Titan watches and Tanishq jewellery have said that they are expecting a good revenue from the new gold installment scheme (GHS). It was re-launched two years back in assent with the new Companies Act, targeting about Rs 1,400 crore by the next fiscal.
Earlier the GHS had proved to be a great success for the company and it contributed around 25 per cent to the total jewellery sales. Later certain rules under the Companies Act came up and hence they were compelled to wind it up. The act, with effect from 1st April, 2014, had declared GHS a public deposit scheme.
As per the investors, the new GHS is now in full flow. Titan had told TOI last year that scheme would result in a drop of about 10 per cent of jewellery sales. As the year 2015 came to an end, jewellery revenue was Rs 6,873 crore and GHS about Rs 687 crore.
The new gold installment scheme, despite of being flexible with interest rates, had lost its charm due to the regulations.Titan had to go through a tough time this fiscal to get its customers back.
On the same page, the country is seeing jewellers strike to oppose the 1 per cent excise duty on gold. This has heavily impacted business at some stores in March. “Excise duty got levied in the budget and the industry strike hit us significantly,” the presentation was quoted The Economic Times as saying.
