### **Company Overview** KDDL Limited, established in 1981 and headquartered in Chandigarh, India, is a globally recognized leader in **precision manufacturing**, operating across India and Switzerland. With over **40 years of experience**, the company is among the **largest independent manufacturers of watch dials and hands** worldwide. KDDL has evolved into a diversified industrial group with integrated operations spanning luxury horology, precision engineering, and ornamental packaging. The company serves prestigious clients in the **luxury watch, aerospace, automotive, electronics, and alternate energy sectors**, with exports forming a significant portion of revenues through long-term OEM partnerships, particularly with Swiss and European brands. --- ### **Core Business Segments** KDDL operates through **three primary business divisions**, accounting for over 90% of its revenue: #### **1. Watch Components Division (Taratec)** - **Products:** High-precision dials, hands, indexes, appliques, and steel bracelets for luxury timepieces. - **Manufacturing:** Facilities in **Parwanoo, Derabassi (Punjab), and Bengaluru (Karnataka)**. - **Key Milestones:** - Watch dials production began in **1983**, hands in **1996**. - Launched India’s **first dedicated steel bracelet manufacturing plant** in Bengaluru (October 2024), with an annual capacity of **75,000 units**, all export-focused. - Expanded dial capacity by **500,000 units** at Derabassi to meet rising export demand. - **Strategic Initiatives:** - Shift toward **mid- to high-value, artisanal products** such as **stone dials, gold hands, enamel work, titanium hands**, and **Mother of Pearl finishes**. - Focus on **design innovation, shorter turnaround times, and premiumization** to move up the value chain. - Expansion into **Japan, USA, UK, Italy, Middle East, Germany, and Scandinavia** to diversify away from Swiss market dependence. #### **2. Precision Engineering Division (Eigen)** - **Branding:** Eigen is a certified global leader in **precision metal stamping, tool & die manufacturing**, and **injection molding**. - **Products:** Close-tolerance, high-complexity components in metal and plastic for **aerospace, automotive, electric vehicles (EVs), renewable energy, consumer electronics, and industrial applications**. - **Capabilities:** End-to-end value chain from **design and prototyping** to **full-scale production**, including **electroplating (barrel & rack plating)**, progressive die tooling, sub-assemblies, and overmolding. - **Certifications:** IATF 16949, ISO 9001, AS 9100D, ISO 14001:2015. - **Market Focus:** - Rapid growth in **energy storage (BESS), EVs, and aerospace**, aligning with global trends like **“China+1”** and **“Make in India”**. - Strong export orientation, serving clients in **USA, Europe, and Asia**. - **Financial Performance:** - **55% YoY revenue growth** in Q1 FY26; **44% growth in H1FY26**. - First-half FY25 revenue: **INR 66 crores (46% YoY increase)**. - **Capacity Expansion:** - New leased facility of **28,000 sq. ft. in Bengaluru** (H1 FY26) to meet immediate demand. - **New factory under development** on existing land, expected to be operational by **FY27**. - Ongoing expansion of **in-house electroplating capacity**, to be fully operational by **end of Q1 FY27**. #### **3. Ornamental Packaging Division (Ornapac)** - **Products:** Premium packaging for **watches, jewelry, lifestyle products, writing instruments**. - **Materials:** Innovation in **wood, leather, metal, PU, and sustainable/e-co-friendly materials**. - **Manufacturing:** Units in **Parwanoo and Panchkula**, with the latter expanded at **INR 5 crore**, commencing commercial production in **October 2024 (100,000 units/month)**. - **Market Position:** - Growing domestic presence in **high-value, localized packaging**. - 70% YoY revenue growth in **H1FY26**. - Developing **export capabilities** to serve **Swiss watchmakers and global luxury brands**. - **Growth Outlook:** - Targeting **INR 80–100 crores** in revenue. - Global ornamental packaging market expected to grow from **$11.1B (2025) to $16B (2035)** at **3.7% CAGR**. --- ### **Luxury Brand & Retailing Strategy** KDDL is strategically expanding from component manufacturing to **owning and launching luxury watch brands**, inspired by international conglomerates. #### **Favre-Leuba (Premium Watch Brand)** - **Ownership:** Held via **Silvercity Brands AG (93.08% owned)**, a Swiss subsidiary. - **Acquisition of Brand:** Full acquisition of **Favre-Leuba (Switzerland’s second-oldest watch brand)** in FY24. - **Launch:** Globally relaunched at **Geneva in August 2024**, with **India rollout in May 2025** generating **stronger-than-expected demand**. - **Manufacturing:** Hybrid model across **India and Switzerland** to comply with “Swiss Made” standards. - **Future Vision:** Establish **global success with Favre-Leuba** before pursuing acquisitions of other international watch brands across different price segments. #### **Retail Arm – Ethos Limited** - **Operations:** Operates **India’s largest luxury watch retail chain**, with **60+ stores across 23 cities**. - **Offerings:** Over **7,000 SKUs from 70+ brands**, including **exclusive partnerships with 42 global brands**. - **Digital Presence:** Omnichannel model with **31% of billings from digital (up from 42% in Q1 FY22)**. - **Expansions:** - Launched **Ficus Trading LLC** in Dubai (April 2025) for **global watch trading** (AED 300,000 invested). - Opened **flagship stores** in major cities and developed **mono-brand boutiques** (e.g., Rimowa, Bovet, Czapek). - **Pre-Owned Business:** Operates **SecondTimeZone.com** (India’s largest platform), with physical lounges in Delhi, Mumbai, and potential in Bangalore. - **EBITDA Target:** ₹1,000 crore revenue with **10% EBITDA margin by FY25**. --- ### **Strategic Subsidiaries & Global Structure** | **Subsidiary** | **Ownership** | **Function** | |----------------|---------------|------------| | **Ethos Limited** | 100% | Luxury watch retail in India | | **Mahen Distribution Ltd** | 50.11% (KDDL) + 100% WOS | Distributes luxury goods, offers manpower services | | **Kamla Int. Holdings SA** | 100% | Swiss SPV and holding company | | **Pylania SA** | 100% | Watch component trading and manufacturing | | **Estima AG** | 100% via Kamla Int. Holdings | Watch hands and dials (Grenchen, Switzerland) | | **Silvercity Brands AG** | 93.08% (direct + indirect) | Owner of Favre-Leuba brand | | **Artisan Watch Products Pvt Ltd** | 80% (via subsidiaries) | Artisan dial manufacturing; KDDL infused **₹160 lakh** (Nov 2025) | | **Cognition Digital LLP** | 100% (via Ethos) | Digital innovation, e-commerce | | **Pasadena Retail Pvt Ltd** | 50% (JV with Ethos) | Strategic retail collaboration | --- ### **Corporate Strategy & Vision** #### **Growth Goals** - **Long-term revenue growth target: 20–25% CAGR** across business segments. - **Eigen Division:** Target revenue of **₹750–1,000 crores over 7–10 years**, with possible **US and European sales offices**. - **Export-Driven Model:** Over **70% of revenue** from exports; deep penetration in Swiss and non-Swiss luxury markets. #### **Diversification & Risk Mitigation** - De-risking from **over-reliance on Swiss watch exports** via expansion into **aerospace, EVs, BESS, and defense sectors**. - Strengthening **domestic market share** in India’s growing organized luxury segment. #### **Operational Excellence** - Invests heavily in: - **Automation and digital printing** - **Sustainable manufacturing** - **In-house R&D, tooling, and design** - **Process optimization, yield improvement, and turnaround time reduction** #### **Flexibility & Value Creation** - Open to **business restructuring or separation** if it maximizes **shareholder value**. - Decentralized management model supports agility and strategic repositioning. --- ### **Recent Financial & Operational Highlights (Nov 2025)** - **Precision Engineering (Eigen):** 55% YoY quarterly growth, 44% H1 growth. - **Packaging Division (Ornapac):** 70% YoY growth in H1 FY26. - **Bracelet Division:** Exports ramping up; capacity utilization expected to reach **65% by FY26**. - **New Facility:** Leased **28,000 sq. ft. unit in Bengaluru (H2 FY26)** to meet demand surge. - **Electroplating Expansion:** New capacity to be operational by **end of Q1 FY27**, enabling larger, complex orders.