News: Tanishq to dazzle in US

(TT 29/06/2006) Calcutta - Tanishq, the branded jewellery from the house of Tatas, is going to the US. It is talking to local players to open two pilot stores on the east coast.

The company hopes to touch Rs 1,000 crore turnover this fiscal with contribution from eastern India pegged at Rs 150 crore.

“We already have stores in places like Dubai and other regions but this would be our first foray in USA which has one of the world’s largest branded jewellery markets. The target clientele would be the large NRI population as well as the mainstream American jewellery space,” said C.K. Venkataraman, chief operating officer, Tanishq.

Currently, 5 per cent of total sales comes from exports and once the brand is established in the American market, the company does not rule out the possibility of expanding footprints through inorganic growth in the second phase.

The Indian jewellery market growing at 10 per cent for the last 2-3 years is estimated to be worth Rs 60,000-70,000 crore. The Calcutta market is worth between Rs 3000 and Rs 4000 crore. However, the branded jewellery is still a minuscule portion at under Rs 2000 crore of the total jewellery market.

Venkataraman said there are few branded jewellery companies and all of them have a national presence. Depending on the region, local jewellery companies are brands by themselves. Tanishq gets 30 per cent of its revenues from the sale of diamond jewellery.

According to the World Gold Council, although rising gold prices had an adverse impact on initial demand, branded jewellery proves to be a better bet in such situations due to its adherence to quality standards, Venkataraman said.