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Titan Predicts Boost from India’s Crackdowns

Apr 10, 2018 6:57 AM   By Rapaport News
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RAPAPORT... Titan Company expects to reap the benefits of increased regulation in the Indian jewelry market, the retailer said after reporting a jump in quarterly sales.

Stricter credit conditions and a crackdown on illegal behavior — which have come under focus since the Nirav Modi fraud scandal emerged in January — will help jewelers that have better structures in place, it said. The nation’s goods and services tax (GST), which went into effect last July, will harm small businesses, but more established companies will gain market share, it added.

“Regulatory developments like GST implementation, [the] continuous drive against unaccounted wealth, and the more recent developments related to the credit situation of the jewelers, will pose serious challenges for the jewelry industry in India,” the company said in a statement Friday. “The same situations will prove to be tailwinds for organized corporate jewelers like Titan Company with strong balance sheets.”

Titan’s jewelry sales grew by a percentage in the “mid-teens” in the fourth fiscal quarter, which ended March 31. The company noted a successful attempt to promote its diamond jewelry, and benefited from positive changes to its gold-exchange program.

The retailer has set a five-year target of increasing its jewelry revenue 150% versus the fiscal year that ended March 2017, and is in a strong position to meet that goal, it said. It aims to achieve this by developing its sales of bridal jewelry and high-end diamond products, and growing its share in key markets where it is currently weak. It also plans to enlarge its network and expand its “Golden Harvest” discount scheme.

Titan’s watch division also noted solid sales during the quarter, with growth especially strong at stores that carry multiple brands, as well as in its e-commerce business.
Tags: diamond, Golden Harvest, Indian jewelry market, Nirav Modi, Rapaport News, Titan, Titan Company
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