Titan Foresees Boost from India's Crackdowns

RAPAPORT... Titan Company expects to reap the benefits of increasedregulation in the Indian jewelry market, the retailer said after reporting ajump in quarterly sales. Stricter credit conditions and a crackdown on illegalbehavior - which have come under focus since the Nirav Modi fraud scandalemerged in January - will help jewelers that have better structures in place,it said. The nation's goods and services tax (GST), which went into effect lastJuly, will harm small businesses, but more established companies will gainmarket share, it added. "Regulatory developments like GST implementation, [the]continuous drive against unaccounted wealth, and the more recent developmentsrelated to the credit situation of the jewelers, will pose serious challengesfor the jewelry industry in India," the company said in a statement Friday. "Thesame situations will prove to be tailwinds for organized corporate jewelerslike Titan Company with strong balance sheets." Titan's jewelry sales grew by a percentage in the"mid-teens" in the fourth fiscal quarter, which ended March 31. The companynoted a successful attempt to promote its diamond jewelry, and benefited frompositive changes to its gold-exchange program. The retailer has set a five-year target of increasing itsjewelry revenue 150% versus the fiscal year that ended March2017, and is in a strong position to meet that goal, it said. It aims toachieve this by developing its sales of bridal jewelry and high-end diamondproducts, and growing its share in key markets where it is currently weak. Italso plans to enlarge its network and expand its "Golden Harvest" discountscheme. Titan's watch division also noted solid sales during thequarter, with growth especially strong at stores that carry multiple brands, aswell as in its e-commerce business.