Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
Manage your Savings, Demat and Trading Account conveniently at one place
News: Titan Company has been informed by its wholly owned subsidiary Favre Leuba AG (FLAG) that it has agreed to sell the Brand "Favre Leuba" to a prospective buyer, subject to completion of certain condition precedents. Also the company is in the process of renaming FLAG as "TCL Watches Switzerland AG" or any other name as may be approved by the local authorities in Switzerland. FLAG has further informed the Company that it will file for liquidation after the completion of the transaction subject to receiving requisite approvals.
Views: The company had acquired the brand Favre Leuba in 2011 for ₹ 14 crore and has made a series of investments amounting about ₹ 275 crore, over the last decade for the revival of the Favre Leuba brand. However, the covid 19 pandemic had severely impacted revival plans and prospects for the brand. Titan had announced in December 2020 that it would be scaling down its Favre-Leuba operations. The filing of liquidation proceedings by Favre Leuba could lead to Titan having to make provisions for additional impairment provision pertaining to its investments in FLAG in addition to the impairment of Rs 145 crore already made in earlier years.
Impact: Negative