KDDL began as a dial-maker for Indian watch companies in the early 1980s and has since transformed into a multi-engine group that touches nearly every part of the luxury watch value chain - it manufactures the components that go into the world’s most prestigious Swiss timepieces, owns a 200-year-old Swiss watch brand, and runs India’s largest chain of luxury watch stores, all while quietly building a precision-engineering business that supplies aerospace and automotive giants. The recurring approach is simple: find a niche where craftsmanship and long-term customer trust create a barrier to entry, then use the cash and credibility from that niche to climb into the next, higher-value one. # Business segments Five engines at different stages - a precision-manufacturing cash cow, two consumer platforms at national scale, and a greenfield packaging bet - each built with the cash flows of the one before. ## 1. Watch components: the precision engine that built the group **KDDL is one of the world’s largest independent makers of watch dials and hands, supplying over 50 Swiss luxury brands from factories in India and Switzerland - a position built on four decades of artisanal skill that is almost impossible to replicate quickly.** - **The dial and hand duopoly** - KDDL is the only supplier of watch hands in India and one of only five independent manufacturers globally, with over 90% of the domestic market; for dials, it is among the largest independents serving global luxury brands. That concentration exists because making a luxury dial requires in-house tooling, dozens of surface finishes, and a skilled manual workforce - the company makes most of its own tools and runs segregated production lines by quality standard. - **Switzerland is the anchor customer** - roughly two-thirds of manufacturing income comes from exports, mostly to Swiss watch brands, and the watch-hand business alone partners with more than 50 of them. These relationships are sticky because a dial or hand design involves co-development, specific jigs, and long qualification cycles - switching suppliers is slow and risky for a brand. - **Bracelets are the new moat** - KDDL built India’s first steel bracelet factory for Swiss brands, with a capacity of 75,000 bracelets a year and an investment of about INR35-44 crores; commercial production began in October 2024 and 100% of output is exported. Bracelets are not covered by Swissness rules, so Indian manufacturing carries no regulatory disadvantage, and the “China Plus One” push is steering Swiss brands toward this factory. - **A Swiss outpost for Swiss-made rules** - the company owns Estima AG, a Swiss factory founded in 1924 that makes stamped hands, acquired in 2019 to serve customers who need Swiss Origin compliance and to protect market share in the mid-priced European segment. ## 2. Ethos: India’s largest luxury watch retailer **Ethos is the dominant organised retailer of luxury watches in India, with 73 stores across 26 cities and exclusive rights to over 42 global brands - a platform that turns a high-consideration purchase into a managed, omnichannel experience.** - **Exclusivity is the margin engine** - Ethos is the exclusive Indian retail partner for more than 42 brands, and management calls exclusive brands “one of the pillars of our growth and profitability” because they carry higher margins. The average sale price is close to Rs. 1.9 lakh, and inventory risk is low because luxury watches stay on catalogue for years and retain secondary value even after discontinuation. - **Digital feeds the physical stores** - nearly two-fifths of billings were generated online in FY21, but the final transaction almost always happens in a store because luxury buyers want to see the watch; the website and call centre act as a lead engine that directs customers to boutiques. - **Bigger stores, better economics** - the strategy is to open flagship stores rather than small-format outlets, because flagships draw higher footfall and digital traffic, which lifts revenue per square foot and per-store profitability. Ethos has also signed to open mono-brand boutiques for Omega, including what it says will be the largest Omega boutique in the country. - **After-sales builds loyalty** - the company runs what it describes as the largest and best-equipped independent watch service centre in India, alongside a loyalty programme called Club ECHO and a pre-owned watch business, SecondTimeZone.com, which management believes can scale quickly. ## 3. Favre-Leuba: a 200-year-old Swiss brand, relaunched from India **KDDL owns the second-oldest Swiss watch brand, Favre-Leuba, which it relaunched globally in August 2024 and is now selling through more than 80 points of sale across 20 countries - with exclusive Indian distribution through Ethos.** - **Bought, not built** - KDDL acquired Silvercity Brands AG, the entity that holds Favre-Leuba, during FY24, and now holds 93% of it directly and through subsidiaries. The brand guardian team combines KDDL’s retail expertise with Swiss watch-industry leadership, including CEO Patrik Hoffmann. - **Demand has outstripped supply** - in FY26, sales were much better than expected, most stores ran short of stock, and production is being ramped up; the company expects to more than double sales in FY27. The brand is present in over 20 countries with more than 80 points of sale as of the end of FY26. - **Ethos is the Indian gateway** - exclusive distribution rights in India are held by Ethos, which means the brand gets immediate access to the country’s largest luxury watch retail network without building its own distribution from scratch. ## 4. Precision engineering (Eigen): the quiet industrial growth engine **Eigen makes high-complexity metal stamped parts and subassemblies for global OEMs in aerospace, automotive, and electronics - a business that grew over 35% in FY26 and now contributes nearly two-fifths of KDDL’s standalone revenue.** - **No standard products** - Eigen produces only customised components based on customer designs and drawings, offering a full package from tool design to full-scale production, which makes it a sticky supply-chain partner rather than a commodity supplier. - **Exports are the growth driver** - more than 70% of Eigen’s revenue comes from exports, primarily to the US and Europe, and the division is riding the “China Plus One” wave with a growing number of RFQs from global customers looking for an Indian precision-stamping base. - **Certifications open doors** - Eigen holds the aerospace-grade AS 9100D certification alongside IATF 16949 for automotive, which acts as a pre-qualification filter that few Indian stamping shops can pass. It is expanding in-house electroplating to handle larger, more complex orders. ## 5. Ornamental packaging (Ornapac): a small bet with a luxury fit **Ornapac makes premium boxes for watches, jewellery, and gifting, primarily for international brands that need packaging for the Indian market - a business that is still ramping up and currently loss-making.** - **Integrated from design to delivery** - the division offers in-house prototyping, printing, and finishing, working with wood, leather, metal, and sustainable materials, which lets it serve luxury clients who want a single partner for the entire box. - **Built for the domestic needs of global brands** - the primary focus is international watch and jewellery brands sourcing packaging for their Indian operations, and a new factory in Panchkula with a capacity of 100,000 boxes a month was built specifically for this purpose. - **Still in investment mode** - the business is at a ramp-up stage and running at a loss, with profitability expected only in the second half of FY27. It has an insignificant share of the global ornamental packaging market, so the near-term story is about execution on the domestic luxury-packaging niche. # Group structure and partners **KDDL is the listed Indian parent, and its businesses are housed in a network of Indian and Swiss subsidiaries - the most important being the separately listed Ethos, the Swiss manufacturing outpost Estima, and the brand-owning entity Silvercity Brands.** - **Ethos Limited** - a material subsidiary listed on the BSE and NSE since its 2022 IPO; KDDL holds a 50.12% consolidated stake directly and through its wholly owned subsidiary Mahen Distribution Limited. - **Mahen Distribution Limited (MDL)** - a 100% subsidiary that distributes luxury lifestyle products and acts as a holding vehicle for stakes in Ethos and Silvercity Brands. - **Kamla International Holdings SA (KIH)** - a Swiss SPV that holds KDDL’s European manufacturing assets: 70% of Estima AG and 62.5% of Pylania SA. - **Estima AG** - a Swiss factory in Grenchen, founded in 1924, making stamped watch hands and dials for the mid-priced European market. - **Silvercity Brands AG (SCB)** - a Swiss subsidiary, 93.07% owned, that holds the Favre-Leuba brand and manages its global design, assembly, and marketing. - **Artisan Watch Products Private Limited** - an 80% subsidiary incorporated in March 2025 to expand into high-end artisanal watch components; operations are expected to commence in 2025-26. - **Global partnerships** - KDDL’s watch-components business serves top Swiss luxury brands through long-standing OEM relationships; Ethos is the exclusive Indian retail partner for over 42 global watch brands and holds franchise relationships with brands including RIMOWA (LVMH) and Bovet.