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INVESTOR MEET - USA 2005

Bhaskar Bhat

Managing Director

Titan Industries

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We are based in India : A continent in disguise.

Population1075 mn (M:F = 50:50)

Age group- 20-44 years 400 mnthe youngest population in the world

Religions 6 Main

Languages 23

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Our Heritage TATA Group

Titan is a part of the TATA group having a turnover of > USD 14 bn, equivalent toover 2.5% of Indias GDP and having the biggest market capitalization

The Tata group is Indias largest employer in the private sector 222,000+employees across 85 companies

The TATA group has achieved many Firsts for India:

First private sector Steel mill First private sector Power utility

First Luxury Hotel (Taj), First Airline (now Air India)

Indias largest software company (TCS)

Indias First car maker (Tata Motors)

Indias largest watch & jewellery mfgr (Titan)

Owned by Tata:25% and Tamil Nadu Indl. Dev. Corp( TIDCO):27.88% Professionally managed by the TATA group & an independent Board

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At Titan Industries

We achieve this through

a customer centric approach to excellence in:

Design and styling

Manufacturing and sourcing

Marketing

DistributionRetailing and

Customer service

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At Titan Industries,

Integrity

Innovation

High performance orientation

Respect for the individualLong term relationship building

and

Investing in the environment & the community

is a way of life

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Our businesses

WATCHES

JEWELRY

ACCESSORIES

PRECISION ENGINEERING

Operating in

30 countries

With a largerfootprint in

Middle East

Asia Pacific

Africa

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ABOUT US

Titan is the worlds sixth largest, integrated watch manufacturer brand &Indias largest

Leader in the Watch & Jewellery businesses in India

First & largest branded player in the Jewelry (Tanishq)

>50% share of the organised watch market Over 60 million watches sold across 30 countries

4 Factories - Main Watch & Jewellery plants in Hosur

near Bangalore ( Indias Silicon valley), Watch Assembly

plants at Dehradun and in Himachal Pradesh, with an ECB plant in Goa

Investment of over US$130 million. A 450,000 sq.ft. state-of-the-artfacility

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Titans Leadership Position

Industry

Market

Brand

Technical

Corporate Citizen

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TITAN INDUSTRIES LIMITED

LISTED

WITH

National Stock Exchange

Regional Stock Exchange

Bombay Stock Exchange

Clause 49 of Listing Agreement with

Stock Exchanges

Corporate Governance

Equivalent to Governance

prescribed in Sarbanes Oxley Act

BOARD MANAGED COMPANY

BOARD OF DIRECTORS

(Professional Board with multi-

disciplinary expertise)

(No. of meetings held during the year is

6 against statutory requirement of 4)

AUDIT COMMITTEE

(Pre-dominance of independent Directors)

(No. of meeting held during the year is 6

against statutory requirement of 4)

TERMS OF REFERENCE

(A comprehensive Charter recommended

by BOD)

1. Recommends on the Scope of Audit

2. Independent reporting by the Internal Auditors to the

Audit Committee

3. Oversees financial controls and due-diligence on reporting,

disclosures, etc., to Stakeholders

INTERNAL AUDIT DONE BY RENOWED FIRMS ie.,DELOITTEE HASKINS & SELLS and ERNST & YOUNG

Tata Code of Conduct

signed by all employees which

promotes Ethical conduct and

professional integrity

REMUNERATION COMMITTEE

(Remuneration of the Managing Director

recommended by the

Committee based on performance criteria)

Structured Governance with

Levels of Authority

and Business Processes,

defined delegation of Powers

cascading down from Board

to operating management

personnel

ETHICS & COMPLIANCE COMMITTEE

(Compliance Committee to oversee

adherance to Ethical conduct and

prevention of Insider Trading)

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Titan and the Community

Titan has a deeply embedded policy on Social Responsibility, making a

significant contribution towards improving the life of the community

y Investing in children's education - the Titan School and scholarships for thedeserving.

y Abling the physically disabled - much beyond the national compliance norms.

y A sustainable programme for the empowerment of underprivileged women.

y Building the Titan Township surrounding our manufacturing operations for ourworkforce and the community.

y Partnering with several agencies in helping the less fortunate - viz. Clarke Schoolfor the Deaf, Indian Cancer Society, Communication programmes in HIV

awareness.

y Environment and quality standards fully compliant with ISO 9000, ISO 14000 andTS 16949.

y Signatory to the Global Compact and preparing Sustainability Report as per GRIguidelines.

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Titan progress over the years

0

200

400

600

800

1 000

1 200

87- 88 88- 89 89- 90 90- 91 91 - 92 92- 93 93- 94 94- 95 95- 96 96- 97 97- 98 98- 99 99- 00 00- 01 01 - 02 02- 03 03- 04

0

1 0

20

30

40

50

60

70

80

90

1 00

Sal e s I nc ome ( Rs . C r or es ) C api t al emp P B T ( Rs . C r or es )

Phase I (87-92)

Launch phase

Phase II (92-98)

Phase III (98-04)

Downsizing

PED

Launch of Titan

Tanishq

break even

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Phase II Exploring new frontiers

0100

200

300

400

500

600

700

92-93 93-94 94-95 95-96 96-97 97-98 98-99

0

20

40

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80

100

Cap a e p a e n o e R Cror es) PBT (Rs. Cror es)

Timex JV

European

Foray

Exit Timex

Asia-Pac

Launch

Launch inMid East market

Launch of

Tanishq

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TITAN INDUSTRIES LIMITEDA TURNAROUND YEAR IN 2003-04

y an increase in Sales Income by over 20%

y consolidated income crossed Rs 1000 crores

y growth of 18% in the Watch Division

y growth of 23% in the Jewellery Division

y growth of 57% in Exportsy repayment of loans of Rs 60 crores from internal accruals thus

bringing down borrowings from Rs 467 crores to Rs 407 crores

y interest costs reduced below Rs 40 crores for the first time since1996

y three-year wage settlement signed with the employees Uniony 100% increase in profits before taxes and exceptional items

y 80% increase in net profit after tax

y Three times increase in EPS from Rs 0.60 to Rs 1.76

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10

14

6

11

0

5

10

15

2003 2004

PBT

PAT

Earnings per share

0.6

1.76

0

0.5

1

1.5

2

2003 2004

Earnings per share

Results for the 2 years 2002-03 & 2003-04

In Rupees

798671

959

607

0

200

400

600

800

1000

1200

Operating

Income

Capital

Employed

2002-03

2003-04

Rs.in Crores

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THE TURNAROUND CONTINUES IN 2004-05

y an increase in Sales Income by about 20%

y growth of 12% in the Watch Division

y growth of 29% in the Jewellery Division

y growth of over 75% in Exportsy repayment of loans of Rs 21 crores from internal accruals thus

bringing down borrowings from Rs 407 crores to Rs 386 crores

y interest costs reduced by Rs 7 crores

y Three times increase in profits before taxes and exceptional

items to Rs 20.05 crores from Rs 6.65 croresy Six times increase in net profit after tax to Rs 10.27 crores from

Rs 1.69 crores.

THE NINE MONTHS ENDED 31 DECEMBER 2004 HAVE SEEN

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Our leadership position in both businesses & improvedOperating performance have been noticed by the

Capital market as well.

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Performance of Titan Share Price in comparison with the BSE Sensex, indexedat 100 on Jan 2002

BSE INDEX Vs TIT N

J J D c

PERIOD

TIT

N

BSE

INDE

X

I N

IND X

1

65

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Market Capitalisation (Rs Crs.)

Market Ca

218

500

1018

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OUR ASPIRATIONS FOR THE FUTURE:UNLOCKING OUR POTENTIAL

We believe Titan can become:Much larger in size

With wider International presence

And

Much more profitableIn the next five years

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The watch market & industry in India

India is an under penetrated market for watches 27 % ofIndians own a watch

Total estimated market as of 2005 Volume ~ 35 mn units &

Value: Rs 2328 Crs (USD 530 Mn)

Vast proportion of the Indian market is below Rs 500 ~ 68%(85% by volume)

Market has been split into: Low end, Mass market, Mid market,Premium

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SE ERAL FORCES ARE TRANSFORMING THE INDIAN WATCH INDUSTRY

Dramatictransformationof the Indianwatch market

1. Shift in structureof demand

olume growthdriven by thelow end

alue growthdriven byluxurysegment

Brands

Titan andSonata

3. Emergence of distinctconsumer segments

Sharply definedconsumer segmentsaround distinctbuying factors

More awareness ofbrands and globaltrends among

affluent urbanconsumers

Sub-branding

strategy: Raga,

Fastrack, Nebula

Exploring new

brand for luxury

segmentLicensing: Tommy

Hilfiger watches

Significant increase in competition inall segments

Luxury end : Swiss brands

Mid to upper end : Global fashion/Japanese brands

Low end : Local/regional IMFQs,Chinese imports

2. More global and local players

Dominant retail

presence: World

of Titan

Showrooms,

TimeZones

4. Emergence of new channels

New retail outlets emerging (Dept.stores/malls)

Existing outlets (MBOs) gettingsmarter looking

Unorganised retail at low-end

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The watch market in India (by value 2006-07)

Mass (< Rs.4

00)

Valued at Rs. 00 Crores

Grey market, Chinese, etc.

Premium (> Rs. 5k)

Valued at 70 Crores

Swiss brands: Tissot, Omega, Rolex

Fashion brands: Fossil, Calvin Klein,

Giordano, Esprit

Mid-upper (Rs. 1k - 5k)

Valued at 9 8 Crores

Titan, Citizen, Timex,

Swatch, Espirit

Low-end (Rs. 400-1000)

Valued at 200 Crores

Sonata, HMT, Maxima

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POOR WATCH PENETRATION IN INDIA IS LIKELY TO DRIVEFURTHER GROWTH IN VOLUMES

Penetration

Low penetration level (~27%own a watch)

Low multiple ownership ofwatches (3.5%)

Source: IRS data 2002

Indias watchconsumption is low

30

120Watch sales/1000 people p.a.

India International

19% in rural areas (47% inurban)

18% among women (36%

among men)

71% in SEC A and B (47% inSEC C and D)

Increasingpenetration willdrive growth of

low end andmass marketsegments

Higher multipleownership willdrive growthof Mid-uppersegment

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QUICK REVIEW OF THE TIME PRODUCTS DIVISION

Business

Financial

Key indicators Element

Market leader

Only profitable watch company in India 50% of volume, 65% of value of organised industry

Most admired consumer durable company (A&M magazine),Superbrand 2003, Brand Equity Award (PHDCCI), ImagesFashion Award

Established two brands Titan & Sonata

Enviable network Widespread, visible and profitable retail and customer service

chains (~7250 retail outlets in 1800 towns, 165 exclusiveshowrooms, 600 service centres)

Distributed in 30 countries

Large customer base- more than 60 million consumers

Efficient support system - Integrated manufacturingfacilities, strong vendor base (~800 strong vendor base)

Topline has been growing at 18% over last 2 years

ROCE has been about 32% over last 2 years

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Our market and brand leadership of >50% uses themuscle of a vast distribution network

ALL INDIA7000

Dealers1200

Towns

World Of Titan172Showrooms

102Towns

Time Zones119

Multi-brand-stores

90

Towns

Service Centers616

Centers314

Towns

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The Jewelry business

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Jewelry Market & industry highlights

Size of market: 65000 Rs crs (~ US$ 15 Bn)

Urban market is about 38% of this base

Branded jewelry is less than 2% of the overall market

Importance of Jewelry in Indian consumers

Gold is seen as auspicious, an investment, adornment.

Product mix: largely plain gold 22kt, with gem set jewelry

constituting 20% of the market

Players

Market

Key players: Fragmented market, mainly retailer driven.

Most retailers are unorganised and stand alone, absenceof hallmarking

Tanishq - the first branded jewelry player

Increased investment by industry bodies (DTC, PGI,WGC) is spurring rapid growth of the branded jewellerymarket in India

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TANISHQ TODAY A BRIEF OVERVIEWThe Business

Strongest and most aspirational brand in the jewellery category Rated No. 1 brand in independent research (ORG-MARG, 2003) Enjoys a market share of 70% in branded jewellery Selected as one of Indias 100 Superbrands (2003, 2004)

Network Indias only national jewelry retailer 73 stores in 54 towns prime high street locations

Most of these stores are run by franchisees

Customer

Base

1.2 million customers shopped at Tanishq last year Customer retention rates exceed 80% (TNS-MODE, 2002)

Brand

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Rapid growth of40% p.a. over the past four years Rs. 450 crores+ during the current financial year 45% of the Companys revenues

Profits

Impressive turnaround PBT (2002/03) - Rs. 6 crores PBT (2003/04) - Rs. 14 crores

ROCE

ROCE exceeds Cost of Funds ROCE (2002/03) - 13% ROCE (2003/04) - 22%

Revenues

TANISHQ TODAY A BRIEF OVERVIEWThe Business

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7

15

20

268

5

25

0

50

100

150

200

250

00

50

00

50

'98-99 '99-00 '00-01 '01-02 '02-0 '0 -0

Growth in Revenues

Annual Revenue, in Rs. crores

Rapid growth CAGR of40% per annum

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-4

2

89

13

22

-5

0

5

10

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20

25

'98-99 '99-00 '00-01 '01-02 '02-03 '03-04

Growth in ROCE

Return on Capital Employed, in %

One of the highest ROCE businesses in the Tata group

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Brand Tanishq

Rapidly growing consumer base Over 1.2 million consumers last year Young, well educated, affluent, urban women Very successful customer acquisition efforts

Strong brand equity Brand recall levels exceed 70% nationwide Consumer retention levels exceed 80%

Most desirable brand of jewellery

Unique first mover advantage No serious national competitor yet on the horizon

Powerful brand building efforts during past 4 years Exciting, vibrant, innovative a happening brand Consistent investments in brand

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International Business

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One of Indias first companies to take the brandedexport route:since 1990

Present in 30 countries

Strong presence in the Middle East and the Asia-Pacific

Selling half a million watches annually with increasingpresence in jewellery

International business

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New businesses

Precision Engineering:Leveraging design andmanufacturing know how as India becomes animportant hub for hi end manufacturing

Accessories:Leveraging brand strength

Licensing:Leveraging retail capability and

capacity

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Precision Engineering Business

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Precision Engineering Business

Rationale

Leveraging Engineering capabilities

B2B business balances risk of B2C businesses

Profitable revenue streams established proof of concept established

The Opportunity

India growing as a manufacturing base for precision products across industries

Cost pressures and offset requirements guarantee a long term opportunity

High cost of switching for customers

Overall a large & growing market: The global market opportunity for precisionengineering products addressable by Titan is Rs.135,000 cr.

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Current position: 3 segments 3 streams

Automotive

Aerospace

Medical

Precisioncomponents

Dash boardinstruments

Sub systems

Market SizeRs 135,000 Cr.

AutomationSolutions

Market SizeRs 575 Cr.

Domestic &International

Market.

DomesticMarketOnly

TSMGStudy

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Customer Base

Eaton USA

compts

17%

Toyota Tsusho

6%

Turbo Energy

6%

Jet Avion

3%

MG Rover3%

MG Rover

8%

Stanadyne

9% TycoElectronics

10%

Tata Motors

2%

Ford

26%

Others

5%Tyco

3%

2005-06

Automotive 51% Aerospace 18%Hydraulics 17% Medical 6%Others 8%

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THE WAY FORWARD

WITH AMBITION AND ASPIRATIONS, WE CAN ACHIEVE

Titan Industries can have a turnover of almost Rs 3700 crores

(USD 1 BN ?) by 2009-10 ( up from Rs 960 crores in 2003-04)

Time Products will contribute over Rs 1300 crores to turnover

Jewellery will contribute Rs 2100 crores to turnover

Precision Engineering will contribute Rs 490 crores to turnover

With a projected profit after tax of about Rs 300 crores, the

Company can deliver an RONW of ~ 36 % in 2009-10.

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Thank you