Tanishq charts course for double-digit growth as gold prices climb

Tata group jeweller expands 18 kt line; trims making charges

From reducing making charges to expanding its line of 18 carat (kt) wedding jewellery, Tanishq, from the house of Tata, has undertaken several steps to ensure a healthy growth trend even as gold prices continue to skyrocket.

 

Earlier this week, gold prices hit the ₹1 lakh mark for 10 grams. This comes right before Akshaya Tritiya and a spree of wedding dates in the coming month.

 

“Gold has breached a psychological mark, and that is a reality we will have to adapt to. At Tanishq, we are expanding our range of 18 kt jewellery in plain gold. This is because sooner or later, people will realise their budgets cannot be stretched,” Ajoy Chawla, chief executive officer, jewellery division at Titan Company, told Business Standard. Launched in the January-March quarter, the company is working towards aggressively expanding this range.

 

“We find that people in the North and East markets are more price-sensitive and hence more open to lighter jewellery. We are getting a lot of traction for this,” he added.

 

In a note released on Wednesday, Crisil Ratings said that the continued rise in retail gold prices to an all-time high is expected to reduce the sales volume of organised gold jewellery retailers by 9-11 per cent in 2025-26.

 

“The recent jump in prices came just before the start of the festival and marriage seasons in the first half of April 2025, limiting the impact on demand thus far,” said Himank Sharma, director at Crisil Ratings.

 

“However, as ticket sizes for buyers are likely to remain constant, caratage and grammage may reduce, as seen in the last four financial years, impacting volume,” Sharma added. 

 

The company has also slashed its making charges. Gold coins of less than 99 grams are now available at 5 per cent making charges. The country’s largest jewellery retailer has also been seeing a rise in the sale of gold coins, both in terms of buyers and value. “While gold jewellery has grown, the bulk of our growth has come from the sale of gold coins,” said Chawla.

 

Going forward, the company expects to clock a “healthy double-digit growth”. In its quarter update, the company said that its domestic operations grew 24 per cent on the back of a sharp increase in gold prices. While plain (gold) jewellery grew 27 per cent year-on-year, coins registered a growth of 65 per cent.

 

As consumers move to more affordable options, the company is also experimenting with the introduction of 14 kt studded jewellery under the Tanishq brand and 9 kt jewellery under its Mia brand.

 

In the October-December quarter, total income from Titan’s jewellery division grew 26 per cent to ₹14,697 crore on a standalone basis compared to the corresponding quarter last year. Its India business grew 25 per cent during the same period.