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Organised jewellery players expected to gain market share

News: As per rating agency Icra, hallmarking is expected to push up growth for India’s organised jewellery companies. As per Icra , the Indian jewellery industry is likely to post a year-on-year growth of 15%. Organised players are expected to witness a higher-than-industry growth of more than 20%  in CY22. Furthermore, the management of Titan has indicated that new customer addition has driven their revenue growth probably due to consumers shifting from unorganised to organised jewellers and increased acceptance of hallmarked jewellery.

Views: We believe the organised jewellers with strong balance sheets would be able to benefit from continued store network expansion. Also with hallmarking becoming compulsory, consumers would tend to shift to purchasing from large organised players as unorganised players would tend to loose the lower pricing advantage owing to transparency in gold quality and higher compliance costs. In our coverage, we expect Titan to be a key beneficiary of compulsory hallmarking.

Impact: Positive