India’s Top Jeweler Sees Brief Slowdown if Gold Buying Curbed

Summary

Titan CFO Ashok Sonthalia discusses the impact of Prime Minister Modi's call to curb gold buying. He expects only a temporary slowdown if restrictions are imposed, citing exchange programs and product mix adjustments. Gold demand in India remains culturally entrenched and not easily destroyed. Titan's international expansion continues with North America and Singapore performing well, while GCC operations are paused due to regional tensions.

• Prime Minister Modi urged Indians to avoid buying gold for a year to preserve foreign-exchange reserves.
• Titan CFO Ashok Sonthalia says a government curb on gold buying could cause only a short-term demand slowdown.
• Titan sources nearly 50% of its gold through exchange programs, reducing import dependence.
• The company is adjusting its product mix with lower-carat gold and diamond jewelry to improve accessibility.
• International expansion: North America and Singapore are doing well; GCC store openings are paused.
• Rupee weakness is net favorable for Titan due to higher export growth relative to imports.
• Gold demand in India is culturally deep-rooted and unlikely to be destroyed permanently.
• Titan remains in a wait-and-watch mode for any policy changes before adjusting its strategy.