Date:31/03/2006 URL: http://www.thehindubusinessline.com/2006/03/31/stories/2006033101470800.htm

Back Tanishq eyes export market

Our Bureau

Plans to add 10 exclusive showrooms next year

Pune , March 30

Tanishq will add 8-10 exclusive showrooms across the country over the next year as part of its plan to become a dominant player in the jewellery business.

The brand is also eyeing the export market to expand its footprint and is currently understood to be looking at the large Indian community in the US as a possible target market, though plans for the export foray are yet to be firmed up.

Experiment with diamond

The jewellery brand from the Tata group on Thursday inaugurated its second showroom in Pune city and one at Indore, taking the total network of exclusive stores to 84.

Speaking to newspersons, Mr Saumen Bhaumik, Head (National Retail), said that the company was betting on the willingness of customers in the metros and larger towns to experiment with diamond studded jewellery.

Wedding portfolio

"The Indian market is distinct from every other jewellery market in the world because here jewellery is bought not just for adornment but also for the fact that it is an investment option."

Tanishq, which ended 2004-05 with revenues of Rs 570 crore, is also betting on the traditional wedding jewellery segment to drive growth. The company will continue to grow this segment of the business by adding to the wedding jewellery portfolio, Mr Bhaumik said.

Some 15-20 per cent of the company's sales currently comes from the wedding jewellery segment.

With gold prices spiralling over the last few months, the company witnessed a marginal slump in sales as customers put a brake on buying decisions.

But Mr Bhaumik said that the company's performance in the current fiscal is likely to be in line with expectations.

Export foray

To a specific query, he said that the company's international division was currently exploring select markets to determine the game plan for an export foray.

"Among other things we have to study whether the export products will go with the Tanishq branding or otherwise. There is a huge Indian population in places like the US, which is a country we are primarily looking at currently but nothing is firmed up yet."