Titan, the maker of watches and Tanishq jewellery, said it expect revenue from its new gold installment scheme (GHS), which was re-launched two years back in compliance with the new Companies Act, to grow to about Rs. 1,400 crore in the next fiscal, says a report.
The report further adds that the previous GHS was a huge success for the company contributing about 25 per cent to the total jewellery sales until it was forced to wind it after certain rules in the Companies Act, which came into effect 1st April, 2014, terming these as public deposit schemes. The new GHS is in “full flow,” according to an investor presentation by the company.
The report further says that the new GHS, in spite of being compliant with interest rates, had lost steam due to regulations and Titan faced a tough time this fiscal wooing its customers back. Sluggish consumer sentiment made it a choppy year for Titan which, for reported lower-than expected numbers most of the time, adds a report. Titan also warned against the government’s move to make Permanent Account Number (PAN) mandatory for every product or service transaction exceeding Rs. 200,000 adding the rules hurt its sales in the current quarter. Similarly, the recent country-wide strike by the jewellers to oppose the proposed 1 per cent excise duty on gold impacted business at some its stores in March.