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High Gold Rates Could See Shifts In Demand Segments, Titan Says

In FY25, despite high gold prices and other factors, its jewellery division clocked in another year of healthy 20% growth and a same-store growth of 14% over the last fiscal.

<div class="paragraphs"><p>A retail store of Titan-owned luxury jewellery brand Tanishq. (Photo source: Shubhayan Bhattacharya/ NDTV Profit)</p></div>
A retail store of Titan-owned luxury jewellery brand Tanishq. (Photo source: Shubhayan Bhattacharya/ NDTV Profit)

Raising concerns over the elevated gold prices, the country's leading branded jewellery maker Titan Co. said it "could see shifts in demand segments", though it will continue to prioritise topline growth driven by market share gains.

"Gold prices are expected to remain high, given the geopolitical and macroeconomic uncertainties globally," said the latest annual report of Titan, which operates in the market with brands such as Tanishq, Mia by Tanishq, CaratLane and Zoya.

"The Financial Year 2024-25 witnessed continued jumps in gold prices (25% YoY) every quarter, a customs duty drop of 9%, Lok Sabha and state elections, continuing softness in solitaire diamond prices due to international demand weakness, and increased competitive intensity driven by the growing formalisation of the industry," said Titan.

These forces kept the market and consumer sentiment volatile, and at the same time attractive, particularly for the gold jewellery and coin categories.

"Volatility in consumer demand has become a way of life, the demand outlook for the jewellery category in India continues to be robust with the favourable demographics, GDP outlook and precious jewellery as a store of value with a deep cultural connect to festivals and weddings," it said.

Titan, a JV between the Tata Group and the Tamil Nadu government, had crossed the consolidated turnover of Rs 50,000 crore in FY25. Its revenue from operations was at Rs 57,339 crore, in which its jewellery division contributed Rs 46,571 crore, which is over 81%.

"The division will continue to prioritise topline growth driven by market share gain with sustained investments in retail expansion, product assortment in stores, new collections, manufacturing excellence and visible marketing,' it said.

In FY25, despite high gold prices and other factors, its jewellery division clocked in another year of healthy 20% growth and a same-store growth of 14% over the last fiscal.

"Studded sale growth was relatively muted at 12%, largely on account of a decline in high value solitaires, but it continued to see decent buyer and value growth in non-solitaire studded segment,' it said.

Its jewellery division has tied up with international diamond supplier De Beers to jointly educate customers, co-promote Tanishq Diamonds and increase penetration of diamonds in India, which remains a highly underpenetrated market.

Its Mia by Tanishq, a sub-brand of Tanishq, crossed Rs 1,000 crore mark and CaratLane grew in topline by 30%.

Besides jewellery, Titan is present in watches, eyecare, the Indian dress wear business Taneira, and fragrances, among others.

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