Keeping with the times: Titan’s roaring success as a public-private partnership Premium

The joint venture between the Tamil Nadu government and the Tata Group, forged during the pre-liberalisation era, has been going strong for nearly four decades. From making watches, it has also emerged as a lifestyle brand across product categories

At a time when public-private partnerships have rarely been successful, Titan Company Limited, a joint venture between the Tamil Nadu government and the Tata Group forged during the pre-liberalisation era, has been going strong for nearly four decades, offering valuable lessons.

Titan came into existence through a joint venture between the Tamil Nadu Industrial Development Corporation (TIDCO) and the Tata Group in 1984. J.R.D. Tata inaugurated the company’s Hosur factory in March 1988. From making watches, Titan has also emerged as a lifestyle brand across product categories, including jewellery and eyewear.

According to details available on stock exchanges, TIDCO owns 27.88% in Titan, while the Tata Group owns 25.02%. Senior journalist Vinay Kamath in his book, Titan-Inside India’s Most Successful Consumer Brand, says Titan Company can be called “a jewel in the crown for the Tamil Nadu government” with Titan’s market capitalisation soaring. It stands out as a shining example of a business model in the joint sector of the State government. TIDCO has been content to let the Tatas run the company, while the chairmanship is always with the TIDCO nominee, he notes.

Titan is an acronym for Tata Industries and Tamil Nadu (T and I for Tata Industries and TAN for Tamil Nadu).

Tamil Nadu government nominees on the board have played a crucial role, providing substantial encouragement to the management with respect to growth and portfolio expansion and setting high standards in governance and risk management, says C.K. Venkataraman, managing director, Titan Company Limited.

He attributes the success of the joint venture to factors like clarity about the roles that the government and a professional group need to play.

The board focussed on governing the company, leaving the management free to shape and run the company. There has always been a high level of respect between the joint venture partners, which laid the foundation for Titan’s success, Mr. Venkataraman points out.