Titan Forms Joint Venture with Rhythm Jewellery in Bangladesh

Titan Company, a Tata Group enterprise, has announced its expansion into Bangladesh by launching its famous jewellery brand, Tanishq as a part of Titan’s broader international growth plans. The expansion will be facilitated through a joint venture with Rhythm Group, a prominent Bangladeshi company with the establishment of a manufacturing facility in Narayanganj, Bangladesh.

Joint Venture Agreement

Recently, Titan Company signed a joint venture agreement (JVA) with Rhythm Group to introduce Tanishq to the Bangladeshi market. Under the terms of the agreement, Titan will hold a 76% stake in the joint venture, while Rhythm Group will own the remaining 24%. The joint venture will have a board of four directors, with Titan nominating three and Rhythm nominating one. The Chairman of the joint venture will be one of the directors nominated by Titan.

Rhythm Group’s Role

Rhythm Group, established in 1972, has diversified from producing textile fabrics into several verticals, becoming a known player in Bangladesh. By partnering with Rhythm Group, Titan has plans to combine Tanishq’s brand legacy with Rhythm’s strong market presence and local expertise.

Titan’s International Presence

Titan already operates 17 Tanishq stores across various international markets, including the UAE, US, Qatar, Singapore, and Oman. This new venture in Bangladesh is a continuation of Titan’s plans to expand Tanishq’s footprint globally. Additionally, Titan’s watch business has a presence in the SAARC, MENA (Middle East and North Africa), and Southeast Asian regions.

Financials 

Titan Company’s recent financial performance showed a 24.42% decline in standalone net profit to Rs.786 crore and a 22.18% decrease in revenue from operations to Rs.10,047 crore for Q4FY24 compared to Q3FY23.

Conclusion: In conclusion, Titan’s venture into Bangladesh through its partnership with Rhythm Group represents its international expansion strategy as this collaboration aims to enhance the jewellery market in Bangladesh and leverage the strengths of both companies to offer their products to consumers in the markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.