Tanishq plans to increase the number of its showrooms to 100 by 2008 from the current 84, which is spread across 61 cities. The company works on franchisee model and the investment in stores comes from the franchisee. However, to meet the requirements of these new stores, the company is setting up a new manufacturing unit in Dehradun. The financial details of the new project is being worked out and the work would start by this year-end.
"We are aiming to increase our annual turnover to Rs 1,000 crore by the end of this year. The number of our showrooms would increase to 100 by 2008," said vice-president Govind Raj. The company is trying to penetrate in towns with a population of five lakh and above. Tanishq has completed a decade of existence this month. The brand occupies a share of over 50 per cent in the Rs 1600 crore branded jewellery segment in India. The turnover of the company in the last fiscal was Rs 791 crore.
The significant rise in the price of gold over the last few months has not affected the company's turnover. The turnover for the quarter ended June this year stood at Rs 288 crore against Rs 166 crore for the same period last year. To mark the completion of a decade, the company is offering a half-gram gold coin with every purchase of Rs 10,000 and a one-gram coin with purchase of Rs 20,000. With the launch of speciality jewellery malls such as Gold Souk, Tanishq has also started opening its showrooms in shopping malls.
"We have already opened showrooms in two malls of Mumbai and one in a Delhi mall. We are experimenting with the idea and if it works we would open more such stores in malls," said Raj. Tanishq is also open to the idea of opening showrooms in some of the Gold Souks. Tanishq is opening its 85th showroom next month in Delhi. Tanishq has launched a concept store in Kolkata and soon it would become the standard design across all stores.
"The idea of such a concept store is to harmonise the tradition of the past with the modernity of present. The store would give a feel of the rich Indian heritage," added Raj.