PAN requirement: Titan sees Rs 500 cr hit on sales this fiscal

By: |
New Delhi | January 7, 2016 7:31 PM

Jewellery and watches major Titan Co expects to take a hit of up to Rs 500 crore this fiscal due to government's move to lower the transaction threshold of quoting PAN to Rs 2 lakh from Rs 5 lakh earlier.

Titan's watch segment is having a year-on-year growth of around 10 per cent. (Reuters)Titan’s watch segment is having a year-on-year growth of around 10 per cent. (Reuters)

Jewellery and watches major Titan Co expects to take a hit of up to Rs 500 crore this fiscal due to government’s move to lower the transaction threshold of quoting PAN to Rs 2 lakh from Rs 5 lakh earlier.

“We would have of around Rs 400 crore to Rs 500 crore effect on our turnover. This would be loss of turnover. This is our estimate,” Titan Co Managing Director Bhaskar Bhat told PTI.

The company has already taken a hit due to the previous limit at Rs 5 lakh, he added without quantifying the loss.

Last month, the company had stated that it expected cash sales of jewellery items between Rs 2 lakh and Rs 5 lakh to be impacted to some extent after the government move.

Claiming that the company has not resorted to means to circumvent the rule by breaking up bill, he said: “We are suffering on account of that. We do not break up bill as one lakh, one lakh and then sell.”

In December last year, the Finance Ministry had lowered the purchase limit for quoting PAN to Rs 2 lakh per transaction from Rs 5 lakh as part of measures to curb domestic black money generation.

In FY 2014-15, Titan Co had reported a revenue of Rs 11,903.21 crore.

At present, jewellery constitutes around 73 per cent, 25 per cent is from watches and rest is from eye-wear and precision engineering segment.

Titan’s watch segment is having a year-on-year growth of around 10 per cent.

“People are buying; luxury segment and premium segment is growing… However, mass market has got affected,” Bhat said.

Titan has collaborated with global information technology major HP to offer a range of smart watches.

“Our smart watches would be well designed and very good looking, you would see them in next 15-20 days,” said Bhat.

He further added that still smart watch segment in India is very small and would grow gradually.

Do you know What is Positive GDP growth seen in Q3, need to fight inflation: RB, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1RBI remains steadfast to take any further measures to support growth: Shaktikanta Das
2Union Minister Nitin Gadkari pitches for more research to identify import substitute products
3Road to Recovery: Imports rise for the first time in 10 months