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Titan to scale down operations of Swiss watch brand Favre Leuba
Titan to scale down operations of Swiss watch brand Favre Leuba
Titan Company, a part of the Tata Group, on Monday said that its board of Titan has decided to scale down the operations of its wholly-owned subsidiary, Favre Leuba AG (FLAG), with immediate effect.
Titan Company, a part of the Tata Group, on Monday said that its board of Titan has decided to scale down the operations of its wholly-owned subsidiary, Favre Leuba AG (FLAG), with immediate effect.
In the regulatory filing, Titan said, "The Board of Titan at its meeting held today has decided to request the FLAG management to scale down the operations of the company substantially with immediate effect so that further investments from Titan to FLAG cease as early as possible."
The watch-to-jewellery maker had acquired global rights to the trademarks of heritage Swiss watch brand Favre Leuba for 2 million Euros in 2011.
Favre Leuba AG ("FLAG")
FLAG is a wholly-owned subsidiary of Titan Company Limited and was incorporated in 2012. The company is headquartered in Solothurn, Switzerland and owns the Favre Leuba brand. Favre Leuba is amongst the oldest watch brands in the world, and considering the rich heritage of the brand, the Company had incorporated FLAG, acquired the Favre Leuba brand and presented it in a contemporary form that is relevant for the global watch connoisseur of today.
Titan added, the Company has been continuously supporting FLAG and has made a series of investments aggregating to approximately Rs 275 crore, over a period of time for the revival of the Favre Leuba brand and its growth plans. The current COVID-19 pandemic has severely impacted these revival plans and prospects.
The Tata Group company said in a filing to the BSE, "Consequently, this will lead to Titan making provisions in the current financial year for additional impairment pertaining to its investments in FLAG, in addition to the impairment of Rs. 145 crore already made in earlier years."
Earlier in October 2020, Titan announced an end to its five-year-old joint venture partnership with German luxury brand Mont Blanc by a mutual agreement as the company wanted to focus on its primary businesses of selling gold jewellery and more affordable watches. As per the joint venture agreement, the partnership with Mont Blanc will end in December after which Mont Blanc will operate and expand as a wholly-owned subsidiary in the country.
