An ambitious project by Tanishq, the jewellery retail arm of Tata-controlled watch maker Titan Industries Ltd to expand in the US has been hit by the recession in that economy. Tanishq has shut down two of its stores it opened at Chicago and New Jersey a few months ago after it found operations to be unviable.
These stores were opened in 2008, precisely the year in which the US was shaken by the financial meltdown on Wall Street. The company had plans to open about 25 stores in the US.
The company's decision to close the two stores also followed failed attempts to bring in an investor for the US operations. The recession in the US had made it difficult for Tanishq to establish itself in the country. Tanishq,
launched in India in 1995, is the largest jewellery brand in India.
Titan’s results for the quarter that ended on June 30 reflected the slump as the jewellery segment grew by only 3.2 per cent from Rs 615.72 crore in the first quarter last year to Rs 635.55 crore for the corresponding quarter this year, as rising gold prices dissuaded customers from going for jewellery purchases. The company has 115 Tanishq outlets in India.
Tanishq, built on the premise of offering gold certified for purity and then combining it with fancy designs, aims in
India to cut into a market dominated by traditional family jewellers.
Its plant located at Hosur, Tamil Nadu, spreads across 1,35,000 square feet.