Market share gains emerging as another growth driver for Titan

Rising formalisation of industry could aid market share gains and support stock's valuations

After witnessing continued weakness in demand for two of its key businesses- jewellery and watches in early FY17, Titan Company (Titan) has some reason to cheer. One, its core business of jewellery (about 83 per cent of revenues) is witnessing market share gains, thanks to demonetisation which has hit operations of the unorganised sector much severely than that of the organised sector. Given the structural changes happening in the jewellery business, organised players such as Titan, PC Jeweller, amongst others should see further gains market share. The implementation of goods and services tax or GST would also help to take