As Indians’ preference for gold jewellery continues to remain strong, Titan Industries, which sees over 80 per cent of its revenue come from Tanishq, says it expects to see the contribution from diamond jewellery go up to 30 per cent over the next two to three years.
The firm currently sees 26 per cent of its revenue come from diamond-studded jewellery.
“Titan saw its total income from the jewellery division increase by 11.2 per cent in the December quarter. The company saw demand pick up in January,” Ashok Sonthalia, chief financial officer, Titan Industries, told Business Standard.
Sonthalia said the increase in gold prices in December kept buyers away from the market as they expected the rise to be temporary. Those buyers eventually returned once they realised prices will continue to remain higher, and wedding-related purchases cannot be postponed.
“While we are under indexed as far as weddings are concerned, weddings also cause a lot of collateral buying as buyers come in to buy gifts,” Sonthalia said.
While Titan is opening Tanishq stores in international markets, it also expects to take its total count to 20 in the international market by the end of FY24. The firm also intends to increase its jewellery brand’s store count by 40-45 in the domestic market in FY24.
One of Titan’s latest venture’s has been its entry into the ethnic wear space (Taneira). Sonthalia said the firm expects to take its store count to 45 by the end of the current fiscal and double the count in the next financial year. Currently, Titan has opened 36 Taniera stores across 17 cities.
In eyewear, while the company is still firming up its expansion plans, it intends to add another 100-150 stores in the next financial year. It has a retail store network of 863 stores, according to its investor presentation.
The group is looking to add different channels for distribution for the watches segment.