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Titan Optimistic Amid Indian Economic Reforms
Apr 6, 2017 4:58 AM
By Rapaport News
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RAPAPORT... Titan Company expects sales will increase by more than 10%
this year, following Indian government measures that aim to create a more
mature economy.
“The formalization of the economy bodes well for all the
divisions of the company, and with a whole lot of initiatives planned for the
coming year, the company is optimistic of top-line growth in the high teens in
the coming year,” Titan said this week.
Last November, Prime Minister Narendra Modi announced a
demonetization policy that took 86% of currency out of circulation overnight
and forced the economy to shift toward electronic banking and commerce. India is also
introducing a new goods-and-services tax, which the jewelry industry has
applauded.
The positive outlook comes after Titan reported an
“exceptional” fiscal year, which ended March 31. Regulatory restrictions and
effects of a nationwide jewelers’ strike hit sales in the first half, but the
retailer overcame the challenges of demonetization to record a strong second
half, it explained.
In the fourth fiscal quarter, jewelry sales reached a “new
milestone,” driven by the launch of a studded-jewelry line and better-than-expected
performance at Tanishq, the company’s flagship jewelry brand.
Retail growth at Tanishq surpassed the 40% predicted at the
beginning of the quarter, Titan said. The company plans to expand the high-end
brand in the next fiscal year by amalgamating it with Titan’s Gold Plus
network, which it will discontinue by renaming most of the 29 stores as
Tanishq.
Image: YouTube
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Tags:
Demonetization, goods-and-services tax, India, Narendra Modi, Rapaport News, Tanishq, Titan, Titan Company
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