New Delhi:

India’s jewellery retail sector has surged to $80 billion (Rs 666,480 crore) in the financial year 2024 from $50 billion in 2018, according to a report by Motilal Oswal Financial Services.

The report highlighted multiple drivers that led to the rapid growth of the industry, including rising disposable income, an improving mix for regular wear of jewellery, enhanced product offerings (design, diamonds, etc), trust-building through mandatory hallmarking by the government, and a better buying experience at organised retail outlets.

The organised retail jewellers accounted only for 36 to 38 per cent of the overall share in the retail segment; however, the majority of the retail jewellery market continued to be dominated by the unorganised/local players, comprising over 500,000 local goldsmiths and jewellers.

The report noted that the total gold consumption in India is 66 per cent for jewellery and the remaining 34 per cent for bars and coins. India’s gold supply is dominated by imports, and the country’s gold market experienced notable fluctuations in imports from FY18 to FY20.

The report stated that the country’s gold imports reached 980 tonnes in FY19 before declining to 720 tonnes in FY20. This volatility was led by various factors, including declines in global gold prices, buoyant economic conditions leading to heightened disposable incomes, and substantial demand for gold due to traditional celebrations and weddings.

However, in FY20, a significant drop occurred in gold imports due to escalating import duties and the initial stages of an economic slowdown.

The report mentioned Tamil Nadu, Maharashtra, Karnataka, West Bengal and Uttar Pradesh as the top five states for organised retail jewellery stores in India.

In India, weddings and festivals are the primary reasons for the purchase of jewellery. Bridal jewellery still accounts for a significant portion of demand, contributing 55 per cent to the total demand.

The daily wear jewellery accounts for 30-35 per cent of the Indian jewellery market. The industry is now strategically focusing on manufacturing lightweight pieces to cater to the preferences of younger consumers, especially those who desire daily wear gold jewellery that complements western-style attire.

Fashion jewellery, on the other hand, contributes nearly 10 per cent to the Indian jewellery market.

In the jewellery product segment, bangles and chains are the primary contributors to domestic jewellery consumption, accounting for 60-70 per cent of total sales. These are preferred as daily wear by women. Necklaces contribute around 15-20 per cent of the sales volume, with their sales surging during special occasions, such as festivals and weddings. The remaining 5-15 per cent of sales are attributed to rings and earrings.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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| Photo Credit: Reuters

Jewellery maker Titan on Saturday announced increasing stake in its subsidiary and new-age jewellery brand CaratLane to 98.28% by acquiring an additional 27.18% share for ₹4,621 crore.

The Tata group-managed firm has entered into a share purchase agreement with CaratLane founders — Mithun Sacheti and Srinivasa Gopalan — and their family members to acquire all the shares held by them representing 27.18%, taking its total holding to 98.28%, said a joint statement.

“CaratLane is a subsidiary of the company and on completion of the aforesaid share purchase would result in an increase in shareholding of the company in CaratLane from 71.09% to 98.28%t on a fully diluted basis,” it said.

Over the cost of the acquisition, Titan said it will pay “₹4,621 crore towards the purchase of 27.18% equity shares of CaratLane on a fully diluted basis”.

CaratLane Trading is an unlisted entity and its turnover in FY23 stood at ₹2,177 crore. It also operates in the manufacturing and sale of jewellery.

Titan expects the acquisition to be completed by October 31, 2023, subject to the timely receipt of requisite regulatory approvals from the Competition Commission of India (CCI).

“On acquisition of 27.18% of the shareholding of CaratLane, the company would hold an aggregate of 98.28 per cent of the equity share capital on a fully diluted basis and voting rights in CaratLane,” it said.

Titan Managing Director C.K. Venkataraman said: “Titan has always prided itself in building strong brands that are amongst the leaders in their categories. We have great faith in the India consumer story and believe that the growth journey of CaratLane has only begun and has a long way to go.

CaratLane Founder and Managing Director Mithun Sacheti said: “Looking into the future, there couldn’t be a more ideal destination for CaratLane than Titan and the esteemed Tata Group who will provide the perfect opportunities for CaratLane to continue to grow from strength to strength.”

CaratLane was started as a purely online brand in 2008, looking at the fast-growing affordable and accessible jewellery market. Titan first invested in CaratLane in 2016 and over the past 8 years, in partnership with its jewellery brand Tanishq, CaratLane has witnessed substantial growth.

CaratLane also has a presence in the United States through its subsidiary.

Titan, a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO), operates Tanishq, Mia, Zoya and CaratLane brands.

It started operations in 1987 under the name Titan Watches but in 1994, diversified into jewellery (Tanishq) and subsequently into eye care (Titan Eye Plus) markets.

Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances, accessories and Indian dress wear (Taneira) and women’s bags.

Titan’s jewellery division registered a revenue of ₹31,897 crore in the financial year ended March 2023, contributing around 88 per cent to the company’s turnover.