Titan Co managing director: People become used to higher gold prices

Titan Company Ltd Managing Director CK Venkataraman has penned a book about the journey of Tanishq, from the mid-1990s to the present.

When Titan Co. Ltd Managing Director CK Venkataraman reached out to publisher Chiki Sarkar wanting to write a book on “managing stress at the workplace”, she suggested that he “become a famous author first before I wrote that book. To which I said how do I become a famous author without writing a book? And she said I should write about something that is already famous. Which is where the idea to write about Tanishq came from.”

(At the time of publishing, Titan Co Ltd shares were trading at Rs 3,432.50 on the National Stock Exchange. Gold prices in India were at Rs 74,355 per 10 grams.)

As chief operating officer of Titan's jewellery business from 2005-12 and CEO of the jewellery business from 2012-19, Venkataraman had both access and incentive. He spent 1.5 years interviewing more than 80 people for the book. “I have been with Titan for 34 years, so I was a part of many of those stories,” Venkataraman said. “But their (the interviewees) vivid recollection brought the details back to me.” It took Venkataraman another six months to write the book. “Most of those interviews have made it into the book,” he added.

The book, titled 'The Tanishq Story: Inside India's No. 1 Jewellery Brand', released on May 30. A 1985 alumnus of the Indian Institute of Management Ahmedabad, Venkataraman spoke to us on a video call about his new book and the story of how it came about. Edited excerpts:

What can you tell us about the book which came out on May 30?

The story of Tanishq is one part of the book. The other part is what makes Tanishq a sustained success. And that is obsessive focus on customer service, total emphasis on innovation and stakeholder capitalism: giving voice and respect to employees, retail/vendor partners, their employees.

What can you tell us about the story of Tanishq, as you tell it in the book?

Tanishq was launched in the 1996. Our focus was on Western-style diamond jewellery even though most people in the country were buying traditional gold jewellery at that time. There were some other mistakes, and Tanishq made losses in the early years. Then starting the year 2000, a new team came together and changed the course of the brand and the business forever.

You mentioned the turnaround in the early 2000s. That is also the time when gold prices started to skyrocket - going from just under Rs 6,000 for 10 grams in 2004 to more than Rs 26,000 in 2014 and over Rs 74,000 per 10 grams now. Is that something you have had to work around constantly?

People become used to the price of gold, because it is a store of value and it has kept rising.

Could you elaborate on this?

If someone was buying a necklace that weighed 20 grams earlier, they may choose one that weighs 16 grams now. It is the job of the industry to keep making lighter jewellery options to give that flexibility to the customers. People buy with rupee budgets in mind and they end up buying as many grams of jewellery as fits within their budget.

The industry ends up innovating a lot to keep pace with rising prices (hollow products versus solid products for instance or introducing negative spaces within a necklace design so that its overall surface area is similar, but with less gold contained in it).

Are there other examples of the focus on innovation?

During the 1990s, diamond jewellery used to be meant only for the very-well-to-do, on account of the industry using only the highest form of “diamond clarity.” Over the last two decades, we have used different clarities of diamonds to bring down price points. Techniques like the "nick setting" have also helped to broaden the appeal.

Traditional Indian markets from Karol Bagh in Delhi to T Nagar in Chennai have entire lanes devoted to local jewellery store that often have loyal customers who have been buying from them for generations. How and where does Tanishq fit into this scheme?

Tanishq built a strong customer proposition around multiple aspects: making the women feel that Tanishq understands them best; creating jewellery as accessories through design, craftsmanship and quality; the purity promise through the Karatmeter and the assurance of Tata; exceptional exchange value and shopping experience. All this was possible because professional, talented people come easily into a company like Titan while the typical Karol Bagh or T Nagar jeweller would struggle to get the best people. These professionals make the ultimate difference.

You've been with Titan since 1990. Any career tips for new MBA grads and other Gen Z and Gen Alpha who don't think it's possible or even desirable to stay in the same company for as long as you have?

Fall in love with what you do. Discard the notion that you can't be in this company for a long time. Don't get distracted by your friends are doing, wishing that you could be doing that. All your focus must be on what you have. You must actively try to love what you do.

Of course, the company must fulfil some things too. It must be a company that offers multiple opportunities in terms of categories, geographies and domains, so that young people can keep doing new things every 3 years. It should respect people and give them freedom. It should be a “fun” place to work.

Which year did you complete your PGDM at IIM-A?

1985

And how long have you been with Titan?

Since 1990; I just completed 34 years.