- 09 Mar 2022
- ICICIdirect Research
Titan Company plans to buy wearables maker NoiseTITAN - 2812 Change: -0.55 (-0.02 %)
News: As per media reports, Titan Company is in advanced talks to buy a majority stake in homegrown wearables maker Noise.
Views: Titan aims to strengthen its presence in the booming wearables market. The transaction is likely to value Noise, run by Gurugram-based Nexxbase Marketing Pvt Ltd, at ~ Rs.700-800 crore. The valuation is based on ~ 2x Noise’s revenue of Rs.400 crore. Smart watches have been a fast growing category in India with smart watches and wristband shipments in India grew more than 2.4x in 2021. Titan had entered the wearables market in 2016. Currently, wearables contribute Rs.370 crore to revenues with the company having sold more than 2 million pieces. If the acquisition fructifies, it will add to Titan’s capabilities and market positioning in the wearables market and enable it to garner higher share in a rapidly growing market. Also, Titan is increasing retail presence in small towns in a big way across the board and not just in jewellery.