Tanishq retains growth forecast at 15 per cent for FY 17
Titan BSE 1.01 % Company Ltd, which sells jewellery under the Tanishq brand, has retained its 15 per cent revenue growth forecast in the segment despite a dip in the previous fiscal. “The company maintains its previous guidance in terms of targeted growth for the current fiscal year of 15 per cent revenue growth and network additions of 20-25 stores adding up to approximately 100,000 sq feet of retail space,” said Titan in an investor conference in Singapore and Hong Kong.
Besides, Titan would add up to 25 new jewellery stores this fiscal and launch “aesthetically superior and relevant collections” to boost customer walk-ins and new customers who are willing to spend on new products and collections. The Tata group controlled firm had reported a decline of 5.33 per cent in its consolidated total income to `11,277.94 crore for the 2015-16 fiscal. Its net sales from jewellery segment was also down 7.55 per cent to `8,717.40 crore as against Rs 9,429.97 crore during 2014-15.
Titan further said that its Golden Harvest Scheme (GHS) is getting good enrollments and it has been able to influence the customers to redeem faster, thereby churning the customers faster and releasing limits for new enrollments. Under GHS, a customer needs to pay a fixed amount every month with Tanishq for fixed period and at the end of the scheme he can purchase jewellery from Tanishq with the matured amount. “We believe that with the revision of the net worth (after the end of financial year 2015-16) and momentum of customer redemptions, there is a healthy scope to scale the company’s GHS scheme further,” it said.
Courtesy: Economic Times