Mumbai: With gold prices hitting record highs and buyers turning cautious, Titan Co’s Tanishq is banking on old jewellery to drive new sales—rolling out its first-ever ‘zero deduction’ exchange offer across all gold categories.

Last month, the company rolled out a new campaign under its exchange programme at Tanishq, offering for the first time a ‘0% deduction’ on exchange across all gold categories, even as low as 9 karat.

Exchange of old gold has been inching up for the retailer, with about 33% of purchases now linked to exchanges of old gold pieces and ornaments. The company expects the number to touch 40% with the new rollout. Tanishq draws another 9% of its business from allowing consumers to exchange their old Tanishq pieces.

“There is 25,000 tonnes of gold sitting in private lockers across India. We import about 740 or 750 odd tonnes every year. We are helping people unlock value," said Ajoy Chawla, chief executive officer of Titan’s jewellery division, in an interview with Mint on Tuesday.

On Tuesday, the jewellery and watch retailer issued its September quarter update to the exchanges. Its domestic jewellery business reported 19% growth in Q2, while registering a marginal year-on-year (y-o-y) decline in the number of buyers.

Skyrocketing gold prices have spooked shoppers in India, who typically buy gold during the festive season and the onset of the wedding period later in the year.

Gold prices have been on the boil, hitting all-time highs. Prices of the precious metal have risen by nearly 20% rise over the past three months. On Tuesday, in Delhi, the price of 24-karat gold was around ₹1,11,981 per 10 gm, while that of 22-karat was about ₹1,02,649.

“Surging gold prices drove substantial ticket size increases offsetting marginal year-on-year declines in buyer counts. The impact of Q2FY25’s high base (due to custom duty reduction) was offset by the early onset of festive season in September this year, compared to October in FY25. Further, these growths were also fueled by significant investments in consumer promotions,” the company said in a filing to the exchanges on Tuesday.

The zero-deduction policy marks a change from previous offers, where deductions were applied based on the purity of the gold. Earlier, consumers could exchange gold only above 14 karat purity.

The gold exchange programme is part of its investment in “stimulating demand,” said Chawla. For the year ended 31 March 2025, Tanishq operated over 500 stores in India. The new exchange programme has been rolled out across flagship Tanishq stores. The company also sells jewellery under the Mia and CaratLane brands.

The programme entails additional costs for Titan. “We incur more working capital because we are buying it on spot,” Chawla said. “We want to continue this over a longer period. It also helps to give people an emotional hook,” he said.

High gold prices in India have slowed purchases over the past year. “People have been holding back. During the previous quarter, people have been a little impacted because gold prices have jumped 50% year-on-year,” Chawla said. “Now, with the exchange programme and the festive season, we expect demand to pick up as people want to participate in celebrations, gifting and weddings. Buyers were subdued in the first half of the year, but now we’re beginning to see that lift up.”

In the June quarter, the company’s jewellery division reported a 19% growth in total income, excluding bullion and digi-gold sales.

The India business of Tanishq, Mia, and Zoya together grew 18% to ₹11,217 crore. High gold prices and challenging market conditions saw customers gravitate toward gold purchases, driving better growth in gold jewellery and coins vis-à-vis studded jewellery.

With prices of the yellow metal continuing to climb, more consumers are walking into stores to buy gold coins. “Gold coins continue to lead growth in general across borders. More and more people are interested in gold as an investment vehicle, whether coins or ETFs (exchange traded funds). People come to buy gold, and later on, they may exchange it,” Chawla said.

Mumbai: With gold prices hitting record highs and buyers turning cautious, Titan Co’s Tanishq is banking on old jewellery to drive new sales—rolling out its first-ever ‘zero deduction’ exchange offer across all gold categories.

Last month, the company rolled out a new campaign under its exchange programme at Tanishq, offering for the first time a ‘0% deduction’ on exchange across all gold categories, even as low as 9 karat.

Exchange of old gold has been inching up for the retailer, with about 33% of purchases now linked to exchanges of old gold pieces and ornaments. The company expects the number to touch 40% with the new rollout. Tanishq draws another 9% of its business from allowing consumers to exchange their old Tanishq pieces.

“There is 25,000 tonnes of gold sitting in private lockers across India. We import about 740 or 750 odd tonnes every year. We are helping people unlock value," said Ajoy Chawla, chief executive officer of Titan’s jewellery division, in an interview with Mint on Tuesday.

On Tuesday, the jewellery and watch retailer issued its September quarter update to the exchanges. Its domestic jewellery business reported 19% growth in Q2, while registering a marginal year-on-year (y-o-y) decline in the number of buyers.

Skyrocketing gold prices have spooked shoppers in India, who typically buy gold during the festive season and the onset of the wedding period later in the year.

Gold prices have been on the boil, hitting all-time highs. Prices of the precious metal have risen by nearly 20% rise over the past three months. On Tuesday, in Delhi, the price of 24-karat gold was around ₹1,11,981 per 10 gm, while that of 22-karat was about ₹1,02,649.

“Surging gold prices drove substantial ticket size increases offsetting marginal year-on-year declines in buyer counts. The impact of Q2FY25’s high base (due to custom duty reduction) was offset by the early onset of festive season in September this year, compared to October in FY25. Further, these growths were also fueled by significant investments in consumer promotions,” the company said in a filing to the exchanges on Tuesday.

The zero-deduction policy marks a change from previous offers, where deductions were applied based on the purity of the gold. Earlier, consumers could exchange gold only above 14 karat purity.

The gold exchange programme is part of its investment in “stimulating demand,” said Chawla. For the year ended 31 March 2025, Tanishq operated over 500 stores in India. The new exchange programme has been rolled out across flagship Tanishq stores. The company also sells jewellery under the Mia and CaratLane brands.

The programme entails additional costs for Titan. “We incur more working capital because we are buying it on spot,” Chawla said. “We want to continue this over a longer period. It also helps to give people an emotional hook,” he said.

High gold prices in India have slowed purchases over the past year. “People have been holding back. During the previous quarter, people have been a little impacted because gold prices have jumped 50% year-on-year,” Chawla said. “Now, with the exchange programme and the festive season, we expect demand to pick up as people want to participate in celebrations, gifting and weddings. Buyers were subdued in the first half of the year, but now we’re beginning to see that lift up.”

In the June quarter, the company’s jewellery division reported a 19% growth in total income, excluding bullion and digi-gold sales.

The India business of Tanishq, Mia, and Zoya together grew 18% to ₹11,217 crore. High gold prices and challenging market conditions saw customers gravitate toward gold purchases, driving better growth in gold jewellery and coins vis-à-vis studded jewellery.

With prices of the yellow metal continuing to climb, more consumers are walking into stores to buy gold coins. “Gold coins continue to lead growth in general across borders. More and more people are interested in gold as an investment vehicle, whether coins or ETFs (exchange traded funds). People come to buy gold, and later on, they may exchange it,” Chawla said.