Despite a recent spike in gold prices and the scare of coronavirus, Jewellery maker Titan has not witnessed a major impact on its watch business.
Despite a recent spike in gold prices and the scare of coronavirus, Jewellery maker Titan has not witnessed a major impact on its watch business. “It could be because of two reasons. People are actually now looking at gold as something which will be going up for a period of time. Secondly, there is also the wedding season which is a strong one,” Subbu Subramaniam, CFO, Titan Company Ltd, told CNBC TV-18 in an interview on Thursday. Titan also expects to maintain 11-13% growth in the jewellery business in March. Gold prices have increased by 9% in 2020.
China is a major exporter of key raw materials for many industries and Titan also imports supplies for its eyewear and watch business. However, for Titan, the situation seems to be under control. “The impact of coronavirus on our business, if anything, is extremely remote or small. We do rely on some supplies for watches from China, to some extent to eyewear as well. But as of now, we don’t see a stock situation. We are hoping that the production will start in a short time,” Subbu Subramaniam said, the news channel reported.
Earlier, a trade body had raised concerns on the drying supplies from China and how that is affecting Indian economy. “All exports have been completely stopped and it is apprehended that it may cause substantial disruption in the supply chain of the country,” the Confederation of All India Traders said in a statement last week. India not only imports raw materials for manufacturing but also gets finished products from the neighbouring country. Meanwhile, the coronavirus scare could spell an added gloom to the Indian industries as the country is already reeling under a slowdown and the trade impact of deadly coronavirus might aggravate India’s problems. The deadly virus has already claimed over 2,700 lives, according to China’s National Health Commission (NHC).