Kirtilals, one of the oldest jewellery retail chains, does not foresee any major impact on jewellery sales in the near future irrespective of Government curbs on gold imports.
Gold holds sentimental value in India and is consumed mostly during the marriage season and as a form of investment. Given this situation, the company does not anticipate any immediate threat to gold sales, M. Rajendran, Vice-President (Sales), Kirtilals said.
However, he feared that imposing any form of restriction, both on gold imports and consumption, would lead to a lack of transparency in the business.
He was responding to a question on the Finance Minister P. Chidambaram’s appeal to the people to resist the temptation to buy gold.
Speaking to Business Line on the sidelines of the launch of the company’s ‘Glow and Go’ collection here, he said the company was looking at 20 per cent growth in sales in FY14. It registered sales revenue of Rs 560 crore in FY13, with a year-on-year growth rate of 15-18 per cent.
Given the volatility in gold prices, he said the company was trying to boost diamond sales. The fluctuation in gold rates had affected the top line and the company was looking at increasing sales to achieve its business targets.
The company’s diamond business is growing at 15-18 per cent as against a compounded annual growth rate of 25 per cent.