Jewellers to spend more as buyers flock back to stores in India

The demand recovery has fueled gains in India’s biggest gold retailer by market value, Titan Co., which has rallied nearly 63% in the past year.

Bloomberg

March 31, 2022 / 10:32 PM IST

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Jewellers in India are shaking the dust off their expansion plans this year as sales in the second-biggest market are set to increase even more after almost doubling in 2021.

Sales in the country have just started recovering as fears of the pandemic eased. India’s gold imports jumped to the highest level in a decade in 2021 as jewellry purchases surged, according to the World Gold Council. That’s a turnaround for jewellers, who had put expansion plans on hold and focused on shedding debt after demand was hammered for almost two years as the coronavirus led to the postponement of many weddings -- a key source of demand.

ALSO READ: Gold jewellery retailers' revenue may rise 12-15% in FY23: CRISIL

Demand is set to grow as much as 10% in the year starting April, according to India Ratings & Research Pvt., the local unit of Fitch Group. That’s encouraging jewellers and the next financial year “shall witness a revival in capital expenditure, while credit metrics will improve over the medium term,” it said in a report Thursday.

Kalyan Jewellers India Ltd. said last month it plans to expand its network by adding 10 to 15 new shops, while Kerala-based jeweller Joyalukkas India Ltd. last weekend announced plans for an initial share sale as it seeks funds to add stores.

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