Titan’s Q4 net profit soars 7% YoY, reaches INR 786 Crore

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May 4, 2024

Titan, a leading player in consumer discretionary goods, reported a 7% year-on-year (YoY) surge in its standalone net profit, amounting to INR 786 crore, aligning closely with market expectations.

The profit matched the Street’s estimate of INR 794 crore.

In January-March 2024, net sales surged 17% year-on-year to INR 10,047 crore, compared to INR 8,553 crore in the corresponding period last year. The Board has proposed a dividend of INR 11 per equity share for the fiscal year 2024.

The Board has additionally endorsed the reappointment of CK Venkataraman as the Managing Director of the company, extending his tenure from October 2024 to December 2025.

Continue Exploring: Titan Company reports strong double-digit revenue growth of 17% YoY in Q4 2024, driven by jewellery and emerging businesses

EBIT increased by 8% year-on-year to INR 1,139 crore in the fourth quarter, although EBIT margins experienced a 95 basis points drop, settling at 11.1%.

At a consolidated level, Titan witnessed a 22% total income growth, reaching INR 11,472 crore. Concurrently, consolidated profit after tax (PAT) increased by 5% year-on-year to INR 771 crore.

Breaking it down by segment, the total income from the jewellery business surged by 19% year-on-year to INR 8,998 crore, with the Indian business experiencing a 20% rise during the same period.

The segment’s EBIT reached INR 1,089 crore for the quarter, carrying a margin of 12.1%. Over the full year, the jewellery segment saw a 20% total income increase to INR 38,353 crore, with EBIT totaling INR 4,726 crore.

The watches and wearables business achieved a total income of INR 940 crore, marking an 8% year-on-year increase. Concurrently, the domestic business experienced a 9% year-on-year growth in the same period.

The segment’s EBIT amounted to INR 80 crore, yielding a quarterly margin of 8.5%. Over the full year, the division achieved a total income growth of 18%, reaching INR 3,904 crore.

Revenue from analog watches increased by 9% year-on-year to INR 787 crore, propelled by premiumization and increased average price realizations. Wearables revenue grew by 3% year-on-year while doubling in volumes compared to the same period last year.

In the March quarter, the EyeCare business generated a total income of INR 166 crore, remaining unchanged compared to the previous year’s period. The business achieved an EBIT of INR 8 crore, resulting in a quarterly margin of 4.8%.

Throughout the full year, the EyeCare division witnessed a 5% total income growth, reaching INR 724 crore. The corresponding EBIT for the year amounted to INR 85 crore, with margins standing at 11.7% for the entirety of the year.

The emerging businesses, encompassing Indian dress wear, fragrances, and fashion accessories (F&FA), achieved a total income of INR 97 crore in the March quarter, marking a 26% year-on-year growth. However, the combined businesses incurred a loss of INR 22 crores in the reporting quarter.

Continue Exploring: Titan’s CaratLane jewellery line to make US debut in FY25

Taneira witnessed a 36% sales growth compared to Q4FY23. Moreover, the brand’s 5th edition of the Taneira Saree Run in Hyderabad attracted over 4,200 saree enthusiasts, celebrating the saree as a symbol of liberation.

The F&FA business experienced a 13% year-on-year increase in the fourth quarter. Notably, fragrances rose by 9%, while women’s bags surged with a remarkable 97% growth in their respective key sub-segments.

Among key subsidiaries, Caratlane Trading recorded a 29% total income growth, reaching INR 748 crore. The EBIT for the quarter stood at INR 52 crore.

“FY24 marked another gratifying year for Titan. Our Jewelry business maintained its upward trajectory, reaching a significant milestone of over INR 40,000 crore in consumer sales. As we anticipate FY25, all divisions of Titan Co are steadfastly committed to catering to the ever-evolving preferences of our lifestyle consumers,” stated CK Venkataraman, MD.

On Friday, Titan’s stock closed 1.5% lower at Rs 3,514.75 on the NSE.

Raymond Ltd’s Q4 profit after tax surges 18% to INR 229 Crore

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May 4, 2024

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Raymond Ltd reported a notable 18 percent increase in its consolidated profit after tax, reaching INR 229 crore for the fourth quarter ended March 2024. This marks a significant rise from the INR 194 crore consolidated profit after tax recorded in the corresponding quarter of the previous fiscal year.

In the quarter under review, consolidated net revenue amounted to INR 2,688 crore, marking a 23 percent increase from INR 2,192 crore recorded in the same period last year.

For the fiscal year ended March 2024, the consolidated profit after tax stood at INR 1,638 crore, a substantial increase from INR 529 crore reported in the preceding fiscal year.

Continue Exploring: Raymond re-appoints Gautam Hari Singhania as Managing Director

The company stated that consolidated net revenue for FY24 reached INR 9,286 crore, surpassing the INR 8,337 crore recorded in FY23.

Raymond Ltd’s Chairman and Managing Director, Gautam Hari Singhania, remarked that business across all segments showcased steady growth throughout the year.

He added, “Despite challenges and subdued consumer demand, our lifestyle business displayed robust resilience and achieved growth. In real estate, we’ve sustained a vigorous pace of bookings, especially with the introduction of our inaugural JDA project in Bandra, Mumbai.”

He added that the company’s three sectors—lifestyle, real estate, and engineering—are anticipated to serve as future growth catalysts.

In a regulatory filing, Raymond announced that its board has approved the re-appointment of Singhania as Managing Director for a term of five years starting from July 1, 2024.

Continue Exploring: Raymond Group’s Q3 profits surge, nearly doubling to INR 185 Crore amidst strong segment performances

Sarovar Hotels expands footprint in Jaipur with grand opening of V Sarovar Portico

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May 4, 2024

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Sarovar Hotels has expanded its presence in Jaipur with the opening of V Sarovar Portico, its sixth establishment in the bustling city. Positioned strategically close to key transportation centers such as Jaipur Railway Station and just a short 20-minute drive from Jaipur International Airport, the hotel provides an unmatched opportunity for travelers seeking to delve into the essence of Jaipur.

Situated on Sansar Chandra Road, alongside MI (Mirza Ismail) Road, the hotel features 106 rooms divided into two categories: Deluxe and Premium. At Flavours – All Day Dining restaurant, catering to 75 guests, visitors can savor a delightful blend of Western, Indian, Asian, and Rajasthani cuisines. Meanwhile, Jharokha – an exclusive Indian restaurant accommodating 95 diners, offers a refined atmosphere along with a menu showcasing the hotel’s signature curries and kebabs.

Continue Exploring: Sarovar Hotels accelerates expansion drive, aims for 150 properties by 2025

For corporate functions and social gatherings, the hotel provides top-notch facilities. With cutting-edge technology, its boardrooms facilitate seamless meetings, while the spacious banquet halls—Regal I & Regal II—can host up to 350 and 115 guests, respectively.

Ajay K Bakaya, Managing Director of Sarovar Hotels & Director of Louvre Hotels India, expressed his excitement regarding the inauguration, stating, “The introduction of V Sarovar Portico marks a notable achievement for us. This hotel epitomizes our commitment to providing unparalleled experiences and convenience to our guests. With this new addition, we’ve bolstered our presence in the leisure market and met the increasing demand for high-quality accommodations in Jaipur.”

Continue Exploring: IHG Hotels & Resorts set to double presence in India, aiming for 100 operating hotels in five years

SLMG Beverages partners with Coca-Cola and Dalmia Packaging for PET recycling plant in India

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May 4, 2024

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SLMG Beverages, a prominent franchise bottler for Coca-Cola in India, is strategizing to establish a PET bottle recycling facility through a joint venture with Coca-Cola India and Maharashtra’s Dalmia Packaging, involving an investment ranging from INR 90 to 100 crore.

The recycling plant is expected to have the capacity to process 36,000 tonnes of food-grade plastic each year, while also producing 24,000 tonnes of PET bottles, representing 20% of its total sales output.

SN Ladhani, Chairman & Managing Director of SLMG Beverages, anticipates that within the next few years, the government will enforce regulations requiring all plastic product manufacturers to integrate recycled plastics into their production processes.

Continue Exploring: Coca-Cola bottler SLMG Beverages set to invest INR 100 Crore in sustainable solutions this year

He mentioned that while western countries utilize recycled plastic up to 50%, the company anticipates the usage to be around 30% in India.

He noted that previously, recycled plastic wasn’t used in food-grade products. However, there are now advanced technologies available in Germany, Japan, and the US to ensure that recycled plastic is as good as virgin plastic.

The primary hurdle in plastic recycling lies in the collection of discarded plastic bottles. SLMG is relying on its joint venture partner, Dalmia Packaging, to manage the sourcing of plastic for recycling, given its existing presence in that sector.

The company has already pinpointed the location between Lucknow and Kanpur for establishing the facility and is currently in the process of procuring the machinery.

“We sent a letter to the central government requesting the same concessions granted to recyclers in various industries.” “We expect to begin production in two years,” he stated.

In an effort to streamline operations and explore opportunities in the capital market within the next 2-3 years, SLMG has appointed Costin Mandrea, a seasoned Coca-Cola executive, as CEO.

Continue Exploring: SLMG Beverages launches 100% recycled PET bottles for Coca-Cola in India

Operating seven plants with a daily bottling capacity of 41 crore units in Uttar Pradesh, SLMG caters to 90% of Coca-Cola bottle supply in the state. Additionally, it fulfills the entire demand for Coke in Uttarakhand and maintains a presence in Bihar and Madhya Pradesh.

It serves over 300 million people through its network of 1.5 million outlets and a distribution system comprising over 1,500 distributors across all four northern states.

Mandrea has devised plans to specialize each bottling plant in the production of a specific Coca-Cola beverage, aiming to enhance cost efficiency through the utilization of artificial intelligence in the transportation of finished goods.

Adani Wilmar targets doubling staple foods business within three years

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May 4, 2024

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Adani Wilmar has set its sights on expanding its food and FMCG operations to reach approximately INR 10,000 crore within the next three years. In FY24, revenues from the food and FMCG segment had already reached close to INR 5,000 crore, showing nearly a doubling in just two years. Additionally, the company is actively enhancing its direct and indirect market penetration efforts.

Angshu Mallick, MD & CEO of Adani Wilmar, stated, “We anticipate the ongoing growth trend in our food and FMCG sectors to persist. Our goal is to achieve a INR 10,000-crore food business within the next three years, bolstered by robust demand for branded staple food items.”

In FY24, the company experienced a remarkable 42% surge in the e-commerce sector. “In major cities, over 50% of grocery purchases are now made through e-commerce and quick commerce platforms. Our brands hold significant market share in the e-commerce realm across various categories, reflecting consumer preferences,” he remarked.

Continue Exploring: Adani Wilmar’s Q4 net profit surges 67% YoY to INR 157 Crore; revenue down 5%

Simultaneously, the expansion of the physical distribution network stands as a key growth pillar. Mallick remarked, “The company has pursued an aggressive strategy for both direct and indirect distribution expansion. Presently, they directly serve approximately 7.2-7.3 lakh outlets, aiming to elevate this number to 8.25 lakh outlets by next year, with a particularly strong emphasis on rural areas.”

The company anticipates a relatively stable outlook for commodity prices in the edible oils sector in the upcoming months. “Regarding edible oils, market conditions are expected to remain relatively steady unless influenced by external factors. Globally, there has been ample production of edible oils, alongside a good crop yield of wheat. Hence, significant fluctuations in wheat prices are unlikely, although normal fluctuations of around 7-8% may occur throughout the year,” he elaborated.

When questioned about volume growth projections for the current fiscal year, Mallick indicated that overall, at a company level, volume growth is expected to range between 10-12 percent.

Continue Exploring: Adani Wilmar sees double-digit growth in edible oil and food divisions during Q4 FY24

Britannia ramps up distribution network, reaches 27.9 Lakh outlets in FY24

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May 4, 2024

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Britannia Industries, the bakery food company, has significantly expanded its distribution network, reaching approximately 27.9 lakh outlets directly and has added around 2000 rural distributors over the past year, as stated in a regulatory filing on Friday.

During the fiscal year 2023-24, Britannia Industries observed an increase in its market share. This was attributed to strategic pricing measures aimed at maintaining competitiveness and increased investments in brand development, supported by the expansion of its distribution network.

The company emphasized its commitment to ongoing investment in its brands and maintaining competitive pricing, with a clear objective of increasing market share while also sustaining profits.

Continue Exploring: Britannia eyes diversification into chocolates, salty snacks, and fresh dairy through joint ventures, unveils aggressive growth strategy

Nevertheless, according to the BSE filing, the company has recorded a 3.76% decline in consolidated net profit, amounting to INR 536.61 crore in the fourth quarter (Q4) ended March 2024, compared to INR 557.60 crore net profit in the corresponding period of the previous year.

During the entire fiscal year 2023-24, Britannia reported a 3.5% increase in consolidated revenue, reaching INR 16,546 crore, alongside a 10.1% growth in operating profit despite a subdued consumption environment. In comparison, its consolidated revenue for the preceding fiscal year stood at INR 15,985 crore.

According to the filing, total expenses for the fourth quarter of FY24 increased to INR 3,388.28 crore, compared to INR 3,322.48 crore in the fourth quarter of FY23.

Regarding the company’s performance, Varun Berry, vice chairman and managing director, commented, “We remain attentive to commodity prices and the changing geopolitical environment in terms of cost and profitability. Our ongoing cost efficiency program consistently delivers operational savings of approximately 2% of revenues, thereby maintaining robust operating margins.”

Berry added, “We have strengthened our capabilities to leverage rapidly expanding channels such as Modern Trade and E-commerce, both of which witnessed double-digit growth compared to the previous year.”

Furthermore, as stated in the BSE filing, the Board of Directors has proposed a final dividend of INR 73.5 per share, with a face value of INR 1/- each.

Continue Exploring: Britannia NutriChoice launches NutriPlus app for holistic health monitoring

Barbeque Nation Hospitality plans aggressive expansion, targets 100 new stores in three years

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May 4, 2024

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Barbeque Nation Hospitality, a publicly traded company on the Indian stock market, with operations spanning across India and a strong brand presence in international markets, is planning to expand its brands in the next three years. According to Rahul Agrawal, CEO of the food service company, they are aiming to add 100 additional stores across brands in both domestic and overseas markets.

At present, the company manages approximately 216 stores across four portfolio brands: Barbeque Nation India, Barbeque Nation International, Toscano, and Salt. Barbeque Nation International operates 8 stores, with 7 located in the GCC region and one lone outlet in Malaysia. Within India, Barbeque Nation dominates operations with approximately 186 establishments, followed by Toscano (16) and Salt (6).

Agarwal mentioned that both Toscano and Salt, recently acquired by Barbeque Nation Hospitality, have operated as regional brands thus far. The vision is to gradually expand their presence across India. “Toscano achieved INR 100 crore last year,” he noted. “Salt has also begun yielding promising results.”

Continue Exploring: Barbeque Nation expands footprint with grand opening at Nexus Ahmedabad, marking fourth venture in Gujarat

He plans to introduce Toscano in Delhi, Mumbai, and Hyderabad shortly, as well as expanding Salt, an Indian a la carte brand currently limited to Chennai, into the Hyderabad market. Agrawal expressed confidence in Toscano’s ability to expand to the top 30 cities nationwide and evolve into a brand with 80 to 100 stores in the coming years.

Regarding Barbeque Nation International, Agrawal mentioned they are exploring expansion into new territories and aim to open 3 to 4 new stores this year. He added that discussions are currently underway.

Agrawal mentioned that while the company plans to maintain the expansion and independent operation of its brands in the domestic market, they are open to exploring the possibility of expanding their Italian cuisine brand, Toscano, through a franchise model in international markets.

“The company is still called Barbeque Nation Hospitality, but we are a diversified business and the biggest player with a presence throughout India,” he stated.

When asked about the financial performance of the company, he highlighted a notable improvement between Q2 and Q3 of the previous fiscal year, particularly evident in the Q3 same store sales growth (SSSG). He mentioned ongoing efforts to restore growth and margin rates, assuring that the outcomes will become apparent shortly.

Regarding format, consumers have warmly embraced the all-you-can-eat style of the Barbeque Nation brand, according to Agrawal. He mentioned their ongoing efforts to delight customers with various food festivals. Agrawal also noted that the brand’s new design, introduced two years ago, has been adopted by over half of the outlets, reflecting a “young and trendy” aesthetic. Additionally, he informed about a two-fold increase in live counters in recent years.

Discussing challenges, Agrawal highlighted the high mortality rate in the restaurant business. Consequently, the focus has consistently been on maintaining momentum rather than widespread store openings.

Continue Exploring: P.F. Chang’s continues Indian expansion with second restaurant opening in Gurugram’s CyberHub!

Wendy’s Q1 2024 net income surges 5.5% to $42 Million

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May 3, 2024

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Wendy’s, the American fast-food restaurant chain, has reported a net income of $42 million for the first quarter of 2024, reflecting a 5.5% increase compared to the $39.8 million reported a year earlier.

In the quarter ending on March 31, 2024, total revenue reached $534.75 million, marking a 1.1% increase from the $528.8 million reported in the same period of 2023.

However, operating profit saw a decline of 3.9%, dropping to $81.15 million from $84.47 million in the first quarter of 2023.

Continue Exploring: Delight Restaurant Group acquires 65 Wendy’s outlets across US

The decrease in operating profit primarily stems from heightened investments in breakfast advertising, increased depreciation, and elevated general and administrative expenses.

In the first quarter of 2023, the company’s diluted profits per share increased by 5.3% to $0.20 from $0.19.

Adjusted EBITDA for the quarter increased by 1.8% to $127.8 million from $125.6 million compared to the previous year.

In Q1 2024, Wendy’s disclosed a 2.6% increase in system-wide sales worldwide. The US market experienced a 1.7% growth, while international markets witnessed a notable 8.8% surge.

From the first quarter of 2023 to the first quarter of 2024, the company’s global system-wide sales increased from $3.36 billion to $3.44 billion.

In the first quarter of 2024, Wendy’s reported a global increase of 0.9% in same-restaurant sales, with the US witnessing a 0.6% rise and international markets enjoying a 3.2% increase.

Wendy’s president and CEO, Kirk Tanner, expressed, “The momentum we’ve generated across our business in the first quarter positions us well to meet our 2024 targets and move forward in realizing the full potential of the formidable Wendy’s brand.”

Continue Exploring: Wendy’s appoints former PepsiCo executive Kirk Tanner as new CEO

“We achieved growth in global same-restaurant sales, with a two-year acceleration of 120 basis points compared to the previous quarter. Factors contributing to this included high-single-digit year-on-year growth in US breakfast sales and a global digital sales mix approaching 17%.”

“This performance facilitated a 60-basis point increase in the margin of US company-operated restaurants compared to the previous year, demonstrating the advantages of these profitable initiatives. Our focus remains on executing our plans and investments with a customer-centric approach, bolstering our capacity to generate long-term value for shareholders.”

Continue Exploring: Wendy’s partners with PAR Technology to boost customer engagement through AI-powered loyalty program

Wonderchef taps Unicommerce to revolutionize e-commerce operations and post-purchase experience

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May 3, 2024

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Wonderchef, a renowned brand in home appliances and cookware, has collaborated with Unicommerce for product shipments and managing post-purchase activities.

Unicommerce operates as a Software as a Service (SaaS) platform for e-commerce enablement. This partnership is geared towards optimizing Wonderchef’s e-commerce supply chain, elevating the post-purchase journey for its customers, and efficiently handling return orders.

Wonderchef has implemented Unicommerce’s multichannel order management system to automate order processing across its own brand website and various online marketplaces.

Continue Exploring: Wonderchef records 54% YoY sales growth, aims INR 700 Crore turnover by 2024

Ravi Saxena, CEO of Wonderchef, said, “With the assistance of Unicommerce reliable platform, we are positive of staying ahead of the competition as our innovative offerings are already seeing favourable response in Indian as well as overseas markets.”

“Unicommerce is dedicated to improving Wonderchef’s customers’ post-purchase experience. The Unicommerce platform will act as a catalyst in propelling their e-commerce activities with their cutting-edge items and effective distribution plan, according to Kapil Makhija, CEO and managing director of Unicommerce.

Unicommerce’s SaaS solutions facilitate comprehensive management of e-commerce operations for brands, retailers, marketplaces, and logistics service providers. By the quarter ending September 2023, Unicommerce had surpassed an Annual Transaction run-rate exceeding 750 million. With a clientele of over 3500 customers, it oversees operations in more than 8000 warehouses and processes orders from over 1900 stores through its platform.

Continue Exploring: Wonderchef unveils 26th exclusive store in India, sets ambitious target of 50 stores by 2025

Indian diamond jewellery market set to soar, expected to reach US$ 17 Billion by 2031

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May 3, 2024

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Gems & Jewellery — (Representative Image)

The Indian diamond jewellery market is expected to grow to US$ 17 billion by 2031, contributing significantly to India’s total gem and jewellery sector, which is projected to reach US$ 120 billion from $ 79 billion in 2021. In 2024, gold mine production is forecasted to hit record highs, with jewellery demand remaining firm yet sensitive to gold price fluctuations.

This was revealed by Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), during the GJEPC’s InnovNXT Forty Under 40 summit. He articulated the ambitious target of achieving USD 75 billion in gem and jewellery exports by 2030, expressing confidence in the talent, drive, and determination of the young leaders present at the event.

Nirav Bhansali, the Convener of National Exhibitions at GJEPC, emphasized, “In the gems and jewellery sector, our role extends beyond luxury provision; we are stewards of tradition, custodians of culture, and advocates of craftsmanship. To uphold our esteemed heritage, we must adapt to evolving times. Presently, we are amidst the finest minds and most promising talents within our industry.”

Continue Exploring: Lab-grown diamond brand Solitario unveils its first Chennai store, marking 15th retail outlet in India

Milan Chokshi, Convener of Promotions & Marketing at GJEPC and the Founder of Moksh, a couture jewellery brand, highlighted, “The concept of storytelling has long been ingrained in Indian jewellery, with our pieces carrying profound symbolic significance, meaning, and narratives. While traditionally designed, the emergence of design-focused jewellers is propelling storytelling into new dimensions. What’s remarkable about jewellery is its ability to spark conversations; any captivating piece or design serves as a catalyst for dialogue. The storytelling inherent in a piece extends beyond the designer’s inspiration or reverence; it encompasses the personal narratives and meanings attributed to it by the owner.”

During the discussion on Global & India Gold Demand Trends, Kavita Chacko, Research Head for India at the World Gold Council (WGC), remarked, “2024 is poised to witness a historic peak in gold mine production. While jewellery demand in 2024 is anticipated to remain robust, it remains susceptible to fluctuations in gold prices. Investments in bars and coins are expected to sustain their strength, driven by elevated prices and geopolitical factors. Central banks are projected to continue purchasing gold at a notable pace. Despite a notably high-price environment, global annual jewellery demand remained steady around 2200 tonnes in 2023. Gold’s performance in 2023 was buoyed by heightened geopolitical tensions, consumer demand, and central bank acquisitions, resulting in a 4% increase in annual gold demand, reaching an unprecedented 4,930 tonnes. Notably, the contributions of jewellery demand and central bank acquisitions underscored their stability and significant impact.”

During the discussion on Diamond Consumption Patterns in India, Amit Pratihari, Vice President of De Beers Forevermark, said, “The Indian diamond jewellery market is set to expand to US$ 17 billion by 2031, constituting a significant portion of India’s total gem & jewellery sector valued at US$ 120 billion, up from $79 billion in 2021. Global jewellery brands are increasingly leveraging Indian celebrities to connect with Indian consumers. Amit identified key market drivers for 2024, noting that 13% of Indian customers surveyed express a desire for diamond jewellery as a gift, while 51% incorporate diamond jewellery into their daily wear. Additionally, 12% aspire to self-purchase jewellery featuring natural diamonds, while 23% acquire such diamonds to commemorate relationship milestones or express affection. Another 22% seek natural diamonds to celebrate personal milestones or for future readiness. Amit also predicted that the Indian luxury market will swell to 500 million by 2030, up from 400 million in 2022, primarily fueled by a projected 20% rise in middle and high-income consumers from 2022 to 2030.”

Continue Exploring: Desi jewellery brands bet big on US market expansion, targeting diaspora demand

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