirdlargest consumer market by 2025.India adds 7,300 millionnaires in a year, with the dollarmillionnaire club having gone up to 3,43,000. The number ofdollar-millionnaire Indians is expected to go past 5.26 lakh by2023. India’s consumer market is expected to triple to C 335lakh crore by 2028, accounting for 62% of GDP, and drivenby GDP growth, rising affluence and urbanisation.D 335 Lakh Cr.India’s Projected ConsumerMarket by 202862%Projected Contributionto India’s GDPFor Titan, the operating contexthas been very encouraging with allthe key verticals delivering goodgrowth. The jewellery businessreported healthy growth andgained market share. The watchesdivision registered double-digitrevenue growth powered byvolume growth across all brandsand a healthy contribution fromsmart watches and wearables. Foreyewear, our strategy to increaseassortment at more affordablepoints has worked well. Forour new verticals of Fragrancesand Sarees too, we have beenmeaningfully engaging withcustomers and strengthening ourcore proposition.Source: A Report by Boston Consulting Group (BCG)3

TITAN COMPANY LIMITEDCorporate OverviewThe Titan JourneyTitan was established in 1984 asa joint venture between the TataGroup and Tamilnadu IndustrialDevelopment Corporation (TIDCO).Its primary aim was to createworld-class watches for everyIndian. In three decades, theCompany has built an impressivewatch business to become India’slargest manufacturer and oneof the largest integrated watchmanufacturers in the world. Titan’sstrategy of establishing excellencein every part of the value chainmakes it a leader in every industrythat it operates in.Titan entered the jewellery business in 1995.Jewellery is sold in India through an exclusivecompany-controlled retail chain, comprisingowned and franchised outlets. Titan forayedinto optical retail in 2007 with a range offrames, prescription eyewear, contact lensesand sunglasses.The Company has set up its corporateoffice in Bengaluru (Karnataka) and hasmanufacturing facilities in Tamil Nadu,Karnataka, Uttarakhand and Sikkim.Globally, Titan has a presence in over thirtycountries through its marketing.4

Annual Report2018-19Corporate OverviewOur VisionWe create elevatingexperiences for the peoplewe touch and significantlyimpact the world we work in.Our MissionWe will do this through apioneering spirit and a caring,value-driven culture thatfosters innovation, drivesperformance and ensures thehighest global standards ineverything we do.Our Values and StandardsTotal Customer OrientationCreativity and InnovationCustomers take precedence over everythingelse, always.We continue to grow and set new standards forinnovation and quality with each new offering.Employee AppreciationPassion for ExcellenceWe value and respect Titanians and endeavour tofulfil their needs and aspirations.In all our pursuits, we ceaselessly strivefor excellence.Performance Culture and TeamworkCorporate CitizenshipAt Titan, high performance is a way of life and isnurtured by teamwork.Titan believes in being a responsible corporatecitizen and pro-actively engages in issuesconcerning community it operates in and theenvironment in general.5

Titan Company LimitedTitan TodayOne of theLargestWatch Maker GloballyUS 1,595Stores2.8 Billion 7,213Annual RevenueEmployees on Roll11,000 Multi-brand outletsthat sell our watches4No. of Times appearedin Forbes Asia Fab FiftyOur Presence2812.05Towns and CitiesMillion Sq. ft. Retail SpaceKey Strengths and DifferentiatorsDesign and Development 800 New time products every year Reddot Award to 2 Edge watches Differentiated Jewellery Collections Customised lenses with 3D visual mappingManufacturing State-of-the-art Karigar Centres for Jewellery Components exported to Swiss watch makers 3,600 employees engaged in factories6Brand Building Tanishq: India’s leading Jewellery brand Titan: Our flagship watch brand Raga: Exclusive women’s watch brand Fastrack: India’s largest youth brand Sonata: India’s largest selling watch brand Caratlane: India’s largest online jewellery brand Titan EyePlus: India’s largest optical retail chainRetail and Customer Service Exceptional Customer Experience Merchandising Effectiveness Impactful Retail Identities Engagement of Store Staff Extensive After Sales Service Network

Annual Report2018-19Corporate Overview Titan TodayOur BrandsLuxuryPremiumMid MarketMass MarketAssociated BrandsJoint VentureLicensed BrandsMontblancTommy Hilfiger Police Annie Klein Kenneth Cole Coach Lee CooperIndia is a US 2.6 trillion economy with a sustained growthenvironment which supports consumption and higherspending. Titan is catering to this demand with over 15lifestyle & aspirational brands, a Pan India reach and 12,000 customer touchpoints. New stores, new brand launches androbust e-commerce performance has resulted in industryleading growth.Source: International Monetary Fund’s World Economic Outlook, April 20187

TITAN COMPANY LIMITEDBusiness ReviewJEWELLERYBusinessTitan’s flagship jewellery brand Tanishq is among the leaders in the market. Thejewellery business recorded its best-ever performance during the year with growthin revenue and same-store sales. Product design and quality continues to be akey differentiator.BrandsFlagship BrandLuxury BrandSub-brand ofTanishq foryoung womenTanishq partnership,e-commerce brand8DesignHighpoints Includes highly differentiated designs Added 34 Tanishq stores Tanishq Design Studio spreadacross Kolkata, Mumbai, Delhiand Bengaluru Added 15 Mia storesManufacturing Studded jewellerymanufactured inhouse Plain gold jewellery, outsourced 4 state-of-the-art Karigar Centreswith artisans and craftsmen Launched 7 new collections Added 20 Caratlane stores

Annual Report2018-19Corporate Overview Business Reviewperformance of FY 2018-19Being the Largest JewelleryRetailer in IndiaTotal RevenueTanishqDD 13,036 Cr.DD 1,543 Cr.FY 2017-18FY 2017-18290showrooms (including3 Zoya stores)178Towns and CitiesMia30Stores26Towns and CitiesThree Pillars of Tanishq1Exceptional collections andnew products that continuedto be industry-leading2Brand-building efforts thatare cutting-edge not just injewellery industry, but in theentire advertising world3Superlative customerexperience in stores16,030 Cr.EBITDAROCE1,948 Cr.Key HighlightsThe jewellery division performed wellwith all the 3 brands – Tanishq, Zoya andMia – performing as per expectationsand building a foundation. Investmentsin Digital (Websites, E-commerce,Analytics and Customer RelationshipManagement) are expected to reapthe benefits in FY2020 and beyond.During the year, the division added thehighest number of Tanishq stores in asingle year.Our Engines of Growth inJewellery Business The wedding segment continued togrow, aided by deeper reaches intoethnic communities and a sustainednational brand-building effort The high value diamond jewellerysegment performed well, withsubstantial gains in the 10 lakhprice category, aided by excitingproduct collections The “low-market share cities”continued to pay dividends as webroadened and deepened our localconnect through multiple initiatives The “Middle India” programme wasat its visible best, with more than 35new stores added in one year, nearlydouble the earlier best66%67%FY 2017-18 The Golden Harvest Programmecontinued to enable share of walletgains and through that helped theoverall business growth The Gold Exchange Programme gotmore traction as more and morecustomers started realising theexceptional value that it offers,on top of the total transparencyof the processManufacturing and SupplyChain ProcessesSeveral initiatives were taken up onIntegrated Supply Chain. Considerableinvestments were made in plant andmachinery and international expertisewith the aim of increasing our capabilityand in-house share of total output. Afocussed quality programme intendedto lift product quality to the “best inthe world” levels. Multiple programmeswere launched to upgrade all the vendorunits to the “Standard” level (Cottage,Basic, Standard and World Class, beingthe 4 increasing levels of evolution)across People, Process, Place and Planetparameters. An integrated 3-yearprogramme was also started for thediamond pipeline to extract maximumvalue, totally eliminate mixing up ofsynthetics and be sure about the rightlabour practices and conditions in theentire supply chain.Carat LaneCarat Lane designs, manufactures, trades and retails gems and jewellery online as well as through physical stores in India.Titan first picked up a majority stake in Carat Lane back in 2016 in a bid to expand its presence online. Currently, Carat Lanehas 55 showrooms in 23 towns and cities across India apart from selling jewellery online. For the year ended 31st March 2019,Carat Lane’s total revenue stood at C 416.39 cr.9

TITAN COMPANY LIMITEDBusiness ReviewWATCHESBusinessWe continue to strengthen our brands with several impactful launches and a slewof exciting products, which led us to gain the 2nd position in the wearables marketin India. We refreshed our collection across brands and enhanced our presence.We continue to invest in tech-enabled wearables to stay relevant and drive thecategory for the younger audience.BrandsReach and PresenceExclusive Brand Outlets 486 World of Titan in 223 towns 172 Fastrack Centres in 83 townsPremium Multi-Brand Outlets 76 Helios in 37 townsOther Multi-Brand Outlets 11,000 dealers Present in over 30 countriesPERFORMANCE FORFY 2018-19Total Revenue2,441 Cr. 29.5%DD 2,126 Cr.35%FY 2017-18FY 2017-18EBITDA316DCr.D 258 Cr.FY 2017-1810ROCE

Annual Report2018-196 state-of-the-art watch and componentmanufacturing/assembly plantsOverviewWe are one of the largest watchmakerglobally and retail through more than11,000 multi-brand outlets and 1,600exclusive stores, covering 561,000 sq. ft.The division sells more than 16 millionwatches. The division made goodprogress in strengthening the smartproducts portfolio with the launch ofthe world’s slimmest gesture controlband. New-age and modern channelslike Large Format Stores (LFS) andE-Commerce continued to drive growth.Our portfolio of brands, channels andmarkets provided us with a significantcompetitive advantage in maintainingand enhancing leadership in theindustry. Our brands led the efforts todrive consumer interest by embeddingtechnology in products.Our Popular CollectionsTitan GrandmasterA uniquely craftedcollection with use ofauthentic wood which isinspired by chessRaga “I Am”A collection celebratingimperfectionsThe KolkataCollectionAn ode to the City of JoyPurple StellarA fashion collectionfor women inspired bycosmic elementsFastrackThe successful collectionsinclude EDM, Loopholesand DenimNew Launchesa. Fastrack launched Reflex 2.0, anupgrade of the first activity trackerwhich was well accepted in themarket and helped us become the#2 Smart Band brand in India. Thebrand continued to innovate interms of technology by launchingReflex Wav, the world’s slimmestgesture control band which allowsconsumers to take pictures, controlmusic and phone calls through wristgestures.b. SF Rush smart band was launchedunder the Sonata brand at anaffordable price point to bring smartproducts to consumers beyond techenthusiasts. It made fitness bandsaccessible to youngsters acrossthe country.c. Titan Radar, India’s first ‘Smart’wallet helps consumers find theirwallets. It is an interesting productintroduced during the year. Alsolaunched Grandmaster for men andRaga “I Am” for women.11Corporate Overview Business ReviewOur Manufacturing

Titan Company LimitedBusiness ReviewFavre LeubaWe acquired the second oldest Swiss brand, Favre Leuba and launched the brand in October 2016.The much-awaited diver’s watch Bathy 120 Memodepth was received enthusiastically by the consumers.Smaller case options of Sea King and Deep Blue collections too were launched.12

Annual Report2018-19 The Denim Collection uses actualdenim fabric on straps and extendsthe inspiration of denim on allelements of watch design includingthe case, hands and the dials In terms of communication, Fastrackwatches did a campaign aroundits “All Nighters” collection whichhelped the watches sell out from allchannels, and also made quirky adfilms for both Fastrack Reflex 2.0 andReflex Wav. The brand also pushedboundaries by breaking a GuinnessWorld Record for the ‘Longest Chainof Watches’ Sonata brought out contemporarydesigns with Sleek - slim workwearwatches, Blush - fashionable rosegold watches, and Volt andSplash - trendy, bold watches foryouth. The brand also undertookinitiatives for a regional connectin its priority markets - SharodiaGuide App for Durga Puja in WestBengal, celebrating Ganeshotsavon-ground and with a dedicated appin Maharashtra, and making SpecialEdition watches, exclusively for theChennai Super Kings IPL team Excellent designs in bags, belts andwallets have led to impressive growthin accessoriesLicensed BrandsThe licensed brands portfolio achieveda strong 37% growth in the yearhelped by the rejuvenation of TommyHilfiger and continuing strong rolesplayed by each of the licensed brands Police, Anne Klein and Kenneth Cole.A new entrant in the portfolio, OliviaBurton, targeted at millennials, alsosaw a good response. The continuedinvestment in creating a portfolio oflicensed brands which complementown brands will continue to be a focusarea in order to influence and shapethe market with evolving and newcustomer segments.13Corporate Overview Business ReviewKey Highlights

Titan Company LimitedBusiness ReviewEYEWEARBusinessThe Eyewear division continued to benefit from recrafting of the strategy ofincreasing the assortment at more affordable price points in-line with our core brandproposition of expertise and styles at great value. Frame distribution business is alsomaking good progress after the commencement of Frame manufacturing, whichwill enable us to offer market-relevant products and to reach much deeper intothe markets.The Eyewear division scaled up itsoperations with an integrated state-ofthe-art lens and frame manufacturingfacility near Bengaluru. It also hassatellite lens manufacturing facilitiesin Calcutta, Mumbai, Bengaluru andDelhi. The manufacturing of framescommenced its operations during theyear. Optometry continues to be a keyfocus area with continuous training andre-training of optometrists to deliverzero-error eye testing and error-freespectacle dispensing. The divisionundertook extensive brand buildingexercise which has resulted in a marginalloss in the division’s bottom line.145373,7005Retail StoresSunglassDealersOnlinePlatforms3.8 Lakh1,5503.5Sq. Ft.Retail SpaceFrameDealersMillionCustomersPer Year

Annual Report2018-19Total Revenue511EBITDAROCE(2) Cr.(0.9)%DCr.D 415 Cr.DD 2 Cr.2%FY 2017-18FY 2017-18FY 2017-18Brands Titan: In-house for frames and lenses Fastrack and Glares: for sunglassesPresence 537 Titan EyePlus Stores in 223towns Sunglasses are also sold throughmulti-brand outlets and departmentalstores (Shop-in-shop and Kiosks)Key Highlights CustomersOur number of customers grew from2.4 million customers in FY2018 to3.5 million customers in FY2019.Vast improvements have been madein quality and