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India's listed jewellery players like Titan, Kalyan Jewellers, and Senco Gold are experiencing record growth, driven by a shift from unorganised to organised markets. Organised players now hold 35% of India's ₹6 lakh crore jewellery market, up from just 5% in 2000, according to a Motilal Oswal report.

Key Drivers of Growth

• Rising Gold Prices: Despite gold prices crossing ₹90,000 per 10 grams, demand remains strong. Titan reported a 25% YoY sales jump in Q4FY25, with higher average ticket sizes offsetting lower footfall.
• Monthly Instalment Schemes: These schemes, offering discounts on making charges, have boosted sales. Tanishq saw a 10% rise in deposit schemes, while Reliance Jewels surged 24% in FY24.
• Wedding Demand: Wedding jewellery accounts for 60% of annual demand, with 2024-25 seeing more auspicious dates post-pandemic.

Expansion Strategies

• Franchise Models: Titan (768 stores), Kalyan (278 stores), and Senco use asset-light franchise models (FOCO, FOFO) to scale rapidly. Kalyan plans to add 170 stores in FY26.
• Inventory Management: Players hedge gold price volatility using metal loans and push higher-margin studded jewellery.

Competitive Landscape

Unlisted giants like Malabar Gold & Diamonds (375+ stores) and new entrants like Aditya Birla's 'Indriya' (₹5,000 crore investment) are intensifying competition. Global risks like US tariffs (10% on imports) could pressure margins for exporters.

Investor Outlook

While Titan's EBIT margins hover at 12-13% and Kalyan's at 7-8%, slowing growth and pricing wars may squeeze profitability. Long-term trends favour organised players with scale, branding, and customer trust.

For more insights, explore our weekly wrapup.