**Titan-Backed CaratLane to Open 40 New Stores This Fiscal Year**
CaratLane, the diamond retailer supported by Titan Company Ltd, has announced plans to open 40 new stores in the current fiscal year, a decrease from the 50 outlets launched in the previous year. Saumen Bhaumik, CEO and Managing Director of CaratLane, emphasized a cautious approach to expansion, stating, “We would not be rushing our expansion because we are still a diamond-centric retail outlet and we will go by our experience.” He highlighted the importance of data-driven decisions, noting, “There’s a very robust system based on how many people search for us, how many orders we get. Plus, we also started physical roadshows. All of these help us decide which are our next markets. I think about 40 to 50% of the stores will probably be in the existing cities.”
In the March quarter, CaratLane reported a 23% year-on-year increase in total income, reaching ₹883 crore. Revenue from the studded category rose by 19%, while other categories, including gold jewellery and gold coins, collectively grew by 44%. The retailer experienced a 5% growth in buyers, as per Titan’s earnings release for the quarter. For the entire fiscal year, total income surged by 24% to ₹3,583 crore. During the quarter, CaratLane added a net of 17 stores, bringing its total to 322 across 139 cities. The company maintained its pace of adding 50 stores throughout the year, consistent with the previous fiscal year.
Despite facing challenges since December due to high gold prices affecting consumer sentiment, Bhaumik remains optimistic about future demand. “We had a relatively poor December after the wedding season. But we did a few things, and as a result, January and February saw growth in excess of 30%, which was pretty good, given the circumstances. March was a flattish month. We also wanted to use the month of March to prepare for the next 12 months,” he explained.
The company recently launched a Valentine’s Day collection featuring pieces starting at ₹3,999 for 9-carat gold ornaments. High gold prices, which surged earlier this year to ₹1 lakh per 10 grams, have impacted consumer sentiment. Bhaumik noted, “Gold price hikes do take a hit on sentiment. Indulgence purchases come under pressure, therefore we need to continue to be truly affordable. While gold does influence sentiment, our life gets a little less affected. The first thing that comes to my customer’s mind is that diamonds are not an investment, unlike gold. People buy and wear it forever.”
Al Cook, CEO of global diamond trader De Beers, recently suggested that India’s diamond market, currently estimated at under $10 billion, could double by 2030. Bhaumik pointed out that less than 10% of jewellery consumers in India currently purchase diamonds, indicating significant growth potential. “There is a huge amount of headroom for diamonds in India. With the overall exposure, orientation towards adornment and self-gifting, my sense is that in India, diamonds could grow and grow for a significant amount of time,” he concluded.
**FAQ**
**Q: How many stores is CaratLane planning to open this fiscal year?**
A: CaratLane plans to open 40 new stores this fiscal year, down from 50 in the previous year.
