Titan Company Ltd.

ICRA has assigned an “A1+” rating for Titan Industries’ (TIL) Rs 2900 crore worth non fund based limits, enhanced from earlier of Rs 2400 crore. The credit rating agency has also assigned an outstanding rating of AA+ with a Positive Outlook for Rs 200 crore fund based limits and an A1+ rating for Rs 10 crore Commercial Paper programme of TIL. The ratings continue to reflect TIL’s established position as a leading player in the organised watches and jewellery segments, the strong performance of these operating segments in 2010-11 and HY 2011-12 and TIL’s high financial flexibility drawing from the strong profitability, high cash accruals and low debt levels.

The positive outlook reflects the expectation of a further improvement in TIL’s financial risk profile, given the robust long term prospects for both the watches and the jewellery divisions, driven by TIL’s current strong market position, expected continued growth in demand (albeit at a lower pace over the near term) and the increasing penetration of TIL into the unorganised watches and jewellery segments.

TIL’s strong parentage and the fundamental business strengths emerging from TIL’s high quality products, strong brand image, wide product range catering to various styles/price points and the strong distribution and service network, are factors which continue to support the rating.