Titan to benefit from sound demand for jewellery in the current marriage season

Bengaluru, 17 November : Marriage and festival season to boostdemand for jewellery in the second half of current financial year with Titan emerging as one of the major beneficiaries of the uptrend.

Though jewellery demand remained subdued in October owing to Shradh, it recovered post that period.

“Titan is nurturing multiple growth engines led by jewellery networkexpansion, regional thrust and sub brands like Mia, Zoya and Caratlane,” Brokerage firm, Prabhudas Lilladher wrote in a note.

During the second quarter, average bill per buyer witnessed double digit growth year-on-year basis.Tanishq added 10 stores, taking total count to 445 stores during this period. New buyer proportion remained at around 48 per cent, which was healthy.Goldexchange programme contribution through non-Tanishq came at 33 per cent while overallexchange sales were at 40 per cent in Q2 of ongoing financial year.

As part of the international expansion, the company continues with its focus of shifting to non-Indian diaspora catchments with a target to achieve 25 stores by FY24.

Within the watches and wearables, premiumbrands continued their strong performance with Helios showing double digit growth during this period. Wearables posted a strong growth at around 131 per centyear-on-year basisduring the second quarter.

In the eye wear segment, revenue grew by 12.6 per cent with international brands growing ahead of inhouse brands.

Gold prices in the current year has remained high owing to uncertain economic environment globally. Currently, gold prices are hovering around Rs 62,000 per 10 grams. Owing to high prices of gold, experts are of the opinion that demand for gold jewellery may not reach a record high in the current fiscal year.

Jewellery accounts for around 88 per cent of Titan’s revenue as of now with the rest contributed from other segments.