Titan Co., which is India’s largest jewellery chain retailer, owning the Tanishq brand with retail outlets countrywide, as well as a 62 percent stake in online jeweller Caratlane, expects the country’s currency and tax reforms to give it a 25 percent increase in sales by the end of the current financial year in March 2018.
Titan Chief Financial Officer Subbu Subramaniam said the government’s demonetisation of the ₹500 notes as well as the implementation of the Goods and Services Tax (GST) have resulted in more cashless transactions as well as a consumer preference for organised retailers. As a result, he said, Titan’s sales are expected to increase by at least quarter over last year’s figures.
The government’s decision to keep GST on jewellery at just 3 percent, meant that the new tax did not have a negative impact on sales while pushing consumers toward the bigger, more organised players who are tax-compliant and away from the smaller cash-oriented players, who are now under increasing scrutiny by authorities.
The company is already showing tremendous sales and profit growth. Net profit in the July-September quarter surged 71 percent and sales revenues for the first half of the fiscal year have risen 47 percent to ₹61 billion ($941 million).
Titan, which as 268 retail outlets across the country, plans to open another 15 before the end of the fiscal year.