Tan­ishq Re­ports Buoy­ant Fes­tive Sea­son

Solitaire - - SPECTRUM -

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.

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