Bangalore: An ongoing global phenomenon, Titan Industries Ltd's income growth from the jewellery business exceeded that from its watch business for the first time in 1999-2000.
The company believes the jewellery business will provide valuable topline and bottomline support even as its watch business enters more compeitive times.
Globally, LVMH (Louis Vuitton Moet Hennessey) has entered into both categories, the Swatch group has decided to make a major entry into jewellery and Bulgari has purchased two famous Swiss brands.
Titan's jewellery business turnover, in which the average capital employed was Rs 144 crore during 1999-2000, more than doubled from Rs 76.11 crore to Rs 154.07 crore at the end of last year, stated the company's latest annual report.
Because of this trend, a significant number of employees of the watch division have been deployed in the jewellery division enabling the former to reduce head count and payroll costs.
The jewellery plant produces gold watches for the Nebula range and gold inputs for the watch division's plating operations.
The jewellery business continued to power ahead during 1999-2000, while the volume sales of watches grew from 5.11 million to 5.90 million and accounted for a new revenue high of Rs 48.22 crore for the segment. The company produced 2.93 lakh jewellery pieces, up from 1.75 lakh pieces produced last year, registering growth of 67 per cent. The number of outlets also grew from 21 to 36.
According to the company's latest annual report, Tanishq is India's only fine jewellery brand operating at a national level and has made a transition from a niche and elitist positioning to a more mainstream one, offering customers a large variety of styles, price points and applications.
During the current year, Titan has planned to increase the number of outlets to over 50 and sales turnover of jewellery is expected to cross Rs 225 crore.