Quote of the Month: Bhaskar Bhat
In a recent interview with NDTV, Bhaskar Bhat, Managing Director at Titan Company gave some insight about their jewellery arm, suspension of Golden Harvest Scheme and the future of the gems and jewellery industry.
Speaking about the company’s performance last quarter, he said, “Although expectations were high in the third quarter due to festive season but challenges remain same as it was in the second and third quarter. Mainly the upper middle class was not ready to spend on jewellery as there was no incentive to spend. Gold prices remain almost stable in the quarter due to which investment demand is low.” The Golden Harvest Scheme was suspended post the announcement of New Companies Act in April.
“In the dispensation of the companies act there are certain rules regarding taking deposits from customers. We are waiting for some regulatory clarification on these due to which we have suspended these schemes. The scheme used to contribute 20 per cent to our jewellery sales. Our cash flow will be affected due to discontinuation of the scheme; we may have to resort to external source for our cash requirement.” Speaking on expectation of regulatory relaxation from new government, he said, “We expect the new government to review all the three restrictions that it has put to curb the CAD (Current Account Deficit) as we have already over achieved our targeted CAD level. The government is also aware of the smuggling which the restriction on gold import has created, so we think government will give a relook to this restriction.”