Industry News

Titan Montblanc JV to Invest INR 250 Crores in 5 Years

India: Retail Joint Venture between Titan company and Netherlands based writing instruments manufacturer Montblanc is poised to make big moves in the industry. The JV has planned to open 50 new stores in eight big and 32 tier 2 cities with the investment of 250 crores in next 5 years. The company plans to have stores in eight cities first and then expand to tier 2 cities. Each store is estimated to get INR 5 crores.

The boutique sells writing instruments priced between INR 22,000 and INR 6.5 lakh and watches ranging between INR 1.5 lakh and INR 7.5 lakh. It also sells jewellery, leather products and travel bags and company plans to add some new segments customised for Indian customers. According to Montblanc estimates, there is the potential of three times of the present sales (of INR 80-100 crore) in next 5 years and this JV aims to cater this.

According to TechSci Research, Montblanc has big potential in the country as Indians are now getting used to luxury goods. The continuous increase in per capita income, rising number of high earning individuals and a desire to differentiate oneself creates a big opportunity in this segment. Titan, which already has huge experience of operating in Indian watch market, will give huge advantage to this JV. The JV will also enjoy first mover advantage as competition in this segment is quite low at this moment and with sophisticated product range and unique price they would set new standards in the industry.