Published
May 31, 2018
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Titan’s jewellery unit sees strong sales amidst slowdown in industry

Published
May 31, 2018

Tata Group firm Titan Limited’s jewellery division has seen a rise in sales in India after the country was hit by a series of frauds, which resulted in a slowdown in the jewellery industry.
 

Titan’s jewellery unit sees strong sales amidst slowdown in industry - CaratLane- Facebook


However, other company’s loss is proving to be Titan’s gain as the billion dollar scams involving jewellers like Nirav Modi, Gitanjali and Kanishk Gold Pvt Ltd has led to growth in Titan’s jewellery segment.
 
“Customers, particularly high-net worth individuals, were unsettled because of demonetisation, the Prevention of Money Laundering Act (PMLA), and then Nirav Modi. There was a lot of fear about national jewellers after the PNB (Punjab National Bank) and Gitanjali issue,” C.K. Venkataraman, Titan’s jewellery division head, was quoted as saying by Livemint.

According to Venkataraman, “The company’s jewellery business, retailed under the Tanishq brand, gained substantially on brand recall and preference. “The on-ground sales performance and customer behaviour in stores are reconfirming that. The buying capacity of first-time customers, who would earlier spend Rs30,000-40,000 at Tanishq outlets, has gone up to Rs3-5 lakh.”
 
For 2017-18 financial year, Titan reported net profit of Rs 1,102 crore (approx $164.4 million) with total revenue of Rs 16,245 crore.
 
Titan Limited had set a target of generating revenue of Rs 50,000 crore (approx $ 7.6 billion) by financial year 2022-23 and expected its jewellery business to contribute heavily in achieving this target.

If the trend continues, Titan may well achieve its revenue target well in advance by eating into the market share of big players like Nirav Modi and Gitanjali.

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