Industry profile: The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 6-7 percent of the country’s GDP. It also employs over 2.5 million workers. One of the fastest-growing sectors, it is highly export-oriented and labor-intensive. India exports 93 percent of its cut and polished diamonds produced. Exports of cut and polished diamonds rose from US$ 11.16 billion in FY 2004-05 to US$ 22.78 billion in FY 2016-17, registering a compound annual growth rate (CAGR) of 6.13 percent. Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector a focus area for export promotion. In addition, the Government has recently undertaken various measures to promote investments and upgrade technology and skills to promote ‘Brand India’ in the international market.
Company profile: The company manufactures jewelry with the Tanishq brand. It is also in the business of sports and watches under various brands. Unorganized players largely dominate the jewelry market. But Tanishq is the market leader in the organized segments. It is the world’s fifth-largest wristwatch manufacturer and India’s leading producer of watches under various brands, including Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys. The company is also moving into sunglasses and frames under the brand Fastrack and titan eye +. Titan has partnered with HP to venture into smartwatches like FITBIT. Watches and Jewelry
Shareholding Pattern: BSE Data
Financials and ratios : [table id=89 /]
Future Prospects: Indians are mad for gold. A large part of the Indian population is young and expected to need jewelry for their marriage. After the Demonetization, it is difficult for the unorganized sector to do business. Whereas companies like Titan and TBZ, it is easy to do business. The company is well known with brands like sonata, Fastrack, Titan eye plus, Tanishq. The Smartwatch segment is one ample opportunity for the company.
