At a time when public-private partnerships have not often been profitable, Titan Firm Restricted, a three way partnership between the Tamil Nadu authorities and the Tata Group cast throughout the pre-liberalisation period, has been going robust for almost 4 a long time, providing useful classes.
Titan got here into existence by a three way partnership between the Tamil Nadu Industrial Growth Company (TIDCO) and the Tata Group in 1984. J.R.D. Tata inaugurated the corporate’s Hosur manufacturing unit in March 1988. From making watches, Titan has additionally emerged as a way of life model throughout product classes, together with jewelry and eyewear.
A jewel within the crown
Based on particulars out there on inventory exchanges, TIDCO owns 27.88% in Titan, whereas the Tata Group owns 25.02%. Senior journalist Vinay Kamath in his guide, Titan-Inside India’s Most Profitable Shopper Model, says Titan Firm could be referred to as “a jewel within the crown for the Tamil Nadu authorities” with Titan’s market capitalisation hovering. It stands out as a shining instance of a enterprise mannequin within the joint sector of the State authorities. TIDCO has been content material to let the Tatas run the corporate, whereas the chairmanship is at all times 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 authorities nominees on the board have performed an important position, offering substantial encouragement to the administration with respect to development and portfolio growth and setting excessive requirements in governance and threat administration, says C.Ok. Venkataraman, managing director, Titan Firm Restricted.
He attributes the success of the three way partnership to elements like readability concerning the roles that the federal government and knowledgeable group have to play.
The board focussed on governing the corporate, leaving the administration free to form and run the corporate. There has at all times been a excessive degree of respect between the three way partnership companions, which laid the muse for Titan’s success, Mr. Venkataraman factors out.
TIDCO’s Managing Director Jayashree Muralidharan says one of many causes for the success of the enterprise is that the successive governments and officers have maintained the excessive custom of not interfering within the day by day administration of the corporate. “Although it was a three way partnership, on the administration half, they had been free to do what they wished to do. We saved an arm’s-length from it and received concerned solely in main boardroom selections, and that technique has labored,” she explains.
TIDCO had a technical settlement with France’s Ebauches SA for making wristwatches and was in search of the appropriate companion, remembers T.Ok. Arun, retired Senior Common Supervisor and Secretary of TIDCO, who intently labored on the challenge.
The important thing to the success of the enterprise was choosing up the appropriate companion and serving to the corporate develop with out really getting concerned within the enterprise. It was about constructing a watch-making model from the scratch, when there have been already two robust manufacturers, HMT and Allwyn, he says. The federal government system and the paperwork labored properly and ensured the enterprise received all approvals in time.
He remembers that the Worldwide Finance Company, an arm of the World Financial institution, gave a ₹18-crore mortgage to the enterprise; to get that mortgage, the corporate needed to be exempted from the purview of the Usurious Loans Act which dated again to the 1900s. The State authorities instantly granted the exemption.
These related to the model say Titan, in a method, is a college. It has created a powerful cultural bond with all stakeholders, carried out the enterprise ethically and created a development and innovation engine and tapped into native intelligence. The Tamil Nadu authorities was a catalyst, acknowledge S. Deenadayalan, S. Ramadoss and R. Rajnarayan, the human sources heads of Titan from 1986 to 2020.
Titan was among the many first to customize skill-building and recruit and prepare expertise from authorities colleges in rural areas.
It was one of many earliest company homes to have in-house coaching centre on quartz expertise to coach 3,000 individuals. The coaching focussed on watch meeting, motion manufacturing, auto-turning, case store, electroplating, sharpening, software room and later handled points of jewelry.
The in-house coaching was a novel social experiment, by which folks from weak sections got the appropriate publicity, and extremely competent expertise was constructed. Titan was additionally the primary to have in-house counsellors as early as 1989 to assist the adolescents and in addition employed girls and in another way abled individuals, in accordance with the corporate’s executives.
Within the mid-Nineties and later, when Titan expanded its manufacturing and retail operations, the problem was managing and assembly the aspirations of staff each in manufacturing and retail. Therefore the human useful resource technique focussed on participating staff for Titan’s turnaround, the executives level out, hailing the roles performed by Xerxes Desai and Bhaskar Bhat, each former chiefs of Titan, and Mr. Venkataraman, the present MD.