Titan Company slides on ending partnership with Montblanc

Titan Company fell 1.31% to Rs 1,236.75 after the company and Montblanc mutually agreed to end their joint venture partnership in India.

In accordance with the joint venture agreement, the partnership will end in December 2020. The decision enables Montblanc to become a wholly owned subsidiary in the country.

Montblanc is a global luxury maison with the largest footprint in the country. During the 5-year partnership which began in 2015, Montblanc opened 12 boutiques in major cities across the country and established a fast-growing e-commerce business through the luxury online portal TataCliq.

Titan Company's decision to exit the joint venture agreement was due to its consolidation strategy to focus on its primary business and proprietary brands. The announcement was made during market hours today, 8 October 2020.

C K Venkataraman, the managing director (MD) of Titan Company, has said that: "We have decided that during these rather challenging times our primary business must take precedence. Both parties have greatly benefitted from this partnership, and our relationship with Montblanc remains strong and positive."

On a consolidated basis, Titan reported a net loss of Rs 297 crore in Q1 FY21 as compared to a net profit of Rs 363.74 crore in Q1 FY20. Net sales during the quarter declined 73.2% Y-o-Y to Rs 1,368 crore.

Titan Company is engaged in offering watches, jewelry and others. The company's segments include watches, jewellery, eyewear and others.

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