Bengaluru: Watches and accessories maker Titan Co. Ltd expects its jewellery division to fetch 40,000 crore out of an overall 50,000 crore revenue by 2022-23, its annual report noted.

Titan’s total revenue grew 20.44% in 2017-18 to 15,656 crore, of which jewellery sales fetched 13,036 crore. The company’s profit after tax soared 52.62% to 1,163 crore during the period.

The company has set several smaller goals for its jewellery division over the next five years to reach its 2023 target. These include strengthening the contribution from the wedding segment to 50% (currently 35%) and increasing the revenue from new products to 45% by 2022-23 (currently 31%).

Titan’s flagship jewellery brand Tanishq is among the leaders in the market. But it does not have a significant presence in the wedding jewellery segment, something the company is looking to change.

Last year, Titan launched a sub-brand under Tanishq called Rivaah, solely targeting the wedding segment. It also created prominent wedding zones at many of its retail stores, with the aim of drawing customers and to communicate that Tanishq has a large wedding jewellery portfolio.

Titan also expects the high-value diamond jewellery business to fetch half of its overall jewellery sales by 2022-23, up from the current 30%.

In 2017-18, Titan’s jewellery division recorded its best-ever performance. Both revenue growth and same-store-sales growth in the jewellery business grew 20% in 2017-18, despite the year ending on a sour note for most domestic jewellers.

In February, India’s second-largest state-run lender Punjab National Bank (PNB) said it had been cheated of about $2 billion by two jewellery groups, one controlled by Nirav Modi and the other by Mehul Choksi. The scandal sparked a collapse in the share prices of several jewellers.

However, Titan proved to be an exception. In the aftermath of the scandal, analysts not only expected Titan to ride out the crisis but even said it stood to gain from it. And in June, Titan’s jewellery business head C.K. Venkataraman told Mint the company had already begun to see an uptick in new customers, especially among the high-net worth individuals (HNIs) segment, besides an increase in the average bill size of first-time buyers.

However, the road ahead could be bumpy. On 4 July, in a stock exchange filing, Titan spoke of the soft patch the jewellery industry is going through. Gold imports declined during the first five months of the year, led by a drop in demand for bullion and to some extent because of weak consumer sentiment, Titan said in that filing.

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