Tanishq Reports Buoyant Festive Season
Tanishq’s parent firm, Titan Company, said in its thirdquarter update for the fiscal year 2015-16 that jewellery sales were buoyant during the festive season. The division saw good traction during the festival season and samestore growth was healthy, it noted.
“The launch of plain gold heritage collection Divyam, which is one of the highest selling collections in the history of the division, and studded collection Zuhur, which offers brilliance and sparkle at an affordable price, met with roaring success, adding to the sheen of the festive season. While the festive season was buoyant in the rest of the country, it was below par in Chennai, Bangalore and upcountry Tamil Nadu, due to rains,” the company said.
Tanishq added seven stores, or approximately 30,000 sq ft, to its network during the quarter. This takes the total number of Tanishq stores to 187 and space to about 7.75 lakh sq ft.
“The momentum of the Golden Harvest Scheme (GHS) enrolments continues and the company should hit its networth limit some time before the end of the next quarter. Redemptions under the new GHS scheme have started since the end of November,” Titan added.
Tanishq launched a diamond and yellow gold jewellery collection based on unique floral designs in December, called Mehek, which is expected to do well during the studded activation. Titan said the festive season was a washout in Tamil Nadu due to the flood situation and was generally below expectations in rest of the southern states due to the adverse weather conditions.
“In a press release dated December 15, 2015, the ministry of finance had amended the limit for quoting the PAN card for purchases of jewellery from I500,000 to I200,000 per transaction. This became effective from January 1, 2016 and is applicable to all transactions in goods and services, exceeding I200,000. This may potentially have some impact on the cash sales of individual products ranging from I200,000-I500,000 which amount to less than 10% of the revenue of the division in the recent past,” it noted.
“The company is already compliant regarding PAN card requirement for jewellery purchases above I500,000 so this will not get affected by the amendment,” Titan said.
In a separate announcement, Titan said that a company has been established to carry on the activities of the joint venture with equity participation in the ratio of 51:49 by Montblanc Services B.V. and Titan Company Limited, respectively. The equity share capital of the joint venture company is I41.5 crore comprising 4,15,00,000 equity shares of I10 each.