Hallmarking could help India's top brands grow by 20%: ICRA
Mandatory gold hallmarking is expected to give India’s top fine jewellery businesses a boost and could help them achieve 20% growth in 2022 thanks to the move to hallmarked gold products.
Businesses including Senco Gold & Diamonds, Malabar Gold & Diamonds, and Tata’s Tanishq could stand to witness significant growth in 2022, according to consumer ratings agency ICRA, ET Bureau reported. ICRA predicts a greater consumer shift towards buying hallmarked gold and greater focus on purity following the government implementation of mandatory hallmarking.
Mandatory gold hallmarking was brought in and enforced by the central government from June 16 this year after facing delays due to the pandemic. The mandate was designed to boost consumer trust in gold and contribute to the organisation of the market.
“The industry is likely to post a year-on-year growth of 15%,” ICRA’s vice president Kaushik Das told ET Bureau. “Organised players are expected to witness a higher-than-industry growth of more than 20%, fuelled by renewed store expansion undertaken across markets, coupled with an increasing shift towards hallmarked products.”
The gold jewellery industry is predicted by ICRA to grow by 35% in the 2021 calendar year with jewellery demand surpassing pre-pandemic levels despite ongoing Covid-19 challenges. Both the organised and unorganised sectors saw positive growth this year but the consumer trend is veering towards the organised market, according to ICRA.
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