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Titan eyes 2.5 times growth in its jewellery business after a strong quarter

Titan eyes 2.5 times growth in its jewellery business after a strong quarter

Titan eyes 2.5 times growth in its jewellery business after a strong quarter
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By CNBCTV18.com Nov 7, 2022 2:27:23 PM IST (Published)

Titan CFO Ashok Sonthalia reveals aggressive store expansion plans in an interaction with CNBC-TV18. Titan has set an ambitious long-term goal: to take its market share to double digits with 2.5 times growth in its core business.

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Titan has set an ambitious long-term goal: to grow its jewellery business 2.5 times and take its market share to double digits. The Tata group jewellery and eyewear company — which operates brands Tanishq, Caratlane, EyePlus and Fastrack — earns the lion's share of its revenue from its jewellery business.
Titan's market share in the country's jewellery market stands at around six percent with a network of 645 stores as of September 30, according to an investor presentation. As part of its vision for the year ending March 2027, Titan is hopeful of taking its market share closer to 10 percent given the long-term growth trend in its jewellery business, CFO Ashok Sonthalia told CNBC-TV18.
His optimistic remarks come as Titan saw a promising first month of the festive season — which begins with Diwali and goes on till the New Year — and typically leads to increased offtake as buyers line up their discretionary spends during this time of the year.
"I must remind you that the third quarter (October-December) last year was very strong, with some spillover and pent up (demand) — all sorts of things because of the disruption of COVID. This 17-19 percent (growth) among various categories that we witnessed this season is very good and very strong. And we are very happy about that," Sonthalia said.
Sonthalia was referring to quarterly retail growth in jewellery, watches, wearables and Eyecare units. Titan reported a strong set of quarterly earnings last week, driven by growth across all its segments.
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The Tata group company — a long-time favourite of legendary investor Rakesh Jhunjhunwala — remains focused on expansion both within the country and abroad. Titan is confident of achieving its target of opening 35 new Tanishq stores as well as expand the existing ones this year.
It also wants to open 50-60 stores of Caratlane and Mia (a Tanishq range) each, Sonthalia  said.
"Zoya (a luxury brand) for the first time is adding a couple of new stores after some gap. So store expansion is on track, keeping in mind our aspirational targets for 2026-27. We are working on that," the CFO said.
As part of its international operations, the company already has five stores in the UAE, he said. "The first store in the US has been getting delayed for some reason or the other for some permission or the other... Hopefully by November-end, that should also be up and functioning."
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