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RAPAPORT... Tara Jewels Ltd. reported that company revenue rose 3.4 percent year on year to $286 million (INR 16.954 billion), excluding bullion sales, in the fiscal year that ended on March 31, 2014. Expenses grew 4.3 percent to $263 million (INR 15.594 billion). Profit fell 31.6 percent to $8.5 million (INR 504 million). During the fiscal year, the company observed that its international business grew about 9 percent year on year with strong demand for jewelry coming from the U.S., China and Australia. In India, however, Tara Jewels realigned its expansion plans given the nation's tighter macro-economic environment, opting to create an "asset light" franchise model and shop-in-shop format for new stores. Rajeev Sheth, the chairman of Tara Jewels, said, "Our performance showcases the merit of our business model -- a strong focus on international markets even as we restrategize our domestic retail business. The international business has seen substantial growth with the world's largest retailers continuing to repose their faith in us by way of repeat orders. Our focus on selling branded and co-branded products has yielded rich dividends. We are progressing well with brands that we have, like Monique Lhullier, Michael Beaudry, Heart Essence, Zac Posen and many more. Going forward, we will continue to expand our portfolio with branded products contributing more to sales than cobranded ones. In India, the shift in our strategy toward the asset light franchisee model will help us expand our retail footprint faster and deliver better as well as accelerated returns to our shareholders." Vikram Raizada, the CEO of retail, said, The retail business has been facing a challenging regulatory environment in India and our performance must be seen in this context. We have adapted to this environment by shifting the focus from gold centric jewelry to studded diamond jewelry. We are also conserving our capital by opting for the asset light franchise model, which will be rolled out this year. We believe that these changes will drive growth for the company in fiscal year 2015."
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