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GST rate of 28% on watches might increase smuggling, cautions Titan

However, the company has ruled out any price increase immediately

Press Trust of India  |  New Delhi 

watch
watch

The incidence of 28 per cent on under the is one of the highest in the world that could increase the risk of smuggling, Tata group firm has said in a quarterly update.

"At 28 per cent, has one of the highest rates for in the world, consequently increasing the risk of of into the country," Company Ltd informed


However, the company has ruled out any price increase immediately.

"While the of 28 per cent will increase the effective incidence on watch division, we do not expect prices to go up because of input credits available now," the company said.

The company has a range of including its own brands such as Titan, Sonata, Fastrack, Xylys, Nebula along with licensed brands such as Police, Tommy Hilfiger, FCUK, Cole, Anne Klein, Helios and Zoop in

Besides, has also witnessed around 50 per cent jump in its sales during Akshaya Tritiya (AT) period in the first quarter of this fiscal.

It has a successful programme in June 2017 resulting in "an exceptional growth on topline for the division".

"The year started off for the division with a great AT, with 50 per cent growth over previous year's AT period as well as a very successful programme in June 2017," it said.

However, the company also added that in the first quarter, there was a strike of for 15-20 days, hence "the base for Q1 FY 2017-18 is also more favorable to that extent."

The company has also welcomed 3 per cent GST imposed on the jewellery segment by the and said: "It should not create any disruption in sales as well as "

The group has added two more stores in FY 2017-18 so far.

In the eyewear segment, its Eye Plus retail format made a healthy growth during the quarter but its sunglass business witnessed a "significant slowdown, pulling down the overall performance of the division".

The company opened 11 Eye Plus stores in FY 2017-18 so far.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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