Summary
- Exchange is a huge opportunity, and we were seeing that in a market – see, what happened in
Quarter 1 also there’s a lot of volatility in gold prices and significant high level of gold price,
which remained for at least 2 months out of the 3 months.
As a consequence, it was an intentional response to that market situation to solve for the
consumers’ uncertainty. During a wedding season should I buy, not buy, there was a lot of
confusion for customers. And we said it’s better to solve for the customer. And therefore, we
went keeping the customer in mind, not so much competition in this case. - Volume growth in the jewellery segment was driven by buyer growth in both gold jewellery and gold jewellery plus gold coins. The company is targeting a 7% market share of the INR 450,000 crore overall jewellery market. The company is expecting to gain a percentage point in market share year-on-year and has successfully done so in the past. The company is targeting a double-digit market share in the next 3-4 years. The margin has settled around 11.5 and is expected to remain at that level until Q2 end. The company is expecting inventory buildup for the festive season to remain at an elevated level until Q2 end.
- Wedding demand has been a challenge for many companies, with the specific activation being more related to the gold exchange program. The growth in wedding demand has been due to the lagan markets, specifically eastern markets. The growth in wedding demand is expected to continue in the next three quarters, with the increase in capital employed being due to the gold exchange program.
- -Titan plans to open 30-40 new stores in India this year, up from the 20-25 stores opened in 2018.-The company plans to increase its e-commerce contribution to 7-8% of total sales, up from 6-7% in 2018.
-Titan plans to infuse capital in its TEAL and CaratLane businesses, but does not plan to raise equity.
-Titan plans to increase its gold mark-up rationalization program, but does not expect this to have a significant impact on gold prices. - NK is seeing a higher exchange rate, likely because gold prices themselves have become quite high on an absolute basis. This has caused margin dilution, but does not appear to be affecting the company’s growth trajectory. The overseas jewellery business is doing well, and the company is targeting other markets like Singapore, Australia, and looking to source locally for products required in those markets.
- The company is expecting competitive pressures to remain high, but is confident in its brand and product offerings to protect margins. Margin protection will come from geographic and product mix considerations, as well as consumer sentiment.
- The company’s retail stores and product offerings are substantially higher than those of competitors, and this has led to a reduction in the cost of retailing. The company’s growth strategy is to focus on increasing sales and profitability, rather than margin expansion. The company’s wearables business is growing rapidly and is highly margin accretive. The company’s brand-building initiatives are focused on increasing sales and market share in existing markets as well as new markets.
- Discusses the company’s recent successes, including increased revenue and market share. It also discusses the company’s plans for the upcoming wedding season, which is expected to be a strong one. Finally, the conference concludes with Mr. Venkataraman’s comments.
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